FI316 – Umoja Cash and Liquidity Management

Transcription

FI316 – Umoja Cash and
Liquidity Management
Umoja Cash and Liquidity Management – Version 13
Last Modified: 16-August-13
Copyright © United Nations
1
Agenda
Course Introduction
Module 1: Cash Position & Liquidity Forecast
Module 2: Manage Cash Levels
Course Summary
Course Assessment
Course Survey
2
Introduction
Please share with us:
• Your Name
• Your Section/Unit
• # Years with the UN
• Interesting Fact About Yourself
3
Ground Rules
Please consider the following guidelines during the training session:
• Turn your cell phone to silent mode. Please step out of the class to take any
important phone call
• Please do not access your e-mail or the Internet outside of breaks
• Participate fully in the training session and respect each other’s contribution
• Breaks are included at the discretion of the trainer
X
No Phones
X
Do Not Access
E-mail
Participate
Ask Questions
Breaks
4
Course Overview
The purpose of the Umoja Cash and Liquidity Management course is to explain the
transactions related to the Cash and Liquidity Management process in Umoja.
Prerequisite Review
You should have completed the following prerequisite courses:
•
•
•
•
•
Umoja Overview
Umoja Master Data & Coding Block Overview
Umoja Cash Management and Treasury Overview
Umoja ECC Navigation
Umoja BI Navigation
Course Duration: 3 hours
5
Course Objectives
After completing this course, you will be able to:
• List the name and purpose of the cash position tools
• List the tools that comprise the cash and liquidity management component
• Explain the composition and purpose of the Cash Position and Liquidity Forecast
reports
• Replenish funds in UN bank accounts via bank-to-bank transfer and purchase of
foreign currency
6
Agenda
Course Introduction
Course Summary
Course Assessment
Course Survey
7
Module 1 Objectives
After completing this module, you will be able to:
• List the name and purpose of the current cash position tools
• List the cash planning tools that comprise the cash and liquidity management
component
• Explain how the cash position tools are used to determine the current cash
position
8
Key Terminology
Key Term
Description
A FX trading system currently used by the UN Treasury to
FXall
execute and settle large volume FX trades
Society for Worldwide Interbank Financial Telecommunication.
An industry cooperative that provides a standard format for
SWIFT
transmitting payments and other financial messages to more
than 7,500 member banks, broker dealers and organizations
around the world
An electronic network for financial transactions in the United
States – large volume, low cost batches. It is used for all kinds
of fund transfer transactions including direct deposit of funds,
Automated Clearing
cheques and routine payments to vendors. Rules and
House (ACH)
regulations that govern the ACH network are established by
National Automated Clearing House Association (NACHA) and
the US Federal Reserve
Transfer of funds between accounts by electronic means rather
Electronic Funds Transfer
than conventional paper-based payment methods, such as
(EFT)
cheque
9
Roles & Responsibilities
The following Umoja Enterprise roles are involved in the Cash and Liquidity Management
process:
•
•
•
•
Cashier
•
•
•
Investment
Cashier
Treasury Front
Office User
Generates all payments (using the transaction code- F110 ) in Umoja
Manages cash control by fund/grant
Raises issues identified through cash control to Finance Managers for
resolution
Ensures that banking details are provided in a timely manner and reflected
accurately in Umoja to allow Front Office to manage daily liquidity
Verifies that the bank communication files are processed and accepted by
SWIFT/banks in a timely manner
Responsible for cash positioning – relying on cash and liquidity forecasts and
memo records for items not yet reflected in the system
Initiate bank to bank transfers
• Generate all payments (F111) in Umoja
• Ensure that bank details for investments are reflected in SAP accurately and
timely to allow Front Office to manage daily liquidity
• Verify that all bank communication files are processed and accepted by
SWIFT/banks in a timely manner
• Execute investment and foreign currency transactions
10
Introduction to Cash and Liquidity Management
Cash and Liquidity Management is one of the most important aspects of daily business
operations for an organization. Proper cash and liquidity management enables
businesses to:
Quantify their liquid assets
Manage their liquidity accounts
effectively
Effective cash and liquidity management is dependent on the quality and reliability of
the measurement tools that a company uses to monitor its cash flows.
