PeopleSoft Cash Management

Transcription

1 PeopleSoft Cash Management Your Keys to Success at a Commercial Client Session ID#: April 8, 2014 Presented by: Glenda Alexander and Marcus Bode SpearMC Consulting REMINDER Check in on the COLLABORATE mobile app

2 Agenda About SpearMC and Your Presenters What is PeopleSoft Cash Management? Why PeopleSoft vs. The Others? Our Implementation Approach Cash Management Road Maps for Design and Configuration Financial Gateway Bank Reconciliation Cash Positioning & Sweeps Project Timeline Wrap Up and Q&A

3 About SpearMC and Your Presenters

4 About SpearMC Founded in 2004, SpearMC is a technology and professional services firm specializing in PeopleSoft Financials and Supply Chain Management PeopleSoft Human Capital Management and Payroll Application Development Project Management Change Management ERP Training

5 About SpearMC Regional offices in Chicago, Oklahoma City, Seattle and San Francisco Our local and well-connected network of top-tier business analysts, technical leads, developers and project managers keep travel cost to a minimum.

6 About SpearMC Services & Competencies Technology and Business Consulting Full-service ERP and BI Selection, Implementation and Integration o o o o o PeopleSoft JD Edwards Oracle EBS Hyperion Dynamics AX ERP Training IT Transformation, IT Strategy and IT Infrastructure ERP Bolt-On Applications Development Capability Assessment

7 About SpearMC Services & Competencies Program and Project Management Business Transformation Project Management Office Project Portfolio Management Change Management Operations Improvement (Six Sigma, Lean, etc.) CIO and CTO Advisory Services Pricing and Revenue Enhancement

8 About Your Presenters Marcus Bode Managing Director Founded SpearMC in 2004 Specializations: PeopleSoft Financials Cash Management Procure-to-Pay Expert Certified PeopleSoft Financials 20+ Years experience majority PeopleSoft

9 About Your Presenters Glenda Alexander PeopleSoft Cash Management Specializations: System implementation Configuration Upgrades 15+ Years experience majority PeopleSoft

10 What is PeopleSoft Cash Management?

11 PeopleSoft and the Corporate Treasury Life-Cycle What is PeopleSoft Treasury? PeopleSoft Treasury is designed to facilitate all processing and reporting aspects of the Corporate Treasury life-cycle using dedicated components within the application. In-House Banking / Pooling Manage Bids EFT Processing Capture Deals Cash Positioning Portf olio Management Book-to-Bank Reconciliation Mark-to-Market Processing Balance Reporting FAS-133 / Deal Accounting Start» Administer Banking Measure and Manage Risk ach component is Highly Configurable to meet the needs of different operations in size and complexity.

12 What is PeopleSoft Cash Management? Sweeps

13 Why PeopleSoft Cash Management vs. The Others?

14 Why PeopleSoft Cash Mgmt vs. The Others Reduced implementation efforts When PeopleSoft is the existing Enterprise Financials Platform, the Cash Management module can be tightly integrated. Utilizes pre-existing Bank, Branch, Accounts and other banking elements. Integrates with GL Accounts, Chartfields, Combo-Edits and Trees already configured in PeopleSoft. Compatibility with existing file transmission and retrieval specifications required by major banks in the US and abroad. Strong Reporting Tools available that existing PeopleSoft users are familiar with. Configurable Security model that follows approach already in place. Delivered with Approval Workflow configurable to existing requirements. Interfaces to other PeopleSoft modules are delivered.

15 Why PeopleSoft Cash Mgmt vs. The Others

16 Implementation Approach

17 Implementation Approach Divide the project into four distinct tracks/roadmaps 1. Financial Gateway Technical File Layouts Bank Communications File Exchange 2. Financial Gateway Functional Bank Configuration Bank Transfers Wires/EFTs 3. Bank Reconciliation 4. Cash Positioning & Cash Sweeps

18 Financial Gateway Technical

19 4. Financial Gateway Technical Primary Components File Layouts Wires/EFTs BAI & EDI files Bank Communications Transmission method Securing data & transmission Distribution of incoming bank files Scheduling of transmissions for Cash Position & Reconciliation

20 Typical Challenges - Financial Gateway (Tech) Banks tend to rely on legacy technologies Engaging bank in project, retaining their cooperation Customization of delivered file layouts Testing file interchange with banks

21 Financial Gateway Functional

22 1. Financial Gateway Functional

23 1. Financial Gateway Functional Bank Configuration Banks Branches Accounts Settlement Instructions Administer Bank Integration and Bank Statements Layouts Code Mapping Bank Statement Codes Accounting Template Configuration

24 1. Financial Gateway - Functional Funds Transfers Configuration components Bank Transfer Templates EFT Templates One-off Transfers Accounting approach for each Bank to Bank Transfers - Simple Dr/Cr to bank account EFTs - Dr/Cr to bank accounts with accompanying offsets

25 1. Financial Gateway - Functional

26 Typical Challenges - Financial Gateway (Functional) Complex accounting requirements Bank to Bank Transfer accounting limitations Analyzing sufficient volume of bank data

27 Bank Reconciliation

28 2. Bank Reconciliation

29 2. Bank Reconciliation Configuration Components Reconciliation Rules Activity Types Bank Statement Accounting System Processes Bank Statement Import Automatic Reconciliation Semi-Manual Reconciliation Treasury Accounting

