Billing / Rebates Comparison

The practice of reconciling, agreeing and settling fees and rebates is one of the most resource intensive and laborious processes within any Securities Finance operations area.

Statements often run into hundreds or thousands of pages per counterparty and identifying differences normally involves a manual tick back of statements. The resources required to do this are considerable and often differences are written off to P&L simply because there is insufficient capacity to investigate fully.

In addition to unexpected P&L write offs, delays on settlement of payments can lead to unnecessary funding costs while the statements are being looked at and issues can drag on into following periods compounding the problems.

Automatic Billing Reconciliations

Pirum's automated Billing Comparison service automatically identifies the underlying cause of all accrual differences, at the most detailed transaction level, enabling users to focus their effort on resolving the identified differences.

As breaks are typically viewed in value difference order, the largest breaks are usually investigated and resolved first, allowing a rapid reduction in the overall billing difference, which enables payment to be made on a more timely basis.

With an automated reconciliation in place, there is also no need to physically send a bulky hard copy billing statement to the counterparty, saving significant cost and effort. Both borrower and lender can see the total amounts expected to be paid / received by the other.

Reconciliations are automatically re-run whenever new data is submitted by either party. There is no need to contact Pirum to re-trigger the reconciliation when data files are delivered later than usual or if only one side has updated their data.

Follow the links on the right to review some of the benefits of using Pirum's billing reconciliation service: