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Christian Mnich, SAP AG Mark Stapleton, SAP America
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© 2012 SAP AG. All rights reserved.
How SAP Helps You Achieve and Maintain Financial Excellence
SAP’s SOLUTIONS FOR FINANCE
Manage Enterprise Risk and Compliance
REGULATORY COMPLIANCE & EFFECTIVE RISK MANAGEMENT
Accounting and Financial Close Treasury and Financial Risk Management
OUTPERFORM STAKEHOLDERS’ FINANCIAL EXPECTATIONS
SAP’s comprehensive portfolio of applications and end-to-end processes help you achieve Financial Excellence Strong cash flow and liquidity
Manage Financial Performance
Shared Service for Financials
Compliant and accurate financial reporting Maximized profitability Reduced cost of finance
SUPERIOR SERVICE AT REDUCED COST
Invoice to Pay
© 2012 SAP AG. All rights reserved.
Wrap-Up . II. II. Payments and Bank Communications Cash and Liquidity Management Debt and Investment Management Financial Risk Management 2. Innovations 2012 I.Agenda 1. Optimized handling of Bank Statements Commodity Management 3. Introduction Treasury Applications from SAP I. IV. III.
All rights reserved.Effective Treasury Management More Important Than Ever Business Problems © 2012 SAP AG. 4 .
and stocks Increasing globalization and uncertain economics Increased focus on risk Importance of effective Cash and Liquidity Management New Regulation and Compliance Requirements Rationalization and Standardization © 2012 SAP AG. 5 . commodity prices. All rights reserved.Treasury Trends Growing Pressures in Treasury That Are Here to Stay Volatility in markets.
All rights reserved. 6 .The Common Issues These Are the Challenges We Hear from Our Customers Equities Subsidiary Payments and Bank Communications (Treasury Operations) Commodities Customers/ Vendors Cash and Liquidity Management Derivatives Debt and Investment Strategy Financial Risk Management Banks Fixed Rate Regulator Brokers © 2012 SAP AG.
The Common Issues
These Are the Challenges We Hear from Our Customers (cont.)
1. Decentralized organization with lack of information 2. Multiple systems and Interfaces 3. Compliance challenges and violations
Payments and Bank Communications (Treasury Operations) Cash and Liquidity Management
4. High operational costs and weak IT infrastructure 5. Poor cash and liquidity management 6. Reactive approach to risk
Debt and Investment Strategy Financial Risk Management
© 2012 SAP AG. All rights reserved.
Solving the Issues
Treasury and Financial Risk Management
Payments and Bank Communications (Treasury Operations)
Cash and Liquidity Management
Debt and Investment Strategy
Financial Risk Management
Debt/ Investment Management Regulator
© 2012 SAP AG. All rights reserved.
Solving the Issues
Treasury and Financial Risk Management (cont.)
1. Centralized organization with integrated systems 2. Integrated system using central interfaces 3. Auditable and compliant operations
Payments and Bank Communications (Treasury Operations) Cash and Liquidity Management
4. Low operational costs and strategic IT infrastructure 5. Accurate and timely cash positions and reliable liquidity forecasts 6. Proactive approach to risk
Debt and Investment Strategy Financial Risk Management
© 2012 SAP AG. All rights reserved.
10 .Current Situation in Many Cases From Spreadsheet Problems to End-to-End Integration Without SAP With Treasury Solutions from SAP Multiple Systems Multiple Banks Multiple Interfaces Integrated Treasury Solution Portfolio © 2012 SAP AG. All rights reserved.
Consider the changing world in Banking 3. Effective cash management for clearer visibility and centralization 2. managing. All rights reserved. Transforming treasury into a strategic business partner © 2012 SAP AG. and reporting operational risk Treasurer 1. 11 .Treasury Challenges In an uncertain world it is critical to have the right systems and controls in place for measuring.
All rights reserved.Treasury and Financial Risk Management E2E Process Overview Treasury Operations Manager CFO/ Head of Finance Payments and Bank Communications Cash Manager Cash and Liquidity Management Treasury Finance Debt and Investments Strategies Financial Risk Manager Financial Risk Management Process Payments Manage Intercompany Transactions Forecast Liquidity Propose Deal Identify Identify Risks and Consolidate Manage Payment Factory Reconcile Plans with Actual Manage Investments/Portfolio Manage Positions Approval of High Volume Payments Operational Cash Flow Planning Processing of Deals Deal Deal Request Request & & Management Management Transmit and Monitor Payments Deals Request: Borrow or Invest Hedge Hedge Management Management & & Accounting Accounting Process Electronic Bank Statements Get Cash Overview Manage Treasury Transactions Identify Exposure Provide Risk Indicators and Report Exposures © 2012 SAP AG. 12 .
