Introducing Microsoft Dynamics 365 Treasury Management System What

Introducing… Microsoft Dynamics 365 Treasury Management System

What is Treasury Microsoft Dynamics TMS 365 Treasury Management System The process of administering to the financial assets and holdings of an enterprise. With the goal to optimize the organizations liquidity, make sound financial investments for the future with any excess cash, and reduce or enter into hedges against its financial risks

D 365 Treasury • TMS in summary

D 365 Treasury (TMS) Agenda • Preface What it does Where is it • Principles Mobility Flow Foundation • Product Calculations • Produce Reports, enquiries … insight

D 365 Treasury (TMS) • The Preface • What it does

D 365 Treasury (TMS) • The Preface • What it does Treasury (TMS 365) manages investment portfolios, lending practices, grants and funds, credit ratings etc. All within one system, in one database, one UI. Utilizing Microsoft Dynamics 365 workflows, this module streamlines the back -office transaction processing Treasury With detailed information Portfolio Hedging & Loans Derivatives & Investments tracking, you can enhance your • Stock & Equities • IFRS compliance • Investments & reporting to achieve a • Debts & Bonds • Step by step loans • Real Estate guided • Financing loans comprehensive view of your • Mutual Funds • Employee loans • Loans facilities, hedging investments and other financial activities AR AP GL CB Dynamics 365

D 365 Treasury (TMS) • The Preface • Where is it? • Dedicated menu

D 365 Treasury (TMS) Agenda • Preface What it does Where is it • Principles Mobility Flow Foundation • Product Calculations • Produce Reports, enquiries … insight

D 365 Treasury (TMS) • The Principles • In general Part of Dynamics 365 FO Unique posting profiles Own area page menu structure Transactional journals batch generated Minor over lap with standard D 365 objects Huge (very large) calculation scenarios Statement generated by D 365

D 365 Treasury (TMS) • The Principles • Mobile apps • For Cash & banking

D 365 Treasury (TMS) • The Principles • E-mail alerts & templates Automatic & Manual • Document handling Required on application

D 365 Treasury (TMS) • The Principles • • • Forex Interest rates Asset managers Posting profiles Credit ratings

D 365 Treasury (TMS) • The Principles • More-than-extends current Cash and Banking module • Journals created automatically using batch jobs Raising of initial capital loan/investment amount Accrual of the interest Payment journals with split between interest and capital Allocation of short-term portion for financial statement purposes • Link to an asset if a finance lease; etc.

D 365 Treasury (TMS) Agenda • Preface What it does Where is it • Principles Mobility Flow Foundation • Product Calculations • Produce Reports, enquiries … insight

D 365 Treasury (TMS) • The Product • Hedging (IFRS 9)

D 365 Treasury (TMS) • The Product • Hedging (IFRS 9)

D 365 Treasury (TMS) • The Product • Loans Linked to a bank where finance is obtained Standard (taken up from start) or Draw-Down (withdrawals as required) Payment terms (interval of payment): – Timing of payment: – Monthly, quarterly, half yearly, yearly or end of loan In arrears, In advance with no interest , In advance with interest Terminal value option (Residual value or balloon payment) Fixed Capital Option (The periodic capital portion payment remains fixed) • Loan schedule (amortization schedule of payments) Can be imported from excel if the finance institution’s schedule disagree slightly from D 365 Calculated by D 365 or imported, can be viewed via a button on the loan details form

D 365 Treasury (TMS) • The Product • Loan & Investment Types Fixed Period Loans (Where only interest is paid, and capital paid at the end) Annuity Loans (Both interest and capital amounts are being paid periodically) Finance loans (Same as Annuity loans – but linked to an asset being financed) Combined Annuity Loans (Only interest being paid for a specified period, then both capital and interest being paid periodically) Guarantees (Same as Annuity Loans, used to record potential liabilities for any guarantees - can choose to post to GL or not)

D 365 Treasury (TMS) • The Product • Investment portfolio A grouping of financial assets (stocks, bonds and cash equivalents), Portfolios are held directly by investors and/or managed by Asset managers A “hands-off” or passive investment of securities in a portfolio, and it is made with the expectation of earning a return. This expected return is directly correlated with the investment's expected risk

D 365 Treasury (TMS) • The Product • Investments Investment statuses (Proposed, Approved, Cancelled) Linked to an investment group Choose per investment whether interest is paid out monthly or re-invested Allows open-ended investments (i. e. not a fixed start & end date) Manual Journals allowed for investment movement, e. g. withdrawals or extra deposits. In the event of movement the investment statement and future interest calculations take these into account. (Posting profiles can be setup for this) Investment budgeting allows for the carry-over of the investment status (e. g. proposed) to the ledger budget Investment cash flow report

D 365 Treasury (TMS) • The Product • Investments • Non-cash Investments

D 365 Treasury (TMS) • The Product • Calculations for: Loans – – D 365 calculates the payments, split into capital and interest, number of payments, etc. , based on all the different options selected for that loan Interest calculation intervals (Daily, monthly, quarterly) Variable or fixed interest rate option for every loan Interest Type (Simple or compound interest calculation – depends on what the finance institution based its calculations on) Investments – – – Interest calculations done by D 365 (either simple or compound) Investment statement calculated by D 365 , based on daily interest rate (number of days) Fixed or variable rates

D 365 Treasury (TMS) • The Product • Calculations

D 365 Treasury (TMS) • The Product • Hedging register • Hedging instruments

D 365 Treasury (TMS) • The Product • Guarantee register • Linked to: Contracts Sureties

D 365 Treasury (TMS) • Derivatives: A derivative is a financial contract with a value that is derived from an underlying asset. Derivatives have no direct value in and of themselves - their value is based on the expected future price movements of their underlying entity. This underlying entity can be an asset, index, or interest rate, and is often simply called the "underlying" Is often used as an instrument to hedge risk for one party of a contract, while offering the potential for high returns for the other party

D 365 Treasury (TMS) Agenda • Preface What it does Where is it • Principles Mobility Flow Foundation • Product Calculations • Produce Reports, enquiries … insight

D 365 Treasury (TMS) • The Produce • Dedicated Cash flow workspace (native inside D 365)

D 365 Treasury (TMS) • The Produce • For both Loans & Investments Multi-currency support for every loan/investment Cash flow budget (populates against a budget model with all future loans/investment transactions) Various reports

D 365 Treasury (TMS) • The Produce • For both Loans & Investments

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