Fund Management Solution
The fund of large scale enterprise groups is dispersed in the account of each constituent company. Sometimes some companies are badly in need of capital and have to borrow money from the bank, while some other companies might have available money. The purpose of fund management system is to have a centralized management on the fund dispersed in the account of each constituent company for centralized dispatching. Establish internal bank and accomplish internal settlement and financing, unify external financing, will surely improve the efficiency of the group’s fund and lower the operational cost.
The system requires the Group Company to open a settlement account at Bank of China, each constituent company opens two accounts at the local Bank of China, one for account of receipts and the other one is account of payment. The account of receipt only receives and can not pay; the account of payment can only make payment by the settlement account of the head office and can not transfer account from other accounts.
Fund settlement system uses the bank-enterprise connection interface provided by the Bank of China and conducts real-time communication with the Bank of China through XML format data. By this fund settlement system, you can inquire balance of each account and the transaction details at any time;
using the Remittance and Transfer Messenger function provided by the bank-enterprise connection interface of Bank of China, the cashier can allocate the fund in the account of constituent company to the settlement account of the Group Company. This allocation doesn’t need examine and approve procedure. The transferable amount is the available balance of the account on that day minus 10,000.
Besides, due to that part of the fund allocated to the settlement center is the deposit money of the constituent company at the settlement center and part of the fund allocated from the settlement center is the loan of the constituent company from the settlement center, this fund settlement system can also calculate interest on deposit and loan for each constituent company respectively.
When the constituent company needs fund, it should firstly fill in the “application form”. After receiving the application form from constituent company, the cashier of the Group Company formulates “fund transfer list (transfer out)”. After examine and approve of the financial executive, the fund can be transferred.
Examine, approve and transfer is done by different personnel. During these operations, the personnel are required to insert the USB key.
At present, the transfer can only be done between the account of receipt and payment of the Group Company and the constituent company. Payment to the customers is not involved.
Benefits
After using the system, fund settlement center will be set up in the Group Company, the function of which resembles internal bank of the Group Company.
Using fund settlement software, fund in the account of receipt of the constituent company will be transferred to the settlement center in time; when the constituent company needs fund, fund would be allocated to its account through fund settlement center. After the operation, at least the following purposes would be achieved:
◇ Unified management and disposal of fund within the Group Company;
◇ Greatly accelerate the turnover rate of fund, reduce spare fund, reasonably make the most out of the funds;
◇ Reduce loan to the maximum, drastically reduce fund operation cost for the Group Company.
Security Measures
In terms of security, fund settlement system adopts a series of tracking mechanism, including:
◇ In front-end processor of the enterprise, there are transaction log recorded by the program of the Bank of China;
◇ In key operation of the fund settlement software, such as examine, approve and transfer, relevant personnel must insert the specialized USB key provided by the software developer;
◇ The operator code of the fund settlement software is stored in the data base after being encrypted;
◇ The fund settlement software also has operation log for key operations;
◇ The client-side of fund settlement center can only be connected to the Bank of China after being registered.
Major Function Modules
(1) Bank connection
1. Sign in and sign out
2. Obtain history data from bank again
(2) Fund application management
1. Constituent company fund application management
2. Group Company fund transfer-out management
3. Group Company fund transfer-in management
4. Transfer-in fund classification
(3) Account enquiry
1. History subsidiary ledger of bank depositing and withdrawing money
2. History balance sheet of bank depositing and withdrawing money
3. Enquiry balance and details of the sub-account of the day
4. Enquiry balance of multiple accounts of the day
5. Subsidiary ledger of bank depositing and withdrawing money of the settlement center
(4) General ledger of income and expenses
1. General of income and expenses (according to time period)
2. General of income and expenses (according to constituent company)
(5) Loan management
1. Loan management
2. Loan interest rate of the settlement center
3. Loan interest settlement day
4. Loan interest settlement
5. Enquiry of internal loan interest in the fund settlement center
(6) Deposit interest management
1. Deposit rate of the settlement center
2. Deposit interest settlement day
3. Deposit interest settlement
4. Enquiry of internal deposit interest in the fund settlement center
(7) System management
1. Change password
2. Log on as a different user
