Treasury

1. Scope

The scope of this process is to demonstrate the various methods and procedures for effectively managing financial and monetary transactions to stay up to date. Additionally, it outlines the different ways to validate this type of information. This scope includes the following:

• Checking account

  • Currencies

  • Payment methods

  • Payment tracking

  • Treasury

  • Debit and credit notes

  • Balance

• Analysis and improvement

1.2. Software Coverage

• Customer Current Account

  • Currencies

    • Multicurrency

    • Points

    • Commissions

  • Payment Methods

    • Automated

      • Online

      • Batch

    • Manual

  • Payment Tracking

  • Treasury

    • Payment Listings and Balances

    • Manual Payment Entry

    • Payment Medium Reconciler

      • Cash Payment Reconciler

      • Online Payment Reconciler

  • Debit and Credit Notes

    • Creation of Notes

    • Reasons for Applying Credit/Debit Notes

  • Balance

    • Types

      • Financial

      • Commercial

    • Transaction Matching

      • FIFO (First Input / First Output)

      • Detailed Inquiry

    • Account Status Reconciler

• Analysis and Improvement

  • Balance

    • Current

    • As of a Specific Date

    • Historical Analysis

  • Treasury

    • Income

    • Notes

2. Definitions

What is a current account?

Current accounts facilitate money management and are presented in the form of a contract between the customer and the company, involving depositing money or assigning a credit limit.

What are Application Periods?

These are valid periods during which a document was applied in the system. These periods are important for tracking and indicators in various areas.

Difference between credit notes and debit notes?

There is a fundamental difference between a debit note and a credit note. A debit note modifies the amount in favor of the company, while a credit note modifies the amount in favor of the customer.

Difference between payment methods and payment terms?

The method refers to the means that will be used for payment, such as cash, credit card, among others. Payment terms, on the other hand, refer to whether it will be a prepayment or on credit.

3. Key Features

• Reasons for Notes: Multiple note reasons can be configured, helping the company to track and plan actions based on the most common reasons.

• Payment Media and Methods: Depending on the company's needs, various payment methods can be created for customers, helping to increase cash flow and improve debt collection.

• Payment Terms: The platform allows for the use of multiple payment terms according to the company's requirements.

• Automatic Balance Reconciliation: The system can automatically reconcile smaller balances defined by the company, ensuring that the financial information is as accurate as possible.

• Analysis and Reports: Reports can be generated to assist the treasury department in understanding which payment methods have been most commonly used and to facilitate bank reconciliations.

4. Conditions

To ensure the proper use of the software's functionalities, it is necessary to have the technical and/or business elements defined in advance, such as:

• Establishing Reasons for Notes in the System: This is done in order to generate indicators for each note reason.

• Determining Payment Methods to Use: Identifying which payment methods are authorized for collecting money, based on prior negotiations with financial institutions.

• Defining Payment Terms: Deciding which payment terms will be used, including whether different credit terms with varying payment periods will be managed.

• Defining Currency Types: Establishing the currencies that will be used in the company for all economic and financial processes.

5. Operation

5.1. Journey

Maira's role is to ensure that the company has sufficient cash flow for its operations. For this reason, her functions include:

• Finding the best payment methods while providing customers with multiple payment alternatives.

• Analyzing, for the company, the most suitable timing for cash turnover. This information helps define approved payment conditions for customers.

• Performing reconciliation of smaller balances defined by the company to prevent them from appearing in the accounts receivable and to ensure the most accurate information possible.

6. Configurable Elements

The following are the elements to be configured in the software:

6.1. Main Configurations

• Payment Method Configuration

• Configuration of Online Payment Operators

• Payment Terms Configuration

• Financial Institutions Configuration

• Currency Configuration

• Currency Conversion Configuration

6.2. Related Module Configuration

• Minimum Amount Configuration for Automatic Balance Reconciliation (environment variable)

• Multicurrency Configuration (environment variable)

6.3. Module Configuration

6.3.1. Payment Methods (Pinion)

Payment methods refer to the instruments, systems, or tools that the company will offer or accept to enable users to make a transfer, transaction, or monetary exchange in exchange for goods or services. These can include:

• Online: Payments made through payment operators or payment gateways like PayPal, PayU, Place to Pay, among others.

• Cash: Payment in physical currency.

• Credit: Payment on credit.

• Points: Payment using accumulated points.

• Coupons: Payment using coupons.

To configure payment methods, you should go to the "Payment Options" manager located in the process manager. Then, you can either create a new payment method or edit an existing one and fill in the modal fields. These fields typically include:

• Name: A unique identifier name for the payment method to distinguish it from others.

• Description: An additional description to help recognize it.

• Enabled: Allows you to activate or deactivate the payment method.

• Currency: Specifies which currencies this payment method will apply to (this field is auto-populated based on the currencies previously configured in the currency manager).

