Coprocess, a provider of Multi-lateral Netting products, are now finding that 50% of their clients run receivables based netting. (It used to be less than 30% only a few years ago.) But this is not enough to achieve the full savings from multi-lateral netting, to do this Coprocess have found that companies need to net at the invoice level not just at the gross flow level.
Netting at the invoice level, helps the subsidiaries with matching, resolving disputes, etc. plus the financial controller and treasury get a full view of all inter company flows. Moreover, the pre-netting FX cost savings, particularly for small value payments, is much higher than they previously assumed.
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