11
Cash and Liquidity Management Components: Overview
Cash and liquidity is managed at UN through three main tools:
Cash Position Report
Liquidity Forecast Report
Memo Records
12
The Cash Position report provides value-dated balances of UN
bank accounts and funds-in-transit.
Report data is derived from:
• General Ledger (G/L) cash balances
• Treasury investments
• FX data brought into Umoja from Fxall (gain/loss incurred
through exchange of currency)
Mission Cashiers will use the Cash Position report.
13
The Liquidity Forecast report provides dynamic projections of
UN’s cash flow based on items such as bank balances,
transactions processed through bank accounts (AP, AR), and
memo records.
The basis of this report is derived from financial documents that
move through the “AP Financial Supply Chain” (from a purchase
order to a goods receipt, invoice, bank clearing and finally an
item on a bank account statement) (from Assessed Contribution
to invoicing and receipt of revenue). These documents include:
•
Purchase Orders (PO’s)
•
Procurement contracts
•
Invoices
•
Assessed Contributions
•
Investment inflow and outflows
Liquidity Forecast reports will be generated for each business
area; these reports will be consolidated to determine liquidity
forecast for the entire organization.
14
Memo Records
Memo records are used to record additional transactions that
are not yet processed in the Umoja system, but are important
for the purpose of cash management as they impact cash flows.
These transactions may include cash flows related to pensions,
tax reimbursement payments, rations, troop reimbursement
and fuel (both for ground and air transport).
Memo Records
15
Field Impacts to Liquidity Forecasts
Missions play an important role in ensuring the accuracy of UN liquidity forecasts. The
timely submission and incorporation of mission-related expenses impacts the cash flow
reflected in the liquidity forecast in real time. This impacts business decisions made on
the basis of the forecast.
Field activities that directly impact liquidity forecast include:
• Timely submission of payroll and other large vendor payment projections
• Timely processing of daily outgoing payments
16
Run Liquidity Forecast
Access the Cash
Management and
Forecast Page
Analyze Report
Data
Enter data for
one-time entry
The process begins when the user has logged into
Umoja.
Access the Cash Management and Forecast: Initial
Screen to enter criteria for the report.
•1 Enter FF7B in the Command Field
•2 Click the Enter icon
2
1
17
Access the Cash
Management and
Forecast Page
Analyze Report
Data
Enter data for
one-time entry
The Cash Management and Forecast: Initial
Screen appears.
Enter the appropriate data:
•3 Enter 1000 in the Company Code
field
•4 Enter the appropriate business area
code in the Business Area field
•5 Select the Cash Position and/or
Liquidity Forecast check box
•6 Enter the grouping code in the
Grouping field
•7 Enter the report date in the Display
as of field
•8 Enter the correct currency in the
Display in field
3
4
5
6
7
8
18
Access the Cash
Management and
Forecast Page
•9
Click the Execute icon in the top
left hand corner of the screen
Enter data for
one-time entry
Analyze Report
Data
9
19
Access the Cash
Management and
Forecast Page
Enter data for
one-time entry
Analyze Report
Data
The Cash Position/Liquidity Forecast Report appears.
Note: Additional information on interpreting and using the Cash Position and Liquidity Forecast
Reports can be found in the Overview of the Cash Position and Liquidity Forecast Reports Job Aid.
20
Memo Records
What is a Memo Record?
Memo records are one-time financial entries that are used to bring transactions that have not been
processed in Umoja into the Cash Position and Liquidity Forecast for a specific account. The inclusion of
transactions added as memo records results in a cash position that is updated in real-time and not
subject to lag-processing times that may be incurred during transaction processing or pending periods.
Memo records are organized into thirteen planning types; UN will be using the following four types:
1. DI and MP memo records are created to account for expected customer payments in the future
and they factor into Umoja sub-ledger balances
2. AB and AU memo records are created to account for notifications of payments being processed by
a banking institution
DI
General Planning
MP
Noted Items
AB
Confirmed advices
AU
Unconfirmed advices
Once the actual payment is received, the memo record must be archived to avoid double-counting.
21
Create a Memo Record
Access the Create
Memo Record Page
Process Memo
Record
Enter required data
The process begins when the user has logged into
Umoja.
