Tasks to be completed when documenting an operation (from creation to publication)

 1. Enter the Title of the operation / page

2. Add the following Labels : 

    • Scope of applicability: ww, country_accounting 

    • Country or group of countries (if applicable): belux, china, france, italy, lam, nam, uk_ie, bulgaria, dach, netherlands, iberia, poland, latvia, australia, india, japan, south_korea, thailand, singapore, new_zealand, emea_transversal, apac_transversal

    • Unit and Domain according to the List of labels to be used in the Finance Service Line space

      • E.g. 1: WW Operation in Financial Accounting under domain "Central Finance Processes & Compliance":
        • Labels to be used: ww, financial_accounting, central_fin_proc_compliance

      • E.g. 2: France Operation in Financial Accounting:
        • Labels to be used: country_accounting, france, financial_accounting
          (for country operations, the Domain is always country_accounting)


3. Fill in all fields as described above

4. Name the title of each section using OPD methodology naming convention - Infinitive verb without the “to”, mainly action verb...something) - " I do something..."

5. Once the description of the operation is completed, ensure it is approved and published by launching the SBS-Finance approval workflow 


Domain: Treasury Backoffice APAC

Responsibility area: Respect of Treasury Policy Rules

Table of contents 

By default the table of contents displays Heading 1 & Heading 2 (other levels can be added)


Scope

3. Remove the icon when not applicable


ERP

4. Remove the icon(s) when not applicable



Frequency

5. Remove the icon(s) when not applicable

 

References

6. Add the link to SAP transaction(s) (when it exists)



Forms

7. Insert the links accordingly and change the link text with the Form name



Attachments

8. Add the link to attachments or external links




Previous operation << >> Next operation



1. Objective and Scope

1.1. Objective of this Operation

WHY - Describe the objective of the operation


1.2. Scope

Detail the scope (legal entities, etc.)


2. Definitions

Definitions should be added in the Finance Glossary - Add definition and link it to respective Letter in Finance Glossary 

See Finance Glossary:

  • ...


3. Tasks description

Purpose : This report pertains to the domestic China entities. Its purpose is to prepare for the cash position of each company at the end of the month, as well as to calculate the interest between the account header and other participating companies.

Concept : The concept of a cash pool dictates that the balance at the end of the day should be zero. This means that if the balance is positive at the end of the day, the funds will be transferred to the header account. Conversely, if the balance is negative, the header account will sweep the funds to offset the negative balance.

Report for sending to accounting team:

1. Interest cash pool CNY between SCO/ECO header account and other participants for the period from 21st to 20th . Example : 21st July 2023 - 20th August 2023 .   

2. Cash pool balance in CNY between SCO/ECO header account and other participants for whole month . Example : 1st-31st August 2023 .

Source of preparing report  :

Extract bank statement for cash pool and interest with the function ' Inquire about historical transactions '

  • Interest for the period from the 21st to the 20th
  • Cash pool for the entire month 

Internal Report for preparing file 

  • SCO/ECO - RMB Cash pool Interest Checking
  • SCO/ECO - BOC Cash pool balance report Ref

Actual Report for sending to other teams

  1. Interest report should be sent to accounting team no later than 22nd in each month
  2. Cash pool report should be sent to accounting team within day1 

Select the level of heading in the "Paragraph" option.

3.1. I prepare cash pool interest report for CNY cash pool in China.


How to extract the bank statement

3.1.1 Log in to BOC portal >> Account management >> Inquire about Historical Transactions



3.1.2 Select account and the period >> format in excel >> click generate transaction file for downloading.

SCO header account number 453374048629

ECO header account number 437784314595



Waiting the file around 5-10 minutes


3.1.3 After waiting for approximately 5-10 minutes, the file will appear in the 'Transaction download' tab. Then, click 'download'


3.1.4 Open SCO/ECO RMB cash pool interest checking file >> copy-paste the data in tab '多账户查询业务处理结果' 


3.1.5 Recheck the line in the English version to ensure it matches the Chinese version and that no data is missing when you refresh data in the next step.


3.1.6 Move to tab 'Interest balance'

Recheck that the tick mark are as below ;

资金归集 : Upward transfer

资金下拨 : Downward transfer

主动调拨  Global active transfer



3.1.7

3.1.7.1 Select multiple items by clicking the mouse.

3.1.7.2 At the top, you will see 'Analyze.' Click on it.

3.1.7.3 Change the data source.

3.1.7.4 Double-check that the bank statement line is at the bottom in the pivot formula.

3.1.7.5 Click 'OK'


3.1.8 Click 'Refresh' to update the latest data .



3.1.9 Double-check whether the dates run sequentially, for example, from 21st July 2023 to 20th August 2023. If they are not in sequence, highlight the skipped dates. This will help you stay aware when you copy and paste data in the next step.

