You are viewing an old version of this page. View the current version.

Compare with Current View Page History

« Previous Version 33 Next »

Status

  Approved

OwnerAntonio Zappone
StakeholdersGilles Madjarian, Selim Ulhasan

Issue

A decision is required as to whether to transition Treasury operations from Quantum to SAP S/4HANA, and whether a change in scope should be requested in order to bring Treasury operations into the ERP Project.

Recommendation


Background & Context

Quantum

Quantum is an application owned by FIS, as is a common application in the market to manage Treasury operations.

The Quantum system was implemented for Treasury operations as follows, wave 1 = Q2 2019, wave 2 = Q2 2020, and the existing 5 year license expires on 14th June 2028. 

The Treasury organization are unsatisfied with the Quantum system functionality and the support from FIS is also unsatisfactory.

  • Dissatisfaction with FIS, the supplier of Quantum, due to operational challenges and support issues.
  • The current treasury processes are heavily reliant on manual interventions and face significant challenges due to system limitations and supplier issues.
     


S/4HANA

The Treasury Operation modules in S/4HANA are;

  1. TRM: Treasury Risk Management
  2. CM:  Financial Cash Management

A scope review was performed to determine whether S/4HANA has the functionality to manage Syensqo Treasury activities. The outcome of the review highlighted that SAP has a high fit level, along with the opportunities to make improvements. 

Refer to the Scope & Analysis section for for details on Treasury activities 


License Costs

Quantum

  • License Acquisition, Once off every 5 years 300k
  • Annual Hosting Cost of 100k per annual
  • Support cost of 70k per annum.


SAP ECC (existing Licenses utilized by Treasury)

  • TRM
  • Open action with IT


S/4HANA

  • TRM License Cost (perceptual license in place):  20k per annum.   300k upfront, plus 73k annual maintenance fee.
  • CM License Cost:  Already in place.



Implementation Costs (STILL A DRAFT - BUT INDICATIVE FOR NOW)

Options A:   860,000

Quantum $0

SyWay: WRIEF design, build, unit test, integration testing, UAT, Data, Regression Test, cut-over, support)  Estimates 1 FTE over 36 months $860k.


Options B:  1,580,000

Quantum improvement cost (2.5 FTEs for 12 months) = $720k 

SyWay: WRIEF design, build, unit test, integration testing, UAT, Data, Regression Test, cut-over, support)  Estimates 1 FTE over 36 months $860k.


Options C:  2,000,000

SyWay:  TRM and CM implementation: Estimate of 3  FTEs  (Lead, Functional Consultants, Technical Consultant, Data Consultant) over 36 months = 2.6m.  (This cost will be confirmed once the implementation approach is devised. The estimate is at the higher end of an estimate)

SyWay:  Saving from simplifying existing process possible with Treasury Operation  within the one S4HANA System.  (estimate:  Wrief design, build, test, deploy, support.   5 months of FTE equivalent activity for 1 FTE ) = 600k 


Options D:  2,700,000

SyWay:  Estimate of 4  FTEs  (Lead, Functional Consultants, Technical Consultant, Data Consultant) over 36 months = 3.3m.  (This cost will be confirmed once the implementation approach is devised. The estimate is at the higher end of an estimate)

SyWay:  Saving from simplifying existing process possible with Treasury Operation  within the one S4HANA System.  (estimate:  Wrief design, build, test, deploy, support.   5 months of FTE equivalent activity for 1 FTE ) = $600k 




SCOPE AND DETAILED ASSESSMENT BETWEEN QUANTUM AND S/4HANA


Scope and analysis

Summary from Scope analysis:

  1. Standard S\4HANA functionality can effectively meet Syensqo treasury business requirements. 
    1. It can bring significant improvement in the area of Cash Management,
    2. Within one S4HANA system allows for standard integration with higher level of accuracy and automation. 
  2. Quantum:
    1. Effective: for FX transactions plus short term loans (Thailand) 
    2. Sub-Optimal for;
      1. non-FX deals
      2. medium level of effectiveness for accounting and reporting
      3. very poor for Cash Management. Management
      4. Inter-Company loans is complex and semi-manual due loan management SAP and not fully integrated with Quantum
      5. Confirmations are not fully automated



