Payment Receivables Card Products Flashcards
List Three Account Location Drivers
Must have
Optimizing
Fine Tuning
Citi Funds Transfer
Funds Transfer payments from customer accounts ( Domestic, Cross Border, Currency)
• Provided through CitiDirect
• Value added features (30 Days advance, Correspondent Look Up,Data Validation)
Benefits of Worldlink
Scope Minimize Cost for our customer Minimize Cost for the beneficiary Convenience (main) Control (main) Simplicity (main)
Commercial Card Flows
Travel & Entertainment
Procurement
Other B2B Payments
What do Citi Commercial Cards Provide - What the client needs
Efficiency
Control
Global Consistency
Financial Benefit
Principles of In-House Cash
SAP In-House Cash (and Oracle equivalent) allows Treasury to operate as an In House Bank
for commercial flows:
‒ Inter-company flows processed without making external payments (an alternative to Inter-Company
Netting solutions)
‒ Consolidates third party payables and receivables by using Inter-company accounts, thereby
centralising:
• Transaction flows
• FX exposures and FX requirements
• Liquidity
• Requires single instance of SAP to be operationally robust
Benefits of Pay/ Collect on Behalf Of
• Single Account per currency
‒ Fewer Accounts
‒ Streamlined Liquidity – flows in each currency are aggregated
‒ Buying bank services by currency aggregates flows and may get preferential pricing
• Consolidates all FX requirements
‒ Each entities FX requirements aggregate into a single position through the SAP inter-company accounts
• Can potentially make all payments as domestic
‒ More payment methods
‒ Lower transaction costs
‒ Increased STP
• Single process for all payments
‒ All flows per currency aggregated
Formula? Day Inventory Outstanding
= Average Inventory ÷ Cost of
Sales x 365
Formula? Day Payable Outstanding
Average Accounts Payable ÷ Cost
of Sales x 365
Formula? Day Sales Outstanding
= Average Accounts Receivable ÷
Sales x 365
List 5 Types of Collection Instruments
Incoming Funds Transfers Incoming ACH Credits Cheque Deposits ACH Debits/Direct Debits Card Acceptance
Benefits of Lockbox Services
Accelerating collection processes
‒ Reducing days of sales outstanding
‒ Maximizing the availability of working capital
‒ Improving management of credit exposure
‒ Reducing expenses and saving critical resources
Benefits of Present and Pay
‒ Increased convenience to your customers
‒ Simplified application of electronic payments and reduced errors
‒ Reduced Days Sales Outstanding
‒ Reduced capital expenditure in developing and maintaining a Web site
‒ Opportunities for marketing, regulatory, or customer service related messages via the Web site and e-mail
‒ The highest level of security for online payment initiation and bill presentment
What is E Billing
e-Billing facilitates paper-free invoicing. Invoices and payments processed
via the Internet, completely and electronically
Benefits of Electronic Check Deposit
‒ Eliminate trips to the bank to make paper check deposits
‒ Eliminate preparing checks for deposit, photocopying them and overnighting them to the bank
‒ Shorten clearing time and improve float on receipts
‒ Eliminate the expense of armored cars and/or overnight couriers
‒ Improve processing efficiency, since checks are in the system the day you send them
