Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015 - (Page 13)

FOCUS To What Extent Should Treasurers' Activities be further centralized? the  "Payment  Factory"  because  the  term  is  often  overused.     What do we mean by "payment factory" exactly? The definition of a payment factory is often overused and misunderstood by treasurers. It is, in fact, an "A/P - Account Payable" type structure with an entity that is in charge of making all the payments on behalf of all other entities, by consolidating them and standardizing the process which previously took place at the subsidiary level.   What  do  we  mean  by  "payment  factory"  exactly?   - OCT N°91 - version of this function. We also know that many innovations and changes will break with old methods (i.e. "disruptive innovations") and that, furthermore, the environment is changing. The economy remains fragile and in turmoil, the volatility of financial markets remains, IT technology continues to develop rapidly, new businesses models » ("B2C") are emerging, and along with them new payment methods called "e-payments" together with a pressing need for more "business intelligence" and more suitable reporting. We have listed the attributes and objectives of this. But before going back to the benefits of such structures, it is necessary to review our understanding of the "Payment Factory" because the term is often overused. more, giving them more substance (for obvious tax reasons - BEPS and "Transfer Pricing") and establishing the infamous In a 2014 survey conducted by GTNews "payment factories" is therefore very and JPMorgan, it was determined that much in vogue. Everyone "consolidates" the priorities of the Treasurers were (1) to treasury. Everyone is, to varying degrees, maximize cash-flow overall; (2) improve an "In-House Bank" of the company, treasury productivity; (3) stay current at least in part. On the other hand, not with new technologies; (4) remain in everyone can claim to have such a factory compliance with financial regulations in place that automatically, and on an and (5) protect companies against fraud. industrial scale, makes payments (and These five priorities perfectly portray the collections). For the past few years, the interest in putting in place a "payment time has come to transform the treafactory." Does it respond to these objecsury function. We refer you to the chart The very attractive of consogoing  back  tives? to  the   benefits   of  such  idea structures,   it  is  necessary  to  review  our  understanding  of   describing our vision of the "T.4.0" lidating your treasury activities even LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE Work & Rolling out Payment Factory / NOV / DEC 2015 Extreme treasury consolidation is on the agenda more than ever. Technology, regulations, the need for both greater visibility and the enhancement of internal controls provide a context that lends itself to this consolidation. The arrival of BEPS and the substance requirement will strengthen the notion of centralization of treasury activities. Is it necessary to combine treasury consolidation with the shared service center(s)? What do we mean by the term "payment factory?" What are the benefits of implementing such a structure and what are the fundamental points at the time of setup? Finally, we will address the following step and the fact that it will still be possible to set it up in the future in order to make the consolidated treasury function achieve maximum effectiveness. 13

Table of Contents for the Digital Edition of Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015

Table of contents
INTERVIEW Ben Poole Editorial Services
To What Extent Should Treasurers’ Activities be further centralized?
Capital Markets Union (CMU)
Upsurge in fraud
CEO impersonation
Using analytics to cope with uncertainty and volatility for treasury
IFRS 9 : Nécessite d’une reorganisation bancaire majeure
Taux zéro : de nouvelles stratégies pour un nouveau monde
Investing surplus cash in repos
Warranty & indemnity insurance
Making the switch from Excel to a Treasury System
Corporate treasury in the digital age
Fini le casse-tête des paiements internationaux pour les entreprises !
Bank Independent Cash Pooling
Gérer l’offre de retraites : un choix complexe pour l’entreprise

Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015