Instruments:  FX

InstrumentDetailsTypeSource

Scope

Yes\No

Frequency

  1. High
  2. Medium
  3. Low


In Quantum

Yes\No

Quantum

Effectiveness

  1. High
  2. Medium
  3. Low

S4 Functionality

  1. STD Easy
  2. STD Complex
  3. Non STD Easy
  4. Non STD Complex

S4

Module

FX SpotSet-up: Foreign Exchange - FX:  FX Spot
An FX spot transaction is entered into between two parties where both parties agree on exchanging two currencies at an agreed exchange rate on a spot value date (as defined by market standards - D+1,+2 or +3) .		External
Internal
Mirror

360T
Bloomberg
Manual 
Request


YesHigh
YesHigh
STD EasyTRM
FX ForwardSet-up: Foreign Exchange - FX:  FX Forward
An FX Forward contract functions as an FX Spot contract but with a settlement date that is in the future (later than the spot date)		External
Internal
Mirror		360T
Bloomberg
Manual 		YesHigh
YesHigh
STD EasyTRM
FX SwapSet-up: Foreign Exchange - FX:  FX Swaps
A transaction where both parties agree on the trade date to enter into an FX spot transaction (@ spot date and spot rate) and to enter into an FX forward transaction that mirrors it (@ forward date and Forward rate equal to the same spot rate + forward points).		External
Internal
Mirror		360T
Bloomberg
Manual 		YesHigh
YesHigh
STD EasyTRM












Non-Deliverable ForwardSet-up: Foreign Exchange - FX: FX NDF
A transaction where both parties agree on the trade date to enter into an FX forward transaction @ a specific forward date and commit to perform an FX spot transaction that mirrors it @ the same forward date at a spot rate defined by a pre-agreed fixing rate (usually covered by a Master Currency Agreement).		External
Internal
Mirror		360T
Bloomberg
Manual 
Request		YesMedium
YesHigh

STD Easy


Fining Automation

Non STD Easy

TRM
FX RequestSet-up: Foreign Exchange - FX: FX Request
When Affiliate doesn’t know target instrument in FX		InternalRequestYesMedium
YesHigh

STD Easy

TRM












Participating forwardSet-up: Foreign Exchange - Currency Option: Participating Forward
A transaction where both parties agree on the trade date to enter into an FX forward transaction @ a forward rate (which is out of the market) and with a pre-agreed percentage of participation. At maturity, if the market spot rate is more favorable than the agreed Forward rate, the participation percentage of the nominal amount is not exchanged. If the market spot rate is less favorable than the agreed Forward rate, the full nominal amount is exchanged.
@ Solvay, this instrument being an option strategy, it is registered as two vanilla options as follows (example: Solvay Sell USD buy EUR with 30% Participation):
- Solvay Buy Put USD call EUR at 100% of nominal amount @ strike X and premium -Y
- Solvay Sell Call USD Put EUR at 70% of nominal amount @ strike X and premium +Y
Both options have the same value date		External
Internal
Mirror		ManualYesLow
NoNA

STD Easy

TRM
Currency options (Vanilla)Set-up: Foreign Exchange - Currency Option: FX Option Vanilla
See Participating Forward		External
Internal
Mirror

360T

Manual

YesLow
NoNA

STD Easy

TRM
Zero cost collarsSet-up: Foreign Exchange - Currency Option: Zero cost collars
This is an option strategy which is traded as follows (example: Solvay Sell USD buy EUR):
- Solvay Buy Put USD call EUR @ strike X and premium -Y
- Solvay Sell Call USD put EUR @ strike Z and premium +Y
Both options have the same value date		External
Internal
Mirror

360T

Manual

YesLow
Partly

Low


Accounting is manual


STD Easy

TRM
Interest rate swapsSet-up: Open (FIS/ Solvay Phase 2)
An interest rate swap is a derivative in which Solvay Agrees with a counterparty to exchange Floating Interest rates (of a specific loan) for a Fixed interest rate. At each interest maturity, Solvay would pay the counterparty the agreed-upon fixed rate and the Counterparty would pay Solvay the Floating rate as per loan agreement fixing definitions.		ExternalManualYesLow
NoNA

