ECC is a flexible instrument that ensures centralized monitoring and control of cash flow movements. The system ensures flexible customization and the capability to gradually add new functions and features, which enables:

Availability of the system for corporations:

  • with an available budgeting system;

  • with a developing budgeting system;

  • with established monitoring and control for off-budget funds or funds partially applying budgeting procedures.

Combinations of various methods for cash flow movements (monitoring, control, approval, acceptance, execution);

Management broken down by various types of funds.

Thus, the ECC system enables:

a management company to: a subdivision to
  • Obtain valid consolidated information on movements and balances throughout all subdivisions;
  • Run preliminary control and accept expenses, prevent operations without approval of the management company;
  • Obtain reports in real time on budget execution, funds movements, agreements, with appropriate breakdowns.
  • Cut on time it takes to prepare documents through combining budget and payment functions within a single document;
  • Monitor movements of own funds;
  • Run preliminary control of own payments against a budget for cash flow movements, agreements;
  • Obtain internal analytical reports, reports on execution of own budget for cash flow movements, agreements.

The capability to geographically distribute the ECC functionality enables the enterprise to arrange its business processes with any centralization hierarchy and structure as well as allocate functional responsibilities:

  • Centralise functions within a common Management Centre (Centralized treasury);
  • Partially delegate responsibilities to territorial management units (regional treasury offices);
  • Centralise some functions (e. g., control and acceptance only — subdivisions would execute operations on their own);
  • De-centralise functions — Management company would only monitor and consolidate information.

Also, you can combine functional capabilities of the system to model financial management for various procedures for financing expenses of subdivisions by the Management company:

  • Self-financing procedure — Subdivisions self manage their funds within the limits established by the Management company (budget for cash flow movements, schedule of payments, preliminary acceptance of payments in the management centre);
  • Procedures of financing within limits of revenues centralized in the management centre:
  • Procedure for financing expenses within limits — Management company allocates funds to subdivisions in accordance with limits established for a period;
  • Procedure for financing «against payment» — Management company allocates funds to subdivisions as expenses appear necessary;
  • Procedure for financing with unused funds withdrawal — Management company allocates funds to subdivisions through any of the two above procedures. With such period expired (trading day, planning period), an unused amount of funds is withdrawn from a subdivision to be allocated among other subdivisions.

An accepted centralization hierarchy for the corporation’s liquidity management will guide the choice of a financing procedure.

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