Annexure A. Application Overview. TMS - Cash Management

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1 Annexure A Application Overview TMS - Cash Management 1

2 The Current System # UNHCR has 400+ external bank accounts and all the Bank accounts are associated with various AP BUs. The related security customization that controls access to bank/account information and their corresponding transactions is complex. There is delivered means of linking Banking and Cash Management modules to any field office for Business Unit due to the factor that UNHCR is operating only under 1 legal business entity therefore only 1 Business Unit. However, this is required to restrict access to entry, update and view based on what would be the equivalent of a subsystem Business Unit. UNHCR customized each Bank Account Number to have a specific associated Business Unit (which is the Accounts Payable Business) as well as a specific Origin (also picked up from the AP subsystem). The various consideration and functionality implemented in cash management is detailed below. Row Level Security for Data For Banking and Cash Management Modules FO has access to their respective bank accounts - Banks, Bank Branches and External Account Maintenance HQ has access to all bank accounts, both active and inactive - Banks, Bank Branches and External Account Maintenance Cash Forecast Row Level Security for Bank, Bank Account. Cash Flow View - Row Level Security for Bank, Bank Account Cash Replenishment - Row Level Security for Bank, Bank Account. Cash Flow View Cash flow view has inputs from various modules like Accounts Payable, Accounts Receivable, Implementing Partners Reporting, Purchase Orders, Payroll, Banking, Cash Management, and Deal Management. Cash flow view will project the cash flow from today up to one calendar year Cash Forecasting Process Cash forecast entries will be made by FO and HQ personnel. Entries can be made by BU/Origin/Forecast date. Once forecast entries are entered they can be saved. On submit, workflow will be triggered to the approving authority to approve this forecast. Approver can approve, reject or send back for revision. Entries in cash forecasting will be greater than or equal to today s date. Users should get a summary view of cash forecast month wise. Cash Replenishment Process 2

3 This functionality is used by FO to generate cash replenishment request. This request is duly authorized both at FO and HQ. Once all the approvals are in place, the replenishment is effected to the FO. Multicurrency Processing for EFT & Deals Within the Cash Management modules in 8.4 and 9.0, PeopleSoft does not provide complete accounting treatment in both transactional and monetary ( US dollar equivalent ) amounts on all EFT between currencies as well as the calculation of to the US dollar equivalent A customization called UN Exchange Rate Customization achieves this. There is no manual intervention into the accounting entries created by either the field or treasury staff. Payroll to CM Interface There are various interfaces between payroll to cash management, including pages to handle errors due to codes used (currency, bank code, account code), and mapping of corresponding templates as necessary. Also there are interfaces to handle posting of GL accounting entries and reconciliation process relating to payroll transactions. Key Challenges UN Exchange rate customization to be carried forward The minimum expectation is to have the baseline version that is available in TMS 9.0 Version including all functionality available today (either delivered or customized) Explore possibility of using cash forecasting (new feature) in 9.2 Explore possibility of using various delivered reports and charts Cash flow view, forecasting and replenishment customization required in 9.2 To-Be Processes Some of the key business processes performed by UNHCR relating to cash management module are customized and are handled in PeopleSoft 9.0 thru customization and/or bolt-on. It s important to note these customizations are non-intrusive in nature. Fit gap analysis was performed on PeopleSoft 9.2 based on the existing and future requirements. All the existing customization/bolt-ons are still identified as gaps in PeopleSoft 9.2 and therefore recommended to be carried forward to ensure all requirements are addressed. These are addressed in the functional design document (FDD) which details the TO BE processes along with its relevant process maps 3

