The leader-follower concept ensures that all inter-company relationships are always mapped correctly and that all inter-company expenditure is always pitted evenly against inter-company income with equal term. The overall process is considerably leaner as internal reconciliation is left out completely.
Reconciliation differences are a thing of the past.
All inter-company accounts are defined as “leaders” or "followers" and relate to each other. Quantities can only be entered into leader accounts. If a company now budgets an amount in a leader account, the system transfers this value – taking the currency conversion into account – to the corresponding follower account with the affiliated company.
The follower is unable to change the value, it must however display whether the value is accepted or rejected. The status is returned to the leader company online. If no agreement can be reached, this is decided at management level.
Benefits and value:
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