Transcript GL Design Review - fusionpractices.com

Date: 14 May 02
Presenter: Anil Passi
Why do we need this process?
Click to proceed…..
 To save the “spread” cost of purchasing Foreign
Exchange from external banks
 Once agreed both sides should benefit
 GL accounting for both the FX deals happens
automatically.
 Accounting is consistent across the entities
For the above reasons this workflow was designed and
developed from scratch……
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Workflows Diagrams ( Main Process)
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Workflows Diagrams ( Setup Validation Process)
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Workflows Diagrams ( Main Deal Approval
Process)
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Workflows Diagrams ( Deal Cancellation process)
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Internal F/X Transaction
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Internal F/X Transaction
Main FX
Deal
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Internal F/X Transaction
Contra
FX Deal
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Why do we need this process?
 Significantly improve lead time in resolving internal FX
deals across the Time Zones
 Automate deal approval process from email client
 Save the hassle of navigation through 6 different windows to
approve both ends of the deals.
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Overview Of The Internal FX Process
Deal Entry Screen
Buy CAD 25M
Sell USD 16M
Buy USD 16M
Sell CAD 25M
Workflow
Settle Deal
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SWIFT To
Sell USD
Deal Settlement
Process
SWIFT To
Sell CHF
What does the approver in the Deal Initiating
Company See?
The approver in the
deal initiating company
will receive an email
notification along with
the deal details.
The approver should
then approve or reject
the deal.
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What does the approver in the Contra
Company See?
The approver in the
contra company will
also receive an email
notification along with
the deal details.
Approver of the deal in
contra company should
enter the Bank
Accounts from which
the deal should be
performed.
The primary bank
accounts will be
defaulted.
Approver may decide
to Approve/Reject the
deal.
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Scroll Down the
Window
Exception Handling

In the ideal world, approval process will be simple, when both ends of the deal are approved,
the deals can then be settled

In the real world following can happen
One or both the companies Cancel the deal
Deals are not approved before the “Deal Value Date”
Approvers have not been setup correctly
Banks have not been setup correctly
Approver is unavailable
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Deal rejected
In the event of deal
rejection both the
deals will be cancelled
automatically.
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Deal expires
Both the deals will be
cancelled.
When the deals are
cancelled, every
treasurer involved in
the lifecycle of the
deal will be sent a
notification confirming
the cancellation of
deals.
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No approver
A Notification is sent to
the Support Team.
The support team will
co-ordinate with the
users to complete the
setup
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No bank account
A Notification is sent to
the Support Team.
The support team will
co-ordinate with the
users to complete the
setup
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Approver unavailable
 We can setup upto 3 approvers in Treasury for each Company
 Each approver will be assigned the precedence of 1,2 or 3
 If Approver-1 does not respond in a days time, a reminder is sent. If
there is no response to the reminder, then Approver-2 is notified.
 Approver-2 will be notified only if the value date of the deal has not
yet been surpassed.
 If a deal can not be processed by any of the three approvers, then
the deal will be cancelled automatically.
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Where do we setup the approval limits for FX De
In Oracle, we can
assign limits to dealers
for every possible Deal
Type.
A request for Approval
will be sent to the
approver only if
dealers Limit Amount
is greater than the deal
value.
If none of the
approvers in Treasury
have the rights to
approve a specific FX
deal a notification will
be sent to Support
team.
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