Consultancies, agencies and software companies billing customers in many currencies from entities in a few, with high invoice volume, subscription and milestone billing, and recharges between entities for shared staff.
A software or services company grows by opening an entity where its customers and staff are: a US parent, a UK entity, an Indian delivery centre, a Singapore sales office. Customers are billed in their own currency from whichever entity holds the contract, staff costs land in local currency, and every month the delivery entity recharges the selling entity for the work. The configuration.
Connect the billing system to import invoices with source identifiers, customer currency and the applicable rate. Test duplicate detection and exceptions; the AR Clerk reviews unresolved documents and cash.
Receipts from card processors and bank feeds are matched on reference, one application line per invoice; separate bank fees from customer shortfalls in the Cash Application Queue. Book supported fees to the agreed expense account and route customer credit adjustments through the required approval; do not write off the difference automatically.
The delivery centre's monthly charge to the selling entity is one intercompany record at the agreed transfer price in the agreed currency, posted in the receiving entity when it confirms and eliminated at group.
The customer carries a withholding code and the application retains the withheld amount and supporting evidence in an explicit currency, separately from the cash received. Verify eligibility and the posting treatment for the relevant jurisdiction.
Each entity plans in its own currency; the group view translates at the budget rate so a weak rupee does not read as an overspend in Bangalore.
Map entity periods to the board-reporting calendar. Reconcile banks before revaluation, clear close exceptions and review the consolidation inputs. Lock the group result only after required entity closes and independent review are complete.
Budgets by entity, variance for the group · Close on one calendar
High-volume invoicing from the billing system · Cash application at scale
Recharges as intercompany · Withholding tax on cross-border invoices
Same records, same gates. The configuration changes how the process runs for this team.
Owns the trial balance, the close and the consolidated statements. Approves what the GL Accountant, the Treasury Analyst and the clerks prepare: manual journals, revaluations, reconciliations, bills and credit memos above the clerk limit, pay runs above the clerk limit, and the period close itself.
Prepares manual journals, accruals and prepayments, bank reconciliations and the entity close tasks the Controller approves.
Raises customer invoices and credit memos in the customer's currency, applies cash at the receipt rate and runs dunning.
Processes vendor bills in the vendor's currency, checks them against the order and receipt references, and builds pay runs.
Loads and maintains budget versions in entity currency, runs allocations and reads variance in reporting currency.
Owns tax codes, jurisdictions, filings and the tax accrual.
Owns currencies, exchange rates, bank accounts, transfers between currency accounts and the month-end revaluation. Prepares what the Controller approves.
Keep transaction amounts, functional values and approval evidence together across journals, close adjustments and group reporting.
Reconcile each bank account in its own currency, recognise unmatched cash and retain the evidence behind transfers and payment outcomes.
Review supplier bills and payment authority, then reconcile cash, withholding and exchange differences without losing the original evidence.
Coordinate close dependencies, review supporting workings and keep reporting periods separate from later postings.
Agree cross-entity activity, preserve each company’s books and review translation and eliminations in the group reporting currency.
Restate foreign-currency balances with clear sign conventions, item-level carrying values and independent approval.
Keep the source, purpose and approval behind every exchange rate, from document posting to group reporting.
Keep customer balances, cash received and exchange differences clear across invoicing, collection and settlement.
Open invoices in buckets of days past due by customer and entity, in transaction currency and posted functional carrying value, with a separate indicative current-rate column; the booked column reconciles to the AR control account.
Per account, one column per entity in reporting currency from the translated balances, an eliminations column, a non-controlling interest column and the consolidated column, for a locked or calculated run; each elimination drills to the entry and the transaction it removes.
Every entity pair and currency for the period with each side's balance, the difference and the agreement status, drillable to the transactions in the period with both entities' booked amounts, so the consolidation cannot start with an unexplained difference.
The configured policy selects the rate type and effective date. The document retains the rate used at posting. A missing required rate stops the affected posting until it is resolved; it does not silently reuse yesterday’s rate. Authorised overrides retain the original rate, reason and decision evidence. Posted amounts are corrected through reviewed adjustments or reversals.
Related questionApplications retain amounts in both document and settlement currency. The ledger compares settlement value with the carrying value released, including any unreversed revaluation allocated to that portion. Reversing and Delta methods are reconciled separately so an earlier exchange difference is not recognised twice. The FX Gain and Loss Summary traces the amounts to the application and revaluation evidence.
Related questionYes. Each entity has its own periods. Group reporting maps those periods to the consolidation calendar, and intercompany postings use a valid period for each side. The mapping and any reporting adjustments are reviewed during implementation.
Related questionBoth sides share a transaction currency and amount, while each entity retains its own functional-currency value and posting period. A separate authorised person confirms the receiving side. Differences are investigated and approved adjustments remain traceable before the group eliminates the agreed balances.
Related questionThe account policy selects closing, historical or transaction-date rates. An average rate is used only where it is an appropriate approximation. The run retains the applied rates and translated balances, with reviewed eliminations and translation adjustments in the group unit. Special reporting requirements are scoped and verified during implementation.
Related questionYes, subject to configuring and testing the required connection. Agree document mapping, external identifiers, approval ownership and retry handling. Purchase-order and receipt checks can remain in the procurement system; a reviewed non-PO route handles bills that do not require those references.
Related questionHedge accounting and derivative valuation are outside this system’s baseline. Your treasury system can supply reviewed journals and rates through a configured integration. Confirm the required accounting and reporting treatment with the finance owner.
Related questionA parent and several subsidiaries, each with its own functional currency and calendar, consolidating monthly into one reporting currency with intercompany traffic between them.
A single entity that buys and sells in currencies other than its own: foreign-currency invoices and bills, currency bank accounts, realised differences on every settlement, no consolidation.
Consultancies, agencies and software companies billing customers in many currencies from entities in a few, with high invoice volume, subscription and milestone billing, and recharges between entities for shared staff.
One finance team closing many entities in many currencies on behalf of a group, with segregation by entity, one checklist per entity and one dashboard across them.
