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.