Status
Owner	Antonio Zappone
Stakeholders	Gilles Madjarian, Selim Ulhasan

Issue

Succinctly describe the issue or problem statement that this Decision addresses. Why is a decision required? What business or technical problem does it address?

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

Summarise the recommendation being made for the reader, leaving the pro/con evaluation and exact decision-making process to the subsequent sections.

Background & Context

Explain the context in which the decision is being made.

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 Operations modules in S/4HANA are;

TRM: Treasury Risk Management
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.

SCOPE AND DETAILED ASSESSMENT BETWEEN QUANTUM AND S/4HANA

Scope and analysis

Summary from Scope analysis:

Standard S/4HANA functionality can effectively meet Syensqo treasury business requirements.
1. Transition to S/4HANA can bring significant improvement in the area of Cash Management,
2. Within one S/4HANA system allows for standard integration with higher level of accuracy and automation.
Quantum:
1. Effective:
  1. FX transactions
  2. Confirmations are automated, however they require an additional system Mysis.
  3. Short term loans (Thailand)
2. Sub-Optimal for;
  1. non-FX deals or and new instrument creation.
  2. medium level of effectiveness for accounting, there are some existing challenges with switch of debit to credit, and long term to short term.
  3. Existing scope of reports are worked as expected, however unable to design and introduce any new reports.
  4. Cash Management: Cash position in manageable, but Cash Forecasting being performed at present.
  5. Inter-Company loans is complex and semi-manual due loan management SAP and not fully integrated with Quantum
  6. Confirmations are not fully automated

Instruments: FX

Instrument	Details	Type	Source	Scope Yes\No	Frequency High Medium Low	In Quantum Yes\No	Quantum Effectiveness High Medium Low	S4 Functionality STD Easy STD Complex Non STD Easy Non STD Complex	S4 Module
FX Spot	Set-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	Yes	High	Yes	High	STD Easy	TRM
FX Forward	Set-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	Yes	High	Yes	High	STD Easy	TRM
FX Swap	Set-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	Yes	High	Yes	High	STD Easy	TRM

Non-Deliverable Forward	Set-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	Yes	Medium	Yes	High	STD Easy Fining Automation Non STD Easy	TRM
FX Request	Set-up: Foreign Exchange - FX: FX Request When Affiliate doesn’t know target instrument in FX	Internal	Request	Yes	Medium	Yes	High	STD Easy	TRM

Participating forward	Set-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	Manual	Yes	Low	No	NA	STD Easy	TRM
Currency options (Vanilla)	Set-up: Foreign Exchange - Currency Option: FX Option Vanilla See Participating Forward	External Internal Mirror	360T Manual	Yes	Low	No	NA	STD Easy	TRM
Zero cost collars	Set-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	Yes	Low	Partly	Low Accounting is manual	STD Easy	TRM
Interest rate swaps	Set-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.	External	Manual	Yes	Low	No	NA	STD Easy For Instrument STD Complex For Valuation	TRM
Cross currency swaps	Set-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.	External	Manual	Yes	Low	No	NA	STD Easy For Instrument STD Complex For Valuation	TRM
FX Order SELL	Set-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)	External	Manual	Yes	Low	No	NA	STD Easy (the use of this is not clear, but an FX order or Option is std). more details req'd	TRM
FX Order BUY	Set-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)	External	Manual	Yes	Low	No	NA	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

Instrument	Details	Type	Source	Scope Yes\No	Frequency High Medium Low	In Quantum Yes\No	Quantum Effectiveness High Medium Low	S4 Functionality STD Easy STD Complex Non STD Easy Non STD Complex	S4 Module
Overnight Deposit	Set-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	Yes	High	Yes Thailand & India only	High	STD Easy For std deposits. However need to understand the Complexity for Thailand	TRM

MM Fixed	Set-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	Yes	Medium	No	?	STD Easy	TRM

