Better Managing Raw Material Risks

22 April 2008

ecofinance adds a modern Commodity Management Tool to its Integrated Treasury System

ecofinance, a leading German-speaking software developer in the field of Treasury Management, introduces a new module for Commodity Management.

The ITS Commodity Management Tool is used to hedge the risk of raw material pricing and was showcased for the first time at the 20th Finance Symposium in Mannheim. The administration, management, analysis, control and evaluation of raw material transactions are supported within the integrated ITS Treasury System.

This means that ecofinance now offers more than 20 modules for Cash, Payments, Treasury and Risk Management as well as Reporting. The new module supports commodity requirement planning as part of liquidity planning based upon quantity or contract volume. Commodity transactions are created by selecting appropriate attributes in the system. Datasets remain flexible and can be edited at any time. All steps are logged in an audit trail.

Commodity management from ecofinance is a convenient tool for administration, management, analysis, control and evaluation of commodity cash transactions, futures trading and options for commodities in any currencies. Up-to-date market data, such as prices, interest rates and volatilities, can be read in automatically via predefined interfaces to market data providers. Also included are automatic margin calculation, depiction of broker accounts for futures and the evening-up and rolling of transactions. Option strategies are depicted with up to ten instruments and the workflow between front, middle and backoffice can be individually configured and optimised flexibly for small and large finance departments. The system includes the printing of dealer slips and deal confirmations as well as the e-mailing of the documents to predefined recipient (groups). The classification, valuation and posting of commodity transactions are in accordance with HGB, IFRS/IAS regulations and US-GAAP (Hedge Accounting).

ITS Commodity Management from ecofinance naturally includes a comprehensive reporting tool with standard reports and the depiction of exposures. At the same time (with filtering, grouping, simple calculations and graphics), Adhoc reporting allows users to quickly gain an overview of their commodity transactions. Data from Commodity Management, such as cashflows, are integrated smoothly into the other ITS modules. Flexible interfaces allow seamless adaptation to neighbouring systems (such as MS Office, financial accounting/consolidation software, Electronic Banking and Online Trading and Matching platforms).
ecofinance adds a modern Commodity Management Tool to its Integrated Treasury System

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