Post on 23-Jul-2020
Sofitel Luxembourg Europe
October 7, 2009
Optimize your Liquidity & Treasury
with the Treasury applications from
SAP
Michael Diet
Director, Intensum Luxembourg
© SAP 2009 / Page 2
Agenda
1. Treasury Applications from SAP
1.1. Issues impacting the Treasury function
1.2. SAP’s Value Proposition
2. Optimize Payment & Bank Communication
2.1. SAP In House Cash & Bank Communication Management
3. Manage Cash & Liquidity
3.1. Cash Management (Cash Position & Liquidity Forecast)
3.2. Liquidity Planning & Forecasting
4. Optimize Debt, Investment & Hedging Strategies
4.1. Front-to-Back Office and Accounting System
5. Manage Global Financial Risks
4.1. Risks Analyzers
4.2. Hedge Management
3
About Intensum
Founded mid-2005
3 Legal entities : Luxemburg & Belgium
Current activities : Luxemburg, Belgium, Switzerland & France
Target
Senior team with excellent cross-competencies
Focus on bridging the gap between business & IT
Focus on SAP
Our added value
30 Experienced/Senior consultants
Proven business experience
Coverage of complete project lifecycle
A solid quality reputation
Recognized by SAP
• SAP Financial Supply Chain Management / SAP Treasury
• SAP NETWEAVER (XI/PI – Integration)
• SAP Business Intelligence
4
About Intensum
Clear positioning …
© SAP 2009 / Page 5
Issues impacting the Treasury
Function
5
© SAP 2009 / Page 6
SAP Creates Values for
Your Enterprise
6
© SAP 2009 / Page 7
Optimize Finance with Treasury
Applications from SAP
7
Manage Global
Financial Risks
Optimize Debt &
Investment Strategies
Manage Cash &
Liquidity
Optimize Payments &
Bank communication
© SAP 2009 / Page 8
Managing Treasury & Financial
Risks
8
Key Stakeholders & Objectives
© SAP 2009 / Page 9
Optimize Payments and Bank
Communication
9
SAP In House Cash
SAP In House Cash is a solution for global operating companies to manage their intra-
group and external payment transactions more efficiently.
The In House Cash Center is a virtual bank setup at the group headquarter where
subsidiaries have current accounts.
SAP In House Cash allows companies to minimize the actual flow of cash and therefore
reduce the number of bank accounts and save bank fees.
SAP Bank Communication Management
SAP Bank Communication Management enables customer to track the entire payment life
cycle, and significantly improve straight through processing rates and internal compliance.
SAP Bank Communication Management enables corporate customers connecting via SAP
NetWeaver Process Integration to the SWIFT Net Interface.
SAP Bank Communication Management includes SAP Integration Package for SWIFT and
is available since SAP ERP 6.0 – Enhancement Package 2
© SAP 2009 / Page 10
Optimize Payments and Bank
Communication
10
SAP In House Cash – Functionalities
Processing of internal payments
(intra-group) without physical cash transfer
Central processing of external
payments (Payment on behalf)
for participating affiliates
in multi-system/heterogeneous
system landscape (SAP/Non SAP)
Routing of payment orders to local
subsidiaries to avoid cross-border payments
Account management with creation and
provision of account statements to
account holders, managing conditions
(interest scale, charges) and limits
Delivery of financial status to cash
management and tracking of payment status
Periodic activities such as cash concentration,
account balancing, interest compensation.