• Order Flows: Indicates in which order flows this payment method will apply or appear.

This configuration allows the company to define and manage the various payment methods it accepts, making it easier for users to make payments in different ways.

Open

Open

After creating the payment methods, some of them may require configuration of payment operators, such as the Online payment method, which needs payment operators like PayU, PayPal, Place to Pay, or others to be configured.

These sub-methods or operators are configured from the "Add" modal, located in the action's column of the payment method.

The fields in this "Payment Conditions" modal are different from those in the previous "Payment Options" modal. For example, instead of the "Name" field, there will be a "Code" field, and instead of specifying order flows, there will be a series of parameter fields necessary for the payment gateway integration to be functional and properly configured.

Note: You should request these parameters or credentials from your payment gateway/payment operator provider to complete the configuration.

6.3.2. Payment Terms

Payment terms refer to the agreement made between the seller and the buyer at the time of purchasing a particular product or service. In the system, specifically, the sales force user would be the buyer (the person to whom a payment agreement is provided), and the seller would be the company itself.

This module, related to payment methods, allows you to establish the payment timing conditions for payments that are not made in cash but on credit. Payment terms help define when and how payments should be made for goods or services acquired, facilitating financial transactions between the company and its customers.

6.3.3. Account Types

In this administrator, you can configure the name and description of the different account types that the company will manage or accept, such as:

• Current Account

• Savings Account

• Payroll Account

This module can be accessed through the process manager. Configuring account types allows the company to categorize and manage different types of accounts based on their specific purposes and functionalities.

6.3.4. Collection Centers

In this module, you configure the list of payment collection entities that the company will accept. For example:

• Bancolombia

• Efecty

• Mercado Pago

This module can be accessed through the process manager.

The list of options that will appear in the field of the modal called "Financial Information" (referred to as "Financial Institution" in the record table) should have been configured previously in the "Financial Institutions" manager.

The list of options that will appear in the field of the modal called "Currency" should have been configured previously in the "Currencies" manager.

6.3.5. Currencies

In this administrator, you can configure the different types of currencies and/or monetary units that the company will handle, such as:

• Money Type (foreign currencies like USD, COP, EUR)

• Points Type

• Commissions Type

This module can be accessed through the process manager. Configuring currencies allows the company to work with different types of monetary units and manage transactions involving various currencies and units of value.

6.3.7. Currency Conversion

This administrator is used to set the exchange rate between two currencies managed by the software. This rate is an indicator that expresses how many units of one currency are needed to obtain one unit of another. Currency conversion is crucial for conducting financial transactions involving multiple currencies and ensuring accurate accounting and reporting in a multi-currency environment.

7. Detailed Scope

7.1. Customer Current Account

7.1.1. Currencies

For a company with a vision to expand, having a multi-currency system is essential. This facilitates people from other countries to view product prices or the portfolio in their local currency, thereby helping to boost sales growth.

The S4DS system is software capable of managing and accommodating clients with different economic systems, meaning it can work with various currencies corresponding to each country.

This capability is evident throughout the system where monetary amounts are displayed, including:

• Reports

• Orders

• Graphs

The system allows for the simultaneous handling of different types of currencies, such as:

• Money

• Points

• Commissions

This multi-currency feature is valuable for companies operating in international markets, as it simplifies financial transactions and reporting in diverse currency environments.

7.1.2. Payment Methods

In a company, it's crucial to grow in the market and achieve continuous evolution. For this reason, a key point is to offer customers different payment methods, allowing them to choose options that suit their capabilities and needs, thereby facilitating the purchasing process and providing a good experience for all types of customers.

S4DS allows for the configuration of various payment methods, including:

• Automated

  • Online

  • Batch

• Manual

For manual payments, the system provides an option to select the bank and the customer through the treasury module on the screen. This flexibility in payment methods enhances the customer experience and can contribute to business growth by catering to a wider range of customer preferences.

7.1.3. Payment Tracking

For the finance and treasury department, it is vital to track the information regarding payments made by customers, ensuring that the data in their banks or financial institutions align with the information in the system.

To achieve this, the S4DS platform offers the following options to ensure that balances are correct:

• Reconciliation

• Association with orders and release

These features help maintain accurate financial records and ensure that payments are properly tracked and matched with corresponding orders or transactions, thereby enhancing financial control and transparency.

7.1.4. Treasury

Treasury is one of the most important areas for companies because it manages the entire cash flow and can generate various strategies to increase cash flow, such as:

• Collecting payments for company activities

• Negotiating payment terms with suppliers

• Managing banking operations

For this reason, S4DS includes the treasury module, which facilitates the retrieval of payment information, considering different currencies. This can be done through:

• Payment input

  • Integrations

  • Manual input

    • Flat file upload

    • Administration

The treasury module helps streamline financial operations, allowing for efficient management of cash flow, payment tracking, and financial strategies to optimize the company's financial position.

