Oracle Treasury

Treasury is an enterprise treasury solution that helps

you effectively manage and control your cash flows,
your foreign exchange and money market deals, and
your overall risks. It provides comprehensive bank
relationship management and settlement features. It
also provides flexible position reporting.
This section includes the following topics:
 Cash Management
 Deal Management
 Risk Management
Cash Management
In every organization, the treasury department plays a central
role in setting cash policies and managing cash transactions. You
can use Treasury to perform a wide range of cash-related treasury
responsibilities including:
• Managing domestic and foreign cashflows
• Managing banking relationships
• Managing electronic cash transactions between companies and banks
• Creating short and long term cash forecasts
• Managing in-house banking between companies in your organization
Cash Management

• Reconciling cash transactions against bank statements

• Use Treasury to centralize a wide range of internal and

external
information across your organization, enabling you to
make
faster and more accurate cash management decisions.
Deal Management

• With Treasury, you can conduct and manage a variety

of financial transactions that you need to manage
your
company's investing and borrowing activities.

• Treasury enables you to perform trades quickly and

efficiently and enables you to achieve profitable

results
in the overall operation of your treasury management

processes
Risk Management

 Risk management is a growing part of corporate

treasury responsibilities.

 Using Treasury, you can set policies, limits, and

identify exposures for your interest rate, foreign
exchange, and commodity risks
Foreign Exchange Deals
This section explains how to enter foreign exchange deals,
including spot and forward deals. It also describes how to
roll over or predeliver your foreign exchange deals.
You must authorize the individual currencies, and then
authorize the specific currency combinations that you want
to exchange before you can enter a foreign exchange deal.
 Foreign Exchange
 Spot and Forwards
 Foreign Exchange Options
 Rollovers and Predeliveries
Money Market Deals
 These deal types are the basic building blocks for any
treasury deal. You can use each deal type as is, or you can
combine several deal types to create a more complex deal
 Money Market Deals
 Short Term Money
 Common Details for Short Term Money Deals
 Transaction Details for Short Term Money Deals
 Intercompany Funding
 Wholesale Term Money
Money Market Deals
Retail Term Money
 Negotiable Securities
 Discounted Securities
 Fixed Income Securities
 Derivatives
 Forward Rate Agreements
 Interest Rate Swaps
 Options
 Bond Options
 Interest Rate Options
 Interest Rate Swaptions
Equities
In Treasury, an equity is a share of stock that your
company either invests in or wishes to track. You use
the equities deal type and related windows to set up
stock issue information, purchase, track and resell
shares of stock, process cash dividends, and
settle, revalue, and account for stock investment
activities. You can also enter and maintain stock
information for clients of your company.
Equities

The purpose of the Treasury equities functionality is to

manage your company's investment or trade in stocks
issued by other companies. The Treasury equities
functionality is not designed to administer your
company's own stock offerings, nor is it intended to be
used by a brokerage firm to manage high trading
volumes.
Hedging
 Hedging is a strategy designed to reduce financial risk using derivative
instruments. A hedge can help lock in profits or limit losses by reducing the
volatility of an asset or liability by mitigating the risk of loss.

 Actual Hedges
 With an actual hedge, you create your hedge based on your company's actual
Receivables/Payables position as of the current system date for hedge items
retrieved from Oracle Receivables and Oracle Payables. You can create actual
hedges to hedge your foreign exchange exposures for:
 Customer invoices
 Supplier invoices

 Forecast Hedges
 Anticipated revenues within a specified time period such as a month, a quarter,
or a year.
 Anticipated expenditures within a specified time period such as a month, a
quarter, or a year
Settlements and Accounting

You must create adjustments to settle your tax and

brokerage fees before you can create your journals and
transfer them to General Ledger. As part of your
settlement process, you can validate your deal
transactions or print confirmation letters for your
deals.
You can automatically change settlement bank
accounts on multiple deals by running the Update
Settlement Bank Account Program.
Reports and Programs
 You can use concurrent processes to produce reports on your
Treasury activities or launch programs.
 The Treasury reports are divided into the following report and
program types.
 Administration Reports
 Bank Statement Programs
 Data Exchange Programs
 Hedging Reports
 Intercompany Reports
 Positions Reports
 Revaluations Reports
 Settlements Reports
 Term Money Reports
Treasury Open Interfaces

Open interface tables store information that is loaded

into Treasury from external sources using Oracle
SQL*Loader.

You can use concurrent programs to import data such

as bank balances, current market data (such as interest
rates, foreign exchange rates, bond prices, and so on),
deal details, and external exposure details from the
open interface tables into Treasury.
MARKET DATA INTERFACE
To import market rates, such as interest rates, foreign
exchange rates, and bond prices, from external sources into
the Rates are imported as current or historical rates based on
their time stamps. There are several sample programs that
are provided with Treasury that you can use as a basis for
transferring data from your external sources into the
market data Interface table
 Once market rates are imported into Treasury they can be
viewed in the Current System
DEALS INTERFACE
 The XTR_DEALS_INTERFACE table is used to import
deals from external sources into Treasury. This table is
capable of holding data for many different deal types;
however, since each deal type uses a different set of values
(for example, foreign exchange deals use two currencies,
whereas intercompany funding
deals use one), each deal type is imported into Treasury
using a different deal transfer package.
TRANSACTION INTERFACE

This table is designed to hold common transaction

information and is a temporary staging area for deal
data awaiting transfer to the actual transaction tables.
Validation:
 The system performs validation on the values in the
XTR_TRANSACTION_INTERFACE table.
 The rules to decide which values are calculated and
which
values are imported