© SAP 2009 / Page 11
Optimize Payments and Bank
Communication
11
SAP In House Cash – Business Benefits
Reduce amount of physical cash transfers by internal netting
Reduce number of bank accounts
Reduce administrative overhead
Minimize netting process times
Improve inter-company reconciliation
Save bank fees for bank accounts and payment transactions
Avoid cost for external cross-border payments
Reduce float and value-date losses
Gain more interest by keeping cash within the group
Reduce hedging deals concentrating exposure within the group
Improve debt and investment strategies
Improve competitive position in external money markets
Lower
Internal
cost
Lower
External
cost
© SAP 2009 / Page 12
Optimize Payments and Bank
Communication
12
SAP Bank Communication Management– Functionalities
Logical structuring of payments
into batches
Multiple approval levels for
outgoing payments
Audit trail for payment approval
decisions along with digital
signatures for internal audit
Analysis of payment status
information and full payment flow
transparency (Payment Monitor)
Bank Statement Monitoring
SWIFTNet interface integration
using SAP Integration Package
for SWIFT
© SAP 2009 / Page 13
Optimize Payments and Bank
Communication
13
SAP Bank Communication Management– Process Flow
© SAP 2009 / Page 14
Optimize Payments and Bank
Communication
14
SAP Bank Communication – Monitoring tools
© SAP 2009 / Page 15
Optimize Payments and Bank
Communication
15
SAP Integration Package for SWIFT – Features
SWIFTNet integration
Inbound and outbound support of FileAct and FIN
Integration with SWIFT architecture (SWIFTAlliance access and gateway)
Management of local authentication and integrity between SAP NetWeaver Process
Integration and SWIFTAlliance access and gateway
Standard mappings in SAP NetWeaver Process Integration for ISO20022
messages
Customer credit transfer initiation
Customer direct debit transfer initiation
Payment status report
Tight integration with SAP software
Available for SAP R/3 4.6C and above
Support of various status messages in conjunction with SAP Bank
Communication Management (prerequisite: SAP ERP 6.0)
© SAP 2009 / Page 16
Optimize Payments and Bank
Communication
16
SAP Bank Communication Management– Benefits
Increase Financial Visibility
Optimiziation of Bank connectivity through a Swift connection allows corporate the build a Global
Cash Management view
More control & visibility on the cash available into the group. Impacts on investments and
borrowing strategies and therefore on financing fees.
Simplification
Reduce the number of proprietary payment standards & bank communication systems and setting
up a single communication channel to SWIFTNet.
Allow harmonization of payment processing
Cost Reduction
Reduce maintenance cost by communicating with all the banking partners through this one
channel.
Compliance
Increase straight-through-processing (STP) rates
Ensure full payment flow traceability & transparency (get accurate and real time monitoring)
Strong & Secure interface between SAP & SWIFT (collaborative development)
Compliance with SEPA , ISO20022 and new payment file format (XML)
© SAP 2009 / Page 17
Managing Cash and Liquidity
17
CASH MANAGEMENT
… is focused on short-term cash
position by value date & currency
Cash Position with information on
the current Bank Account Status
Liquidity Forecast including A/R
and A/P open items as an
Indicator of future cash flows
(deterministic) based on accounts
/ business partners
Logistic data is shown highly
aggregated
Target user is Cash Manager, ..
Not Planner
LIQUIDITY PLANNER
… is focused on medium to long
term Liquidity planning
… includes functions to
determine Actuals (cash already
received or spent) and forecast,
structured by uses and sources in
the enterprise
core system
… can be used to obtain the data
for a Statement of Cash Flows
(Direct Method)
Support of different Planning
Scenarios (e.g. on a rolling
monthly basis) and reporting
functionality in a global enterprise
© SAP 2009 / Page 18
Managing Cash and Liquidity
18
© SAP 2009 / Page 19
Managing Cash and Liquidity
19
SAP Cash Position Report
© SAP 2009 / Page 20
Managing Cash and Liquidity
Suite Analytics
20
Operational Analytics within SAP ECC System (using local BI Client)
Selection of Suite Database Info bypassing the BI Infrastructure (no Data Warehouse)
Business Query can access Data Sources directly via Info Set
Multiple Reporting Front-end Tools based on same infrastructure
Available Enhancement Pack 5
© SAP 2009 / Page 21
Managing Cash and Liquidity
Suite Analytics
21
New Dashboard for Cash Management with SAP Business Objects (Crystal /
Xcelsius)
Available Enhancement Pack 5
© SAP 2009 / Page 22
Optimize Debt, Investment &
Hedging Strategies
22
© SAP 2009 / Page 23
Optimize Debt, Investment &
Hedging Strategies
23
Funding Requests
from Subsidiaries
Available Credit
Lines
Best Option
© SAP 2009 / Page 24
Manage Financial Instruments
Transaction Manager
24
© SAP 2009 / Page 25
Manage Financial Instruments
Transaction Workflow
25
Exposure analysis
Decision support
Easy Trade input
Exercise Rights
On-line limit check
Position reporting
Open infrastructure for
integration with
dealing platforms
Instrument Pricing
Risk Analysis
Sensitivity Analysis
Flexible process
Definition
Master Data
Management
Deal Enrichment (SSI)
Deal Validation
Correspondence &
Matching
Interest rate fixing
Netting
Payments
Alert monitor
Hedge Management
Referencing
Posting of Trade
Perform Accruals
Perform Amortization
Perform Valuation
according to
several GAAP’s in
parallel areas
Hedge Accounting
Standard reporting
Ad-hock reporting
Controlling
Limit reporting
Management
reporting
Straight-Through Processing
Processes dependent on Financial instruments
Role based concept & Authorizations
Auditing Acceptability & Segregation of duties
© SAP 2009 / Page 26
Manage Financial Instruments
Trade entry
26
Template trade input screen according to the type of transaction via a unique transaction.
