The solution ETE: Treasury. Cash Flow Management based on Microsoft Dynamics AX is a flexible tool that gives the possibility to improve the real-time management of cash flows of the company, as well as to control the expenditure of cash.

The solution ETE: Treasury. CF Management satisfies needs of large holding companies with extensive organizational structure and enables flexible adjustment of routes of approval of applications for funding at different levels of management, tracking of budget limits both at the level of individual companies within the holding and at the level of a central management body of the holding.

Implementation and operation of the solution ETE: Treasury. CF Management enables the following:

– Automatic generation of applications for funding on the basis of primary documents,

– Control of applications for funding with regard to the budget limit,

– Approval of applications for funding in accordance with the established route of approval,

– Generation of the payment schedule and setting payment dates for applications for funding,

– Automatic generation of payment orders to be imported into the Client/Bank system,

– Import of bank statements and comparison of actual payments with amounts of applications for funding,

– Real-time analysis and cash flow control, real-time accounting for balances of all accounts of the company.

Here are the advantages of using the solution for each participant in business processes of the management of cash flows of the company:

For chief financial officers:

– Obtaining detailed analytical information about actual and planned cash receipts and disbursements,

– Early discovery of cash shortages and making real-time decisions on fundraising sources,

– Real-time monitoring of balances of accounts of the company and making decisions on the most efficient use of available funds,

– Achievement of financial objectives of the company due to the automatic control of all outgoing payments for compliance with approved budgets of the enterprise.

For employees of financial subdivisions:

– Simplification of budgetary control of applications for funding, automatic accounting for available balances for the budget item,

– Availability of a flexible tool for determination of the best payment dates for applications for funding based on their priorities for the enterprise,

– Routing of applications (determination of settlement accounts used for the payment against applications for funding) provided on the basis of timely information about cash balances of the accounts,

– Analysis of the implementation of cash inflow plans on the basis of information on actual incoming payments.

For applicants for funding:

– Possibility to create applications for funding on the basis of supporting documents (invoices, contracts, payrolls, etc..) automatically with the transfer of all necessary details from the source document into the application,

– Convenient tracking of the current state of any application for funding, operational flexibility of obtaining the information on the approval status of the application for funding and on the amount paid against this application for funding,

– Viewing of the available limit for the budget item covered by the application for funding before its sending for approval,

– Possibility to replace the approval of applications for funding made as a hard copy with the electronic approval.

For operators of the Client/Bank system:

– Automatic generation of payment orders for their importing into the Client/Bank system on the basis of applications for funding, i.e. absence of necessity to generate payment orders in the Client-Bank system manually,

– Reduction of the number of mistakes due to the incorrect input of payment details,

– Automatic import of bank statements into the system.

Economic efficiency of the solution

Implementation and subsequent operation of the solution ETE: Treasury. Cash Flow Management provides the following:

– Improvement of control, analysis and monitoring of management of the risk of loss of liquidity of the company,

– Increase in turnover of working capital due to the prompt redistribution of funds and elimination of cash shortages,

– Increase in profitability of the company due to optimization of the use of financial resources.

Direct economic benefit from the implementation of the solution can be achieved through the following:

– Minimization of cash shortages, which leads to the elimination of bottlenecks when making mandatory and top priority payments, provided that the failure to make such payments results in additional expenses,

– Improvement of redistribution of financial resources.

The indirect benefit from the implementation of the solution can be achieved through the following:

– Improvement of strategic planning through the use of the effective tool for management of financial flows of the company,

– Improvement of economic feasibility of decisions taken,

– Improvement of effectiveness of the investment policy,

– Establishment of a reasonable balance of incoming and outgoing financial flows,

– Separation of functions of accounting and control over the receipt and expenditure of funds, elimination of conditions for occurrence of abuses related to payments,

– Improvement and optimization of the workflow,

– Availability of dynamically updated, complete and accurate information in the ergonomic form.

Functional capabilities of the solution

Entry of budget limits for CF items

Limitation of the use of funds gives the possibility to limit cash payments for expenditure items. The complex organizational hierarchy existing in the system can be flexibly configured; this feature is especially important for holding companies, it gives the possibility to keep separate records for budget limits in the context of structural units of the holding.

Entry of estimated revenue

In order to forecast the future state of the company’s liquidity, the entry of estimated revenue by day in the context of cash receipt items is provided in the system. Using the tool for planning cash receipts, the financial department of the holding level receives information about the planned cash inflow from all subordinate units, it also gets the possibility to monitor the implementation of the cash inflow plan in real time and to take efficient management decisions.

Generation of applications for funding.

The system provides automatic generation of applications for funding on the basis of primary documents: invoices, payrolls, goods receipt notes, agreements. All necessary details of applications for funding are automatically inherited from the supporting document, including analytical signs of applications for funding needed to carry out budgetary control.

Approval of applications for funding

The route approval tool is provided in the Solution ETE: Treasury. CF Management. When configuring it, one can specify the number of stages of the approval procedure, number of participants in this procedure, sequence of stages of the procedure of approval of applications for funding. The use of functional capabilities improves the performance of financiers in large holdings with the branched structure due to precise delimitation of powers and centralization of cash flow management.

Budgetary control of applications for funding

An application for funding passes budgetary control in relation to the set budget limits. The system does not allow an application for funding to be accepted for payment if its amount exceeds the budget limit. It is possible to estimate visually the clear balance within which the application for funding may be accepted for payment before the conduct of the budgetary control of applications for funding. The unused budget limit can be viewed following from results of the month.

Generation of the payment schedule and the daily payment register

Basing on previously approved applications for funding and on planned revenue, the system gives the possibility to generate the payment schedule for tracking scheduled balances of the company’s accounts. Generation of the payment schedule is available both for the whole holding and for its separate structural units. Using the function of generation of the payment schedule, officials are able to track and eliminate cash shortages in real time and to plan fund raising. The payment calendar is also a tool of making decisions on the movement of funds between units of the holding company.

Payment against applications for funding

In order to make payments against applications for funding in the system, the procedure of exporting data for these payments to the Client/Bank system is provided. As a result of such operation, payment orders (ready for payment) are automatically being generated. Integration with the Client/Bank system gives the possibility to reduce the time of transmitting funds to the bank, as well as to minimize mistakes of entry of payment details of contracting parties.

Import of the bank statement and comparison of payment sums with sums of applications for funding

The solution ETE: Treasury. CF Management gives the possibility to import data of payments mentioned in the bank statement and to identify these payments. During the import of a bank statement, the actual payment is being automatically compared with relevant data of the application for funding, and this gives the possibility to promptly obtain information about payments against applications for funding.

Generation of analytical reporting

Functional capabilities of the solution ETE: Treasury. CF Management give the possibility to generate various reports for monitoring key financial indicators, for conducting the plan vs. actual analysis of the implementation of applications for funding.

Users of the solution

The solution ETE: Treasury. Managing the DDM can be used both in separate enterprises operating in different branches of economy and in facilities with geographically distributed structure (networks of affiliated entities or remote units, holding companies, corporations).

Senior officers of the company or of the holding, chief financial officers, heads and employees of financial departments and offices, managers of units, average employees of the companies are users of the solution.

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