02 — Capability · BC-230
Treasury
Make sure the enterprise has the cash it needs, where and when it needs it, at a cost of capital it can live with, and protect it from the currency, rate and counterparty swings it cannot control.
- Corporate Treasury
- Cash & Funding
- Liquidity Management
In scope
- Cash positioning, pooling and short- and long-term liquidity forecasting
- Debt, equity and credit facilities and the covenants attached to them
- Hedging of foreign exchange, interest rate and commodity exposure
- Bank relationships, account structures and payment infrastructure
Out of scope
- Recording the transactions treasury initiates (see BC-210)
- Paying suppliers and employees (see BC-260)
- Collecting what customers owe (see BC-250)
Realized by · 1
- SAP S/4HANA · Treasury and Risk Managementpartial via BC-230.10
Used in · 3
- Lead-to-Cash · 06 Collect & Apply Cash via BC-230.40
- Procure-to-Pay · 06 Pay Supplier via BC-230.40
- Record-to-Report · 02 Reconcile & Adjust via BC-230.40
Build it · 0
- Nothing in the library points here yet.
Decomposes into · 5
- BC-230.10Cash & Liquidity ManagementKnow today's cash position across every account and entity, forecast tomorrow's, and move funds so no part of the enterprise is short while another sits idle.
- BC-230.20Funding & Capital StructureRaise the debt and equity the enterprise needs on terms it can sustain, and keep the mix of the two where the board and the rating agencies want it.
- BC-230.30Financial Risk ManagementMeasure the enterprise's exposure to currency, interest rate, commodity and counterparty risk, and reduce it to the level policy allows through hedges that are accounted for correctly.
- BC-230.40Banking & Payment OperationsRun the bank accounts, mandates and payment rails the enterprise moves money through, securely and with as few accounts and banks as the business genuinely needs.
- BC-230.50Treasury Governance & ReportingSet the policies treasury operates within, report to leadership on liquidity, funding and risk positions, and keep the controls tight around a function that touches all the money.