Fast trade entry screen
Full audit trail on each transaction data.
Different status depending of the stage of the deal management process
Possibility to generate the deal ticket and confirmation in various formats (email, Swift
message, paper and fax)
The Payment Scheduler tool facilitates / automates the payment process
Mirroring function for inter-company transactions
© SAP 2009 / Page 27
Manage Financial Instruments
Back Office Functions
27
Mappings are delivered for the following SWIFT formats
Outgoing messages: MT300, MT320, MT395, MT399, MT518, MT502, MT540, MT541, MT542, MT543
Incoming messages: MT300, MT320, MT395, MT399, MT509, MT515, MT535, MT536, MT544, MT545,
MT546, MT547, MT548, MT566, ACK & NACK.
Confirmation Matching System
© SAP 2009 / Page 28
Manage Financial Instruments
Accounting
28
Integration with SAP General Ledger
Straight through processing of financial deals is achieved in combination with a highly flexible
accounting engine.
Real time update of your accounting positions (full integration between TRM and SAP Financial
Accounting).
Automatic posting (standard interface) incl. flexible account determination (many criteria available to find
the account that the position or result has to be posted to).
Hedge Management & Hedge Accounting according to the IFRS (IAS39) and FAS133 rules.
TRM supports several accounting standards IN PARALLEL. Transactions can be valued individually for
each valuation area and the results can be written into the financial accounting.
© SAP 2009 / Page 29
Manage Global Financial Risks
29
© SAP 2009 / Page 30
Manage Global Financial Risks
Reporting
30
Market Data Shift
Scenarios
Sensitivity Analysis
FX sensitivity analysis (with EUR currency shift of 1%)
Interest rate sensitivity analysis (with yield curve shift of 1%)
© SAP 2009 / Page 31
Manage Global Financial Risks
Hedge Management
31
Hedge Management & Hedge Accounting
Hedge Categories
Fair value hedge
Cash flow hedge
Net Investment hedge
Hedging Instruments
FX swap, FX forward
FX options
Interest rate swap
Cross currency interest rate swap
FRA, Caps, Floors, Collar
Effectiveness Calculation Methods
Present Value Methods
Cash Flow Methods
Hypothetical Derivative Method
Correlation Method
Regression Analysis
© SAP 2009 / Page 32
Key points to Take Home
32
“Treasury” is not a single module, it’s a solution portfolio
All treasury applications are an integrated part of ERP Financials
SAP has a treasury roadmap in place and will continuously invest in the
treasury applications
Using an integrated treasury solution supports the overall IT trend of
harmonizing the system landscape and the application variety
Implementing SAP’s treasury applications leverage your overall SAP
investments you have made
Be compliant and gain efficiencies by using an integrated approach for
treasury management
Thank you!
p r e s e n t a t i o n
INTENSUM LUXEMBOURG
70 VAL SAINTE CROIX
L-1370 LUXEMBOURG
INTENSUM BELGIUM
180 CHAUSSEE DE LA HULPE
B-1070 BRUSSELS
WWW.INTENSUM.COM