peoplesoft cash management - spearmc · why peoplesoft cash mgmt vs. the others reduced...
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PeopleSoft Cash Management Your Keys to Success at a Commercial Client
Presented by:
Glenda Alexander and Marcus Bode
SpearMC Consulting
Session ID#: 105210
April 8, 2014
• 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
Agenda
About SpearMC and Your Presenters
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
ERP Application Development
Project and Program Management (PMO)
Change Management
ERP Training
Mobile Technology
About SpearMC
Regional offices in Chicago, Oklahoma City, Seattle and San Francisco
We focus on local market delivery and capability
development in line with industry focus areas unique to the regions we serve.
Our local and well-connected network of top-tier
business analysts, technical leads, developers and project managers keep travel cost to a minimum.
About SpearMC – Services & Competencies
Technology and Business Consulting
Full-service ERP and BI Selection, Implementation and Integration o PeopleSoft o JD Edwards o Oracle EBS o Hyperion o Dynamics AX
ERP Training
IT Transformation, IT Strategy and IT Infrastructure
ERP Bolt-On Applications Development
Capability Assessment
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
■ Managing Director
■ Founded SpearMC in 2004
■ Specializations:
▪ PeopleSoft Financials
▪ Cash Management
▪ Procure-to-Pay Expert
■ Certified PeopleSoft Financials
■ 20+ Years experience…majority
PeopleSoft
About Your Presenters – Marcus Bode
■ PeopleSoft Cash Management
■ Specializations:
▪ System implementation
▪ Configuration
▪ Upgrades
■ 15+ Years experience…majority
PeopleSoft
About Your Presenters – Glenda Alexander
What is PeopleSoft Cash Management?
What is PeopleSoft Treasury?
PeopleSoft and the Corporate Treasury Life-Cycle
PeopleSoft Treasury is designed to facilitate all processing and reporting aspects of the
Corporate Treasury life-cycle using dedicated components within the application.
Each component is Highly Configurable to meet the needs of different operations in size and complexity.
Administer Banking
Balance Reporting
Book-to-Bank Reconciliation
Cash Positioning
EFT Processing
In-House Banking / Pooling Manage Bids
Capture Deals
Portfolio Management
Mark-to-Market Processing
FAS-133 / Deal Accounting
Measure and Manage RiskStart »
What is PeopleSoft Cash Management?
Sweeps
Why PeopleSoft Cash Management vs. The Others?
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.
Why PeopleSoft Cash Mgmt vs. The Others
Implementation Approach
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
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
1. Financial Gateway Technical
Banks tend to rely on legacy technologies
Engaging bank in project, retaining their cooperation Customization of delivered file layouts Testing file interchange with banks
Typical Challenges - Financial Gateway (Tech)
Financial Gateway Functional
2. 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
2. 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
2. Financial Gateway - Functional
2. Financial Gateway - Functional
Complex accounting requirements Bank to Bank Transfer accounting limitations Analyzing sufficient volume of bank data
Typical Challenges - Financial Gateway (Functional)
Bank Reconciliation
3. Bank Reconciliation
Configuration Components
▪ Reconciliation Rules
▪ Activity Types
▪ Bank Statement Accounting
System Processes ▪ Bank Statement Import
▪ Automatic Reconciliation
▪ Semi-Manual Reconciliation
▪ Treasury Accounting
3. Bank Reconciliation
3. Bank Reconciliation
Coding for misc items - fees, interest, ZBA’s (External Transactions) Complex accounting requirements Date tolerances Handling recon exceptions Business Process changes
Typical Challenges – Reconciliation
Cash Positioning and Sweeps
Process flow aggregates position sources to facilitate Cash Positioning
and Forecasting
Bank Statement
(BAI2)
Accounts
Payable
Accounts
Receivable
Other
PS Record
1
Generate
Cash Position
2b
Re-Generate
Cash Position
3
Finalize
Cash Position
CASH POSITION SOURCES
2a
Enter CPW
Manual Entries
Cash Position Daily Report
Cash Position Forecasting
nVision
CASH POSITIONING
4. Cash Positioning & Sweeps
Primary Components
Position Sources Tree Construction and Utilization Manual Positioning Cash Position Worksheets Cash Sweep Structure
4. Cash Positioning & Sweeps
4. Cash Positioning & Sweeps
Tree Structure Overview (completely customized)
4. Cash Positioning & Sweeps
Conceptual PS Tree Structure Definition Sample PS Tree Structure Calculation
Root Node
Summary Node
• Detail Node
• Detail Node• Detail Node
Summary Node
• Detail Node Summary Node
• Detail Node
• Detail Node
S U
M M
I N
G O
F V
A L
U E
S
Cash Position - $20,000
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)
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
4. Cash Positioning & Sweeps
Complexity of Cash Tree
Custom position source requirements Time constraints in a daily positioning environment
Complexity of Sweep Structure
Typical Challenges – Cash Position & Sweeps
Project Timeline and Resources
Project Timeline
Activities Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7
Planning
Assess Bank Readiness
Conduct Fi t-Gap Analys is
Des ign
Module Configuration
Integration Specs
Develop Integrations
Develop Reports
Testing
Deploy
Support
Impl
emen
tati
on P
lan
Go Live
Project Resources External FTEs Internal FTEs
Weeks Activities PM ANALYST SME(s) Tech Lead Tech Dev
2 Planning 0.6 1.0 0.4 0.4 0
2 Assess Bank Readiness 0.4 1.0 1.2 0.4 0
2 Conduct Fi t-Gap Analys is 0.4 1.0 1.6 0.4 0.2
3 Des ign 0.4 1.0 1.6 0.4 0.6
3 Module Configuration 0.2 1.0 1.6 0.2 1
4 Integration Specs 0.2 1.0 1.2 0.6 1
3 Develop Integrations 0.2 1.0 1.2 0.8 1
2 Develop Reports 0.2 1.0 1.6 0.2 1
4 Testing 0.2 1.0 2.0 0.4 1
1 Deploy 0.2 1.0 2.0 0.4 0.6
2 Support 0 1.0 2.0 0.2 0.4
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Sample Discovery Session Regarding Current Cash Management Processes
Cash Management Discovery Session
Wrap up, Questions and Review
Other SpearMC Sessions at COLLABORATE14
Get in touch with us…
Marcus Bode Managing Director [email protected]
Glenda Alexander Cash Management Systems Consultant [email protected]
Please complete the session evaluation We appreciate your feedback and insight