Call/Notice accounts	Funds 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 period	External	Manual	Yes	Low	No	NA	STD Easy	TRM
Investment bonds		External	Manual	Yes	Low	No	NA	STD Easy	TRM
I/C Draw-down Facilities	Multiple MM can be linked to one Draw-down Facility	Internal	Manual	Yes	Low	No	NA	STD Easy	TRM
Credit Lines		External	Manual	Yes	Low	No	NA	STD Easy	TRM

Money Market Funds		External	Manual	Yes	Very Low	No	NA	STD Easy	TRM
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	Yes	NA for now	No	NA	STD Easy	TRM

Instruments: Securities

Instrument	Details	Type	Source	Scope Yes\No	Frequency High Medium Low	In Quantum Yes\No	Quantum Effectiveness High Medium Low	S4 Functionality STD Easy STD Complex Non STD Easy Non STD Complex	S4 Module
Commercial Paper	Set-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.	External	Manual	Yes	Low	No	NA	STD Easy	TRM
Bonds / EMTN (issues)	One template by Issue: For Fixed rate: Fixed Periodic For Floating rate: FRN CGL Periodic	External	Manual	Yes	Low	No	NA	STD Easy	TRM
Hybrid Bonds		External	Manual	Yes	Low	No	NA	STD Easy	TRM
Security Identifiers	Security 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.	External	Manual	Yes	Low	No	NA	STD Easy	TRM
“Funding pre-hedge instruments		External	Manual	Yes	Low	No	NA	? More details Req'd	TRM

Instruments: Working Capital

Instrument	Details	Type	Source	Scope Yes\No	Frequency High Medium Low	In Quantum Yes\No	Quantum Effectiveness High Medium Low	S4 Functionality STD Easy STD Complex Non STD Easy Non STD Complex	S4 Module
Bank draft	Exclusively 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?	Yes	High	No	NA	? 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 invoice	External	Manual	Yes	Med\High	No	NA	? More details req'd. Is this a	?
Sale of Receivables	Set-up: Money Market: Sales of Receivable	External	Manual	May not be worth it	Medium	Yes	Not Utilised	Non STD Complex	TBD

Instrument Guarantees

Currently out of scope and done manually.

Instruments Equity Derivatives

Instrument

Details

Type

Source

Scope

Yes\No

Frequency

High
Medium
Low

In Quantum

Yes\No

Quantum

Effectiveness

High
Medium
Low

S4 Functionality

STD Easy
STD Complex
Non STD Easy
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 resold

External

Manual

TBD

Check with Gerald

Medium

No

NA

More details req'd

Total return swaps (TRS)

External

Manual

TBD

Check with Gerald

Medium

No

NA

More details req'd

LT options (calls) on Eurostox50 index (US)

External

Manual

TBD

Check with Gerald

Medium

No

NA

More details req'd

Interfaces & Communication

Function	Details	Scope Yes\No	Frequency High Medium Low	Quantum Connectivity Yes\No	Quantum Effectiveness High Medium Low	S4 Functionality STD Easy STD Complex Non STD Easy Non STD Complex	S4 Module
Deals	360T Bloomberg	Yes	High	Yes	High	STD Easy	TRM
Correspondence Confirmations	Misus Finastra	Yes	High	Yes APAC, EMEA, NA FX Trades Manual	Yes	STD Easy or STD Complex Via SWIFT	TRM
Market Data	Refinitiv Icon	Yes	High	Yes	High	STD Complex	TRM

Treasury Payments & Bank Statements

Function

Details

Scope

Yes\No

Frequency

High
Medium
Low

Quantum

Connectivity

Yes\No

Quantum

Effectiveness

High
Medium
Low

S4 Functionality

STD Easy
STD Complex
Non STD Easy
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)

Yes

High

Yes

High

STD Easy

BCM

Bank Statements

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

Yes

High

Yes

Medium

Some statements are missing

STD Easy

BCM

Cash Management

Function

Details

Scope

Yes\No

Frequency

High
Medium
Low

Quantum

Connectivity

Yes\No

Quantum

Effectiveness

High
Medium
Low

S4 Functionality

STD Easy
STD Complex
Non STD Easy
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)

