Enterprise Clearing Centre
Enterprise Clearing Centre is a complex solution ensuring monitoring, control, and management of financial flows within enterprises in real time.
Tasks to solve:
- Fully picturing the current status and allocation of financial resources in real time;
- Controlling (preliminary and subsequent controls) cash flow movements;
- Accepting (’allow’ mark) transactions performance;
- Planning cash flow movements (generating budgets for cash flow movements, calendar of payments);
- Generating a centralized database of regulatory and reference information, agreements;
- Ensuring highest possible transparency of the corporations’s financial flows;
- Analysis of cash flow movements:
— Analysis of subdivisions’ account balances;
— Analysis of flows broken down by types of finances;
— Analysis of finance movements broken down by analytical attributes;
— Analysis of execution of agreements;
— Analysis of performance of the budget for cash flow movements, etc.
- Ensuring the capability to generate reports for management of different levels:
— Consolidated reports;
— Reports with subdivisions breakdown.
Top management of enterprises with a geographically distributed multi-level organizational and financial structure (subdivisions, branches, subsidiaries, projects) encounter the problems of centralized monitoring and control of cash flow movements of subdivisions (subsidiaries and affiliates).
The two major principles underlying corporate finance management and control are:
1) The principle of preliminary expense control (preliminary acceptance) — the procedure where an expense is enabled only upon passing applicable control levels (automatically or with the capability for an authorized person to make a decision), which again precludes of exceeding of planned indicators without the financial management being aware of that;
2) The principle of centralized financial management (also known as «single account principle») — the principle where financial resources are centralized into one or more related centres with the capability to make expenses from those centres only, which on one hand enhances accuracy of preliminary control, and on the other hand enhances management of the corporation's liquidity.
Hands-on control and management of cash flow movements for enterprises with distributed organizational structure can only be ensured through implemented corporate automated system for management accounting, budgeting, and financial analysis.
Specific features of the solution:
- Covers the whole financial structure of the corporation taking into account its organizational, geographical, and project composition;
- Automates activities of corporate treasury (department of finances) and its subdivisions with different levels of centralization and geographical distribution of functions;
- Operates in real time;
- Creates an e-workflow system;
- Integrates with ERP systems and banking systems (bank-client). Establishes a common information system for corporate management.