How Can You Streamline Treasury Operations With SAP S/4 HANA?

Need Of Prioritizing Treasury Solution

Continuous geopolitical instability, high inflation with pressure on foreign currency, and constant challenges with the supply chain have repeatedly highlighted the need for effective risk and cash management solution. Today’s key challenge for treasury organizations is to enhance visibility and optimize liquidity management with use of data. However, this is difficult with fragmented and standalone systems architecture and a lack of real-time data visibility across different parts of the organization. Hence, managing global risk remains a complex and resource-intensive process. The complexity and disparity of today’s realities must be urgently addressed. Resilience against multiple types of risk must be well embedded into treasury processes and system architectures to ensure robust financial management.

Treasury management processes built on top of Finance

Corporate Treasury function is increasingly viewed as ideal candidates for the initial phase of S/4 finance transformations. By prioritizing treasury solutions from the outset, organizations can significantly improve cash and risk management, enhance financial visibility, and improve the working capital requirements. Technologically, Corporate Treasury acts as a crucial hub, processing financial data recorded within the organization. This internal data is combined with external market information to generate strategic insights and support tactical decision-making. By leveraging advanced analytics and real-time data integration, corporate treasuries can identify trends, assess risks, and optimize cash flow management. This strategic intelligence not only strengthens the organization’s financial stability but also informs broader business strategies and operational decisions. This approach enables treasuries to lay a robust foundation for comprehensive financial transformation, ensuring a smoother transition and faster realization of benefits across the entire finance function.

S/4 HANA as The Powerhouse Of Key Global Treasury Management Processes

Identify The Right Deployment Plan

Identify the right deployment plan

The scope and criticality, of course, depend on project specifics. However, the foundational scope for any corporate treasury typically includes delivering payments, Managing bank connectivity and communication and enhanced cash and liquidity reporting, as well as improving governance in areas such bank account master data (BRM). In the future, treasury can integrate more advanced functionalities, including a transactional hub, APM etc… As mentioned, the centralized nature of treasury often makes it an ideal environment. Various treasury processes, such as IHB, FX, hedge management, and risk analysis, can greatly benefit from leveraging the latest capabilities of S/4.

Having A Clear Vision

Creating a clear and practical vision for treasury systems is essential. Start by deciding how much you need to centralize processes to make them more efficient. Identify which third-party systems are needed to work well with S/4HANA. The success of the treasury solution greatly depends on these third-party integrations. It is crucial to onboard them early in the project and clarify all dependencies and alignments upfront. Review and update your risk management policy to handle current threats. Combining S/4HANA with a detailed transformation plan will bring the most benefits. This approach will help the treasury function better and meet its long-term goals more quickly.

Build A Flexible Delivery Model

We recommend a tailored approach to deliver treasury specific solution, ensuring alignment with your organization’s strategic goals and operational processes. Additionally, adopting an adaptable project methodology that accommodates your company’s requirements and considers third-party dependencies can help manage evolving needs and circumstances throughout the project lifecycle. Thus, SAP S/4 HANA streamlines treasury operations by enhancing financial visibility, optimizing liquidity management, and integrating real-time data for improved risk assessment. By prioritizing treasury solutions, organizations can strengthen their financial stability, support strategic decision-making, and achieve a seamless transition to comprehensive financial transformation. If you are looking for experts in S/4 with experience in treasury operations, reach out to Accel4 today!