treasury management

Treasury management is the creation and governance of policies and procedures that ensure the company manages financial risk successfully. 

Because a primary function of treasury management is to establish levels for cash or cash equivalents so that a company can meet its financial obligations on time, treasury management is sometimes simply referred to as cash management. 

A treasury management system (TMS) is a software application or enterprise resource planning (ERP) software component that automates the repetitive steps needed to manage a company’s cash flow. A TMS, which can be managed in-house or purchased as a service from a third-party provider, consists of hardware, software and real-time data for cash positions, interest rates, payables, receivables and foreign exchange rates.

Some treasury vendors support a mix of messaging standards including BAI2, EDIFACT, Electronic Data Interchange (EDI), SWIFT FIN and SAP IDoc messages and ISO 20022.

This was last updated in March 2012

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