Access the Create Memo Record screen.
•1 Enter FF63 in the Command Field
•2 Click the Enter icon
2
1
22
Access the Create
Memo Record Page
Enter required data
Process Memo
Record
The Create Memo Record: Initial Screen appears.
Enter the following information:
•3 Enter 1000 in the Company Code field
•4 Select the type of transaction that will be reflected by the
memo record and press the Enter key
Note: Data Search functionality can
be used for fields containing UNspecific data. This functionality is
accessed by clicking the Search
icon located next to the field being
populated or by pressing F4.
3
4
23
Access the Create
Memo Record Page
Process Memo
Record
Enter required data
The Create Memo Record: Payment advice
screen appears.
Enter the required information:
•5 Enter the appropriate date in the
Value Date field
•6 Enter the appropriate account code
in the Account Name field
•7 Enter the value of the item being
logged as a memo record
•8 Enter the currency of the memo
record in the Currency field
•9 Enter the amount in its local currency
in the Amount in LC field
•10 Enter the type of local currency used
in the Local Currency field
•11 Click the Enter icon to continue
5
6
7
8
9
10
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Touch Points
Umoja is an integrated system and most of its modules integrate with each other to
complete a process. Touch points refer to these integration points across Umoja modules,
processes and activities.
Investment
Transactions
Investment of UN
funds impacts the
level of available
liquidity
Cash Position
and Liquidity
Forecast
General
Ledger
Accounts
Accounts
Payable (A/P)
Accounts
Receivable
(A/R)
Sales and
Distribution
25
Simulation Activities
Throughout this training, users will have the opportunity to
conduct activities in the form of simulations. Simulations
are interactive “recordings” of the Umoja system used to
help facilitate a hands-on learning experience. The
simulation links are provided on the corresponding activity
slides.
Users can access simulations in three different modes:
• Show me: Users view a video of an entire transaction
being conducted
• Let’s do it together: Users will be prompted to input
data at key points during the transaction
(recommended)
• Try it: Users can complete an entire transaction on
their own, with no additional instructions provided
26
Activity 1
Transaction Name: Running the Cash Position and
Transaction Code: FF7B
Link to the uPerform simulation:
https://www.unumoja.net/share/page/site/OCM/docum
entdetails?nodeRef=workspace://SpacesStore/870cd33b1188-4b82-8c1e-ef821ce94464
27
Activity 2
Transaction Name: Adding a Memo Record in Umoja
Transaction Code: FF63
Link to the uPerform simulation:
https://www.unumoja.net/share/page/site/OCM/docum
ent-details?nodeRef=workspace://SpacesStore/6d6b3bfcefea-431b-91e3-3c27103edd62
28
Learning Checkpoint 1
Proper cash and liquidity management enables businesses to quantify their _________
assets.
Fill in the blank with the correct option.
A.
B.
C.
D.
Liquid
Fixed
Depressed
Damaged
29
Proper cash and liquidity management enables businesses to quantify their _________
assets.
Fill in the blank with the correct option.
A.
B.
C.
D.
Liquid
Fixed
Depressed
Damaged
Option A is the correct answer. Proper cash and
liquidity management enables businesses to
quantify their liquid assets and manage their cash
flow effectively.
30
Which of the following contribute to the cash position report?
Select the correct option.
A.
B.
C.
D.
G/L cash ledgers
Treasury investments
FX module in Umoja
All of the above
31
Which of the following contribute to the cash position report?
Select the correct option.
A.
B.
C.
D.
G/L cash ledgers
Treasury investments
FX module in Umoja
All of the above
Option D is the correct answer. The cash position
report’s data is derived from the G/L cash ledgers,
treasury investments and FX module in Umoja.