Yes

High

Yes

Medium

STD Easy

CM

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

Yes

High

Yes

Medium

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

Yes

Medium

No

NA

STD Complex

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

CM

Reporting

Function	Details	Scope Yes\No	Frequency High Medium Low	Quantum Connectivity Yes\No	Quantum Effectiveness High Medium Low	S4 Functionality STD Easy STD Complex Non STD Easy 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	Yes	High	Yes	High	STD Complex Possibly Non STD Easy	TRM
Counter Party Risk		Yes	High	?	?	STD Complex	TRM
Cashflow Hedging	Issues when exposures are switching signs, report difficult to maintain	Yes	High	Yes	Medium	STD Complex	TRM
Spread Analysis	Used to compute interest rates on IBAs / Intercompany funding	Yes	High	No	NA	Possibly to the process is outside of the system.

Accounting

Function

Details

Scope

Yes\No

Frequency

High
Medium
Low

Quantum

Connectivity

Yes\No

Quantum

Effectiveness

High
Medium
Low

S4 Functionality

STD Easy
STD Complex
Non STD Easy
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

Yes

High

Yes

Medium

Some Auto

Some Manual

STD Easy

TRM

Hedge Accounting

For FX Hedge accounting

Yes

High

Yes

High

STD Complex

TRM

Assumptions

Clearly describe the underlying assumptions which informed or limited the choices available, or impacted the decision: cost, schedule, regulatory requirements, business drivers, country footprint, technology, etc. Include links as necessary. This section is important because a future change in circumstances might invalidate some key assumptions, which then prompts a decision to be revisited.

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

Capture any constraints or limitations inherent to the recommended option. This could be aspects which, if changed or removed in future, could cause the decision to be revisited or invalidated. For example, a constraint might be that a new product has significant gaps in important functionality, which caused an older alternative to be recommended. If those gaps are closed in future, this might cause the decision to be invalidated.

Existing Quantum License. Expiry date 14th June 2028. Can this be extended by one or two years ?

Impacts

Describe the impact of the decision on other aspects such as other processes, infrastructure, other SAP modules or systems, data cleansing and migration, developments, automations, interfaces, in-flight projects, etc.

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.

- Elimination of existing interfaces between Quantum and SAP

- Allow for further simplification of the further IHB process

Business Rules

The decision may translate into business rules which enforce the decision and will require configuration. List these business rules here. For example, "An Outline Agreement cannot be created via the RFQ process. An awarded RFQ can only result in a Purchase Order".

Not applicable at this point of the decision making process

Options considered

List the options (viable options or alternatives) you considered. These often require a longer explanation with diagrams, or references to other documents (links are best, but attachments are also possible). Use enough detail to adequately explain what you considered so that a project or business stakeholder reviewing this decision will not come back and ask "did you think about...?"; this leads to loss of credibility and questioning of other decisions. This section also helps ensure that you considered enough suitable alternatives rather than just copy/pasting SAP's recommendations.

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

Describe the option in sufficient detail for a reader familiar with the subject matter to understand it properly

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

(COST ESTIMATES ARE STILL A DRAFT - BUT INDICATIVE FOR NOW)

Estimated Implementation Cost: Euro 1.3m

No additional budget required. This cost is already in SyWay project budget

Quantum \ Syensqo Business Cost: 0

SyWay Project Cost: 1.3,m (this cost is already factored into the SyWay project budget).

SyWay Project Scope: WRIEF design, build, unit test, integration testing, UAT, Data, Regression Test, cut-over, support) + TRM IC Loans: Estimate: 1.5 FTE over 36 months 1.3m.

Option B: Continue Treasury Operations activities in Quantum, but invest to improve the functionality

Describe the option in sufficient detail for a reader familiar with the subject matter to understand it properly

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

Estimated Implementation Cost: Euro: 2,020,000

Addition budget required for the Syensqo business (not the SyWay Project): 720k

Quantum \ Syensqo Business Cost (2.5 FTEs for 12 months) = 720k

Additional budget required.