Treasury and Financial Risk Management (cont.) Roles and Objectives Treasury Operations Manager Cash Manager Treasury Finance Financial Risk Manager Payments and Bank Communications Challenges How do I ensure highly secure and quick payments and minimize external fees? Cash & Liquidity Management How do I improve cash and liquidity forecasting and gain more accurate and timely insight into global cash balances? Debt and Investments Strategies How do I ensure investment or borrowing at best rates and lowest costs? Financial Risk Management How do I pinpoint my financial risks and take more effective steps to mitigate them? Solutions SAP Bank Communication Management SAP In-House Cash SAP Integration Package for SWIFT Cash and Liquidity Management SAP Bank Communication Management SAP Treasury and Risk Management SAP Treasury and Risk Management SAP Treasury and Risk Management. financial risk management for commodities © 2012 SAP AG. All rights reserved. 13 .
II. Wrap-Up . III. Introduction Treasury Applications from SAP I. IV. Innovations 2012 I.Agenda 1. Payments and Bank Communications Cash and Liquidity Management Debt and Investment Management Financial Risk Management 2. Optimized handling of Bank Statements Commodity Management 3. II.
” *Source: PwC. All rights reserved. Corporate Treasury Solutions.Most Promising Developments Based on PwC Research in 2011 and Beyond* “ “Technology and processes in the form of in-house banks. Global Treasury Survey 2010 15 © 2012 SAP AG. visibility and forecasting of cash. payment factories and SWIFT connectivity are seen as promising new areas. . which should allow increased control.
coordinated processes across SAP and non-SAP systems © 2012 SAP AG. 16 . All rights reserved.Optimize Payments and Bank Communication Process Overview Get cash overview Process incoming bank statements Processing of internal and external payments Transmit and monitor external payments Check daily cash overview SAP Cash Management SAP Integration Package for SWIFT SAP In-House Cash (for payment factory) SAP Bank Communication Management SAP Integration Package for SWIFT SAP Cash Management Payment Infrastructure Bank Connectivity and Payment Master Data End-to-end best practices to streamline payments and bank communications.
Bank .Situation Without SAP Bank Communication Management SAP ERP Third-Party System Execute Payment Program Create Payment Order Upload File Security: Authorization Encryption Digital Signature Send Payment Order to Bank File Server Import Bank Statement Collect Bank Statement Security Post/Processing and Clearing Download File 17 © 2012 SAP AG. All rights reserved.
. All rights reserved.Process Flow with SAP Bank Communication Management SAP ERP SAP Bank Communication Management SAP NetWeaver Process Integration Execute Payment Program Create Payment Order Create Batch Routing Payment Approval Work List Mapping SWIFTNet Security Encryption Digital Signature Security (Approval Workflow. Authorization. Digital signature) Import Bank Statement Receive Status Messages SAP Integration Package for SWIFT SWIFT Alliance Access/Gateway Post/Processing and Clearing Bank Statement Resource Adapter 18 © 2012 SAP AG.
RBS. Excel Spreadsheet. SWIFT. Wells Fargo Purpose • Develop mappings of CGI guidelines to SAP internal Data Fields Deliverables • Individual maps – DMEE/PMW XML Format. Nordea. and guidance • Potential Incorporation into SAP product of selected transactions – to include new SAP data fields and Global Data Types Supported Message Types • Credit Transfer • Direct Debit • Payment Status Report • Bank Statements © 2012 SAP AG. or other • Supporting user documentation with explanations. UK Payments Administration. Danish Bankers Association. Deutsche Bank.SAP ISO 20022 CGI Mapping Group Driver: • Bank Norge AS. PI XML Schema. TDI Consulting. SAP. Citibank. amplifications. Danske Bank. HSBC. 19 . All rights reserved. JPMorgan Chase. Bank of America.
