Michael Diet Director, Intensum Luxembourg

Transcription

1 Optimize your Liquidity & Treasury with the Treasury applications from SAP Michael Diet Director, Intensum Luxembourg Sofitel Luxembourg Europe October 7, 2009

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 SAP 2009 / Page 2

3 About Intensum Founded mid 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 3

4 About Intensum Clear positioning 4

5 Issues impacting the Treasury Function 5 SAP 2009 / Page 5

6 SAP Creates Values for Your Enterprise 6 SAP 2009 / Page 6

7 Optimize Finance with Treasury Applications from SAP Manage Global Financial Risks Optimize Debt & Investment Strategies Manage Cash & Liquidity Optimize Payments & Bank communication 7 SAP 2009 / Page 7

8 Managing Treasury & Financial Risks Key Stakeholders & Objectives 8 SAP 2009 / Page 8

9 Optimize Payments and Bank Communication SAP In House Cash SAP In House Cash is a solution for global operating companies to manage their intragroup 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 9 SAP 2009 / Page 9

10 Optimize Payments and Bank Communication 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. 10 SAP 2009 / Page 10

11 Optimize Payments and Bank Communication 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 Lower Internal cost 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 External cost 11 SAP 2009 / Page 11

12 Optimize Payments and Bank Communication 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 12 SAP 2009 / Page 12

13 Optimize Payments and Bank Communication SAP Bank Communication Management Process Flow 13 SAP 2009 / Page 13

14 Optimize Payments and Bank Communication SAP Bank Communication Monitoring tools 14 SAP 2009 / Page 14

15 Optimize Payments and Bank Communication 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) 15 SAP 2009 / Page 15

16 Optimize Payments and Bank Communication 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) 16 SAP 2009 / Page 16

17 Managing Cash and Liquidity CASH MANAGEMENT LIQUIDITY PLANNER is focused on short-term cash position by value date & currency is focused on medium to long term Liquidity planning 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 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) Target user is Cash Manager,.. Not Planner Support of different Planning Scenarios (e.g. on a rolling monthly basis) and reporting functionality in a global enterprise 17 SAP 2009 / Page 17

18 Managing Cash and Liquidity 18 SAP 2009 / Page 18

19 Managing Cash and Liquidity SAP Cash Position Report 19 SAP 2009 / Page 19

20 Managing Cash and Liquidity Suite Analytics 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 20 SAP 2009 / Page 20

21 Managing Cash and Liquidity Suite Analytics New Dashboard for Cash Management with SAP Business Objects (Crystal / Xcelsius) Available Enhancement Pack 5 21 SAP 2009 / Page 21

22 Optimize Debt, Investment & Hedging Strategies 22 SAP 2009 / Page 22

23 Optimize Debt, Investment & Hedging Strategies Funding Requests from Subsidiaries Available Credit Lines Best Option 23 SAP 2009 / Page 23

24 Manage Financial Instruments Transaction Manager 24 SAP 2009 / Page 24

25 Manage Financial Instruments Transaction Workflow 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 25 SAP 2009 / Page 25

26 Manage Financial Instruments Trade entry 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 ( , Swift message, paper and fax) The Payment Scheduler tool facilitates / automates the payment process Mirroring function for inter-company transactions 26 SAP 2009 / Page 26

27 Manage Financial Instruments Back Office Functions Confirmation Matching System 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. 27 SAP 2009 / Page 27

28 Manage Financial Instruments Accounting 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 28 28

29 Manage Global Financial Risks SAP 2009 / Page 29 29

30 Manage Global Financial Risks Reporting Sensitivity Analysis FX sensitivity analysis (with EUR currency shift of 1%) Market Data Shift Interest rate sensitivity analysis (with yield curve shift of 1%) Scenarios SAP 2009 / Page 30 30

31 Manage Global Financial Risks Hedge Management 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 31 31

32 Key points to Take Home 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 SAP 2009 / Page 32 32

33 Thank you!

34 INTENSUM LUXEMBOURG 70 VAL SAINTE CROIX L-1370 LUXEMBOURG INTENSUM BELGIUM 180 CHAUSSEE DE LA HULPE B-1070 BRUSSELS p r e s e n t a t i o n