8/7/2019 INTFX[1]

1/19

Page 1

Why do we need this process?

To save the spread cost of purchasing Foreign

Exchange from external banks

GL accounting for both the FX deals happens

automatically.

Once agreed both sides should benefit

Accounting is consistent across the entities

Date: 14 May 02

Presenter: Anil Passi

Click to proceed..

For the above reasons this workflow was designed and

developed from scratch

8/7/2019 INTFX[1]

2/19

Page 2

Workflows Diagrams ( Main Process)

Treasury Workshop

14.05.2002

8/7/2019 INTFX[1]

3/19

Page 3

Workflows Diagrams ( Setup Validation Process)

Treasury Workshop

14.05.2002

8/7/2019 INTFX[1]

4/19

Page 4

Workflows Diagrams ( Main Deal Approval

Process)

Treasury Workshop

14.05.2002

8/7/2019 INTFX[1]

5/19

Page 5

Workflows Diagrams ( Deal Cancellation process

Treasury Workshop

14.05.2002

8/7/2019 INTFX[1]

6/19

Page 6

Internal F/X Transaction

Treasury Workshop

14.05.2002

8/7/2019 INTFX[1]

7/19

Page 7

Internal F/X Transaction

Treasury Workshop

14.05.2002

Main FX

Deal

8/7/2019 INTFX[1]

8/19

Page 8

Internal F/X Transaction

Treasury Workshop

14.05.2002

Contra

FX Deal

8/7/2019 INTFX[1]

9/19

Page 9

Why do we need this process?

Treasury Workshop

14.05.2002

Significantly improve lead time in resolving internal FX

deals across the Time Zones

Automate deal approval process from email client

Save the hassle of navigation through 6 different windows to

approve both ends of the deals.

8/7/2019 INTFX[1]

10/19

Page 10

Workflow

Deal Settlement

Process

Deal Entry Screen

Overview Of The Internal FX Process

Treasury Workshop

14.05.2002

Buy CAD 25M

Sell USD 16M

SWIFT To

Sell USD

SWIFT To

Sell CHF

Settle Deal

Buy USD 16M

Sell CAD 25M

8/7/2019 INTFX[1]

11/19

Page 11

What does the approver in the Deal Initiating

Company See?

Treasury Workshop

14.05.2002

The approver in the

deal initiating company

will receive an email

notification along with

the deal details.

The approver should

then approve or reject

the deal.

8/7/2019 INTFX[1]

12/19

Page 12

What does the approver in the Contra

Company See?

Treasury Workshop

14.05.2002

The approver in the

contra company will

also receive an email

notification along with

the deal details.

Approver of the deal in

contra company should

enter the Bank

Accounts from which

the deal should be

performed.

The primary bank

accounts will bedefaulted.

Approver may decide

to Approve/Reject the

deal.

Scroll Down the

Window

8/7/2019 INTFX[1]

13/19

Page 13

Exception Handling

Treasury Workshop

14.05.2002

One or both the companies Cancel the deal

In the ideal world, approval process will be simple, when both ends of the deal are approved,the deals can then be settled

In the real world following can happen

Deals are not approved before the Deal Value Date

Approvers have not been setup correctly

Banks have not been setup correctly

Approver is unavailable

8/7/2019 INTFX[1]

14/19

Page 14

Deal rejected

Treasury Workshop

14.05.2002

In the event of deal

rejection both thedeals will be cancelled

automatically.

8/7/2019 INTFX[1]

15/19

Page 15

Deal expires

Treasury Workshop

14.05.2002

Both the deals will be

cancelled.

When the deals are

cancelled, everytreasurer involved in

the lifecycle of the

deal will be sent a

notification confirmingthe cancellation of

deals.

8/7/2019 INTFX[1]

16/19

Page 16

No approver

Treasury Workshop

14.05.2002

A Notification is sent to

the Support Team.

The support team will

co-ordinate with the

users to complete thesetup

8/7/2019 INTFX[1]

17/19

Page 17

No bank account

Treasury Workshop

14.05.2002

A Notification is sent to

the Support Team.

The support team will

co-ordinate with the

users to complete thesetup

8/7/2019 INTFX[1]

18/19

Page 18

Approver unavailable

Treasury Workshop

14.05.2002

We can setup upto 3 approvers in Treasury for each Company

Each approver will be assigned the precedence of 1,2 or 3

If Approver-1 does not respond in a days time, a reminder is sent. If

there is no response to the reminder, then Approver-2 is notified.

Approver-2 will be notified only if the value date of the deal has not

yet been surpassed.

If a deal can not be processed by any of the three approvers, then

the deal will be cancelled automatically.

8/7/2019 INTFX[1]

19/19

Page 19

Where do we setup the approval limits for FX D

Treasury Workshop

14.05.2002

In Oracle, we can

assign limits to dealersfor every possible Deal

Type.

A request for Approval

will be sent to theapprover only if

dealers Limit Amount

is greater than the deal

value.

If none of the

approvers in Treasury

have the rights to

approve a specific FXdeal a notification will

be sent to Support

team.