Quantum is out of scope for the SyWay project. Any improvement activities within Quantum will need to be manage outside of the SyWay project.

Already budgeted in SyWay project

SyWay Project Cost: 1.3,m (this cost is already factored into the SyWay project budget). Estimate: 1.5 FTE over 36 months 1.3m

SyWay Project Scope: WRIEF design, build, unit test, integration testing, UAT, Data, Regression Test, cut-over, support) + TRM IC Loans.

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

Describe the option in sufficient detail for a reader familiar with the subject matter to understand it properly

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

Estimated Implementation Cost: Euro: 4.2m

Additional budget required for the SyWay project: 2.88m

SyWay Project: Change request will be required to bring this scope into the SyWay project

SyWay: TRM and CM implementation: Estimate of 3.5 FTEs (Lead, Functional Consultants, Technical Consultant, Data Consultant, Testing, cut-over) over 36 months = 3.024m. (This cost will be confirmed once the implementation approach is devised).

SyWay: Temporary Integration with Quantum for any transition period : WRIEF design, build, unit test, integration testing, UAT, Data, Regression Test, cut-over, support) + TRM IC Loans: Estimate: 1.5 FTE over 36 months 1.3m.

SyWay: Saving from simplifying existing process possible with Treasury Operations within the one S4HANA System. (estimate: Wrief design, build, test, deploy, support. 6 months of 1 FTE equivalent activity ) = 144k

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

Describe the option in sufficient detail for a reader familiar with the subject matter to understand it properly

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

Estimated Implementation Cost: Euro: 4.6m

Additional budget required for the SyWay project: 3.3m

Increase Scope will result in an increase in cost.

SyWay Project: Change request will be required to bring this scope into the SyWay project

SyWay Project Cost: Estimate of 4.5 FTEs (Lead, Functional Consultants, Technical Consultant, Data Consultant, testing, cut-over) over 36 months = 3.456m. (This cost will be confirmed once the implementation approach is devised).

SyWay: Temporary Integration with Quantum for any transition period : WRIEF design, build, unit test, integration testing, UAT, Data, Regression Test, cut-over, support) + TRM IC Loans: Estimate: 1.5 FTE over 36 months 1.3m.

SyWay: Saving from simplifying existing process possible with Treasury Operation within the one S4HANA System. (estimate: Wrief design, build, test, deploy, support. 6 months of 1 FTE equivalent activity ) = 144k

Evaluation

Outline why you selected a position. The best format could be a pro/con table (sample below), but is up to you as the author. You must consider complexity, feasibility, cost/effort to implement, but also ongoing operational impact and cost. You must consider the program principles and explain any deviations in detail. This is probably as important as the decision itself.