7.1.4.1. Listings and Balances by Payment Method

Cash flow represents the money a company has in all its bank accounts at a given point in time. Having control and information about these indicators allows the company to react to the need for cash or determine if it can make other types of investments, thereby generating more income and profitability for the company.

To maintain comprehensive control over the information obtained from payments, it can be done through:

• Administration

• Specific payment records

• Exporting all payment data

These methods enable the company to have a complete overview of its cash flow and financial status, aiding in making informed decisions and optimizing financial performance.

7.1.4.2. Manual Payment Entry

The system allows for manual entry of payments for individuals registered in the platform. In this process, you can select the corresponding payment method and associate it with the order/invoice it is related to. This manual payment entry feature provides flexibility and control over recording payments made by individuals, ensuring accurate financial tracking and reconciliation.

7.1.4.3. Payment Medium Reconciler

7.1.4.3.1. Cash Payment Reconciler

This module allows us to filter by customer to perform manual reconciliation of payments made in cash.

7.1.4.3.2. Online Payment Reconciler

This is a screen used for reconciling payments automatically or manually, including payments received from banks or those entered manually. It streamlines the process of matching payments with corresponding records, whether done automatically or with manual intervention, ensuring accurate financial tracking and reconciliation.

7.1.5. Debit and Credit Notes

Debit and credit notes are documents or vouchers used for adjusting the balance in a customer's account.

The S4DS system includes a module for generating debit and credit notes for both money and points.

• Debit Note: This is a voucher generated by the company for a sales force member, which includes the monetary (money - points) charge amount and the reason for this charge. This charge is added to the balance of the respective account.

• Credit Note: This is a voucher sent by a company to its customer, informing them of a credit or deposit (money - points) in their account for a specific amount and the reason for this credit. This credit reduces the debt or balance of the respective account.

Key Concepts:

• Types of notes (debit/credit)

• Classification (a table defining typologies for generating reports later)

• Application periods (indicating which sales cycle it belongs to)

7.1.5.1. Note Creation

Credit and debit notes can be created either through a screen interface or by uploading a file. This system administrator allows for the assignment of notes to customers, whether they are debit or credit notes. These notes enable adjustments to third-party accounts and facilitate effective account management and financial tracking.

7.1.5.2. Reasons for Applying Credit/Debit Notes

It's essential to standardize the reasons for applying credit and debit notes to extract information and group it for statistical purposes. This standardization not only provides a structured approach but also offers more detailed information regarding the purpose of applying the note. This helps in tracking and analyzing the circumstances under which credit or debit notes are issued, aiding in financial reporting and decision-making processes.

7.1.6. Balance

For the finance and treasury departments, it is important to be able to track pending collections or credits in the accounts receivable, whether from the sales force or the customer.

Balances in the accounts receivable can represent amounts pending payment or amounts owed, and these can be in various forms:

• Currency(s)

• Points

• Commissions

The portfolio management module allows for various filters (mandatory balance) to facilitate effective management and tracking. Through this module, balances in the portfolio that the company deems less relevant (e.g., minimum balances) can also be reconciled. This aids in maintaining accurate financial records and managing accounts receivable efficiently.

7.1.6.1. Types

There are financial types that assist in analysis:

• Financial: This refers to everything related to outstanding balances, due dates, adjustments, and payments.

• Commercial: This relates to balance inquiries, collections, minor balances, and portfolio commitment management.

7.1.6.2. Movement Crossings

Financial crossings include:

• FIFO (First In, First Out): The first order placed is the first to be matched with incoming payments. This method ensures that the oldest outstanding payments are settled first.

• Detail Inquiry: Detailed inquiry can be viewed in the centralized balance inquiry option. This information can be exported to Excel for further analysis and calculations.

7.1.6.3. Account Status Reconciler

The reconciler allows for the settlement of payments made by the sales force, whether entered through payment input or recorded during order taking.

Through the reconciler, it is possible to:

• Insert Movements: Insert all missing movements for a selected individual or from a specific date, taking into account invoices generated, payments made, credit or debit notes, points, and commission balances assigned to each customer based on their compensation plan. After this, the reconciliation process is executed.

• Reset Movement Details: This action deletes all movement details and resets the balance for a selected customer or from a specific date. This process reconstructs movement details for each currency type (money, commissions, points). After this, the reconciliation process is executed.

• Reset Movements: This action deletes all movements with their respective details for each customer, either for a previously filtered customer or from a specific date. Subsequently, it inserts all the details and executes the reconciliation process.

Note: If no process is selected, only the reconciliation will be executed by default. This tool streamlines the reconciliation of accounts and ensures that payment records align with the company's financial records.

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