32
Module 1 Summary
The key points covered in this module are listed below:
• The Cash and Liquidity Management process enables businesses to quantify their
liquid assets and manage their cash flow effectively
• The Cash and Liquidity Management components are the Cash Position Report,
Liquidity Forecast Report and Credit Memos
• The Cash Position Report provides value-dated balances of UN bank accounts and
funds-in-transit
• The Liquidity Forecast Report provides dynamic projections of UN’s cash flow
based on items such as bank balances, transactions processed through bank
accounts and memo records
• Credit Memos are used to record additional cash flows that are important for the
purpose of cash management
33
Agenda
Course Introduction
Course Summary
Course Assessment
Course Survey
34
Module 2 Objectives
After completing this module, you will be able to:
• Describe the Cash Level Management process
• Outline the methods of managing cash levels
• Initiate a bank to bank transfer
• Transmit the necessary MT202 SWIFT message and receive confirmation
• Transfer funds to the appropriate House Bank Account
35
Introduction to Cash Level Management
The Cash Position Report determines when current cash levels in a House Bank Account
are too low to cover projected expenses that will be paid from that account. The amount
required to cover those projected expenses is determined by the Liquidity Forecast
Report.
These reports enable UN Treasury to replenish the cash level of that account before the
payments are processed.
Illustration of the Cash Level Management Process in Umoja
House Bank
Account
Check Cash Sufficiency
House Bank
Account
Replenish Account,
if Required
House Bank
Account
Vendor
Process Outgoing Payment
36
Introduction to Cash Level Management
Depending on the type of account being replenished (determined by currency held and
location), the cash level of a bank account can be replenished in one of two ways:
Used to replenish bank balances by transferring
funds from one bank account to another
Execute bank-to- bank account of the same currency.
bank transfer
Ex: 2 accounts holding USD currency
Manage Cash
Levels
Used to replenish bank balances held in a currency
that is different from the currency where
Purchase required funds are being transferred from. The
required currency is purchased on the
currency
foreign exchange market
37
Bank-to-Bank Transfer Process
A Bank-to-Bank Transfer replenishes account fund levels through the transfer of money
from one account to another. Transfers are made via SWIFT. Updated account totals
resulting from bank-to-bank transfers will be reflected in future Cash Position and
Liquidity Forecasts.
The process followed to execute a bank-to-bank transfer is outlined below:
Create and approve
transfer payment
request
Transmit MT202
SWIFT message
Receive Ack/Nak
message from bank
Illustration of the Bank-to-Bank Transfer Process
Account 1
Account 2
Account Level
Account Level
38
Create and approve
transfer payment
request
Transmit MT202
SWIFT message
Receive Ack/Nak
message from bank
The process outlined in this course will be used to execute bank-to-bank transfers for
accounts within Umoja:
Create a transfer payment request in Umoja.
Access the Bank-to-Bank Transfer page.
1•
Enter the FRFT_B t-code in the Command Field
2•
Click the Enter icon
2
1
The Fast Entry with Repetitive Codes (Bank-to-Bank Transfer) screen appears.
All House Banks are saved in Umoja as Master Data and account pairing for the purpose of
bank-to-bank transfers are predetermined.
39
Create and approve
transfer payment
request
Transmit MT202
SWIFT message
Receive Ack/Nak
message from bank
3•
Enter the code for the House Bank receiving the transfer in the House Bank field
4•
Press the Enter key
The House Bank Transfer
information is populated
in the Select Repetitive
3
Codes table.
40
Create and approve
transfer payment
request
5•
Transmit MT202
SWIFT message
Receive Ack/Nak
message from bank
Click the Create Payment
Request button
The Display logs window appears
indicating that a payment request
has been generated for the House
Bank entered.
5
41
Create and approve
transfer payment
request
6•
Transmit MT202
SWIFT message
Receive Ack/Nak
message from bank
6
The payment request appears in the Open Payment Requests table.
42
Create and approve
transfer payment
request
7•
Transmit MT202
SWIFT message
Receive Ack/Nak
message from bank
Click the Pay button
7
The Display logs window reappears
indicating that the payment request has
been released and paid.
8•
8
43
Create and approve
transfer payment
request
Transmit MT202
SWIFT message
Receive Ack/Nak
message from bank
The creation and approval of a transfer payment request results in the automatic
generation of an MT202 SWIFT message in Umoja.
What is MT202 SWIFT?
A SWIFT message used by Treasury to communicate high value transfer instructions
between bank accounts it manages.
Once the MT202 SWIFT is created in Umoja, it is transferred to the Bank Communications
Management (BCM) for distribution to the bank signatories assigned to the House Bank
Account from which the money is being transferred. The bank-to-bank transfer cannot be
executed until it is approved by the House Bank’s signatory.
