FIS Quantum and SAP cashless netting across more than 50 countries
More than £3m in recurring annual savings through cash and banking efficiencies
Following the transformation of its treasury accounting, a FTSE 10 global pharmaceutical company modernised its treasury technology and intragroup settlements.
Multilateral netting replaced with cross-currency cashless clearing
50+
Countries covered by FIS Quantum and SAP cashless netting
60%+
Reduction in intercompany FX gains and losses
£3m+
Recurring annual savings through cash and banking efficiencies
The challenge
Intercompany receivables were settled through a legacy monthly multilateral netting process, creating FX volatility and manual effort.
- Exchange rate volatility in intragroup gains and losses between booking and settlement
- A fragmented, manual netting process running over several days
- Hedging based on out-of-date exposure data, increasing cost
- High volumes of manual processes across the TMS and trading partners
The solution
SkySparc supported the selection and implementation of a new TMS and a cross-currency cashless clearing model in SAP In-House Cash, replacing multilateral netting.
- Requirements and technology selection support
- FIS Quantum implemented for cash management, confirmations, sub-ledger and a hedging cockpit
- Cashless clearing in SAP In-House Cash using a daily FX spot rate
- SAP Cash Management on two ECC 6.0 instances
- End-to-end testing and process redesign across treasury, shared services and record to report
The result
The group now has an accurate central view of exposure, with most FX exposure centralised in the in-house bank.
- More than 50 countries covered by FIS Quantum and SAP cashless netting
- More than 60% reduction in intercompany FX gains and losses
- More than £3m recurring annual savings through cash and banking efficiencies
- Lower cost and frequency of hedging
- A de-risked, staged go-live
"Testament to the expertise and dogged commitment/determination of the teams to do a brilliant job." Chief Financial Officer