STD Easy

For Instrument


STD Complex

For Valuation

TRM
Cross currency swapsSet-up: Open (FIS/ Solvay Phase 2)
A cross currency swap is a derivative contract in which Solvay agrees with a counterparty to exchange principal and interests in different currencies over the lifetime of a loan. This type of derivative is used to hedge exposure linked to a loan in foreign currency. Both parties agree to exchange notionals (at inception and at maturity) and to exchange interest payments at each interest term.		ExternalManualYesLow
NoNA

STD Easy

For Instrument


STD Complex

For Valuation

TRM
FX Order SELLSet-up: Dealing: FX Order SELL 
Only for reporting purposes: OCO (Order cancel Order) left with a bank (or not) requesting them to execute Sell Currency vs Currency 2 if the spot rate reaches one of two pre-defined levels (Take profit or Stop Loss)		ExternalManualYesLow
NoNA

STD Easy

(the use of this is not clear, but an FX order or Option is std).

more details req'd

TRM
FX Order BUYSet-up: Dealing: FX Order Buy
Only for reporting purposes: OCO (Order cancel Order) left with a bank (or not) requesting them to execute Buy Currency vs Currency 2 if the spot rate reaches one of two pre-defined levels (Take profit or Stop Loss)		ExternalManualYesLow
NoNA

STD Easy

(the use of this is not clear, but an FX order or Option is std).

more details req'd

TRM













 Instruments:  Money Market

InstrumentDetailsTypeSource

Scope

Yes\No

Frequency

  1. High
  2. Medium
  3. Low


In Quantum

Yes\No

Quantum

Effectiveness

  1. High
  2. Medium
  3. Low

S4 Functionality

  1. STD Easy
  2. STD Complex
  3. Non STD Easy
  4. Non STD Complex

S4

Module

Overnight DepositSet-up: Money Market: O/N Deposit
Overnight investment with counterparty for pre-defined fixed interest rate. Template defined as:
Fixed rate
Interest payment at maturity 		External

360T

Manual

YesHigh

Yes

Thailand & India only

High

STD Easy


For std deposits.

However need to understand the Complexity

for Thailand 

TRM












MM FixedSet-up: Money Market: MM Fixed <= 3m, MM Fixed > 3m <= 1y, MM Fixed > 1y
Money Market Instrument with Fixed interest rate that can be:
Borrowing or Investment
Intercompany or External
3 subtypes by maturity (for accounting purposes):
Up to 3 months
Between 3 months and 1 year
More than 1 year
Interest calculation formula defined as periodic, can be set to interest paid at maturity.

External

Internal

Mirror

360T

Manual

YesMedium
No?
STD EasyTRM












Call/Notice accountsFunds are deposited on an account with a counterparty for a given interest return but with no specific time period. Funds can be withdrawn with a pre-defined notice periodExternalManualYesLow
NoNA
STD EasyTRM
Investment bonds
ExternalManualYesLow
NoNA
STD EasyTRM
I/C Draw-down FacilitiesMultiple MM can be linked to one Draw-down FacilityInternalManualYesLow
NoNA
STD EasyTRM
Credit Lines
ExternalManualYesLow
NoNA
STD EasyTRM












Money Market Funds 
ExternalManualYesVery Low
NoNA
STD EasyTRM
MM Float

Set-up: Money Market: MM Float <= 3m, MM Float > 3m <= 1y, MM Float > 1y

Same as above but floating rate.

External

Internal

Mirror

Manual

360T

YesNA for now
NoNA
STD EasyTRM













Instruments:  Money Market

InstrumentDetailsTypeSource

Scope

Yes\No

Frequency

  1. High
  2. Medium
  3. Low


In Quantum

Yes\No

Quantum

Effectiveness

  1. High
  2. Medium
  3. Low

S4 Functionality

  1. STD Easy
  2. STD Complex
  3. Non STD Easy
  4. Non STD Complex

S4

Module

Commercial PaperSet-up: Securities: Commercial Paper
A short-term funding instrument. Commercial paper can be issued by the company within the framework of a program. Issuance is performed through an Agent and Dealers who are the intermediary between the company and the investors. Amount (1.0 B€) and max maturity (12 months) are defined by the program and the interest rate is pre-agreed before each issuance.		ExternalManualYesLow
NoNA
STD EasyTRM

