In this quick video, we will explore the intercompany management capability of the

Board solution. Intercompany management refers to the ability to first

match any kind of intercompany relationship across multiple

legal entities within the same group, then reconcile any

potential differences or discrepancies, and finally eliminate the

intercompany balances at the consolidated level.

With intercompany management in Board, we can considerably accelerate the closing

process by resolving intercompany transaction discrepancies in a very

collaborative way throughout the reconciliation process.

We are also able to maintain a complete and transparent audit trail of

any matched, unmatched, or automatically versus manually adjusted

intercompany relationships. This boosts confidence in financial results

and helps build audit defense. We do this by leveraging native accounting

double entry-based logic that follows accounting principles in both local

currency and transactional currency.

This ensures compliance, feasibility, and consistency in the intercompany

elimination process. Let's take a quick look at the core of intercompany

management. The central feature in Board is the intercompany

reconciliation cockpit. This cockpit serves both local users and global

finance users.

As a global finance user, we have a quick bird's eye view into the status of the

overall intercompany reconciliation process across multiple

declaring entities and trading partners.

As the controller of a specific reporting unit, we can simply focus on our

own declarations toward any trading partner.

We can also see not only what we are declaring toward our trading partners, but

also what the trading partners are declaring toward us.

So for instance, if we are in charge of Spain, we have the ability to

see all trading partners, not only what we have declared toward our trading

partners, but also what the trading partners have declared toward us.

By focusing on a specific relationship, for example, between

Spain and Germany, it is possible to see that Spain has declared

2,300 euros toward Germany, and Germany has declared

negative 2,300 euros, likely in accounts payables to

Spain. In this specific relationship, we are only focusing on

one intercompany elimination rule.

However, in Board, we can have as many different intercompany elimination rules as

needed for accounts receivables and payables, financial revenue and

financial expenses, sales and expenses.

These rules will appear in the reconciliation cockpit.

For this specific relationship between Spain and Germany, we see that there is no

unbalanced amount. The intercompany is fully balanced.

We can also see the traffic light indicator, and at any point, we can always

compare it to the legend to understand what each indicator

means. Each intercompany rule is also subject to a

threshold of tolerance, meaning a specific threshold above which the

intercompany will be considered non-balanced, which also drives a specific

behavior for the reconciliation.

For this specific relationship, we can also observe the collaboration capabilities

of Board.

In this case, Spain has validated all its intercompany declarations towards

its trading partners, but Germany has not validated its declarations

towards Spain. If we remove the filter on Spain and focus on the relationship

between Spain and Germany, we see that Spain has validated its

intercompany transactions towards Germany, but Germany has not done the

same. Just below, from Germany's perspective, the intercompany

towards Spain still needs validation.

At the same time, Germany can see that Spain has already validated its

intercompany accounts, specifically accounts payables, with a

negative and opposite sign, depending on the declaring entity.

We can also notice yellow cells, which indicate that those cells are subject to

commentary. Since the validation process has already been completed

for Spain, Spain cannot enter comments at this stage.

However, Germany can still add comments at any time.

This is extremely helpful for fostering collaboration between the two entities,

including the ability to share files and additional documentation.

At any time, we can go into more detail.

By simply drilling down, we can check the exact relationship between

Germany and Spain. As shown, Germany has not validated its

relationship towards Spain, and right below, we can see the exact accounts

subject to the specific rule.

In this case, receivables have been declared by both Spain and Germany,

and this intercompany relationship is fully balanced.

Of course, there could be thousands of intercompany transactions and eliminations

within a group. Instead of manually reviewing each intercompany

transaction, we can leverage Board AI to support the intercompany

process and matching. The controller's agent can guide us to the specific

intercompany situation. For example, our agent has

several predefined prompts. By clicking on information and

purposes, we can better understand the purpose of a specific

reconciliation. The system then runs a full reconciliation,

highlighting the issues, identifying the top five discrepancies, and

potentially using AI to provide not only an overview of the matching or

a detailed reconciliation analysis, but also making adjustment

proposals. In Board, any intercompany transaction that is

not naturally balanced can be adjusted either automatically or

manually. If the discrepancy is within the threshold, it will

be adjusted automatically. If it is above the threshold tolerance, it will

require manual adjustment. To recap, today we have explored some of the

main capabilities of intercompany management in Board.

Board offers a native intercompany data model, which means there is no need for

fake elimination entities, dedicated accounts, or mirrored

elimination entities.

All eliminations are performed at the entity level and can be rolled up at any

level of the hierarchy as needed. These eliminations always follow

a double entry logic where we charge and credit the specific accounts at the

entity level. The intercompany process is highly

collaborative with workflow and status monitoring that enables both the

global finance team and people in the field to work together

effectively throughout the intercompany process.

The Board controller AI agent is also available to help us significantly reduce

time and increase productivity by highlighting unmatched items,

recommending resolutions, identifying anomalies, and suggesting the

necessary adjustments to be performed.