Intercompany transactions within one corporation are often treated in the same way as transactions between two separate companies. It is inefficient and very costly to manage these transactions, and requires immense time and resource commitment. Accounting and Finance organizations are tasked with managing this chaos at the end of each fiscal period. During this process, disputes need to be resolved, complicated reconciliations performed, and account balances between separate legal entities needs to be netted and settled against one another. This is often done through multiple systems, sometimes even manually, within a short time frame.
The end result is corporations lack real time visibility to their intercompany balances, and must make crucial business decisions based on old and incomplete data. Compiling data from multiple sources and systems for required reporting like BEPS adds to an already overworked Accounting and Finance organization.
Abiko – Inter-Cordapp creates value in the Office of Finance by eliminating intercompany transaction complexities, creating frictionless finance in intercompany sales, purchasing and loans, and their netting and settlement. Accounting and Finance teams can minimize or eliminate time spent on dispute resolution and time consuming reconciliations. At the same time, transparency and availability of financial data can be improved. Netting and settlement becomes atomic, and occurs instantaneously for both trading partners.
Abiko is built on Corda to enable peer to peer private transaction processing on an immutable blockchain network. All this is done in accordance with common accounting standards that the Accounting and Finance teams are used to.
Intercompany purchase and sale transaction processing, automated netting and settlement, with no need for account reconciliations and dispute management.
Real time company balance reporting.
Ledger based Intercompany loan issuance, settlement and transfer between corporate partners on a Corda Business
Network - future release.
Country-by-country reporting (BEPS) - future release.