44 Members BBVA Bank of America Merrill Lynch Barclays Bottomline Technologies CBI Consortium Citibank Danish Bankers Association Danske Bank Deutsche Bank DNB NOR GXS HSBC ING Bank J. All rights reserved. 20 . Morgan Nordea Bank The Royal Bank of Scotland SAP SEB Standard Chartered Bank Sydbank A/S UK Payments Administration UTSIT XMLdation Global Common Implementation (CGI) initiative © 2012 SAP AG.P.Contributing Members In Total.
Payment Solution Provided by SAP New Since SAP ERP 6. Enhancement Package 2 SAP Bank Communication Management H2H or BSN* SAP ERP GL Payroll Treasury In-house cash Payment Run Aggregate Payments Approval Workflow Digital Signatures Transmit Payment Receive Status Report Payment Medium Workbench Includes SEPA Package and ISO20022 support Mobile Use Case SAP Integration Package for SWIFT * Banking Service Network/available 2012 © 2012 SAP AG. All rights reserved. 21 .0.
All rights reserved. in order to check incoming and outgoing payments against sanctioned party list screening and embargo lists © 2012 SAP AG. 22 .Features: Compliance Increased compliance • Multi-eye release procedures for payment approvals • Personal digital signatures for outgoing payments for internal audit • Release of individual payments or entire batches • Sanctioned Party List and Embargo Check with SAP BusinessObjects Global Trade Services • Integration to the component SAP BusinessObjects Global Trade Services.
All rights reserved. 23 .Features: Integration to SWIFT and Banks Integration to SWIFT and banks Real-time integration with SWIFT via SAP Integration Package for SWIFT Optional integration with banks with the adapters in SAP NetWeaver® Process Integration on a project basis Increased payment-flow transparency Payment status monitor with full status history Processing of new ISO20022 payment status report and other status messages (ACK/NACK) Drill down to documents and master data Display of generated payment formats © 2012 SAP AG.
thus protecting from financial loss and process inefficiencies. This mobile app will make it possible to push a lot of urgent tasks to the Treasurer. Currency.Mobile Payment App for Bank Communication Management Value Added for Customer Executive staff able to sign off on high-value payments is often travelling.) 24 . VALUE © 2012 SAP AG. there is a high demand for a strict control of all financial activities and processes. All rights reserved. while providing some basic information about the payment (Amount. Due to financial crisis and high-compliance requirements. etc. DESCRIPTION Context/Use Case Approval Workflow for Payments — Inform mobile user to confirm/reject outgoing payment.
Mobile View • • Treasury Back office will use the Back-End Application of SAP Bank Communication Management Executive staff will use Mobile App if travelling to release urgent payments © 2012 SAP AG. All rights reserved. 25 .Back-End vs.
All rights reserved.Payment Factory with SAP Bank Communication Management and SAP In-House Cash Corporate Client Subsidiary SAP ERP SAP Cash Management AP/AR/HR Subsidiary Treasury SAP Bank Communication Management SWIFTNet SAP In-House Cash SWIFT Service Bureaus* Subsidiary SAP NetWeaver PI SAP Integration Package for SWIFT SWIFTNet Interface * www. 26 .swift.com/solutions/connectivity/ © 2012 SAP AG.
All rights reserved.Integrated Payment Factory Approach with different connectivity options Subsidiary SAP ECC 6. 27 .0 Cash Management AP/AR/HR Subsidiary Treasury SAP Bank Communication Management SAP In-House Cash Non-SAP SAP NetWeaver PI Middleware © 2012 SAP AG.
IHC. installable with phone support in most cases Single instance configurable for multi-banks’ services In future will support all SAP ERP versions. Corporate Corporate .Bank to Corporate Services Network Solution Overview Bank SAP Core Banking / Payment Engine Non-SAP Core Banking /Payments Bank Other 2 Bank At the Bank SAP NetWeaver PI for bank connectivity Integration and orchestration with one or more core banking systems Validation rules. TMS iDocs PI / Middle ware BSN Generic Adaptor At the Corporate Lightweight. All rights reserved.g. message semantics BSN Bank Agent SAP PI Bank DMZ In the Cloud On-boarding of corporates Agent management – configuration. and non-SAP ERPs 28 NonSAP Apps Non-SAP Applications SAP ERP © 2012 SAP AG. upgrades Shared visibility to corporate and bank Transform and Mapping for non-standard message formats Isolation between multiple tenants Reliable and secure messaging SWIFT optional routing capability to non-BSN Bank Members Platform for value-added applications ISO20022 SAP Bank to Corporate Services Network On-boarding Admin User Interface Banking Services Value Apps Monitoring Corporate DMZ iDOCs or ISO20022 BSN Corporate Agent BCM SAP CDP ERP Modules e. security policies. downloadable agent.
