What is intragroup financing?
Intragroup Financing lets you track any internal loan between your entities or from external custom lenders. Once enabled for your organization, you can oversee borrowed amounts, paybacks, and accrued interests. Additionally, when balancing transfers are created from Cash Positioning, they can now be automatically recorded in the Intragroup Financing module, streamlining the process for managing intercompany loans.
With the latest update, Agicap has introduced an Automatic Detection feature to identify internal financing cash flows. This feature lists pairs of paid transactions with the same date, amount, and opposite types (inflow/outflow) between two entities of the same organization that have an intragroup financing relationship set up in the same currency. This is the first step toward automating the recording of internal cash transactions, making the module especially useful for customers with large transaction volumes or cash pooling managed outside of Agicap.
How to enable the Intragroup Financing module?
Contact your Agicap admin to have the feature activated.
Once activated, it appears for all entities and consolidations in your organization.
All users can access Intragroup Financing from the Treasury menu. Select Financing -> Intragroup financing
How to create and edit a financing?
Click on Add a financing or edit an existing one.
Choose the lender and borrower: Pick any Agicap entity from your organization or a shared custom lender.
Select the currency: Financing will be created in EUR, regardless of the entities' default currencies.
Set an initial date and balance (optional): This is helpful when you're already mid-financing and want to start tracking from now without backdating.
Add / Edit to confirm the creation of your financing.
How to record loan transactions?
Add a draw-down if the borrower receives funds.
Add a payback (repayment) if the borrower repays capital to the lender.
All transactions update the current balance immediately.
For simultaneous capital and interest repayments, record both on the same day as separate movements.
If balancing transfers are created from Cash Positioning and a valid financing exists between the entities in the same currency, the transactions will now be automatically recorded in the Intragroup Financing module.
With the new Automatic Detection feature, Agicap will also identify potential intragroup transactions based on paid transactions. However, note that pending transactions (e.g., from bank connectors or EBICS intraday) are excluded unless they are labeled with specific language-based keywords such as "Temporary," "Temporaire," or similar. Ignored or reverted transactions are also taken into account to ensure accuracy.
How to import intragroup transactions from Excel?
You can now import intragroup transactions directly from an Excel file, making it faster and easier to manage your financing history. Here's how:
Download the template: Use the clear template provided to ensure your data is formatted correctly.
Add transactions: You can include transactions for all financing across all entities in a single file.
Future transactions: When importing future transactions, matching expected transactions will be created automatically.
Error handling: If an error occurs during the import, a specific error message will display the line and issue, helping you quickly resolve it.
This feature is especially useful for importing intragroup transaction histories, full amortization plans of intercompany loans, or transactions from accounting records that were not tracked from bank records.
How is interest calculated?
Fixed-rate only: Interest accrues based on the financing’s interest rate.
Accrued interest: Calculated day by day, considering each daily balance until the next transaction or the current date.
Day count convention: Choose “exact/360” or “exact/365” to match your financing terms.
Forecasted interest: View the projected interest for monthly, quarterly, or yearly horizons based on future transactions.
How to automate transfers from Cash Positioning?
When you confirm a manual or automatic balancing proposal across entities, any valid intragroup financing is updated to reflect the corresponding draw-down or payback. With the latest update, balancing transfers created from Cash Positioning will now be automatically recorded in the Intragroup Financing module if a financing exists between the two entities in the same currency as the transaction. This eliminates the need for manual entry and ensures your records are always up to date.
Limitations to keep in mind:
Only transfers created from Cash Positioning will be recorded. Transfers created from Accounts Payable (AP) or directly executed via a bank transfer outside of Agicap will not be recorded.
If balancing transfers occur later than expected or are canceled, changes in the expected transactions or in AP will not be reflected in the Intragroup module.
If there are multiple financings between the same two entities in the same currency as the transaction, the system will not record anything.
If no financing exists between the two entities, the system will not suggest adding one, and no transaction will be recorded.
For transfers between accounts in different currencies, the destination bank account's currency will be used to match the appropriate financing.
Paybacks from a borrower to a lender will be automatically considered 100% capital repayment, excluding any interest or accrued amounts.
How to quickly onboard intragroup financing for new users?
For new customers with no intragroup financing set up, we’ve introduced a quick onboarding process:
You’ll be prompted to enter the financing links between your entities (e.g., the holding and its various subsidiaries).
Select a start period: a week ago, a month ago, or today.
Agicap will automatically create all intragroup transactions with default values, which you can later modify. The system will also launch automatic detection on paid transactions to start filling them out.
This feature allows you to set up intragroup financing in just a few clicks, enabling you to retrieve intragroup transactions with automatic detection.
💡 Tips
Use the initialization date for ongoing financing without needing full historical data.
Combine capital and interest repayment movements on a single date to handle capitalized interest.
Switch day count conventions if your legal or financial terms require precise calculations.
Leverage the automatic recording of balancing transfers from Cash Positioning to save time and reduce manual errors.
Use the new Automatic Detection tab to review potential intragroup transactions identified by Agicap’s algorithm and validate them for accuracy.
FAQ ❓
How do I manage multi-currency financing?
You can define each financing in its own currency. When adding transactions, make sure you match them with the financing’s currency for accurate records. Note that new financings will always be created in EUR.
Can I set variable rates for interest?
Currently, Intragroup Financing supports fixed rates only. If you need to change the rate, you can create a new financing entry or edit the interest rate on a new start date.
What happens if I partially repay a loan?
Record the payback with the exact amount of capital you’re returning. This immediately reduces the outstanding balance and recalculates ongoing interest accordingly.
Which day count convention should I pick?
Use the one that matches your contract:
Exact/360 is typical in some banking contexts.
Exact/365 is common in other jurisdictions for a more precise daily calculation.
Can I forecast interest beyond the current year?
Yes. You can see the end-of-month, end-of-quarter, or end-of-year forecasts. Extending beyond the current year follows the same calculations, giving you visibility for future periods.