30 2. Bank Reconciliation

31 Typical Challenges Reconciliation Coding for misc items - fees, interest, ZBA s (External Transactions) Complex accounting requirements Date tolerances Handling recon exceptions Business Process changes

32 Cash Positioning and Sweeps

33 3. Cash Positioning & Sweeps CASH POSITIONING CASH POSITION SOURCES Bank Statement (BAI2) 2a Enter CPW Manual Entries Accounts Payable 1 2b 3 Accounts Receivable Generate Cash Position Re-Generate Cash Position Finalize Cash Position Cash Position Daily Report Other PS Record nvision Cash Position Forecasting Process flow aggregates position sources to facilitate Cash Positioning and Forecasting

34 3. Cash Positioning & Sweeps Primary Components Position Sources Tree Construction and Utilization Manual Positioning Cash Position Worksheets Cash Sweep Structure

35 3. Cash Positioning & Sweeps

36 S U M M I N G O F V A L U E S 3. Cash Positioning & Sweeps Tree Structure Overview (completely customized) Conceptual PS Tree Structure Definition Root Node Sample PS Tree Structure Calculation Cash Position - $20,000 Summary Node Detail Node Detail Node Detail Node Summary Node Detail Node Summary Node Detail Node Detail Node Account A - $8,000 Transaction 1 - $10,000 Transaction 2 - ($4,000) Transaction 3 - $2,000 Account B - $12,000 Transaction 1 - $5,000 Sub-Group X - $7,000 Transaction 1 - $8,000 Transaction 2 - ($1,000)

37 3. Cash Positioning & Sweeps Cash Sweeps The Cash Sweep process drives the data extraction, funds transfer calculation & execution for the Cash Sweep structure, performing the functions below for each bank account included: 1. Retrieves Cash Position Balance from the Cash Position Worksheet 2. Retrieves the Target Balance from the External Account information 3. Calculates the amount of funds in short or in excess of Target Balance 4. Determines from the structure whether funding or concentrating funds applies 5. Applies rounding rules established in the structure to the calculated amounts 6. Compares transfer amount to minimum and maximum amount parameters 7. Sets final recommended transfer amount 8. Creates transfers - if Auto Generate box is selected in sweep structure

38 Typical Challenges Cash Position & Sweeps Complexity of Cash Tree Custom position source requirements Time constraints in a daily positioning environment Complexity of Sweep Structure

39 Project Timeline and Resources

40 Project Timeline Activities Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Planning Assess Bank Readiness Conduct Fit-Gap Analysis Implementation Plan Design Module Configuration Integra tion Specs Devel op Integra tions Devel op Reports Tes ting Depl oy Go Live Support

41 Project Resources External FTEs Internal FTEs Weeks Activities PM ANALYST SME(s) Tech Lead Tech Dev 2 Pl a nni ng Assess Bank Readiness Conduct Fit-Gap Analysis Des i gn Modul e Confi gura tion Integra tion Specs Devel op Integra tions Devel op Reports Tes ting Depl oy Support Resource Plan

42 Sample Discovery Session Regarding Current Cash Management Processes

43 Cash Management Discovery Session

44 PeopleSoft 9.2 Bank Administration and Account Management

45 Bank Administration / Account Management

46 Bank Administration / Account Management client CLT1 CONCENTRATION ACCOUNT CLT CLTCONCNTR

47 Bank Balance and Transaction Reporting

48 Bank Balance & Transaction Reporting

49 Balance & Transaction Reporting

50 Reconciliation

51 Reconciliation

52 Reconciliation

53 Reconciliation

54 Reconciliation The process provides the opportunity to Force Reconcile Exceptions like Fees and Interest that do not have matching system side transactions.

55 Reconciliation

56 Reconciliation

57 Reconciliation Process Reconciliation Accounting runs the bank statement accounting process - Batch process that creates General Accounting Events in Cash Mgmt and prepares accounting lines for Journal Generation

58 Reconciliation

59 Cash Positioning and Sweeps

60 Cash Positioning & Sweeps

61 Cash Positioning & Sweeps

62 Cash Positioning & Sweeps CLIENT DAILY CASH CLIENT DAILY CASH CLIENT_DAILY_CASH-CLIENTDAILYCASH CLIENT CONCENTRATION CLT1 OPEN BALANCE CLT1 CURRENT DAY CR CLT1 CURRENT DAY DB CLT1 BANK TRANSFERS CLT1 OUTGOING PYMTS CLT1 AP WIRES CLT1 MANUAL ENTRY CLT INVESTMENT CLIENT DAILY CASH CLT CURRENT DAY CR CLT2 OPEN BALANCE CLT2 CURRENT DAY CR CLT2 CURRENT DAY DB CLT2 BANK TRANSFERS CLT1 OUTGOING PYMTS CLT CLT2 AP WIRES CLT2 MANUAL ENTRY

63 Cash Positioning & Sweeps

64 Cash Positioning & Sweeps

65 Cash Positioning & Sweeps

66 Cash Positioning & Sweeps

67 EFT Processing

68 EFT Processing CLT CLT1 CONCENTRATION ACCOUNT

69 EFT Processing

70 EFT Processing CLT1 - Addenda can also be added using link on Destination tab.

71 EFT Processing CLT1

72 EFT Processing CLT1

73 EFT Processing

74 EFT Processing

75 Wrap up, Questions and Review

76

77 Other SpearMC Sessions at COLLABORATE14

78 Get in touch with us Marcus Bode Managing Director Glenda Alexander Cash Management Systems Consultant

79 Please complete the session evaluation We appreciate your feedback and insight