The Cash Management component makes it possible to ensure that the company has sufficient liquidity for the payments due and to follow the payment flows.
The treasury and liquidity forecasting functions make it possible to follow the movements on the different accounts.
It is very important to properly assess local and international liquidity needs and liquidity availability.
Company cash management
- The treasury function manages cash by accessing and using data from multiple systems and processes.
- With centralized cash management at the corporate level, there is greater transparency in the overall cash flow which helps to optimize the cash in and cash out process to improve efficiency
- Centralized internal cash control reduces reliance on external funding and improves cash transfer processes to operations worldwide.
- Position transparency and liquidity management are achieved through position management such as cash pooling
- Cash and capital repatriation is also managed as part of the treasury function.
Working capital management
- Inventory – Forecast to be completed
- Analyze sales forecasting processes and evaluate material production and execution plans
- Receivables – Order to be collected
- Enterprise-wide visibility and consistency throughout the order-to-cash process by driving value from credit and collections
- Suppliers – Purchase payable
- Management of supplier payments and analysis of company spending and spending habits
Cash budget management
- The objective of the Cash Budget Management component is to monitor and secure liquidity in the medium and long term.
- It provides actuals and targets for plan review, variance analysis and as a basis for future planning.