Main functionality

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.

  • The standard configuration supports the following ECC directories/registers:

  • The «Organizations» group of registers

    — Register of Organizations (including counterparties)

    — Register of Organizations’ Accounts

    — Register of Territories

    — Register of Groups of Organizations

  • List of Banks register

  • Register of currencies with exchange rates history

  • The «Structure» group of registers

    — Register of Parent Companies

    — Register of Structures

    — Register of Responsibility Centres

    — Register of Planning Periods

  • The «Analytical Classifications» group of registers:

    — 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:

  • Monitoring of balances on subdivision’s transactional accounts;

  • Monitoring of cash flow movements broken down by appropriate analytical attributes;

  • Real time monitoring of execution of a budget for cash flow movements;

  • Real time monitoring of execution of agreements;

  • Monitoring of status of individual e-documents;

  • Status monitoring for lists of groups of e-documents (through the system of filters).

    Algorithms for documents movements within ECC

    ECC provides customizable algorithms for movements of documents:

  • Against control level;

  • Against analytical detail level;

  • Against process automation level.

    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:

  • Responsibility centre;

  • Period;

  • CBC (code of budget classification);

  • Amount.

    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:

  • In the automated mode through import of documents into the system;

  • Manually through user-generated documents that record transactions.

    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).

  • Payment document is generated based on a request for expense to be paid off. Such payment document has a payment function only.

    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:

  • If you have just started using ECC — input of data over past periods;

  • In case of developing budgeting within a corporation, at the inception stage of treasury structure establishment, with highly self-dependent subdivisions — for collection, consolidation, and analysis of information on funds movements, obtaining reports on execution of a budget for cash flow movements, execution of agreements.

    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:

  • Set of limiting co-ordinates of a segment that are used for planning within the segment and for controlling the limits;

  • Setup of non-limitness for each responsibility centre for each segment;

  • Setup of the document control algorithm within a segment (permitted% of over-limit amount.

    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.

    Currency transactions

    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:

  • Generation of currency documents within the system;

  • Control of currency documents against limits and their preliminary approval and acceptance;

  • Consolidated reporting on execution of a budget for cash flow movements, denominated in a single accounting currency;

  • Analytical reporting on status and movements of currency funds both in original currency and accounting currency;

  • Re-evaluation of currency funds balances at exchange rate changes;

  • Valid information on ruble equivalent of currency funds balances.

    Maintenance of agreements and generation of a payments schedule

    The system to maintain agreements provides the following functionality:

  • Maintenance of a centralized database of agreements:

    — 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).

  • Relation between the database of agreements and the budget execution control process:

    — 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

    Budget planning involves the following functionality:

  • Collection of information on planned expenditures and receipts based on relevant information from subdivisions;

  • Delivery of planned figures of the draft budget to subdivisions;

  • Composition of balanced plans of receipts and expenses of subdivisions as well as the consolidated budget roster;

  • Generation of the draft budget at all levels including Subdivisions, Regional treasury offices, and the Management company;

  • Generation of the draft budget «top to bottom» as well as «bottom to top»;

  • Saving and analysis of a history of changes to draft budgets.

    Management of accounts of subdivisions of subsidiaries and affiliates

    This feature involves:

  • Generation of rules and conditions for re-allocation of funds (in particular, daily transfer of funds from revenue accounts of subdivisions to the main account, replenishment of expense accounts, etc.);

  • Auto-control of funds allocation in accordance with generated financial management rules (in particular, tracing of payment limits, permissible overdrafts, generation of payment position, etc.);

    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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