4 Key business processes addressed in the FDD are: Row Level Security FO will have access to their respective bank accounts - Banks, Bank Branches and External Account Maintenance HQ will have access to all bank accounts, both active and inactive - Banks, Bank Branches and External Account Maintenance Cash Forecast Row Level Security for Bank, Bank Account. Cash Flow View - Row Level Security for Bank, Bank Account. Cash Replenishment - Row Level Security for Bank, Bank Account. EFT Template FO will view only those Template that pertains to the respective AP Business Unit and Origin, while HQ will have access to all templates. For field offices, the EFT templates are also available based on this. EFT Request FO can only view those EFT Transfer requests that pertains to respective transfer template, while HQ will have access to all requests. Bank Transfer - FO can only view certain Bank Transfer requests that pertain to respective transfer template, while HQ has access to all requests. External Transaction - FO can search only for their respective Bank accounts while HQ will have accessibility to all bank accounts. CM Accounting Entries FO can access only the Accounting ID (EFT Request & Bank Transfer Request) that belongs to their bank account. Furthermore they cannot view deal accounting entries. No User will have Add access to accounting entry page. Settlement Selection and Approval Page/ Settlement Manager FO will have restricted access to bank accounts while HQ will have full access to all bank accounts. Cash Flow View Cash Flow forecasts (Cash Flow View) reports an organizational future cash availability resulting from its Accounts Receivables (Pledge & Cash Receipts), expenditures (Accounts Payable, Payroll, Purchase Orders, Implementation Partners), and investments activities during a specific period. Cash Flow Views provide a realistic view of the future cash resources. They offer an early opportunity to identify potential surplus cash or gaps in cash flow, and a reliable basis form which investments decisions can be made. This is a complex customization that pulls up various vouchers (PO, Non PO s, and payroll) that comes up for payments during the period and also considers AR, if any to arrive at the projected cash flow that is required. This is computed after considering cash & bank balance currently available. Implementing partner payments are also considered in the above. Cash Forecasting Cash forecast entries will be made by FO and HQ personnel. Entries can be made by BU/Origin/Forecast date. Once forecast entries are entered they can be saved. On submit, workflow will be triggered to the approving authority to approve this forecast. Approver can approve, reject 4

5 or send back for revision. Entries in cash forecasting will be greater than or equal to today s date. Users should get a summary view of cash forecast month wise. Cash Replenishment Users would access a page to enter their replenishment requests. Replenishment requests once entered will be submitted for approval. Once the approval takes place this request is passed on to HQ Treasury. HQ treasury will enter the amount that will be replenished. If Treasury decides not to replenish, an amount of 0 will be entered. Only approver has the access to reject the replenishment request. Replenishment request cannot be duplicated. System should default the current date as the Replenishment Request date System allow user to enter Replenishment request at BU Level System should allow the user to select the Bank Account applicable for the BU using a prompt System should allow the user to enter the requested Replenishment Amount as a user enterable field against each bank account selected Replenishment Request should have approval from both Operations and Treasury department Multi-Currency Processing for EFT Template PeopleSoft 9.2 does not provide complete accounting treatment in both transactional and monetary (US dollar equivalent) amounts on all EFTs between currencies as well as the calculation of to the US dollar equivalent. A customization called UN Exchange Rate Customization is required to achieve this requirement. This is an existing customization and is being carried forward. There would be manual intervention into the accounting entries created by either the field or treasury staff. In UNHCR all transactions are recorded with USD as the base currency Forex transactions are recorded in UN exchange rate (monthly rate issued by UN) System should compute Gain/Loss for EFT transactions between 2 currencies. Gain/Loss is computed based on the difference between the UN rate for the month and the transaction rate entered by the user in the EFT request page Necessary accounting entry has to be generated for the Gain/Loss Generated accounting entries to be posted in GL Payroll to CM Interface (see HR System Upgrade Considerations): Inbound interface to for Cash Management transactions from Payroll. This includes handling of transactions in error due to codes used (currency, bank code, account code), and mapping of corresponding templates as necessary. Facility to review CM transactions from Payroll. Posting Process - automatically generate treasury GL accounting entries for payroll transactions, using PS Journal Generator. Reconciliation Process - include payroll transactions in the manual and semi-manual reconciliation pages and automatic reconciliation process and flow transactions in bank statement and bank-to-book reconciliation processes. HR System Upgrade Considerations: 5

6 For as long as salary payment (DTA file) is generated from the HR system, PeopleSoft 9.2 still does not address UNHCR s requirement in full and hence it s recommended this customization be carried forward and hence the existing business process will not undergo any change in the future state as well. However, if HR is upgraded, the built-in integration with Financials should be explored to implement a single payment generation process. Provided that salary payment information can be interfaced from HR into the Financials system, which then generates an EFT file (in any standard format adopted in UNHCR), it should be possible to automate the reconciliation process similar to the current flow for AP payments. With built-in integration, all of the manual steps for loading and correcting payroll transactions in the CM module will be eliminated. 6