Advises corporate treasury professionals on optimizing payment processing in SAP systems via accurate data integration
BankersAccuity today released a white paper to identify the hidden costs associated with breakdowns in the SAP® payment process due to inaccurate data. The white paper also lays out guidance for corporate treasury professionals to help them identify the right tools to make the best possible use of the SAP payment process.
Companies and treasury professionals globally use the SAP Treasury Management Module to process payments and analyze bank balances in real-time. SAP software needs to access bank-related information to set up payments. This data, such as an institution’s bank code, SWIFT/BIC, bank name and more, is typically recorded in BNKA, the bank master table.
“Maintaining this data in the bank master table is complex and can require a great deal of effort. It is updated manually or automatically, but in instances when treasury professionals need to enter larger amounts of data, they must use a separate upload program,” commented Robert McKay, Managing Director at BankersAccuity.
The white paper states that throughout the global banking system, more than 5,000 changes to critical bank information are made every day.
Companies rarely use one bank; they can, therefore, be managing multiple communications, protocols, proprietary standards and processes at a time. They must also adapt to new legislation such as the European Payment Council’s SEPA directives, and banking in countries that require data in a local language, such as China, requires access to non-Latin character sets to process payments.
McKay continued, “These complications can generate unnecessary inefficiencies and costs and result in hundreds of thousands or millions of dollars being lost in diminished funding capacity, costly production delays or lost revenue. Companies, therefore, need the best payments data to be easily accessible to them at any given time.”
Hidden costs identified in the white paper include:
- Production: Bad routing data causes broken payments and supply chain delays which impact revenue.
- Receivables: Bad routing data impedes the ability to collect receivables via direct debit; this can cause corporations to finance their spending requirements through debt.
- Finance: Bad routing data impacts time-sensitive securities transactions, such as overnight repo or short-term commercial paper markets, by causing higher interest payments, increased transaction costs and/or liquidity issues.