Receivables are imported into the system continuously or periodically, mirrored on the counterparty side and offset against one another either daily through intercompany clearing or on predefined dates through periodic netting.
To avoid reconciliation differences, it is advisable to import the receivables into Trinity TMS and automatically mirror the corresponding counterpositions in the internal clearing accounts. This prevents discrepancies that would otherwise arise when receivables and payables are imported separately and would first have to be resolved through a time-consuming matching process. As a result, immediate settlement without artificial value dates, as commonly used in periodic netting, would not be possible. In so-called intercompany clearing, there is also no incentive to delay liabilities by raising disputes.
In periodic netting, where settlement takes place weekly or quarterly, users may be given the option to raise disputes through dispute management where this appears appropriate. The netting centre should carefully consider whether this genuinely creates added value or merely generates additional work for everyone involved.
Cross-currency netting is also possible, provided that suitable exchange rates are applied. As a rule, the most recently available exchange rate is used. In periodic netting, this may create additional potential for disputes due to exchange rate movements, particularly in combination with the value date of the credit entry.
Naturally, all netting participants are kept informed of ongoing transactions and, if required, receive posting files in addition to reports to enable maximum straight-through processing.