For better understanding, the interest calculation will occur sequentially from the 21st to the 20th. However, there may be days when there are no transactions, so the bank statement will skip those dates. Therefore, it is recommended to highlight the skipped date to stay aware when copying and pasting in the next step.



3.1.10 Example for preparing interest in tab company '5991'

Update data in the red square ;

3.1.10.1 Date >> Manually type from 21st to 20th

3.1.10.2 Beginning balance >> Drag the formula down to the bottom line

3.1.10.3 Ending balance >> Drag the formula down to the bottom line

3.1.10.4 Interest expense/income >> Drag the formula down to the bottom line



3.1.11

Copy and paste the data from the 'Interest Balance' tab to the tab of each respective company. This example is shown for the 5991 company.

Remark: The interest balance has two sides: cash in with a positive balance and cash out with a negative balance, as shown in the captured screenshot below.


Interest Balance tab


3.1.12 Sum the interest expense for the month. In this example, from 21st July 2023 - 20th Aug 2023 , the total accumulated interest expense is 1,370,824.77.



3.1.13 After completing the preparation for all companies, copy the accumulated interest to the interest report that will be sent to the accounting team, and remember to update the date period .

Example : SCO Interest report


Example : ECO Interest report



3.2 I prepare cash pool report in CNY for China .


3.2.1 We will follow the steps outlined in sections 3.1.1 to 3.1.8 to extract the bank statement and refresh the data. It's important to note that for cash pool purpose , we will use the bank statement for the entire month, such as from August 1st to August 31st, 2023. Additionally, please be aware that we will use our internal report, which is distinct from the report named "ECO/SCO Boc Cash Pool Balance Report Ref .


Below is the example for ECO/SCO Boc Cash Pool Balance Report Ref.


Explanation for cash pool in borrowing side and payback sides ;

Borrowing side : It means that there are more outgoing payments than incoming payments, resulting in a negative balance at the end of the day. Therefore, the company needs to borrow from the header account to offset the balance and bring it back to zero .

Pay back side : It means that there are more incoming payments than outgoing payments, resulting in a positive balance at the end of the day. Therefore, the company needs to deposit (payback) funds into the header account to offset the balance and bring it to zero.


3.2.2 After completing step 3.1.8, click on the 'template link' tab, where you will be able to view the balance results on both the borrowing and payback sides as below.




3.2.3 Open the ECO/SCO cash pool and follow the step as below ;

3.2.3.1 Update the date 

3.2.3.2 Copy the closing balance column from the previous month and paste it into the opening balance column

3.2.3.3 Copy the data from step 3.2.2 on the borrowing side and paste it into the borrowing column in the actual report

3.2.3.4 Copy the data from step 3.2.2 on the pay back side and paste it into the pay back column in the actual report

Remark : Please be aware that the balance should be pasted and aligned with the respective companies in the actual report.


Example for SCO report


Example for ECO report



3.3 I recheck the balance before sending to accounting team.


BOC will send the report for rechecking with the date as below .

The interest report is sent on the 21st of every month.

The cash pool report is sent on the 1st of every month.


The report will be sent from email admin_sh@bankofchina.com .

For example, the reports sent from BOC include two types: the first one is calculated on a daily basis, and the second one provides the total amount.



3.4 In case the BOC report is not sent on time , we extract another report from BOC token for cross-checking.


In the case of the cash pool report, we need to send it to the accounting team on day 1. If the BOC report is not sent on time, we extract another report from the BOC token for cross-checking.

3.4.1 log in to BOC token

3.4.1.2 Select account management >> Information Report >> Consignment Loan Statement



3.4.2 Select mandatory information as below ;

3.4.2.1 Choose daily report >> select the date >> Select account 

SCO header account number 453374048629

ECO header account number 437784314595

3.4.2.2 Select send Email >> Type your email >> Click submit

Remark : This report takes approximately 30 minutes to over an hour to generate.



3.4.3 An example of the ECO report after the generation is complete, which is compared with the actual report.

Remark : There is no balance for header to recheck with report , so we use the balance from the basic account instead .

SCO header account number 453374048629 and basic account number 448163546451

ECO header account number 437784314595 and basic account number 455984292045





End of document.