IS IN HOUSE BANKING RIGHT FOR YOUR ORGANIZATION?

IS IN-HOUSE BA NKING RIGHT FOR YOUR ORG A NIZ ATION?

I NTEGR AT I ON WI TH ERP

mplementing an in-house bank will require an

investment in technology. A TMS can be used to

support the operation of the bank and to facilitate

proper bookkeeping. Accounting groups and ERP

programming will need to be involved to develop

the clearing of the accounts and an automated

program to facilitate the clearing of intra-

company (within the sub-accounts of the inhouse

bank) and inter-company (between a non in-house

bank account and the in-house bank)loans.

To best prepare for the designing of the programs,

scenarios should be clearly defined. Depending

on the function of the in-house bank, some

commonly overlooked scenarios are receipt of

non-functional currencies (either the sub’s non-

functional or the in-house bank’s non-functional),

and external trades executed on behalf of a

participant for a third party or vendor.

Once these scenarios are defined, certain infor-

mation can be passed from the ERP to the TMS

to allow for the proper mapping. The data can

be generated in the TMS, if the ERP doesn’t have

automated capabilities, but the ERP should be

considered as a data source to populate intercom-

pany transactions in the TMS.