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PeopleSoft Cash ManagementYour 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

Application Development

Project Management

Change Management

ERP Training

About SpearMC

Our local and well-connected network of top-tier business analysts, technical leads, developers and project managers keep travel cost to a minimum.

Regional offices in Chicago, Oklahoma City, Seattle and San Francisco

About SpearMC – Services & Competencies

Technology and Business Consulting

Full-service ERP and BI Selection, Implementation and Integrationo PeopleSofto JD Edwardso Oracle EBSo Hyperiono 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

4. 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

1. 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

1. 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

1. Financial Gateway - Functional

1. 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

2. Bank Reconciliation

Configuration Components

▪ Reconciliation Rules

▪ Activity Types

▪ Bank Statement Accounting

System Processes

▪ Bank Statement Import

▪ Automatic Reconciliation

▪ Semi-Manual Reconciliation

▪ Treasury Accounting

2. Bank Reconciliation

2. 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 Positioningand 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

3. Cash Positioning & Sweeps

Primary Components

Position Sources

Tree Construction and Utilization

Manual Positioning

Cash Position Worksheets

Cash Sweep Structure

3. Cash Positioning & Sweeps

3. Cash Positioning & Sweeps

Tree Structure Overview (completely customized)

3. 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

3. 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 ResourcesExternal 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

28

Res

ourc

e Pl

an

Sample Discovery Session Regarding Current Cash Management Processes

Cash Management Discovery Session

PeopleSoft 9.2 Bank Administration and Account Management

Bank Administration / Account Management

Bank Administration / Account Management

client

CLTCLT1 CONCENTRATION ACCOUNT CLTCONCNTR

Bank Balance and Transaction Reporting

Bank Balance & Transaction Reporting

Balance & Transaction Reporting

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Reconciliation

■ The process provides the opportunity to ‘Force Reconcile’ Exceptions

like Fees and Interest that do not have matching system side

transactions.

Reconciliation

Reconciliation

Reconciliation

Process Reconciliation Accounting – runs the bank statement accounting process

- Batch process that creates General Accounting Events in Cash Mgmt and prepares

accounting lines for Journal Generation

Reconciliation

Cash Positioning and Sweeps

Cash Positioning & Sweeps

Cash Positioning & Sweeps

Cash Positioning & Sweeps

CLIENT DAILY CASH CLIENT DAILY CASH

CLIENT_DAILY_CASH-CLIENTDAILYCASH

CLIENT CONCENTRATION

CLT1 OPEN BALANCE

CLT1 CURRENT DAY CR

CLT1 CURRENT DAY DB

CLT1 BANK TRANSFERS

CLT1 OUTGOING PYMTS

CLT1 AP WIRES

CLT1 MANUAL ENTRY

CLT INVESTMENT

CLT2 OPEN BALANCE

CLT2 CURRENT DAY CR

CLT2 CURRENT DAY DB

CLT2 BANK TRANSFERS

CLT1 OUTGOING PYMTS

CLT2 AP WIRES

CLT2 MANUAL ENTRY

CLIENT DAILY CASH

CLT CURRENT DAY CR

CLT

Cash Positioning & Sweeps

Cash Positioning & Sweeps

Cash Positioning & Sweeps

Cash Positioning & Sweeps

EFT Processing

EFT Processing

CLT CLT1 CONCENTRATION ACCOUNT

EFT Processing

EFT Processing

- Addenda can also be added using link on Destination tab.

CLT1

EFT Processing

CLT1

EFT Processing

CLT1

EFT Processing

EFT Processing

Wrap up, Questions and Review

Other SpearMC Sessions at COLLABORATE14

Get in touch with us…

Marcus BodeManaging Directormarcus.bode@spearmc.com

Glenda AlexanderCash Management Systems Consultantglenda.alexander@spearmc.com

Please complete the session evaluationWe appreciate your feedback and insight