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Treasurymgt 140612112636 Phpapp02
Treasurymgt 140612112636 Phpapp02
Overview
Process flow
Credit
management
Check
credit
worthiness
Cash &
liquidity
management
Issue
invoic
e
Forecast
cash
Electronic bill
presentation
Dispute
management
Finance
working
capital
Treasury &
Risk
management
Resolve
dispute
Collections
management
Collect
Cash
Settle
& pay
Reconcile
In-house cash
management
Corporate Story
Corporate Story
Components of Treasury
1. Business partner
2. Basic functions
3. Transaction manger
4. Market risk analyzer
5. Credit Risk analyzer
6. Portfolio Analyzer (FIN-FSCM-TRM-PA)
Corporate Story
Corporate Story
Transaction Manager
The Transaction Manager is a powerful instrument that executes
efficient liquidity, portfolio and risk management. You have the option of
carrying out liquidity and risk analysis in the Transaction Manager.
Based on these analyses and the current conditions on the financial
markets, you can make decisions about future investments and
borrowings.
The Transaction Manager:
helps you manage your financial transactions and positions. This
involves trading, back office, and the connection to Financial
Accounting.
helps you utilize existing rationalization and enables you to automate
typical processes.
provides flexible reporting and evaluation structures for analyzing your
financial transactions, positions, and portfolios.
enables you to directly measure the effects of the financial transactions
on the liquidity or interest rate risk, due to being integrated in Treasury
and Risk Management.
The Transaction Manager can be used in companies, asset management
areas, and in traditional Treasury departments.
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Money market
1. Money market transactions are used for short to medium-term
investment and barrowing liquid funds.
2. The money market area is a sub component of the Transaction
manager and is closely integrated with other components.
3. You can implement cash management decisions in the Money
Market area based on the liquidity surplus or deficit determined in
Cash Management.
4. It is also closely linked to the Financial Accounting (FI)
component since all the data that is relevant for posting in the
Money Market area is automatically transferred to FI.
5. You can maintain current market data (exchange rates, securities
prices, reference interest rates, indexes etc.) in various ways
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1.Cash Position
Cash management
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Cash position
Cash position supplies information on the current financial
situation in your bank and bank clearing accounts. Integration
with payment advices means that cash position can give you an
Overview over Short-term liquidity movements.
Integration:--The cash position reproduces the activity in your
bank accounts. it is derived from the prompt entry (on their
value date). of all payments made within a short period of time.
Data is supplied from three sources.
1.Fi postings to the G/L accounts relevant to cash management.
2.Memo records entered manually.
3.Cashflows from transactions managed in the treasury
management .
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Planning
Statement
analyses
FI
Financial
Accounting
CM
Cash Management
Cash position
Bank Accounting
Correspondence
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Process flow
Process flow
Financial Accounting
Client
Cross
application
component
Company
Code
Independent
Balance
Sheet
unit
Business
Area
Balancing
Unit
(for
internal
balance
Sheet)
Controlling
Area
Organizational
Unit in cost
Accounting
Corporate Story
Funds
Management
FM area
Organizational
Unit Cash
Budget
Management
And funds
management
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Commitment item
The basis data object in cash budget management is the commitment
item.
2.With commitment items, you can divided business transactions
affecting liquidity in your business into revenue, expenditure, and
balance items.
3.Commitment hierarchy:-- Commitment items are arranged in
hierarchs. A distinction is drawn between
1) Account assignment items:--Make up the lowest level in the commitment
item hierarchy.
2) summarization items:--You define a hierarchy by combining account
assignment items at various summarization levels you decide yourself.
3) 4. You cannot plan in a summarization item, nor can you post to it. Data
is totaled up using the bottom up principle.
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Objectives
To know our future cash inflows and
outflows to assess
Liquidity
Forecast
Process proposed should be
automated fully
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Process Requirements
Reports for Daily, Weekly & monthly
liquidity position at company Level
Consolidation of these reports at Group
level
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Process Diagram
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Source Symbols
Planning Groups
Groupings
Structure
enable you to group together bank and sub ledger accounts in the Liquidity
forecast
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The Items of the liquidity forecast report are picked up from the
following components:
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Major Benefits
Integration from all sources of Cash Flows
Real time updated Data
Actual Figures based on the updated data
Automated Process
Flexibility in Reports in term of Periodicity
Flexibility in terms of Selection of Parameters
Comparison Reports
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