The set of ECC features applied by a certain corporation can vary depending on its current and future needs and tasks to be resolved.
Functionality can be gradually enlarged thus allowing to start with a minimal set of functions and features and progressively add new ones («from simple to complicated»).
Centralized maintenance of regulatory and reference information (RRI)
EEC maintains RRI through populating and updating system directories/registers used to implement business processes.
Directories/registers are sets of data that is rarely updated in daily activities (e. g., a list of organizations, banks, accounts, etc.) but are frequently used to generate and process various documents. Master data usage ensures that data input errors are avoided as well as increases the speed of document population.
— Register of Organizations (including counterparties)
— Register of Organizations’ Accounts
— Register of Territories
— Register of Groups of Organizations
— Register of Parent Companies
— Register of Structures
— Register of Responsibility Centres
— Register of Planning Periods
— Register of Budget Classification Codes
— Register of Agreements
— Register of Projects
— Register of Settlement Types
— Register of Financing Types
Composition and structure of analytical classifications can be easily adapted to needs of individual corporations.
Monitoring of cash flow movements
Monitoring of cash flow movements is ensured through collection of full information on actual execution of operations by the corporation’s subdivisions.
Transactions involving cash flow movements within ECC are recorded through performing e-workflow algorithms.
ECC supports the following types of monitoring:
Algorithms for documents movements within ECC
ECC provides customizable algorithms for movements of documents:
When combined, the customization capabilities enable various schemes of documents movements, which help arrange the corporation’s activities in line with its individual needs.
Budget maintenance (limits, plan of receipts)
A budget for cash flow movements is a financial plan of expenditures and receipts composed for a Group of companies, Corporation, Holding and broken down by organizational and financial units over a certain period (year, quarter, month). Revenue and expenditure part of such budget refer to sources of receipts and targets of expenses, usually presented as a classification.
The usual structure of budget lines includes the following indicators:
Within ECC, a budget for cash flow movements is generated through entering limits of expenses and a plan of receipts.
Schemes of cash flow movements
There are two groups of cash flows depending on their movement directions: revenues and expenditures.
Revenues are accounted upon executing a transaction, with their recording varying depending on an analytical level and level of automation of the revenue classification procedure.
There are different schemes possible for movement of documents for expenditure transactions depending on phases of generation, control, approval, and acceptance of documents.
Also, there are various schemes to execute expenditure transactions within ECC depending on a type of funds (monetary funds, bills, inter-subdivision settlements).
Accounting of receipts
Financial receipts can be accounted as follows:
Any of the alternatives allow additional analytical attributes to break down receipts that ensure monitoring and reporting with relevant analytical breakdown as well as reporting on execution of budget, agreements.
Request-based scheme for maintenance of expenses
The scheme involves re-allocation of control functions and payment functions between the two documents:
Request for expense implements the function of initializing the payment by a subdivision, including information on direction of expenses, goes through control, approval, and acceptance phases (depending on chosen algorithms).
Such expense scheme is most efficient for corporations with a centralized treasury structure ensuring not only monitoring and control functions, but also expense execution operations and/or liquidity management of the whole corporation.
Recording of expenses upon executing operations
Such scheme can be applied in the following cases:
Its Management company would have the capability to collect information on efficiency of budget execution, evaluate the status of the corporations’ funds on the whole, with minimal interference in business processes of subdivisions.
The Management company can use such information for management decision-making as regards further development of the corporations’ budgeting system, establishment of its treasury structure, optimization of the budget execution process.
Recording of expense transactions upon execution of relevant transactions can be performed both in the automated mode (through import of documents) and manually (by an operator).
Multi-segment control of limits
A control segment is a set of analytical and financial indicators that the corporation uses for planning and accounting of funds movements.
Individual rules and algorithms of passing payment document controls are set for each segment.
Co-ordinates of segments differ in analytical classifications only. Each control segment would always have: Responsibility centre, limit over a period.
Multi-segment control of limits can be applied to separately limiting against various analytical indicators and planning periods, for example, against budget classification codes — broken down by quarters, against projects — broken down by months.
The system supports the following settings for control segments:
Passing of documents through individual segments is set within ECC through setting up an additional attribute.
With the multi-segment control passed, the document goes to the acceptance phase with its further processing being standard for the given expenditure scheme.
ECC supports multi-currency recording of transactions as well as auto-alignment of data to a common accounting currency in order to consolidate full information on financial movements.
This feature ensures:
Maintenance of agreements and generation of a payments schedule
The system to maintain agreements provides the following functionality:
— Initializing agreements within the system. Maintenance of supplementary master data with values used to generate agreements (agreement type, economic classification);
— Specifying a schedule of payments against the agreement;
— Agreeing on the agreement in the Management company;
— Establishing timeframes for approval of agreements;
— Maintenance and accounting of various agreement types;
— Assigning payment documents to agreements;
— Recording the fact of fulfilling obligations under the agreement by the parties;
— Cancelling, terminating agreements;
— Access to agreements maintenance based on roles and organizational hierarchy;
— Reporting on accounts receivable/payable;
— Reporting on execution of agreements (including recording of deviations from the schedule of payments).
— Control that agreements do not exceed limits;
— Generation of a schedule of payments;
— Generation of payments based on the schedule;
— Control of payments against the schedule;
— Reporting on execution of the payments schedule, budget, broken down by agreements.
Budget planning involves the following functionality:
Management of accounts of subdivisions of subsidiaries and affiliates
This feature involves:
Hands-on re-allocation of funds, including re-allocation between subdivisions, in accordance with set rules (in particular, replenishment of expense accounts at the expense of receipts from revenue accounts, etc.).
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