Federated Ledger Architectures for Distributed Treasury Reconciliation in Multinational ERP Systems

Abstract

This paper proposes a federated ledger architecture designed to address the challenges of distributed treasury reconciliation across multinational Enterprise Resource Planning (ERP) environments. Conventional ERP-based treasury modules, such as SAP FI-TR, face constraints related to data localization regulations, cross-border regulatory frameworks, and asynchronous financial workflows between geographically dispersed subsidiaries. To overcome these limitations, the proposed model introduces cryptographically linked sub-ledgers for each participating entity, governed by a lightweight Proof-of-Authority (PoA) consensus mechanism. This ensures secure, tamper-resistant, and low-latency financial settlement cycles while enabling controlled interoperability across nodes. A simulated deployment within an SAP FI-TR environment demonstrates improved consistency of intercompany transactions, enhanced auditability, and reduced reconciliation delays. Experimental outcomes indicate that the federated ledger supports scalable multi-entity financial operations without compromising compliance or operational efficiency. The results highlight the architecture’s applicability for global enterprises aiming to modernize treasury functions through distributed ledger technologies (DLT), ensuring real-time synchronization, traceability, and regulatory adherence across varying financial jurisdictions.