Bonds / EMTN (issues)


One template by Issue:
For Fixed rate: Fixed Periodic
For Floating rate: FRN CGL Periodic		ExternalManualYesLow
NoNA
STD EasyTRM
Hybrid Bonds
ExternalManualYesLow
NoNA
STD EasyTRM
Security IdentifiersSecurity Identifiers will have to be created for each ISIN code. It can then be linked to one or multiple Commercial Papers.
Naming convention: Maturity date as the name and ISIN Code as description.		ExternalManualYesLow
NoNA
STD EasyTRM
“Funding pre-hedge instruments
ExternalManualYesLow
NoNA

?

More details Req'd

TRM














Instruments:  Working Capital

InstrumentDetailsTypeSource

Scope

Yes\No

Frequency

  1. High
  2. Medium
  3. Low


In Quantum

Yes\No

Quantum

Effectiveness

  1. High
  2. Medium
  3. Low

S4 Functionality

  1. STD Easy
  2. STD Complex
  3. Non STD Easy
  4. Non STD Complex

S4

Module

Bank draftExclusively used in China: Bank drafts are commitment issued by a financial counterparty for the benefit of a Solvay Client. The client uses this bank draft as a payment method to Solvay. Once received by Solvay, a bank draft can be either used as a payment method to one of Solvay's suppliers, kept until maturity (at which point it can be settled for cash with the issuing counterparty) or it can be discounted.External

Manual

OR

Interface for electronic

SAP?

YesHigh
NoNA

?

More details req'd.

Is this a pmt process

?
Supply chain & reverse factoring Confirm if in TMS and which purpose (reporting only?). Review with BW current report also - Currently done through a development in PI1 for IFRS postings at month-end, invoice by invoiceExternalManualYesMed\High
NoNA

?

More details req'd.

Is this a

?
Sale of ReceivablesSet-up: Money Market: Sales of ReceivableExternalManualMay not be worth itMedium
YesNot Utilised
Non STD ComplexTBD

























Instrument Guarantees

Currently out of scope and done manually.


Instruments Equity Derivatives

InstrumentDetailsTypeSource

Scope

Yes\No

Frequency

  1. High
  2. Medium
  3. Low


In Quantum

Yes\No

Quantum

Effectiveness

  1. High
  2. Medium
  3. Low

S4 Functionality

  1. STD Easy
  2. STD Complex
  3. Non STD Easy
  4. Non STD Complex

S4

Module

LT options (calls) on Solvay share (Bermuda)circa 8 years maturity (traded on SSOM) => those options may be exercised or resoldExternalManual

TBD

Check with Gerald

Medium
NoNA
More details req'd
Total return swaps (TRS)
ExternalManual

TBD

Check with Gerald

Medium
NoNA
More details req'd
LT options (calls) on Eurostox50 index (US)
ExternalManual

TBD

Check with Gerald

Medium
NoNA
More details req'd



Interfaces & Communication

FunctionDetails

Scope

Yes\No

Frequency

  1. High
  2. Medium
  3. Low


Quantum

Connectivity

Yes\No

Quantum

Effectiveness

  1. High
  2. Medium
  3. Low

S4 Functionality

  1. STD Easy
  2. STD Complex
  3. Non STD Easy
  4. Non STD Complex

S4

Module

Deals

360T

Bloomberg

YesHigh
YesHigh
STD EasyTRM

Correspondence

Confirmations

Misus

Finastra

YesHigh

Yes

APAC, EMEA, NA


FX Trades

Manual

Yes

STD Easy

or

STD Complex 

Via SWIFT

TRM
Market DataRefinitiv IconYesHigh
YesHigh

STD Complex

TRM












Treasury Payments & Bank Statements


FunctionDetails

Scope

Yes\No

Frequency

  1. High
  2. Medium
  3. Low


Quantum

Connectivity

Yes\No

Quantum

Effectiveness

  1. High
  2. Medium
  3. Low

S4 Functionality

  1. STD Easy
  2. STD Complex
  3. Non STD Easy
  4. Non STD Complex

S4

Module

Treasury Payments

Treasury payments related to instruments managed in Quantum.