All rights reserved.Why Do I Need In-House Cash? Multinational corporate structures with a high volume of internal and external payment transactions can improve by using In-House Cash for the following issues: Payment transaction control on a regional and global level Cost-effective processing of internal and external payments Reduction of external bank accounts Reduction of cross-border payments Automation and standardization of financial processes © 2012 SAP AG. 29 .
30 . All rights reserved.Geographic Structure of an Integrated In-House Bank Various and ever-changing multi-national corporate group structures … Head office (Europe) Internal Bank USA Subsidiary Internal Bank Region 2 Subsidiary Asia Subsidiary Subsidiary Subsidiary Subsidiary Region 1 … with a high volume of internal and external payment transactions © 2012 SAP AG.
All rights reserved. rationalized. and integrated business processes and controls by using standard payment programs In-House Cash helps to increase the efficiency of your payment transactions significantly with lower costs © 2012 SAP AG.Advantages of SAP In-House Cash • • • • • • • No additional software has to be installed in the subsidiaries Reduction of transaction volume due to internal processing Reduction of bank accounts and fees Interest compensation Bundling of currency quantities Maintenance of accounts in any currency Standardized. 31 .
Key Instruments of SAP Cash and Liquidity Management Cash and Liquidity Management Decisions Are Based on: Cash Position Liquidity Forecast Bank accounts In-House cash banks Bank clearing accounts Payments in transit Memo records Intra-day bank statements … Treasury Deals Earmarked funds Real estate … Disputes Customer/Vendoropen items Blocked items Down payment requests . 32 . Purchase requisitions Purchase orders Sales orders … Financials NonSAP Industry Solutions Financials NonSAP Logistics NonSAP © 2012 SAP AG.. All rights reserved..
All rights reserved. Details per company code on bank groups and currencies. 33 . © 2012 SAP AG.Insight to Help Liquidity Analysis Cash Flow Analysis Enabled by SAP BusinessObjects Get overview on actual and planned cash position in the past several days or weeks and the next few days/weeks to come Display cash position in transaction currency and simulate display currency according to a variable exchange rate Check current cash position by bank group and list bank accounts of this bank group Get an overview on cash position by company code.
Payments and Bank Communications Cash and Liquidity Management Debt and Investment Management Financial Risk Management 2. III. II. Innovations 2012 I. IV. Optimized handling of Bank Statements Commodity Management 3. Wrap-Up . Introduction Treasury Applications from SAP I.Agenda 1. II.
and hedging relationships Reporting tools: SAP Query. Drill-down. Relative. SAP BusinessObjects Dashboards and Xcelsius Results database: Portfolio Hierarchy. Modified Dietz method Benchmarking: Performance Indicators Ad hoc reporting: Point & click. . Cash Flow Exposure Management Centralized Database to gather group and version data and transfer to Hedge Management Hedge Management Administration of hedge plans. Time weighted. BI. References. lending Commodities Futures Forwards Traded Options Middle office: Risk exposure. Correspondence Monitor. Valuation tools. multidimensional limits Reporting Market Risk Analyzer Price calculator: NPV. Dealer slip. Other third-party providers. Absolute Portfolio Analyzer Yield calculations: Money weighted. FX). Sensitivities Value at risk: Variance/covariance. Ratios. Rate fixing (interest. Controlling. exposures. Netting. Position. Flat files. Settlement risk Limit management: Limits freely definable. ABAP List. hedge items. Historic results Transaction Manager Front office: Position and deal reporting.SAP Treasury and Risk Management Risk Analyzers Credit Risk Analyzer Utilization: Formulas. Corporate actions. Online limit check Back office: Standing instructions. Credit risk. Compliance Foreign Exchange Spot Forward Swaps Options Futures Derivatives Cap Floor FRA Swaps Options Futures Debt Mgmt Bonds Bank loans Commercial Paper Facilities Securities Bonds Warrants Stocks Certificates Repo Sec. P&L. Unified databases. Deal capture. Settlement. All rights reserved. Historic. Compliance Data export: Excel. Performance. Monte Carlo Simulation Simulate rates: What-if scenario. Process monitors Accounting: Flexible accounting determination. Period. Accounting according to many international accounting standards Money Market Fixed-term deposits Commercial Paper Repo Management reports: Positions. BI 35 © 2012 SAP AG. Exercise. Prices.
