Treasury & Currency Management
For companies operating internationally, currency FX exposure is always a major consideration. This is generally managed by controlling the currency in which each intercompany activity is raised and subsequently settled. Common practice is to establish the preferred intercompany currency, rather than being restricted to the trade currency.

In many cases it is not viable to hold multiple currencies at a subsidiary level. To overcome this limitation, parent companies need to be able to buy, expense and receive on behalf of their subsidiaries.

Virtual Trader and its related intercompany sub-ledger provides the functionality to resolve all of these complex issues as the currency can be independently assigned, giving companies full control over their currency FX exposure.

Buy or Expense on Behalf Of

Virtual Trader automates the intercompany accounting associated with purchases on behalf of another company, either within the same ledger or across ledgers.

As part of this functionality, Virtual Trader allows for the integration of transfer price rules and/or currency re-denominations.

Receive Cash on Behalf Of

Virtual Trader automates the process of cash receipts made on behalf of another company, either within the same ledger or across ledgers thereby facilitating control over the currencies in which each company will hold bank accounts.

Control Currency of Intercompany Liabilities & Assets

Virtual Trader allows control of the currency in which intercompany liabilities and assets are created, rather than just following the trade currency. Enables the capability for preferred intercompany currencies.

Liabilities and assets can be settled in a preferred settlement currency.

Account directly for cash movement in the currency of the sending and receiving bank accounts.

Aggregated Settlements

Virtual Trader can aggregate liabilities across transaction types, liability accounts and different currencies into single settlements by trading relationship.

Powerful intercompany settlement rules provide business users with the ability to automatically approve regular settlements or defer for future payment.

Intercompany Loans & Interest

Virtual Trader accommodates the interfacing of intercompany loans and cash advances into the overall intercompany balance picture. From here, interest can be automated on either the loans or the whole intercompany outstanding balance.

Flexibility within the interest process allows for varied options involving simple and compound interest.

Net & Gross Settlement

Virtual Trader provides the functionality for companies and countries to be designated for automated net or gross settlements based on jurisdictional rules.