Complexity - Quantum send payments to SAP BCM for payment (double check this)

YesHigh
YesHigh
STD EasyBCM
Bank Statements

Bank statements are imported in SAP, then interfaced from SAP to Quantum

YesHigh
Yes

Medium

Some statements are missing


STD EasyBCM



Cash Management

FunctionDetails

Scope

Yes\No

Frequency

  1. High
  2. Medium
  3. Low


Quantum

Connectivity

Yes\No

Quantum

Effectiveness

  1. High
  2. Medium
  3. Low

S4 Functionality

  1. STD Easy
  2. STD Complex
  3. Non STD Easy
  4. Non STD Complex

S4

Module

Cash Position

Treasury payments related to instruments managed in Quantum.

Complexity - Quantum send payments to SAP BCM for payment (double check this)

YesHigh
YesMedium
STD EasyCM
Short-term Cash Forecast

We can use Quantum to generate a ST cash forecast, but the data on WC is poor and not interfaced  - to be investigated

YesHigh
YesMedium

STD Easy

Accuracy is dependent on the end-to-end process

CM
Bank Fee Analysis

No proper data / report to analyze bank fees today - everything is manual, full reconciliation with P&L is almost impossible

YesMedium
NoNA

STD Complex

CAMT86. Not all banks can provide this. Could be beneficial for the main accounts

CM




Reporting

FunctionDetails

Scope

Yes\No

Frequency

  1. High
  2. Medium
  3. Low


Quantum

Connectivity

Yes\No

Quantum

Effectiveness

  1. High
  2. Medium
  3. Low

S4 Functionality

  1. STD Easy
  2. STD Complex
  3. Non STD Easy
  4. Non STD Complex

S4

Module

FX Exposure 

Automatic for WC BS Hedge, Manual requests for the rest of BS Hedge, manual input for Cash Flow Hedge

YesHigh
YesHigh

STD Complex

Possibly 

Non STD Easy

TRM
Counter Party Risk


YesHigh
??

STD Complex

TRM
Cashflow Hedging

Issues when exposures are switching signs, report difficult to maintain

YesHigh
YesMedium

STD Complex

TRM
Spread Analysis

Used to compute interest rates on IBAs / Intercompany funding

YesHigh
No NA

Possibly to the process is outside of the system. 




Accounting

FunctionDetails

Scope

Yes\No

Frequency

  1. High
  2. Medium
  3. Low


Quantum

Connectivity

Yes\No

Quantum

Effectiveness

  1. High
  2. Medium
  3. Low

S4 Functionality

  1. STD Easy
  2. STD Complex
  3. Non STD Easy
  4. Non STD Complex

S4

Module

Accounting Entries 

Need to qualify how the postings are done for each instrument above, some are fully automated, some are fully manual

YesHigh
Yes

Medium

Some Auto 

Some Manual


STD Easy

TRM
Hedge Accounting

For FX Hedge accounting

YesHigh
YesHigh

STD Complex

TRM


Assumptions

Additional review and assessment will be conducted for the implementation timing after the decision of the KDD is concluded. If the decision is to stay with Quantum, then no additional tasks are required.  If the decision is to move to S/4HANA, then an additional step is required to determine the implementation approach and timing.


Constraints


Impacts

If Treasury operations are to transition to S/4HANA the below positive impacts arise; 

 -  Integration benefits arise from all activities on the one system.  Eg. Automatic accounting postings, the intercompany loans will transition fully to TRM.

 -  TRM will fully manage Inter Company Loans.   

 - Allow for further simplification of the further IHB process

  

Business Rules

Not applicable at this point of the decision making process

Options considered

Option A: Continue Treasury Operations activities in Quantum, "As-Is"

Treasury operations will continue within Quantum, with no additional spend to eliminate existing gaps.

Option B: Continue Treasury Operations activities in Quantum, but set-up a project to improve the functionality

Treasury operations will continue within Quantum, however additional expenditure required to eliminate existing gaps and issues.

