Home/IFS streamlines internal invoice handling with Pagero e-netting
IFS streamlines internal invoice handling with Pagero e-netting2020-03-19T16:13:57+01:00
IFS streamlines internal invoice handling with Pagero e-netting
Easy and secure netting process
The IFS Corporation has an annual global turnover of approximately BSEK 2.8. Half of this sum comes from internal invoices within the company group. In 2012, they started using Pagero’s value-added service e-netting to make the handling of their internal invoices easier.
With Pagero’s e-netting service, the IFS group sets off internal asset receivables and liabilities to a net sum in Pagero Online. The net sum is automatically calculated in Pagero Online and authorised users can easily change or approve the calculation. This way, they are able to handle all internal invoices in an easy and more secure manner.
Number of employees
Huge time savings and possibility of currency exchange
“One of the main benefits of Pagero e-netting is the time we save,” explains Ulf Claesson, Finance Manager at IFS World Operations AB. “Compared to our previous netting solution, we have reduced the time we spend on our netting process by about 75% by using Pagero e-Invoice and e-Netting combined.”
“Reconciliations, corrections, confirmations and netting could previously take about 4 man-weeks’ work from everyone involved in a netting cycle over a 6-day period. By using Pagero’s e-invoice and e-netting services, we have reduced this time to about 1 man-week over a 3-day period per netting cycle within the company group. This has freed up capacity, reducing the lead time to completing our financial statements.”
“Another major benefit for IFS World Operations is being able to manage currency exchange, since we perform netting for 40 companies in 30 countries and a dozen different currencies. We avoid direct costs for currency exchange and bank transfers.”
“One of the main benefits of Pagero e-netting is the time we save. Compared to our previous netting solution, we have reduced the time we spend on our netting process by about 75%.”
Easy to add new units
“It’s also very easy to add more units, because the service is independent of financial systems. Normally when you buy a new company, it is a time-consuming process to integrate it into our financial system so that they can adopt the same work method as the rest of the group. With Pagero Online they can start using Pagero e-invoice and e-netting before the integration of their financial system is complete.”
Higher quality equals higher efficiency
“We carry out our netting once a month and we have full traceability and control over all internal transactions because all invoices pass via one single channel, Pagero Online. We avoid deviations and we have rarely, if ever, experienced a single error, because the quality of the information has been considerably improved. Our main focus is on being cost-effective, and with improved quality you become more efficient,” says Ulf Claesson.
“I would never go back to our old netting solution now that I know how Pagero’s services work!”
An ingenious concept that all major company groups can benefit from
“Pagero is quite clearly at the forefront compared with all their competitors, and they can really offer a completely unique netting solution,” Ulf Claesson continues. “I would never go back to our old netting solution now I know how Pagero’s service works.”
“For us Pagero e-netting is an ingenious concept that all major company groups could benefit greatly from. IFS World Operations is the company in IFS with the largest number of internal invoices in the group. Because e-invoices are sent from all companies via Pagero Online, we create virtual ledgers. This means we now have better control over internal assets receivable and liabilities.”
Optimisation of currency exposure
“Thanks to Pagero e-netting, we have also been able to optimise our currency exposure with regard to internal invoices and allocation of liquidity in the group. Pagero e-netting is quite simply a stepping-stone to better financial statements, and we are more than happy to recommend Pagero as a service supplier,” Ulf Claesson concludes.
About IFS World Operations AB
IFS World Operations AB is part of the IFS group, which has its headquarters in Linköping, Sweden. IFS is a leading global supplier of business systems, primarily IFS Applications™. With extensive skills in selected sectors, IFS offers a flexible, fully-integrated ERP system that includes solutions for maintenance (EAM) and service. IFS was established in 1983 and is listed on the Swedish stock exchange. It has over 2,200 customers and is active in just over 60 countries via both its own local offices and partners.