- Product Functionality
Virtual Trader contains this functionality in a ‘structured’ solution that allows it to be efficiently deployed in any intercompany situation.
The Virtual Trader solution supports the application of business rules based on the nature of trading relationships, rather than specific company-to-company definitions.
New acquisitions can be quickly defined by the existing business rules through their addition to an appropriate trading relationship type.
This can often reduce setup and maintenance costs for large organizations.
Simple & Multi-Tier Intercompany Activity
As well as simple intercompany activity, Virtual Trader supports activities that contain multiple intercompany steps or tiers.
The hierarchy of steps is not predefined and can vary depending upon the nature of the transaction being processed, by looking at associated data elements to determine the path.
Virtual Trader can support finance channels, sell through organizations, Parent/Child structures, HUB companies, agencies, Intellectual Property owners etc.
There are no restrictions on the type of transactions that can pass through a hierarchy e.g. services and intellectual property.
Pricing Methods, Ladders & Formulas
Virtual Trader provides Pricing Methods that support common or client specific transfer pricing methodologies.
These can be based on basic cost plus mark-up or price less discount and variations, or incorporate Formula Sets that can build up complex calculations in a similar way to spreadsheet formulas.
Pricing Ladders allow complex pricing structures to be constructed to represent customer specific pricing hierarchies.
Virtual Trader can evaluate preferred intercompany currency and currency exchange rate type.
Currency exchange rates can be shared with the host system, which eliminates the need to maintain two sets of rates.
Virtual Trader can control the entered currency of intercompany liabilities and assets independently from the currency of the underlying trade transaction.
It also allows control of the currency in which the settlement of intercompany liabilities is made.
Rule Based Accounting
The accounting produced by Virtual Trader is not pre-defined, and the client can define all aspects of the accounting to be produced through business rules.
The business rules can be grouped into logical business models and are controlled by a flexible decision tree to determine which business models are executed in a case-by-case basis.
The accounting created can represent multiple Charts-Of-Accounts and accounting systems.
For example, you could be creating accounting for your local R12 instance and at the same time also be creating accounting for a 3rd party system.
Cost Plus Accounting
Virtual Trader supports the re-imbursement of subsidiaries based on accumulated monthly costs and revenue amounts taken from the General Ledger. This is often referred to as ‘cost plus’.
More complex subsidization calculations can be supported through Formula Sets, which allow complicated hierarchical calculations to be built.
Virtual Trader operates on a year-to-date basis. Actual or ‘forecast’ and ‘true-up in arrears’ is supported.
Intercompany Sub-Ledger & Settlement
Virtual Trader provides the option to maintain an independent Intercompany Sub-Ledger of record.
This optional module provides a number of features
• Point of reconciliation and audit with GL
• Short & long term classification
• Intercompany interest
• Settlement, re-assignment, sweep to loan etc.
Intercompany Tax Evaluation
Virtual Trader can evaluate intercompany tax requirements directly, or can defer to Oracle tax management or link with 3rd party tax engines.
Virtual Trader can create accruals for withholding tax against the receivable, and deduct withholding tax on settlement.
The resulting tax calculations are recorded in Virtual Trader and can be reported upon as well as sending tax transactions to the target system.
Intercompany Invoicing & Numbering
Virtual Trader can be configured to provide intercompany invoices off the back of the transactions processed.
These invoices can be either single or in consolidated listing style.
The client can customize the format of their invoicing through Virtual Traders BI Publisher templates.
Virtual Trader can sequence invoice numbering by company or by Tax Registration.