Option C: Transition from Quantum to S/4HANA  as part of the ERP Rebuild project - "like for like" Scope 

Treasury Operations will transition to S/4HANA as part of the SyWay project.  The scope will be aligned with the existing scope within Quantum

Option D: Transition from Quantum to S/4HANA  as part of the ERP Rebuild project - Increased scope to meet business needs 

Treasury Operations will transition to S/4HANA as part of the SyWay project.  The scope will consider additional business requirements in addition to what is already within Quantum


Evaluation



Option A

Continue Treasury Operations activities in Quantum, "As-Is"

Option B
Continue Treasury Operations activities in Quantum, but set-up a project to improve the functionality
Option C
Transition from Quantum to S/4HANA  as part of the ERP Rebuild project - "like for like" Scope
Option D
Transition from Quantum to S/4HANA  as part of the ERP Rebuild project - Increased scope to meet business needs 

Front Office: Instruments

  • Level of System Functionality matching business needs

(plus) High frequency instruments are working well in Quantum 

(minus) Medium & low frequency instruments are not set-up in Quantum 

(plus) High frequency instruments are working well in Quantum

(plus) Additional instruments may be considered in configured in Quantum

(plus) S\/4HANA can effectively cover the existing scope (configured in Quantum).

(minus)Con

(plus) S/4HANA can effectively cover the existing scope (configured in Quantum).

(plus) Additional instruments may be considered in configured in Quantum

(minus)Con

Front Office: Placing Deals

  • Level of Ease to place deals
  • Integration level

(plus) Deals are placed in 360T and Bloomberg

(plus) Effectively integrated with Quantum

(minus)Con

(plus) Deals placed in 360T and Bloomberg

(plus) Effectively integrated with Quantum

(minus)Con

(plus) Deals con continue to be placed in 360T and Bloomberg

(plus) S4\HANA has API integration in place with 360T and Bloomberg

(minus)Con

(plus) Deals con continue to be placed in 360T and Bloomberg

(plus) S4/HANA has API integration in place with 360T and Bloomberg

(minus)Con

Middle Office: Reporting

  • Coverage
  • Accuracy level

(plus)Pro

(minus)Con

(minus)Con

(plus) S4\HANA standard reports can be utilized to meet the business reporting requirements

(minus) Spread Analysis will likely continue outside of the system

(plus) S4/HANA standard reports can be utilized to meet the business reporting requirements

(minus) Spread Analysis will likely continue outside of the system

Back Office: Confirmations

  • Automation Level
(minus) Confirmations are not fully automated (Check with Edgars)(plus) Automated level can be improved.(plus) Confirmations can be automated(plus) Confirmations can be automated 

Back Office: Accounting

  • Accuracy Level
  • Integration Level
  • Simplicity Level

(minus)  Integration required interfaces and complexity

(minus)  Some accounting entries are manual


(minus)  Integration required interfaces and complexity

(plus) Existing manual entries can be reviewed with the aim to automate.

(plus) All accounting entries are manage by standard automatic postings

(plus) Hedge accounting possible, although implementation requires additional effort

(plus) All transactions are within the one S/4HANA system, not need for interfaces


(plus) All accounting entries are manage by standard automatic postings

(plus) Hedge accounting possible, although implementation requires additional effort

(plus) All transactions are within the one S/4HANA system, not need for interfaces


Cash Management

  • Meeting Business Requirement
  • Accuracy level
  • Simplicity level

(minus) Cash Management in Quantum is ineffective, not meeting business requirements,

(minus) Low level of accuracy

(minus) Integration with AP & AR items is not in place. This would required huge data to be interfaced from S\/4HANA to Quantum.

(plus) Effort may be placed on improving Cash Management in Quantum

(minus) Improving the accuracy level will continue to be a challenge with Quantum being a separate system to S/4HANA. 

(minus) Integration with AP & AR items will still introduce complexity with the huge data to be interfaced from S/4HANA to Quantum.

(plus) Cash Management module can effectively manage business requirements and approve the current level Quantum is providing

(plus) Bank Fee analysis is possible, however this will require additional implementation effort, which can be manage via accounts in scope for this analysis

(plus) Cash Management module can effectively manage business requirements and approve the current level Quantum is providing

(plus) Bank Fee analysis is possible, however this will require additional implementation effort, which can be manage via accounts in scope for this analysis

(plus) High level of simplicity and all transaction are with the one S/4HANA system

Market Data

  • Coverage Level
  • Integration Level




License Cost(minus) 100k per annum(minus) 100k per annum(plus) 20k per annum(plus) 20k per annum
Support Level(minus) FIS Quantum support level in poor(minus) FIS Quantum support level in poor(plus) Opportunity to improve support level with Syensqo IT resources (plus) Opportunity to improve support level with Syensqo IT resources 
Implementation Cost

(plus) No Implementation Costs on the Quantum

(minus) Implementation Cost for the SyWay project to build interfaces and integrate with Quantum

(minus) Implementation Costs Required.  Value to be determined.