It also helps monitor and control investments and portfolio risks.. valuations. and accruals 4 Performance Analysis Produce performance analysis compared to defined benchmark Control Cash reporting Monitor capital structure for best options Monitor investment portfolio for performance Monitor counterparties for risk exposure Collect Cash Data of today Create and update forecasts Take investment or borrowing decision according to the companies Treasury guidelines Take care of limits. on counterparties Determine best options based on cost of capital or best risk-adjusted investment returns © 2012 SAP AG. Process Steps 1 Cash Management Data 2 Investment or Borrowing Decision 3 Deal Execution and accounting Execute financial transaction Generate Correspondence Execute Payments Execute postings.g. e. 36 . combined with other SAP Treasury applications. All rights reserved. provides visibility into anticipated cash balances so that treasury managers can optimize investment returns.Optimize Debt and Investment Strategies Process Overview SAP Treasury and Risk management.
37 .Preconfigured Treasury Software and Services Enabling Rapid Deployment SAP brings software and services together in a new offering that gives you essential treasury functionality quickly and affordably SAP Treasury and Risk Management rapid-deployment solution Preconfigured software to eliminate the guesswork Rapidly delivered in as little as two months using SAP Consulting An affordably priced solution Establishes a footprint in treasury that can be expanded Analyzer Tools Transaction Mgr. All rights reserved. Correspondence & Reporting SAP Treasury and Risk Management rapiddeployment solution Best Practices SAP Consulting ERP Integration © 2012 SAP AG.
Receiver Basis Correspondence Profiles & Assignments (SWIFT/IDoc) Financial Accounting* (Bank**) BALANCE SHEET Classic or NewGL Chart of Accounts Company code(s) VALUATION P&L IFRS and/or US-GAAP. BCM. Forward Interest Rate Swap Payer. Borrowing Net Present Value (key date) Run & Post Accrual Alert Monitor Simulation of key figures Limit check Post realized P&L (Derived flows) Create Deal Settle Deal SWIFT/IDOC Correspondence Post Deal Valuate Deal Foreign Exchange Spot.SAP Treasury and Risk Management Rapid Deployment Solution Core Process Overview Credit Risk Analyzer Limit Management Market Data File upload: Exchange Rates Yield Curves By Company Code By Business Partner/ Company Code Market Risk Analyzer Net Present Value Calculation Reporting Deal Processing Positions Transaction Manager eob: “KLNACHT” Flows Postings Master Data Business Partner Internal Business Partner External Business Partner Counterparty Address/Communication Authorizations Derived Flows. (Release Cash**) (Payment**) Use customerspecific Cash Mgmt. SWIFT. settings Use customerspecific payment methods.. not covered via RDS configuration 38 .g.. All rights reserved. German GAAP * Prerequisite for RDS ** Typically customer-specific settings configured in Financial Accounting © 2012 SAP AG. SAP F111. Tax (Payment**) Deal/ Product Types Money Market Investment. InHouse Cash Interface to customer-specific settings. e. e.g.
Agenda 1. II. IV. Wrap-Up . Innovations 2012 I. Payments and Bank Communications Cash and Liquidity Management Debt and Investment Management Financial Risk Management 2. Introduction Treasury Applications from SAP I. III. Optimized handling of Bank Statements Commodity Management 3. II.
e. 40 . IAS 39 © 2012 SAP AG.. All rights reserved.Commodity Risk Management • • • Addresses the new mega-trend of raw material and commodity management Manages risk exposure from commodity sales and purchases and related financial risk management Ensures legal compliance under IFRS. i.
Volatility is significantly higher than for currencies or interest rates This has a high impact on the profit of many companies • Calculating the material cost for end products becomes difficult • Liquidity and cash planning becomes challenging • Hedging with financial derivatives can be a strategy to manage the challenges Source: Commerzbank/Wirtschaftswoche – Commodity radar screen for October 2010 © 2012 SAP AG.Commodity Price Volatility Is Increasing Commodity Price Volatility is constantly increasing for Commodities like oil. All rights reserved. 41 . lead. etc. copper. wheat. zinc.
