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11i Treasury Management

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11i Treasury Management

11i Treasury Management
Oracle’s Treasury: Complete Solution

11i Treasury Management


Overall view of Cash and Treasury Management Functions.

Oracle’s Treasury Solution provides global visibility into operational cash flows, integrates with banks and the financial markets, and allows you to pass accounting information seamlessly to the Oracle General Ledger.

Oracle’s Treasury solution is comprised of the following products:
• Oracle Cash Management
• Oracle Treasury
• Risk Management

Oracle’s Treasury Solution allows you to manage your global Treasury operations with improved efficiency, profitability and control by helping your organization manage liquidity and risk, control cash, automate deal entry, simplify deal administration and improve decision making.
Now let’s drill down into each of the main areas in more detail.

Important features of Oracle Treasury:
Manage Liquidity:

Cash forecasting is simplified with Oracle’s Treasury solution, because integration with the Oracle E-Business Suite and external systems enables you to gather vital data across your entire enterprise and from external sources.
You can quickly analyze global cash requirements and currency exposures, ensuring optimal liquidity and cash uses.
You can forecast expected cash flows in any currency, across different business units, for multiple user defined time periods.
You can track and predict the amount and timing of cash flows from all your operations.
Oracle’s Treasury solution gives you the tools to make informed treasury decisions on a timely basis, achieving greater profitability by minimizing funding costs and maximizing investment return.

Position and Control Cash:

As you know operational cash flow activities generate a high volume of daily bank transactions. Accurate reconciliation of these activities is essential to guard against errors that can result in significant costs to your company.
Oracle’s Treasury solution automates your entire reconciliation process. This is accomplished by allowing your company to import bank statements and then reconcile these statements to transactions from Oracle’s E-Business Suite and your external systems. You can also identify and resolve exceptions, manage bank errors, and even monitor fraud by comparing bank reported activities to your actual system transactions. So with Oracle’s Treasury Solution you can automate these functions, saving your organization time.
You also have easy access to your global cash positions and you can integrate with your banks to obtain your monthly and intra-day bank statements as well as to generate and send payment instructions. We have several mechanisms in place to obtain bank statements and load them into the Treasury Solution. We support multiple formats such BAI2, Swift 940 and Edifact.
Oracle’s Treasury Solution automates and integrates all aspects of treasury operations, allowing you to capitalize on global e-business opportunities.

Support a Comprehensive List of Financial Instruments

Oracle Treasury supports a wide variety of deal types. The following list provides a sample of the major categories. Within each, deal types often include parameters and other features, which create variations of the generic types. For instance, the generic term “Options” is listed, but Oracle Treasury supports American or European, Calls or Puts, Caps or Floors…. By
Combining multiple deals, it is also possible to create “Collar”, “Straddle”, or other common option strategies. “Interest Rate Swaps” can be entered as plain vanilla, roller coaster, or cross currency swaps.
Supported Deal Types include:

Physical Money Market
•    Bills
•    Bonds or other Negotiable Instruments
•    Overnight or Short Term, Money Market Funds
•    Structured Loans or Term Money
•    Commercial Paper, Bank Notes or other Discounted Securities
•    Mortgage style instruments

Foreign Exchange
•    Spots, Forwards, Swaps, Options

Derivative Money Market
•    Forward Rate Agreements
•    Interest Rate Swaps / Interest Rate Options / Bond Options
•    Interest Rate Swaptions

Equity Market Transactions
•    Stock Shares

Improve Your Decision Making:

The global economy creates complex financial exposures for all companies. With Oracle Treasury, you can use your corporate intranet to proactively monitor and adjust liquidity, currency, and interest rate positions across your enterprise while complying with your exposure policies.
You can also enforce various security access levels as well as limit controls that can trigger automatic notifications if violated.

Automate and Simplify Deals:

Once deal related data is entered into the Oracle Treasury Solution, either manually or automatically, the system can then simplify and automate your entire trade cycle.
First, since security is of utmost concern, Oracle Treasury has multiple levels of control built into the system like granting user access to only certain companies or functions, or requiring dual validation prior to settlement. The system also offers extensive real-time limit functionality that can help you protect against excessive exposures to certain types of position
or risks, like limiting your investments in a particular counterparty for instance.
You can quickly and efficiently generate user defined confirmations and settlement instructions, including various netting options. Additionally we support interest accruals on money market instruments, premium amortizations for options, and mark-to-market revaluation calculations.
Finally, you can automate the creation of your accounting entries related to all your activity through a very flexible system setup. Since we are integrated with Oracle General Ledger, these entries can then be passed seamlessly, with no need to build or maintain interfaces.
Efficient, automated deal administration saves you time so that you can focus on value-added activities to improve your global treasury operations.

Manage Financial Exposures:

Oracle’s Treasury Solution provides powerful analytics that enable global treasury operations to measure and control financial market risks.
Additionally we offer extensive position evaluations including mark-to-market valuations and sensitivities of your existing deals. Financial calculators let you analyze the price and risk profile of financial deals on a pre-dealing basis.
For those of you who deal with the international market place, you know that in volatile foreign exchange markets, your exposure is intensified. So hedging this risk using forwards, and other instruments helps your company stay profitable.
With Oracle’s Treasury Solution, integrated business intelligence unites core business exposures and treasury transactions, and provides critical information to create effective hedges to help your company manage your financial exposures and stay profitable.


Naveed Choughule

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