	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	Option A	Option B	Option C	Option D
Front Office: Instruments Level of System Functionality matching business needs	High frequency instruments are working well in Quantum Medium & low frequency instruments are not set-up in Quantum	High frequency instruments are working well in Quantum Additional instruments may be considered and configured in Quantum	S/4HANA can effectively cover the existing scope (that is configured in Quantum). Additional business requirements will not be covered in this Option.	S/4HANA can effectively cover the existing scope (that is configured in Quantum). Additional scope to be considered with this option.	Medium	High	Medium	High
Front Office: Placing Deals Level of Ease to place deals Integration level	Deals are placed in 360T and Bloomberg Effectively integrated with Quantum Con	Deals placed in 360T and Bloomberg Effectively integrated with Quantum Con	Deals con continue to be placed in 360T and Bloomberg S4\HANA has TPI (API) integration in place with 360T and Bloomberg	Deals con continue to be placed in 360T and Bloomberg S4/HANA has TPI (API) integration in place with 360T and Bloomberg	High	High	High	High
Middle Office: Reporting Coverage Accuracy level	Pro To be discussed Spread analysis is performed outside of Quantum	Con To be discussed Spread analysis is performed outside of Quantum	S4/HANA standard reports can be utilized to meet the business reporting requirements Spread Analysis will likely continue outside of the system	S4/HANA standard reports can be utilized to meet the business reporting requirements Spread Analysis will likely continue outside of the system			High	High
Back Office: Confirmations Automation Level	Existing matching is done with the use of Misys Finastra. Are the confirmations automated in Quantum Confirmations are not fully automated (Check with Edgars)	Automated level can be improved.	Confirmations matching can be automated in S/4HANA (Correspondence Framework). Further analysis is required as part of Detailed Design. However, connectivity to the banks can be via SWIFT. Hence no need for Misys, saving on the license costs. Connection to SWIFT is already in place.	Confirmations matching can be automated in S/4HANA (Correspondence Framework). Further analysis is required as part of Detailed Design. However, connectivity to the banks can be via SWIFT. Hence no need for Misys, saving on the license costs. Connection to SWIFT is already in place.	??	Medium	High	High
Back Office: Accounting Accuracy Level Integration Level Simplicity Level	Interfaces required to move data between systems in order to complete accounting entries. Interfaces required, increasing complexity. Some accounting entries are manual	Interfaces required to move data between systems in order to complete accounting entries. Interfaces required, increasing complexity. Existing manual entries can be reviewed with the aim to automate.	All accounting entries are manage by standard automatic postings Hedge accounting possible, although implementation requires additional effort All transactions are within the one S/4HANA system, not need for interfaces, lowering complexity.	All accounting entries are manage by standard automatic postings Hedge accounting possible, although implementation requires additional effort All transactions are within the one S/4HANA system, not need for interfaces, lowering complexity.		Medium	High	High
Cash Management 1) Cash Position 2) Short to Medium term liquidity forecast. Meeting Business Requirement Accuracy level Simplicity level	Cash position in being managed today, and treasury are able to fund the immediate term +2 days. Short to medium term liquidity forecast is not being performed at present. Integration with AP & AR items is not in place. The volume of data was not worth interfacing as accuracy level were low. Low level of simplification in the large data needs to be interfaced from SAP to Quantum.	Effort may be placed on improving short-medium term liquidity forecast in Quantum Improving the accuracy level will continue to be a challenge with Quantum being a separate system to S/4HANA. Integration with AP & AR items will still introduce complexity with the huge data to be interfaced from S/4HANA to Quantum.	Cash Management module can effectively manage business requirements, and achieve and significant improvement to the current level Quantum is providing. Both Cash Position and short-medium term liquidity forecast are standard processes and report Bank Fee analysis is possible, however this will require additional implementation effort, which can be manage via accounts in scope for this analysis Significant simplification opportunity, as all transactions are within the one S/4HANA system	Cash Management module can effectively manage business requirements, and achieve and significant improvement to the current level Quantum is providing. Both Cash Position and short-medium term liquidity forecast are standard processes and report Bank Fee analysis is possible, however this will require additional implementation effort, which can be manage via accounts in scope for this analysis Significant simplification opportunity, as all transactions are within the one S/4HANA system	Low	Medium	High	High
