Reduce intercompany payments. Centralise settlement. Control the process. Connect directly to ERP data, FX handling, In-house bank and payments to calculate, net, and settle intercompany obligations.
Reduced internal payments, FX exposure, and settlement volume
Nomentia Netting replaces manual, spreadsheet-based coordination with a controlled, system-driven cycle that collects intercompany obligations from ERP and manual inputs, runs bilateral and multilateral netting calculations, and distributes statements for entity confirmation and dispute handling.
Netting cycle management
Define and manage netting cycles with participants, base currency, cut-off dates, and settlement timing. Support recurring (monthly, bi-monthly) or ad-hoc cycles aligned with group reporting calendars.
Netting calculation engine
Perform bilateral and multilateral netting across entities and currencies. Calculate gross vs net positions, residual exposures, and settlement amounts.
FX handling and exposure integration
Apply treasury FX rates or market rates during netting calculations. Export residual FX exposures for hedging instead of gross bilateral flows.
Reporting and audit trail
Maintain full cycle history, including obligations, calculations, confirmations, disputes, and settlements. Provide savings reporting (gross vs net) and audit-ready documentation.
What types of intercompany obligations can be included in netting?
Intercompany invoices, trade payables/receivables, loans, interest, management fees, royalties, and other internal charges can be included. Data can be imported from ERP systems or entered manually.
Does Nomentia Netting support both bilateral and multilateral netting?
Yes. Nomentia’s netting engine supports bilateral netting between entity pairs and multilateral netting across all participants in a cycle.
Can netting be performed in multiple currencies?
Yes. Multi-currency netting is supported. FX conversion can be applied using treasury-defined rates or market rates, with clear visibility into resulting exposures.
How are FX exposures handled after netting?
Residual net FX exposures can be exported to treasury/risk management modules for hedging. This ensures that only net exposures - not gross bilateral flows - are hedged.
How are netting cycles configured?
Cycles are defined by participant list, base currency, cut-off date, and settlement date. They can be scheduled (e.g. monthly) or run on demand.
Can I reuse or copy netting cycle setups?
Yes. Existing cycles can be used as templates for future periods, reducing repetitive configuration.
How are obligations collected from entities?
Obligations are imported from ERP systems via API or file-based integration. Additional items can be entered manually where needed.
What happens if an entity has not submitted its data before cut-off?
Treasury can monitor submission status across all participants, identify missing data, and follow up before closing the cycle.
Can netting calculations be previewed before finalizing?
Yes. Calculations can be run at any time during the cycle to preview net positions, identify large payers/receivers, and resolve issues early.
How do entities confirm their positions?
Netting statements are distributed to designated entity users. They can review, approve, or dispute individual line items before confirming their net position.
How are disputes handled?
Entities can raise disputes on specific items. Treasury can resolve discrepancies before recalculating and finalizing the cycle.
How are settlement payments executed?
Net settlement instructions are generated automatically and routed to the payment module or in-house bank. Payments follow standard approval workflows before execution.
How does netting impact liquidity and forecasting?
Settled net positions are reflected in liquidity and cash positioning, ensuring forecasts include the effect of netting settlements.
Can netting reduce FX transaction costs?
Yes. By offsetting opposing currency flows before execution, netting reduces the number and size of FX transactions, lowering costs and exposure.
Is there reporting on netting savings?
Yes. Reports show gross vs net payment volumes and estimated FX savings per cycle and over time.
Is the process auditable?
Yes. The module maintains a complete, immutable audit trail of all actions — including data imports, calculations, confirmations, disputes, and settlements.
Does this replace ERP intercompany reconciliation?
No. It complements ERP processes by providing a structured settlement layer. Reconciled net positions can be posted back to ERP systems.
Can this work alongside existing systems?
Yes. Netting can be implemented as a standalone module or integrated with existing ERP, treasury, and payment systems.
Does it support regulatory and audit requirements?
Yes. The structured workflow, confirmation process, and full audit trail support compliance requirements, including regulated environments such as DACH.
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