About SAP Software
With more than 232,000 customers worldwide and over 65,667 employees in more than 188 countries, SAP is the world’s largest business software company. SAP delivers comprehensive solutions that integrate all aspects of business operations to help reduce costs, improve overall performance, and increase the agility to respond to rapidly changing business conditions.
Reduced Cost of Ownership
SAP Treasury modules enable companies to reduce their reliance on spreadsheets, proprietary banking software, in-house applications, and/or treasury workstations and related maintenance and support. By implementing SAP Treasury modules, companies can better leverage their investment in SAP solutions by capitalizing implementation costs and utilizing existing support and maintenance. Companies can also reduce costs by eliminating non-SAP system programming and interfaces.
About SAP Treasury Modules
SAP Treasury and Cash Management Modules enable companies to consolidate and automate treasury, accounts receivable and payable, and bank reconciliation functions. Such consolidation benefits companies by providing economy-of-scale reductions in cost and the elimination of redundancies enterprise-wide. SAP Treasury and Cash Management modules can also help companies improve productivity, lower transaction costs, reduce risk, improve compliance, increase accuracy, and enhance visibility into working capital by completing the cash cycle.
With SAP’s Cash Management and Electronic Banking modules, prior and same-day bank statements are loaded into the system and reconciled daily to quickly and accurately determine cash position. Companies can fully integrate their daily cash position on a real-time basis by combining all treasury-related activities with operational cash movements. Debt, investments, and foreign exposure contracts, are viewed concurrently with cash flows from accounts payable, accounts receivable, and bank accounting . Manual re-entry is eliminated which frees up resources to perform value-added analysis and troubleshoot transactional problems.
Redundant AP, AR and Treasury electronic payment systems can be eliminated by building one SAP payment platform to process all incoming and outgoing electronic disbursements and receipts. System support costs and fees are reduced as a result of fewer payment processes and external payment systems. Leveraging integrated SAP payment platform technology simplifies payment processes across organizations and reduces costs.
The SAP Treasury & Risk Management modules automate the management of treasury contracts by providing configurable financial instruments used for reporting investments, debt, foreign exchange, interest rate derivatives, and securities. The module enables real-time recording of journal entries and receipts from contracts, automatically generates payment files for bank processing, and is fully integrated with SAP’s Cash Management module.
SAP Treasury functionality provides documentation for SOX compliance to help corporations manage exposures and hedging activities, reduce financial risk, and increase control. At month’s end, Treasury functionality streamlines the calculation and posting of interest accruals, calculation of foreign currency gains/losses as well as FAS133 effectiveness, significantly reducing cycle times.
SAP’s powerful In-House Cash solution enables corporations to automate activities and processes involving; Payment Factories, Shared Service Centers, Netting Centers and In-House Banks. Within the enterprise one or more entities act as an in-house bank for their subsidiaries. Payment transactions between subsidiary account holders are recorded internally within In-House Cash, significantly reducing external transaction costs and simplifying the complex payment transactions that result from country-specific requirements.
The In-House Cash bank functionality can be deployed as a payment factory for external payments and receipts on behalf of subsidiaries, eliminating many of their payable and receivable bank accounts. Companies can streamline their banking structure with fewer accounts, reducing bank account maintenance fees. Substantial efficiencies can be achieved from establishing Shared Service Centers utilizing In-House Cash to centralize subsidiary payment processing.
The centralized In-House Cash bank allows corporations to pool funds more efficiently, reducing interest expense while maximizing investment interest gains. Centralized payment accounts eliminate IT support costs needed to maintain multiple subsidiary payment platforms.
By allowing companies to process payment transactions internally through a centralized in-house bank, SAP’s In-House Cash solution improves the efficiency of international payment transaction processing while optimizing cash flow within companies and maximizing interest gains. The resulting streamlined external banking structure also reduces the number of transactions required and cuts down on interest expenses and maintenance fees.
The integration of accounts payable and treasury payment functions into one shared process enables corporations to maintain one centralized payment platform for straight-through processing of domestic and international electronic payments. The benefits are twofold: straight-through processing eliminates the need for error-prone manual entry and the centralized payment platform eliminates the need to maintain multiple payment processes.
By forming a centralized global payment network, the module eliminates the need for foreign and domestic subsidiaries to make individual payments and significantly lowers transaction costs by sending payments through international low-value clearing systems. The module updates accounts payable activity in Treasury’s daily cash position with real-time payment information.
Facilitate the processing of accounts receivable electronic payments by implementing SAP Electronic Bank Statements. This functionality automates the processing of incoming customer payments from prior day bank statements; uses search strings to interrogate statements to properly identify and post incoming customer electronic payments; and offers post-processing tools for unidentified incoming payments.
Improving Compliance and Control
Implementing SAP Treasury modules enables corporations to improve their compliance with Sarbanes-Oxley, FASB, and IAS requirements through standard procedures and documentation. It also help improve segregation of duties through systematic control procedures, which include secure vendor and treasury partner details and payment controls; front and back office control of treasury contracts; and daily bank account reconciliation. The process also reduces errors by eliminating the need for manual re-entry of data from various systems and applications.
SAP Open Architecture
SAP’s open architecture unlocks almost unlimited functionality within SAP to meet a customer’s requirements. SAP delivers a standard programming language used to create programs to enhance existing functionality. Unique company or industry process requirements are all possible with SAP’s open architecture.