Once the bank signatory approves the transfer, BCM automatically sends the MT202 SWIFT
message.
44
Create and approve
transfer payment
request
Transmit MT202
SWIFT message
Receive Ack/Nak
message from bank
Once the bank has received and processed the MT202 SWIFT message, it sends an Ack/Nak
message to Treasury confirming the transfer. This message is received via BCM and marks
the end of this process.
Note: The liquidation and purchase of investments and the purchase of foreign currency is
handled by Treasury.
These activities are covered in the Umoja Investment Accounting course.
45
A House Bank Account that does not have sufficient cash to meet all expense requirements
can be replenished using all of the following methods, EXCEPT:
Select the correct option
A.
B.
C.
Bank-to-bank transfer
Transfer of funds from one investment pool to another
Purchase of foreign currency
46
A House Bank Account that does not have sufficient cash to meet all expense requirements
can be replenished using all of the following methods, EXCEPT:
A.
B.
C.
Bank-to-bank transfer
Transfer of funds from one investment pool to another
Purchase of foreign currency
Option B is the correct answers. Three investment
pools are maintained in three different currencies;
each pool finances accounts in the same currency. If
funds are not available in a specific currency, that
currency is purchased on the foreign exchange market.
47
UN will manage House Bank Account cash balances using which of the following tools?
A.
B.
C.
D.
Cash Position
Liquidity Forecast
Memo Records
All of the above
48
UN will manage House Bank Account cash balances using which of the following tools?
A.
B.
C.
D.
Cash Position
Liquidity Forecast
Memo Records
All of the above
Option D is the correct answer. An account’s cash
sufficiency is determined by its cash position, liquidity
forecast and any additional expected expenses
reported by the local mission.
49
Module 2 Summary
The key points covered in this module are listed below:
• Cash sufficiency is determined by the Cash Position and Liquidity Forecast and ad
hoc financial reporting from individual missions
• The cash level of a UN House Bank Account balances are managed in one of two
ways: bank-to-bank transfer or purchase of foreign currency
• A bank-to-bank transfer can be used to replenish a currency that is held in more
than one bank account
• Bank-to-bank transfers are conducted via SWIFT; this process is executed both
inside and outside of Umoja, depending on where the account is housed
• Foreign currency is purchased centrally using FXall
50
Agenda
Course Introduction
Module 2: Manage Cash Levels – USD
Course Summary
Course Assessment
Course Survey
51
Course Summary
The key points covered in this course are listed below:
• The Umoja Enterprise roles involved in the Cash and Liquidity Management
process are Cashier and Treasury Front Office User
• The Cash and Liquidity Management process enables businesses to quantify their
liquid assets and manage their accounts effectively
• The cash and liquidity management components are Cash Position report, Liquidity
Forecast report and Cash Planning tool
• Cash levels are monitored for each House Bank Account in Umoja to ensure that
the account has sufficient funds to cover the total amount being charged to it
(based on the liquidity forecast); if the cash availability is insufficient, then the
account balance is replenished to cover its projected expenses
• Purchase of all foreign currency will be done by UNHQ treasury to reduce
transaction costs
52
Agenda
Course Introduction
Course Summary
Course Assessment
Course Survey
53
Course Assessment
Now that you have completed all the modules in this course, you can test your
knowledge by completing the Course Assessment.
To receive credit for completing this course, you must pass this assessment with a
minimum score of 90%.
To complete the assessment you must return to the Learning Management System:
1. Log into Inspira
2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning
3. Search for the name of the course under the My Learning Activities section
4. Click the Start link of the course assessment
5. Click the Submit button once you have completed the assessment
54
Agenda
Course Introduction
Course Summary
Course Assessment
Course Survey
55
Course Survey
Your feedback is important to the continuous improvement of our training program.
Please complete the evaluation for this course using the following steps:
1. Log into Inspira
2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning
3. Search for the name of the course under the My Learning Activities section
4. Click the Start link of the course survey
5. Click the Submit button once you have completed the course survey
56
Congratulations! You have successfully completed the
Umoja Cash and Liquidity Management course.
57

FI316 – Umoja Cash and Liquidity Management

Transcription

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