Market Data Coverage Level Integration Level	Market data automatically interfaced via Refinitiv Icon The interface is a non-standard custom development Complexity in replicating market data into multiple systems (Quantum & S4)	Market data automatically interfaced via Refinitiv Icon The interface is a non-standard custom development Complexity in replicating market data into multiple systems (Quantum & S4)	Market data can be automatically integrated into S4. SAP provides a standard integration as apposed to a custom built interface Simplification by having one input into S4 that can be utilized for all system requirements, for Treasury and non-treasury processes. SAP MRM (Market Rates Management) comes with a license cost	Market data can be automatically interfaced into S4. SAP provides a standard integration as apposed to a custom built interface. SAP MRM (Market Rates Management) comes with a license cost Simplification by having one input into S4 that can be utilized for all system requirements, for Treasury and non-treasury processes. SAP MRM (Market Rates Management) comes with a license cost. SAP MRM Limitation - it only provides end of day rates	Medium	Medium	High	High
Favorable License Cost	100k per annum	100k per annum	20k per annum (no additional License cost as TRM is required with all options).	20k per annum (no additional License cost as TRM is required with all options).	Low	Low	High	High
Support Level	FIS Quantum support level in poor	FIS Quantum support level in poor	Opportunity to improve support level with Syensqo IT resources	Opportunity to improve support level with Syensqo IT resources	Low	Low	High	High
Favorable Implementation Cost	No Implementation Costs on the Quantum Implementation Cost for the SyWay project to build interfaces and integrate with Quantum	Implementation Costs Required. Value to be determined. Implementation Cost for the SyWay project to build interfaces and integrate with Quantum	Implementation Cost Required. Refer to the details and background section . This implementation cost will be lower than the other S4HANA option - Option D Treasury Operations within 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.	Implementation Cost Required. Refer to the details and background section. This is the highest implementation cost option. Treasury Operations within 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.	High	Medium	Medium	Low
Reduced Implementation Complexity	Nil complexity as there is no implementation with this option	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.	Although this option involves new implementation within S4/HANA, having a like for like scope will be easier to manage as there is a design already in place, al-be-it in a new system	Increasing scope will result in a more complex implementation	High	Low	High	Low
Simplification Level	Current Simplification level is is Medium - Low. Integration and interfaces are required between SAP and Quantum. Some integration is automated, some manual postings are still required. Integration for Cash Management is complex Quantum in not operating in a Optimal manner Interfaces into SAP required to make Treasury payments	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.	One of the main advantages of treasury operating in SAP is the full integration with other modules. Standard integration: FI for accounting APM\BCM for payments and statements, and Cash Management Report are also produced on data with the one system	One of the main advantages of treasury operating in SAP is the full integration with other modules. Standard integration: FI for accounting APM\BCM for payments and statements, and Cash Management Report are also produced on data with the one system	Low	Low	High	High
Automation Level	Automation level is currently at medium\low level in Quantum.	Further automation options may be identified and reviewed for new implementation candidates With Quantum in a separate system to the may ERP system, automation will continue to be compromised.	Further automation of Treasury paraments and deal confirmation possible. Accounting postings are fully automated Increased automation of Treasury payments Increased automation within Cash Management Confirmations can be automated. Although this will require a non-standard interface, as is the case in Quantum. With all Treasury operations activities along with IHB on the one system, this allows to foundation for further automation, and any AI \ Machine learning possibilities.	Further automation of Treasury paraments and deal confirmation possible. Accounting postings are fully automated Increased automation of Treasury payments Increased automation within Cash Management Confirmations can be automated. Although this will require a non-standard interface, as is the case in Quantum. With all Treasury operations activities along with IHB on the one system, this allows to foundation for further automation, and any AI \ Machine learning possibilities.	Low	Medium	High	High
Potential to reduce IHB Complexity This criteria needs further discussion ~~Level of Complexity~~	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.	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.	Having TRM and CM within S/4HANA , allow further option to reduce the complexity within the existing highly complex IHB design. For example, utilizing standard CM and TRM reports to view FX Exposures.	Having TRM and CM within S/4HANA , allow further option to reduce the complexity within the existing highly complex IHB design. For example, utilizing standard CM and TRM reports to view FX Exposures.	Low	Low	High	High


				This is not yet finalised	High (3) Medium (2) Low (7)	High (2) Medium (4) Low (5)	High (12) Medium (2) Low (0)	High (12) Medium (0) Low (2)

Issue

Recommendation

Background & Context

Assumptions

Constraints

Impacts

Business Rules

Options considered

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

Option B: Continue Treasury Operations activities in Quantum, but invest to improve the functionality

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

Evaluation

See also

Change log

Workflow history