. All rights reserved.Commodity Risk Management Commodity Risk Management provides robust functionality that enables companies to identify and quantify their exposure towards commodity price risk and foreign-exchange risk and take steps to mitigate them Key Needs Commodity Risk Management Efficiently manage and reduce risk arising from commodity price volatility. i.e. 42 . such as exposure management and exposure reporting Integration of logistics processes to Treasury & Risk Management to allow for near real-time updates of exposure positions Batch/Quality change-driven update of exposure positions (industry-specific) PLANNED INNOVATIONS © 2012 SAP AG. of agricultural products Streamline treasury processes and reduce the resources required to execute in order to concentrate on valueincreasing activities Ensure compliance to newest accounting regulations Key Innovations Solution enhancements planned in key areas.
change history.SAP’s System Landscape and Solution Architecture Helps Companies Properly Manage Their Commodity Risk Status SAP’s Commodity Management solution is an integrated platform with open interfaces Direct transfer of physical sales and purchases data to treasury solution Complete audit support Physical pricing rules & calculation engine fully integrated inside system Benefit by using SAP Correct data – risk managers can do their job Real-time data for proper position management Authorization concept. etc. Correct pricing results With SAP you know your REAL risk exposure timely and you can properly manage it! © 2012 SAP AG. All rights reserved. 43 .
Commodity Management Connects Processes Across the Organization to Enable Timely and Profitable Purchasing. All rights reserved. Physicals. and Inventory Hedge Effectiveness & Accounting General Ledger Commodity Risk Reporting AR/AP Settlements/ Accounting Provisional Invoice Differential Invoice Deal Settlement © 2012 SAP AG. and Hedging of Commodities Typical end-to-end process flow for companies focused on risk management CFO Finance VP Sales/ Purchasing Commodity Sales & Purchasing VP Treasury Commodity Risk Management VP Accounting Financial Reporting Sales Purchasing and Logistics Risk Management Define Risk Policy Define Risk Profile Compliance/ Risk Reporting Risk Review Contract with Commodity Pricing Transportation & Delivery Order Exposure Management Credit Management Hedge Management Paper Trades MTM: Paper. PLANNED INNOVATIONS 44 . Selling.
Sales.000 Web site: www.” RQ 1xxxx (10/09) Implementation Highlights Finished on time and below budget Retired over 10 legacy systems Served as pilot customer for the enhancement package for the SAP ERP application. Nyrstar © 2012 SAP AG. SAP Best Practices for Mining package Implementation partner: SAP Consulting Challenges and Opportunities Why SAP? Improve visibility of metal sales and Power of SAP ERP to enable global purchasing. Business Systems. 45 .com SAP solutions and services: SAP ERP application. purchases. smelting. All rights reserved.SAP Helps Nyrstar Manage Metal Purchasing. and risk management of all metal movements management across company High degree of fit with business Optimize profitability analysis by metal processes supported by the SAP Best Practices for Mining package component Objectives Standardize key global business processes Set up metal accounting using new general ledger Benefits Substantial improvement in visibility of metal price exposures and customer and product profitability Reliable company profit from worldclass operations through minimized impact of price volatility Higher hedge accuracy and compliance with International Financial Reporting Standards Reliable daily commodity risk reports 20% faster financial close time “Our project delivered central SAP ERP software capable of globally managing all our metal sales. and movements integrated with our metal risk and hedge management and metal valuation across our commercial function. and Risk QUICK FACTS Nyrstar Headquarters: Zurich.nyrstar. Switzerland Industry: Mill products – primary metals manufacturers Products and services: Mining. specifically for the treasury and risk management for commodities functionality Phil Palmer. metal accounting.4 billion Employees: 4. and production of metals Revenue: €2. Global Manager.
III. Wrap-Up . Introduction Treasury Applications from SAP I. II. Innovations 2012 I. IV. II. Payments and Bank Communications Cash and Liquidity Management Debt and Investment Management Financial Risk Management 2. Optimized handling of Bank Statements Commodity Management 3.Agenda 1.
All rights reserved.Ramp Up Just Started https://service.com/rampup * * Requires login credentials to the SAP Service Marketplace © 2012 SAP AG.sap. 47 .
