Intercompany invoices settlement

The automatic intercompany settlement functionality in Embat allows you to update debt balances between different companies within the same group by automatically detecting matching forecast pairs. These forecasts typically represent mirror invoices between group entities, and the system suggests including them in already existing intercompany relationships—without requiring the user to manually identify or add them.

What is the purpose of this functionality?

The main goal is to simplify intercompany debt management. Once a relationship between two group companies is created, Embat analyzes the forecasts from both sides and automatically suggests pairings to keep intercompany balances up to date.

Thanks to this functionality:

• Manual identification of invoice pairs between companies is eliminated.
• Forecasts that should be part of a relationship are not overlooked.
• The internal debt reconciliation process is streamlined across the group.

How are intercompany relationships created?

Intercompany relationships are created from the Intercompany module, where you define which two companies in the group have an operational link. This step is required to enable automatic detection of matchable forecast pairs between them.

Once the relationship is created, no further configuration is needed to activate automatic settlement logic.

How does automatic pair detection work?

Embat continuously evaluates active intercompany relationships and analyzes forecasts from each company. When two forecasts meet specific criteria, they are suggested for inclusion in the relationship:

• Matching amounts in opposite directions.
• Compatible category.
• Close forecast dates.

These matches are displayed as suggestions within the respective relationship, where the user can review, accept, or reject them.

Can forecasts be reconciled manually?

Yes. In addition to automatic suggestions, forecasts can also be manually reconciled from the Forecasts module by selecting those that apply and adding them to an existing intercompany relationship. This process works similarly to manual reconciliation of transactions and provides full control in cases where automatic matches are not detected.

What are the current limitations?

For now, automatic intercompany settlement is available only for forecasts. Actual transactions must be reconciled manually from the Transactions module.

If you have any further questions, feel free to contact the Customer Experience team or submit a request via this link.