Chapter 19Treasury Information Management.ppt

Chapter 19Treasury Information Management Learning Objectives Appreciate the benefits of e-commerce Understand what EDI is and the issues involved in its implementation Differentiate between the component parts of EDI Understand the benefits of applying the Internet to e-commerce Understand how treasury managers use information technology to make better financial decisions Key Information Flows Electronic Data Interchange (EDI) Electronic business data interchange, EBDI Financial EDI, FEDI Electronic funds transfer, EFT EDI Communications Formats, ASC X12 Standards 810 Invoice 820 Payment order/remittance advice 821 Financial information reporting 822 Customer account analysis 823 Lockbox information etc. Format Options for Funds Movement, NACHA PPD: Direct deposit CCD: Cash concentration and disbursement CCD+: Same as CCD with addendum space TXP: For express purpose of electronic tax payments CTX: Corporate trade X12 format with variable data fields RCK: Re-presented check entries format How Transaction Sets and Payment Formats Are Used Benefits and Problems with EDI Benefits improves quality of services to customers employee productivity is enhanced operations are streamlined EDI provides for more effective asset management EDI can improve payables area cash management costs are reduced banks often allow for larger credit lines Problems development and acceptance of standards data communication security legal issues E-Commerce and the Internet Information reporting Transaction initiation Image access E-Procurement Internet invoicing and payment Digital marketplaces Future role of the Internet Auditing the Information System Survey results Cash flow timeline events Assessment of a firm’s cash management practice Assessing the treasury management workstation Cash Flow Timeline Events Purchasing Accounts payable Inventory Sales Receivables Treasury Financial administration Assessment of Cash Management Practices Four basic areas to assess cash positioning/mobilizat