Payment inquiry management (treasury)

NaviCon Cash Flow Management is a part of NaviCon Holding solution; it realized the full-range functionality for financial flow and its control. This solution automates payment initiation, consolidation and approval processes (including budget control), creation of payment documents and their transfer to Client-Bank systems. While a payment inquiry is moving within a company, its statuses are changed dynamically while all the participants of this process are notified by email. Functional benefits of NaviCon Cash Flow Management are described below.

• Automatic control over the internal regulations of cash outflow (authorizations to initiate certain payments, payment inquiry approval sequence);
• Control of correspondence between a payment to be approved and cash flow budget;
• Operational planning of cash transactions based on approved inquiries per dates and monetary accounts.

Due to implementation of Cash Flow Management the companies get operational planning and control of monetary flows, payment inquires security and audit, precise regulation of the document flow in a single informational environment.

Realization of the business process in Treasury module – basic scheme. The following business process describes the document workflow for cash outflow approval procedure in a holding company:

Creation of payment inquiry. In case of necessity to make a payment the person responsible creates the payment inquiry and defines the planned payments. The payment inquiry is the electronic document in the system; therefore the following key data are available at any time during its life cycle: inquiry date and payment date, status (new, approved, in payment, etc.), the legal entity of a holding, counter party, agreement, vendor invoice, cost center, inquiry amount and its comparison with the remaining budget for this cost center, payment initiator and approval process data (participants and their response), etc. The manager defines the basic inquiry parameters that are available to him and sends this inquiry for approval, thus changing its status. The Treasury module automatically notifies the participant users about the inquiry status and the results of the approval process.

Divided approval process. Treasure module foresees a flexible setup for an approval chain (e.g., through, divided with “exclusive OR”) based on payment inquiry type, as well as the control over the inquiry amount and its correspondence with budget figures during the status changes. This function notifies if the budget is exceeded, denies the payment or ignores the excess. Following the pre-setup chain the responsible director gets a notification email with the link to the inquiry card, or he can overview daily the list of unapproved inquiries and process them: either confirm or decline and enter his comments. When completed the payment inquiry comes to the treasury department where it becomes available for payment scheduling process.

Scheduling payments. The treasury employee works with payment planning form where he daily allocates all approved inquiries per bank accounts, due dates and where he can split payment amounts if necessary. Cash inflow and outflow planning procedure results in the daily Cash Flow Budget.

Creation of payment documents. Payment documents (payment orders and cash outgoing orders) are created automatically based on payment allocations to bank accounts in NaviCon Holding Treasury module. These documents can be exported into external systems (Client-Bank, 1C: Enterprise). The status of the inquiry that initiated the payment is changed to “Being Paid”.

Payment posting and tracking. There are several ways to post payment documents in the system: either by direct posting or by importing the already performed payments from external systems (Client-Bank, 1C: Enterprise). The payment is posted with original analytics in both ways. Depending on full or partial payment the inquiry status is changed correspondingly. Thus the payment initiator can get the data about the execution of his payment inquiry at any time.

The basic implementation results of NaviCon Holding Treasury module are the following:

• strict regulation of internal document workflow (payment inquiry movement);
• control over payments initiated based on the budget;
• operational planning of incoming payments and attraction of loan funds;
• creation of electronic register for payment inquiries, their security and audit;
• creation of a single payment processing center for all the companies within a group.

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