Accounts Receivable Accounts Payable Cash Management Payments and Bank Communications Receive Cash Manager Treasury Finance Financial Risk Manager Financial Risk Management Cash and Liquidity Management Manage Intercompany Transactions Manage Accounts Receivables Manage Accounts Payables Debt and Investments Strategies Deals Request: Borrow or Invest Payments Ensure Compliance Receive Payments Operational Cash Flow Planning Provide Risk Indicators and Report Exposures Process Payment Orders Process Electronic Bank Statements Bank-toBank Reconciliation Manage In House Cash Manage Bank Communications Analyze Bank Status Payment Processing Approval of High Volume Payments Reconcile Plans with Actual Manage Treasury Transactions Forecast Liquidity Propose Deal Processing Entering Post Value Processing Manage Sales Orders Services in and Interest Invoices by Portfolio in Supplier Supplier SelfSupplier Earned Self-Service Service Treasury Management Identify Risks and Consolidate Deal Request & Management Hedge Management & Accounting Manage Manage Valuation and Investments Accruals Manage Positions Enhancements delivered with SAP Business Suite Innovations 2011 © 2012 SAP AG. 48 . liquidity and treasury and risk management.Treasury and Financial Risk Management With SAP Business Suite Innovations 2011 Integrate cash. Improve reporting. All rights reserved. Integrate treasury functions with banks. improve returns. Treasury Operations Manager CFO/Head of Finance Local/HQ Finance Dept. mitigate financial risks. and institute better financial controls.
49 . All rights reserved.Process Overview Electronic Bank Statement Processing Receive and import bank statement Bank Statements Automatic Posting Postprocessing Bank Statement Analyze results Bank Statement Overview PostProcessing Subsidiary Subsidiary © 2012 SAP AG.
Outlook – Optimized Processing of Bank Statements Better Efficiency – Replacement of multiple screens with a single efficient UI © 2012 SAP AG. All rights reserved. 50 .
attachments © 2012 SAP AG. 51 . invoice number or amount) Posting on debtor/ vendor accounts Residuals and partial payment Posting on G/L accounts with account assignment templates Overview of documents.Bank Statement Post Processing – Details Work list The work list shows all bank statement items to be processed according to the selection criteria Clearly Arranged Details Area Proposal of transaction in order to trigger a new search Determined business partner Demonstration of the assigned amount and the open amount Editing and recheck of the note to payee Document Entry and Logging Fast assignment to open items through direct display of found documents Read more items with search parameters (Debtor. log. All rights reserved.
Delete spaces and search for open invoices. checks.Note to Payee Adaptation and Scanning Possibility Edit & Check Note to Payee Edit Note to payee* E. All rights reserved.g. payment advices *Original & Changed version are saved 3 Insert Advice information into note to payee and check again Possibility to insert complete payment advice information (Copy & Paste) 1 Scan Note to payee See result list & Open amount is cleared 2 Post the documents © 2012 SAP AG. documents. 52 .
All rights reserved. and transferred to local systems Automatic import of multiple files (variable path names) Monitoring and exception handling supported Support of standard formats SWIFT MT940/MT942 BAI Benefits Support of central bank connectivity scenario with dispatching of bank statements Mass upload of files allows for update of balances as soon as bank statement files are provided Application log for exception handling Bank Statements Import and transfer bank statement Bank Statement Overview © 2012 SAP AG. 53 . processed.Automated Import and Transfer Bank Statements of different formats are automatically imported into the system.
Wrap-Up . II. Innovations 2012 I. Introduction Treasury Applications from SAP I. III. Optimized handling of Bank Statements Commodity Management 3. Payments and Bank Communications Cash and Liquidity Management Debt and Investment Management Financial Risk Management 2.Agenda 1. IV. II.
Analyst and Press Assessments Referring to Treasury and Financial Risk Management Solutions from SAP Source Description Treasury Technology Implementation Project of the Year – Implemented wall-to-wall SAP Treasury Solutions in less than 12 months timeframe A survey stated clearly that Integration strengths weighted higher than functionality benefits by choosing a Treasury Management System “SAP have made serious attempts to deliver a depth of treasury functionality.” and the advice: “Evaluate any capabilities from your ERP provider against the specialist vendors” © 2012 SAP AG. All rights reserved. 55 .
