The potential savings generated by the automated posting of financial cash flows, interest accruals and reporting-date valuations of financial transactions increase with the volume of transactions. Accordingly, this function is used primarily by larger multinational groups. These organisations often have a large number of financial transactions to manage, value and accrue. In addition, cash flows arise from interest and repayment schedules, foreign exchange and interest rate hedging transactions, fees relating to guarantees and surety bonds, as well as cash pooling and netting activities, internal financing arrangements and investments, all of which must be reflected in financial accounting.
Depending on the applicable accounting standard, different valuation formulas and additional valuation adjustments may need to be applied.
For smaller companies with a high volume of transactions, implementing automated account assignment and posting can also be worthwhile, as it can significantly reduce the workload of a small treasury team.
Where transaction postings are already based on electronic bank account information, Trinity TMS can generate SWIFT MT940 file formats for intercompany accounts in the same way as a bank.
Automated posting represents the final stage of a process chain that begins with the creation of financial transactions or the initiation of cash flows and helps increase the company’s level of digitalisation.
