Inter-Company Sub-Ledger & Settlement

The IC sub-ledger is an optional component of the Virtual Trader product. Its prime function is to support clients choosing to process their inter-company activity directly to the general ledger rather than through the AR/AP sub-ledgers.

The IC sub-ledger is an independent module and is usually populated by the IC Engine but can also be populated from other external systems through an open interface.

The IC Sub-ledger is used to hold all the statutory elements of the inter-company activity, and organizes them by company showing 'due to' and 'due from' information. The ledger provides the overall inter-company position of each company grouped by trading partner. A drill down facility allows inquiry by company, period, currency, transaction type etc.

Virtual Trader Overview

The ledger contains approval functionality. This can be automated through settlement rules, as well as used manually. Only approved liabilities are routed for payment. Liabilities may be partially paid, leaving the remaining liability outstanding at the original date.

The ledger provides automated facilities for charging interest on outstanding liabilities, based on transaction type and the number of days overdue.

Statutory transactions can be classified, most often into long and short term debts. Facilities are provided to re-classify transactions, and post appropriate journals to the general ledger, and optionally post un-realized gain and loss where appropriate.

The ledger provides many standard operational reports including:

  • AR/AP Balance Reports
  • GL Reconciliation Report
  • Settlement Report
  • Aged Liabilities

The payment functionality supports both net as well as gross settlement, and can be defined on an entity basis (company, division, tax registration etc.). The payment currency can be independently assigned for each entity. The payment process can be separated into pay groups with their appropriate authorizations.

The payment process evaluates any currency gain and loss, including reconciliation with the bank returns.