All rights reserved.Treasury and Financial Risk Management Performance KPI STP – automated clearing rate of payment transactions Industry Benchmark 75% Improvement Potential 30% 99% 0% STP – settlement time for FX transactions 15 min 4 hours 90% 5 hours 100% Optimize working capital – reduce average subsidiary cash balance 50 % 100% Source: ASUG Benchmarking 56 100% © 2012 SAP AG. .
All rights reserved. 57 .) KPI Process efficiency/STP Improvement Potential Description In-House cash center processing times reduced from 16 hours to under 30 minutes 97% 80% 81% Optimize Working Capital Reduced short-term cash requirements by 80% People efficiency Decreased cash management and payment processing resources by 81% Source: SAP reference data base © 2012 SAP AG.Treasury and Financial Risk Management Performance (cont.
Treasury and Financial Risk Management Performance (cont.) KPI Optimize working capital Description Reduced borrowing costs by CHF 5 million globally Customer People efficiency Managed global treasury operations for 11 currencies across 50 subsidiaries with 8 people Process efficiency Achieved 5 year ROI of over 400% and a payback period of approximately 1 year Savings of 1 FTE annually due to higher automation Source: SAP reference data base © 2012 SAP AG. All rights reserved. 58 .
world’s leading oral. Europe’s fifth largest telecom operator with 164. All rights reserved. personal.4 million subscriptions. world’s largest global paints and coatings company Solutions: • SAP Treasury and Risk Management • SAP In-House Cash • SAP Bank Communication Management • SAP Cash Management Highlights/What’s special: • Global reference actively using all Treasury applications from SAP • Treasury Applications from SAP help speed Cash Flow and lower operating expenses © 2012 SAP AG. €12 billion revenue Solutions: • SAP Treasury and Risk Management • SAP In-House Cash • SAP Bank Communication Management • SAP Cash Management Highlights/What’s special: • Global reference actively using all Treasury applications from SAP • Implemented BCM in less then 3 months Customer Facts: New York/ US-based. and home care product manufacturer Solutions: • SAP Treasury and Risk Management • SAP In-House Cash • SAP Cash and Liquidity Management Highlights/What’s special: • Global reference using Treasury all over the world • Established Centralized Cash Management and Foreign Exchange Trading Model in Switzerland 59 . Customer Facts: Stockholm/ Sweden-based.LoB Finance – Treasury and Financial Risk Management Customer Facts: Amsterdam/ Netherlands-based.
60 .Recent Innovations That Enable the End-to-End Process SAP Payment Approval Mobile App Release payments from everywhere In-Memory Mobility SAP Rapid Deployment Solutions Fast time-to-value for Treasury and Risk Management On-Demand Analytics Analytics Embedded Analytics (Cash Dashboard) HANA Applications for Cash Forecasting © 2012 SAP AG. All rights reserved.
fitness for a particular purpose. future either developments express or are implied. changed the implied by SAP warranties at any time of merchantability. This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. either express or implied. for any reason fitness withoutfor notice. This This document presentation is provided and SAP‘s without strategy a warranty and possible of any kind. All rights reserved. including but not limited to. without or non-infringement a warranty of any kind. the implied warranties of merchantability. a particular This document is provided purpose.Treasury Applications from SAP Summary Roadmap Short -Term (Plan) • Mid-Term (Plan) • Continuous Innovations in regards to Commodity Risk Management Support of CGI ISO20022 payment formats Mobile App for the release of payments Improved processing of Bank Statements in SAP Cash Management (FEBAN) Optimized import of Bank Statements In-memory (HANA)-based Cash Forecasting Continued investment in customer innovations IFRS9 and FASB Dodd-Frank Act and EMIR TCO Reduction for Payments and Bank Communications Further enhancements in the area of Commodity Risk Management • EhP 5 – Today • Support of Commodity Risk Management • Enhanced hedge accounting using new commodity paper deals • Hedge Management for FAM • Rapid Deployment Solution available • Readiness for SEPA and UNIFI/ISO20022 standard • • • • • • • • © 2012 SAP AG. subject including to change butand not may limited beto. or non-infringement 61 .
firstname.lastname@example.org Mark Stapleton mark.com .stapleton@sap.Thank You! Contact information: Christian Mnich Solution Management | Treasury and Risk Management | LOB Finance SAG AG | Dietmar Hopp Allee 16 | 69190 Walldorf | Germany Christian.
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