Configuring Centralized & Decentralized Cash Management in TS CMO - Part 2

Sujith Nair — Wed, 27 Jul 2011 21:40:44 GMT

Todays post continues that series of posts that describes the ability of TS CMO to support multiple centralized and decentralized cash management and positioning needs of enterprise organizations. Today we will look at a case of decentralized cash management. (Please read the first post the describes a centralized scenario as well)

Decentralized Cash Management - Consider an organization head quartered in the US with operations in US and Canada, the US organization managing the treasury (cash and investments) for the US and the Canadian subsidiary managing their cash.

A decentralized cash management scenario is described below - the organization receives BAI files from banks and proprietary investment updates in the US and Bank proprietary files for cash and investments in canada. Cash management and Investments are decentralized and taken care of by treasury users in respective locations. Also note that two backend GL systems that TS CMO synchronizes with are part of this setup as well. You can read more about the GL integration capabilities of TS CMO here and here.

To accommodate this need 2 Treasury Operations Entities are configured - Canada and US and respective users or roles and accounts or account groups are assigned. Now users in the respective organizations can perform their day to day forecasting, reconciliation, positioning, reporting and other functions w.r.t the specific set of accounts. As noted previously, not all accounts need to be used position and they can be classified as such.

A third Treasury Operational Entity called North America is created with access to all accounts and is assigned to a specific set of senior management users who would need access to data across the enterprise- Note that users using this entity will use it for view only access as the cash management functions are performed within the US or Canada entities created earlier. This configuration is described below.

It is important to note here that we went from centralized positioning (described in the previous post) to decentralized positioning purely via end user configuration. It is also important to note that in the event that a new user or set of users need to perform a cash management function, all an administrator has to do is to assign that user or the role of the user to the appropriate tag using a web browser.
We will look at the same feature set in even more complex scenarios in the next couple posts. Thank you for reading.

Configuring Centralized & Decentralized Cash Management in TS CMO - Part I

Sujith Nair — Mon, 18 Jul 2011 19:47:56 GMT

Over the next 4 posts, I will describe the ability of TS CMO to support multiple centralized and decentralized cash management and positioning needs of enterprise organizations. To start, we will look at less complex scenarios and move towards the more complex models.

Centralized Cash Management - Consider an organization head quartered in the US with operations in US and Canada, the US organization managing the treasury (cash and investments) for the entire enterprise.

The centralized cash management scenario is described below - the organization receives BAI files from banks in US and Bank proprietary files for cash and investments in canada and investments in the US, it has one backend GL system that TS CMO synchronizes with. You can read more about the GL integration capabilities of TS CMO here and here.

TS CMO allows for the configuration of this model via the creation of cash operations entities or tags. In this case, since all cash management is done by the central US organization one cash operations entity (tag) called North America is created by the end user. All bank and investment accounts across the enterprise (US and Canada) that are used for cash management purposes (note that accounts can be marked as not used for cash management as well, useful when concentration accounts are used for positioning) assigned this tag. Appropriate users or roles (groups of users) from US treasury organization are assigned this tag as well ensuring that they can position for US and Canada.

Once a US treasury user logs, he or she will be able to position both in USD and CAD for the enterprise without any custom development effort. Exports to the backend GL system can be automated . In the above example the only transformations needed are to transform the proprietary bank and investment formats into TS XML format and transformation of the TS XML GL export to Oracle GL Specific format. Note that these transformations are fairly quick and either the TS managed services team or your internal IT team could do that.

In the next post, we will look at a decentralized cash management scenario.