PeopleSoft Cash Management

10/01/2008

Defining Cash ManagementPeopleSoft Enterprise Cash Management enables you to monitor and forecast cash requirements, perform automated bank reconciliations, distribute payments efficiently and securely, and automatically generate accounting entries .

Cash Management Includes the Following Areas:

• Daily management of cash activity and concentration of cash• Determining the daily cash position (cash positioning using a cash worksheet/tree)• Bank account and relationship management• Cash forecasting (short term receipts/ disbursements; medium term and long term)

• Fee and Transfers• Cash accounting• Cash reconciliation• In-House Banking

2

Increase productivity with centralized processing and electronic banking.

Predict cash requirements and maximize returns

Ensure adequate control and accounting of cash management processes

Benefits

3

Fees and Account Analysis

Set up Fee structures.Compare Fee structures.Perform Account Analysis.

By defining and analyzing data, you can reduce your fee expenses in two ways:• Comparing fees for up to five banks, and determining which bank has the best fee structure for yourrequirements.• Catching bank charge errors by comparing an EDI 822 Account Analysis bank statement against the data. 4

Fee Structure

5

Account Analysis

6

Real-Time Cash Positioning and Forecasting

PeopleSoft Cash Management supports real-time global cash positioning and forecasting for proper liquidity management.

• Easily track the movement of funds in your bank accounts. Perform side-by-side comparison of fund movement at different intervals during the day for proper liquidity management. •View, calculate, enter, and store cash positions at any point in time for each business unit, business unit groups, or the entire enterprise. •Set cash positions multiple times during the day by using an intraday cash position worksheet to track your cash movement accurately. •Generate daily cash position worksheets for modeling and planning. •Accurately forecast long-term cash requirements with information directly from PeopleSoft Receivables and Payables. •Use embedded graphical analysis of bank information to enhance understanding of balances and trends.

7

Position Tree

8

Day Day Day Day Day Day Day Day Day

1 2 3 4 5 6 7 8 9

Receipts -Sales Receipts -Income from Investments -Royalties -Other Receipts

Total Receipts

DisbursementsRaw Materials -Packaging -Other Raw MaterialsTotal Raw Materials

Financing Expense -Interest Expense -Principal PaymentsTotal Financing Expense

Other Disbursements -Trade Payables -Intercompany Payables -Payroll -Commissions & Bonuses -Taxes -Freight -Lease Payments -Sales & Marketing -Corporate Charges -Customer Allowances -Utilities -Repairs -Legal Expenses -Capital Expenses -Insurance Premiums -Brokerage Fees -OtherTotal Other Disbursements

Total Disbursements

Change in Cash Balance

Daily Cash Worsksheet

Daily Cash Worksheets Allow:

• Rolling Forecasting • Investment Analysis• Borrowing Analysis• Liquidity Measurement• Variance Analysis• Pattern Analysis• Receipts Reports• Disbursement Reports• Ad Hoc Planning

9

Accounting and Controls

With built-in controls and automated accounting, PeopleSoft Cash Management helps you to reconcile and properly account for your cash.PeopleSoft delivers the following treasury accounting event types with the system:• Deal transactions.• Facility, deal, wire, and letter of credit fees.• Bank transfers.• Bank statement processing transactions.• Hedges.• EFT requests.• Internal account interest.• Investment pool transactions. 10

Accounting and Controls

11

Cash Pooling

Local and state government agencies, universities, and other public-sector enterprises manage funds through investment pools. The goal of a state or local government’s investment pool is to give subordinate government agencies the opportunity to combine their idle cash and make short-term investments equal to those afforded to larger entities.

12

• Create and maintain investment pools and participant accounts.

• Automate cash inflows and outflows through a centralized location.

• Distribute interest and fees depending on the structure of the organization and pool's participants. Funds can be transferred by way of accounting book entries or between the participant’s bank and the investment pool’s bank through electronic wire transfers and ACH transactions.

• If the pool is set up using share accounts, then shares are distributed to the participants’ pool accounts. Share balances are then updated periodically for deposits, withdrawals, and transfers. Changes to the value of the investment pool portfolio are reflected in the share price.

Cash Pooling...

13

14

In-House Banking

• Load & Analyze unlimited Bank statements. • Calculate interest accruals.• Generate schedules.• Bank Account Transfers. • EFT Templates• Automated Bank Reconciliation

Manage in-house bank functions, including internal current accounts, bank transfers, and interunit accounting

15

Bank Account Transfer

16

Transfer Funds Request

17