Financial Centralization and Group Treasury in SAP

Challenge

The Customer, operating in the Engineering & Construction sector, has expressed the need to equip itself with a Financial Centralization model by setting up a new organizational structure with responsibility for both coordinating and supervising the following processes:

Group Commercial Payments
Liquidity centralization
Financial operations management
Communication with banking counterparties
Group financial planning

The adoption of the Financial Centralization model for the management of financial processes required the review of the applications used in the AS-IS architecture of the Customer’s IT systems, as well as the implementation of a series of modules/functionalities of the SAP Treasury suite.

Solution

In order to meet the Customer’s requirement, Qintesi proposed the implementation of the SAP In-House Cash Module and the review of two Modules, already active by the Customer, Cash Management and Treasury & Risk Management.

In particular, the following new features have been proposed:

Intercompany payments
Payments by Account
Cash Pooling
Integration with banking counterparties via the SWIFT channel
Integration with the trading platform used by the Customer
Intercompany financial transactions mirroring
EMIR communication
Net financial planning reports

Furthermore, as part of the project, the treasury needs planning has been revised and adapted.

Results

Increased oversight of the financial processes
Improvement of short-term planning
Disintermediation of banking services with reduction of service costs
Efficient relationship with the capital market
Centralization of financial services

Statement

A path that improved the governance of corporate financial dynamics and that has allowed the Customer’s Finance function to play a central role in the planning and management of business projects.