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.