SESSION ABSTRACT: Companies are moving to global presence and there are many ways in which they are hoping to manage in an efficient manner, and this creates problems because - processes need to change - and systems need to follow to support these process changes. The tools available today may not entirely support all that is needed - but what is available and what can be done ? This is what you will get from this session and open a conversation on how other people resolve these challenges.

1. Session ID:
Prepared by:
Remember to complete your evaluation for this session within the app!
10228
Cash and Treasury
Management with Payments -
Globally!
Join us to learn how global
companies manage these functions
April 25th, 2018 @ 11.00AM
Mohan Iyer
Practice Director
Jade Global Inc.

2. Speaker Introduction
 Subject Matter Expert in financial business process with 25+ years of implementation and process
improvement
 Author of “Oracle E-Business Suite Financials R12: A Functionality Guide,” Packt Publishing
 Multiple full lifecycle Oracle Application implementations
 Project management experience leading multiple projects
 Expert in conducting workshops on optimizing business processes
 Serving the customer base with Cloud assessments, implementations and training
 Leading the finance practice at Jade helping build the team strategy and direction
 Active OAUG and Open World participant with multiple presentation year after year
 Current Chair – GL SIG
 Past Board Member – MNSIG and NorCalOAUG GEO
Mohan Iyer
Practice Director Enterprise Applications, Jade Global, Inc.
mohan.iyer@jadeglobal.com 408 859 4484

3. Background

4. Payments – The art of Buying and Selling
• This is an age old practice
• At the outset even without payments
• We started thinking of barter
• A way to get what we need from
someone who has
• Chronologically here is history
– Barter
– Precious articles
– Cash
– Money transfers
– Electronic Transfers
– Systematic exchanges of data -
manage balances
– Treasury transactions
– Hedging transactions

5. Monetary Framework
• The world money market is managed by multiple financial institutions
• Banks is what people connect with - generally
• There are a multitude of other institutions that we do not connect with directly
• How does any system look at these in a generic fashion to allow these
transactions to flow through and be recorded
• Payments (& Cash Receipts) – check, electronic, transfers
• Cash Management – reconciliation, transfer funds
• Treasury Activity – investment, hedging, foreign exchange, cash flow

7. Treasury

8. Treasury Management – an overview
• Treasury Management – investment, hedging, foreign exchange, cash flow
– Comprises of a series of activities aimed at efficiently handling cash flow
– Treasury Management is a superset of activity that includes Cash Management
– The activities here include – to name a few – hedging, banking relationships,
addressing working capital needs
– Cash and Treasury management are almost always said in the same perspective to
address the task and function of managing assets, including money/cash for an
organization

9. What does this mean to a global company?
• Capability to
– manage accounts in multiple currencies and perform hedging and FX exposure
– Risk management to ensure availability and liquidity of cash
– Working Capital facilities
– Banking relationships
– Cash Flow performance
– M&A planning services

10. Hedging & Risk Management overview
• FX Exposure Management
– allows users to analyze compliance with internal hedging policies driven by
sophisticated tracking of currency exposures and FX transactions.
• Mark-to-Market Valuations
– can compute the independent market value of all financial instruments tracked in the
system, including FX, interest rate derivatives, and debt.
– Valuations can be calculated from source data from external providers.
• Sensitivity Analysis
– modification of currency and interest rate curves so that users can analyze the
sensitivity of different FX and interest rate projections
– valuations may be analyzed per set of financial transactions
• Derivative and Hedge Accounting
– derivative and hedge accounting for FX and interest rate hedging programs

11. Solutions providers in the Treasury realm

12. Cash Management

13. Cash Management – an overview
• Cash Management – reconciliation, transferring funds
– Comprises of a series of activities aimed at efficiently handling the inflow and outflow
of cash leading to the reconciliation activity
– Cash Management is a subset that is part on overall Treasury Management activity
– Cash and Treasury management are almost always said in the same perspective to
address the task and function of managing assets, including money/cash for an
organization

14. Cash Management – common tasks
• Account Management
• Clearing House services
• Cash Concentration and Controlled Disbursement services
• Global transactions services
• This also involves – actual payment and cash processing and related services
• Portion of these tasks involve some elements that fall under Treasury
Management
• Often Treasury management and cash management are interchangeably used !

15. What does this mean to a global company?
• Capability to
– perform reconciliation
– manage accounts in multiple currencies
– transfer funds between these accounts
– manage the statutory and compliance needs for each country involved
– work with specific accounts - control accounts, concentration accounts, ZBA accounts
– investment and cash pooling services
– other related banking and investment vehicles for liquid cash

16. Liquidity and short term cash

17. Reconciliation - Cash and Bank Statement
• Reconciliation in the banking process relates to
– Ensuring that the bank balance in the bank and your books match
– Multiple tools are available to perform this task – starting from excel!
– Software solution also abound that will help perform this task
– End-to-end service providers allow for
• Statement transfer from banks to your ERP systems
• ERP systems provide automatic tools to reconcile payments and cash receipts
• ERP systems also allow you to manage changes to your balance that relate to
– Charges
– Interest
– Fees
– Few providers who manage these tasks are
• Most all major ERP systems, including accounting systems for smaller companies
• Blackline
• Kyriba

18. Payments

19. Payments
• When there is a business transaction it invariably involves either paying or
receiving money
• Business drives payments as the art of providing remuneration to the service
provider
• The flip side of this is receipts (or receiving payments/money)
• Payments have evolved over the years
– Money exchange physically
– Checks
– Electronic Payments
– Wire Transfers
– Digital currency
– …….

20. Overview of payments / receipt of cash
Electronic Payment
Bank
Statements

21. Payments in ERP Products
• ERP systems support
– All US check formats supported – remember Evergreen
• Needed external systems in many cases to format accurately
• US was one of the few countries that required check payments
– Electronic format supported
• No standard format accepted at Banks (US and overseas)
• BACS was the only exception in the UK, and this was supported
– Foreign country local statutory payment process support missing
• Bolt-on solution companies abound
• Especially in Europe where specific formats and processes were needed
– ERP systems did provide a few formats for specific countries

22. Organizations and framework for payments
PSD & PSD2

23. Payments Standardization in formats
• NACHA in the US was an organization that drove standardization for electronic
payments
• The ABA also formed an alliance to ensure standardization in data interchange
• SEPA helped in having a singular mechanism/process for payments within
Europe
• ISO-20022 standard helped with formatting and messaging related to payment
notification interchanges
• In Europe there were others that drove integral standards
– BASEL II group
– BICS
– SWIFT
– BCBS
– PSD

24. Payments Automation
• ERP systems almost all have inherent support that exists within the product to connect
to the Bank
• This requires configuration and close work with the bank
– Security driven and has multiple steps to complete
• Banks provide inbound information for statements, lockbox information, to assist in
integration
– These can also be automated to a certain extent
• Some businesses have been using services to send payment data to the bank to
– Print checks
– Process wires
– Process Electronic payments

25. Global Payments
• There are few banks that provide world-wide coverage for a multi-national
• These banks typically use a world-wide standard
– ISO-20022
• All transactions are electronic
• The format helps with sending
– Payment Order
– Credits
– Notifications
– Cancellations
• A few banks perform all of these inherently
• A few others work with partners to complete the full cycle
• There are still a few that only comply and support local (country) coverage

26. Session ID:
Remember to complete your evaluation for this session within the app!
10228
mohan.iyer@jadeglobal.com