(minus) Implementation Cost for the SyWay project to build interfaces and integrate with Quantum

(minus) Implementation Cost Required. Refer to the details and background section .

(plus) This implementation cost will be lower than the other S4HANA option - Option D

(plus) Treasury Operation with S/4HANA allow options to reduce to complexity within the existing IHB design.  A reduction in complexity will required less enhancement or less complex enhancement which save on implementation cost and also BAU support. 


(minus) Implementation Cost Required. Refer to the details and background section

(plus) Save on the cost of integrating S\4HANA with Quantum

(plus) Treasury Operation with S/4HANA allow options to reduce to complexity within the existing IHB design.  A reduction in complexity will required less enhancement or less complex enhancement which save on implementation cost and also BAU support. 

Simplification Level

(minus) Current Simplification level in Quantum in Medium - Low. 

Integration and interfaces are required between SAP and Quantum.  Some integration is automated, some manual postings are required.

Integration for Cash Management in complex

Quantum in not operating in a Optimal manner  

(minus) Even with Additional spend to improve Quantum functional , integration and interfaces are required between SAP and Quantum. 


The integration for effective Cash Management would continue to be complex.

(plus) One of the main advantage of treasury operating in SAP is that it it fully integrated to other modules.

Include FI for accounting, and APM\BCM for payments and statements, and Cash Management

Report are also produced on data with the one system

(plus) One of the main advantage of treasury operating in SAP is that it it fully integrated to other modules.

Include FI for accounting, and APM\BCM for payments and statements, and Cash Management

Report are also produced on data with the one system

Automation Level

(plus) Further automation of Treasury paraments and deal confirmation possible.

(plus) Accounting postings are fully automated

(plus) With all Treasury operations activities along with IHB on the one system, this allows to foundation for automation, and any AI \ Machine learning possibilities. 



Potential to reduce IHB Complexity


Level of Complexity

(minus) Having a separate system inevitable increases complexity. Additional enhancement \ interfaces are required to link the system. System are different hence have different foundations and maser data requirements.


(minus) Having a separate system inevitable increases complexity. Additional enhancement \ interfaces are required to link the system. System are different hence have different foundations and maser data requirements.


(minus) This option carries a higher level of complexity in regards to the implementation.  If the design and build in changing with Quantum, this will cause challenges for the SyWay to build the integration on a target system that is changing.

(plus) Lower level of complexity with Treasury Operations within S/4HANA, and within the one system with other integration processes

(plus) Having TRM and CM within S/4HANA , allow further option to reduce the complexity within the existing highly complex IHB design.  For example, utilitsing standard CM and TRM reports to view FX Exposures.  



See also


  File Modified
No files shared here yet.

Change log

Version Published Changed By Comment
CURRENT (v. 33) May 20, 2025 13:12 WENNINGER-ext, Sascha
v. 124 May 20, 2025 13:11 WENNINGER-ext, Sascha formatting updates and alignment
v. 123 May 19, 2025 08:37 ZAPONNE-ext, Antonio
v. 122 May 16, 2025 17:31 DANKIR-ext, Soukaina
v. 121 May 16, 2025 11:32 ZAPONNE-ext, Antonio
v. 120 May 16, 2025 11:26 ZAPONNE-ext, Antonio
v. 119 May 16, 2025 11:24 ZAPONNE-ext, Antonio
v. 118 May 06, 2025 11:24 ZAPONNE-ext, Antonio
v. 117 May 06, 2025 06:21 ZAPONNE-ext, Antonio
v. 116 May 05, 2025 04:57 ZAPONNE-ext, Antonio

Go to Page History

Workflow history

Title Last Updated By Updated Status  
There are no pages at the moment.

  • No labels