1 A Detailed Guide to Treasury Functionality and Enhancements from SAP. Christian Mnich, SAP AG. Mark Stapleton, SAP America Disclaimer The information in this document is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This document is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any Functionality mentioned therein.
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4 2012 SAP AG. All rights reserved. 1. How SAP Helps You Achieve and Maintain Financial Excellence SAP's SOLUTIONS FOR FINANCE. Manage Enterprise Risk and Compliance REGULATORY. COMPLIANCE &. EFFECTIVE RISK Accounting and Financial Close SAP's comprehensive MANAGEMENT. Treasury and Financial Risk Management portfolio of applications and end-to-end processes help you achieve OUTPERFORM Financial Excellence STAKEHOLDERS' Manage Financial Performance FINANCIAL. EXPECTATIONS. Strong cash flow and liquidity Shared Service for Financials Compliant and accurate financial reporting SUPERIOR Receivables Management SERVICE AT Maximized profitability REDUCED.
5 COST Invoice to Pay Reduced cost of finance Travel Management 2012 SAP AG. All rights reserved. 2. Agenda 1. Introduction Treasury Applications from SAP. I. Payments and Bank Communications II. Cash and Liquidity Management III. Debt and Investment Management IV. Financial Risk Management 2. Innovations 2012. I. Optimized handling of Bank Statements II. Commodity Management 3. Wrap-Up Effective Treasury Management More Important Than Ever Business Problems 2012 SAP AG. All rights reserved. 4. Treasury Trends Growing Pressures in Treasury That Are Here to Stay Volatility in markets, Increasing commodity prices, globalization and and stocks uncertain economics Importance of Increased effective Cash and focus on risk Liquidity Management New Regulation Rationalization and and Compliance Standardization Requirements 2012 SAP AG.
6 All rights reserved. 5. The Common Issues These Are the Challenges We Hear from Our Customers Equities Subsidiary Payments and Bank Communications ( Treasury Operations) Customers/. Vendors Commodities Cash and Liquidity Management Derivatives Debt and Investment Strategy Financial Risk Brokers Management Banks Fixed Rate Regulator 2012 SAP AG. All rights reserved. 6. The Common Issues These Are the Challenges We Hear from Our Customers (cont.). 1. Decentralized 4. High operational costs organization with lack and weak IT. of information Payments and Bank infrastructure Communications ( Treasury Operations).
7 2. Multiple systems 5. Poor cash and and Interfaces Cash and Liquidity Management liquidity management 3. Compliance Debt and Investment Strategy 6. Reactive approach to challenges and Financial Risk risk Management violations 2012 SAP AG. All rights reserved. 7. Solving the Issues Treasury and Financial Risk Management Subsidiary Banks Payments and Bank Communications ( Treasury Operations). Commodities Cash and Liquidity Management Customers/. Vendors Debt and Investment Strategy Brokers Financial Risk Management Debt/. Investment Management Regulator 2012 SAP AG.
8 All rights reserved. 8. Solving the Issues Treasury and Financial Risk Management (cont.). 1. Centralized 4. Low operational organization with costs and strategic integrated systems IT infrastructure Payments and Bank Communications 2. Integrated system ( Treasury Operations) 5. Accurate and timely using central Cash and Liquidity Management cash positions and interfaces reliable liquidity Debt and Investment Strategy forecasts 3. Auditable and Financial Risk compliant Management 6. Proactive approach operations to risk 2012 SAP AG. All rights reserved.
9 9. Current Situation in Many Cases From Spreadsheet Problems to End-to-End Integration Without SAP With Treasury Solutions from SAP. Multiple Multiple Multiple Systems Banks Interfaces Integrated Treasury Solution Portfolio 2012 SAP AG. All rights reserved. 10. Treasury Challenges In an uncertain world it is critical to have the right systems and controls in place for measuring, managing, and reporting operational risk Treasurer 1. Effective cash management for clearer visibility and centralization 2. Consider the changing world in Banking 3.
10 Transforming Treasury into a strategic business partner 2012 SAP AG. All rights reserved. 11. Treasury and Financial Risk Management E2E Process Overview Treasury Operations Cash Manager Treasury Finance Financial Risk Manager Manager CFO/. Head Payments and Cash and Liquidity Debt and Financial Risk of Bank Communications Management Investments Strategies Management Finance Manage Inter- Forecast Propose Identify Identify Process Payments company Transactions Liquidity Deal Risks and Consolidate Manage Reconcile Plans with Manage Payment Factory Actual Manage Positions Investments/Portfolio Approval of High Deal Deal Operational Cash Volume Payments Processing of Deals Request Request &.