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……
Page 1
Workflows Diagrams ( Main Process)
Treasury Workshop
14.05.2002
Page 2
Workflows Diagrams ( Setup Validation Process)
Treasury Workshop
14.05.2002
Page 3
Workflows Diagrams ( Main Deal Approval Process)
Treasury Workshop
14.05.2002
Page 4
Workflows Diagrams ( Deal Cancellation process)
Treasury Workshop
14.05.2002
Page 5
Internal F/X Transaction
Treasury Workshop
14.05.2002
Page 6
Internal F/X Transaction
Main FX
Deal
Treasury Workshop
14.05.2002
Page 7
Internal F/X Transaction
Contra
FX Deal
Treasury Workshop
14.05.2002
Page 8
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.
Treasury Workshop
14.05.2002
Page 9
Overview Of The Internal FX Process
Deal Entry Screen
Buy CAD 25M Buy USD 16M
Sell USD 16M Sell CAD 25M
Workflow
Settle Deal
SWIFT To SWIFT To
Treasury Workshop
14.05.2002 Sell USD Deal Settlement Sell CHF
Page 10 Process
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.
Treasury Workshop
14.05.2002
Page 11
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.
Scroll Down the Window
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.
Treasury Workshop
14.05.2002
Page 12
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
Treasury Workshop
14.05.2002
Page 13
Deal rejected
In the event of deal
rejection both the deals
will be cancelled
automatically.
Treasury Workshop
14.05.2002
Page 14
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.
Treasury Workshop
14.05.2002
Page 15
No approver
A Notification is sent to
the Support Team.
The support team will
co-ordinate with the
users to complete the
setup
Treasury Workshop
14.05.2002
Page 16
No bank account
A Notification is sent to
the Support Team.
The support team will
co-ordinate with the
users to complete the
setup
Treasury Workshop
14.05.2002
Page 17
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.
Treasury Workshop
14.05.2002
Page 18
Where do we setup the approval limits for FX Deals
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.
Treasury Workshop
14.05.2002
Page 19
