Intercompany invoice flow refers to the process of sending and receiving invoices between two or more entities or subsidiaries of the same company. It is common in companies with multiple subsidiaries, where business transactions occur between them.
Companies design a proprietary flow in their billing systems or Enterprise Resource Planning (ERP) systems to ensure that all invoices are processed correctly. This process may include invoice validation, payment approval, account reconciliation, etc. It is important for companies to properly manage their Intercompany invoice flow to ensure that there are no errors or delays in the invoicing process.
But how can the purchasing and invoicing process be managed?
There are several alternatives available in the market to manage the purchasing and invoicing process such as Tradeshift, SAP Ariba or Coupa among others. These platforms help companies simplify the invoicing and purchasing process, enabling better supplier management and optimizing payment approval processes.
When choosing a platform for purchasing and invoicing management, it is important that the solution integrates well with the company’s ERP and is easy to use for all departments involved.
Tradeshift is one of the most prominent solutions for automating accounting processes. It is an exchange platform that connects companies with their suppliers, facilitating the management of invoicing and payments. One of the main advantages of Tradeshift is that it is compatible with any ERP system. This means that companies do not have to abandon their existing ERP systems to use Tradeshift, which saves time and resources as they can be used in conjunction with each other.
How to manage Intercompany invoices with Tradeshift?
From the point of view of the Intercompany invoice flow, where not all platforms offer an optimal solution, Tradeshift is one of the best alternatives we found because, in addition to all the tools it offers to manage the purchasing process and supplier invoices, and this is something that differentiates it from its competitors’ solutions, it allows you to create an account on the platform for each of a company’s companies, giving autonomy to the different subsidiaries to send and receive invoices and facilitating the management of invoice flows between different units of the company. In addition, it is easy to use, as it is simple to implement and use and does not require a large amount of time and resources for its configuration and use.
In addition, Tradeshift allows to automate the invoicing and payment processes, which reduces the risk of errors and speeds up the payment process. The platform also enables collaboration between different company departments, such as finance and purchasing, for more effective management of intercompany processes.
Finally, Tradeshift offers a range of data analytics solutions and tools to help companies understand and optimize their purchasing and invoicing processes. All hosted in the cloud, so companies don’t have to worry about server management and maintenance.
In summary, Intercompany invoice flow is a crucial process for the financial management of companies. Choosing the right purchasing and invoicing management platform – both for vendor invoices and intercompany invoices – is essential for efficient and error-free management. Tradeshift is a leading platform in the market that offers a number of advantages, such as its ability to be used in conjunction with any ERP system, the possibility of creating an account for each company in the company and its ease of configuration and use that makes it attractive to companies of all sizes.
From Brait we invite you to compare different solutions and to investigate which of them best suits the needs of your company. If you need help in this process, do not hesitate to contact us, we will be happy to help you!