Kyriba = NetSuite to Bank - Treasury Management Software ... · PDF fileNetSuite customer...

Kyriba = NetSuite to Bank

© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 2

Kyriba – Company Overview – Solutions – ROI

Kyriba NetSuite Integration

Payments – NetSuite to Bank for Payments

Cash is King – Liquidity – Cash Forecast – FX Positions

Next Steps

Agenda


Company

– Founded in 2000, San Diego HQ. 1,200+ clients, 55,000+ users, 100+ countries, 400+ staff. Privately-held, well-funded

– 35% bookings growth in 2015. 98% loyalty rate

Solution

– NetSuite to Bank, Payments

– Cash Management & Forecasting

– Bank Mng., Risk, Supply Chain Finance

Kyriba The Company


Kyriba solution overview


Kyriba adds these solutions to NetSuite: – Bank Communications – SaaS connections to 400+ global banks

– Cash Management & Forecasting – 100% Cash Visibility, real Forecasting

– Payments – Payment Workflow, Straight-Through Processing, Impregnable defense

– Market Positions – Mark to Market

– In-House Cash – Sweep accounts, ZBA

– Bank Account Management, Fees, FBAR - – Risk Management – FX Risk, Investment/Debt Risk

– Compliance and Control – Governance Risk & Compliance (GRC, SoX 401 404)

What does Kyriba add to NetSuite?


Time Savings – $50k - $100k

Invest Idle Cash – Invest $10m idle cash = $100k • Earn 1.2% on overnight deposits vs. 0.25%

– Pay down debt $10m idle cash = $400k - $1m • Retire debt costing 4.00% - 10.00% vs overnight

cash 0.25%

FX Risk – $50m Ann. Revenue, 20% International, 2015 USD move $800k,

improve 10% = $80k – $350m Ann. Revenue, 30% International, 2015 USD move

$13,500k, improve 5% = $675k

ROI $300k - $1m

Account B $50m Ann.Rev Time $50k Inv. $40k Debt $150k FX $80k ROI $320k

Account B $350m Ann.Rev Time $100k Inv. $100k Debt $250k FX $675k ROI $1,125k


Client Snapshot

Transport

Healthcare

Technology

Energy

Manufacturing

Retail

Services

32% of Kyriba Americas customers have less than $500m revenue


Joint NetSuite / Kyriba customers – Joint accounts, integrated • Live with Built For NetSuite (BFN) WebServices integration:

– Amex GBT, Lucky Brand Jeans Lucid Technology • Live with File Based Integration:

– Groupon • Implementing (BFN): Air Lease Corp., ITS, World Remit, Dropbox

– Joint accounts, not yet integrated • Qualcomm, Genesys Labs, Readers Digest

Joint customers






Next Steps

Agenda

‹#› © 2014 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.

Kyriba Built for NetSuite (BFN)

Kyriba Connectivity Hub Cash Flows for Forecasting

Payments for processing /transmission

Accounting Entries for Bank to Book Reconciliation

GL Postings to NetSuite

Built For NetSuite WebServices

Kyriba Built for NetSuite • SuiteApp solution based on Web Services • Certified by NetSuite. Client admin can “flick a switch” to turn on • Automates workflows: Payments/checks, Positive Pay, GL Export to NetSuite, GL Rec in Kyriba, Forecasts in Q2 • SaaS to SaaS communication, no files • SSO and Token-Based Authentication. Communications secured by SSL key between NetSuite and Kyriba.


Functional data exchange between Kyriba & NetSuite

NetSuite Kyriba Bank

• Vendor Payment

• Check • Journal

• Cash Refund • Cash Sales • Customer Deposit • Customer Refund • Deposit • Payment

Payments/ Checks/ Refunds

Cash Management

GL Reconciliation

GL Posting

Cash Flows

Positive Pay file

Payment file

Bank Statement file

Payment Orders

GL Entries

GL Entries

Ban

k St

atem

ent

Bank transactions

Checks

4 workflows: 1 2 3 4


Export of GL Entries from Kyriba to NetSuite

Creation in NetSuite of a Journal or an Intercompany Journal

GL Posting

GL Posting

Bank Statement file Bank

Statement

Bank Transactions

Cash management

Cash Flows

Intercompany Journal

Journal GL Entries

OR






Next Steps

Agenda


Solution 1: NetSuite to Bank for Payments

Built for NetSuite

Issues • How are payments sent from

NetSuite to bank? (Payment formats hard to scale, lots of manual effort, lots of attempted payment fraud/ spearing)

• How much internal costs incurred to support payments?

Solutions • Connectivity to any global bank • Bank Format Transformation • Payment Confirmations • Full Security • Built for NetSuite

NetSuite customer AmexGBT tried to use SuiteScript to develop bank connectivity, quickly realized that global Payments is a daunting task. Guido Haarman’s NetSuite Developer team recommended Kyriba. AmexGBT bought this Sales Play 1, Bank Connectivity and Payments. We’re nailing the rollout with BFN Webservices. They just took a reference call with a ‘Gazelle almost Unicorn.’ AmexGBT is very happy.


Bank Connectivity Protocol Options

1. Host to Host Connections 2. Domestic/Regional Networks 3. SWIFT Concentrator Service 4. SWIFT Alliance Lite 2 5. SWIFT via Service Bureau

Kyriba can get NetSuite customers connected to global banks quickly. • Kyriba range: 2 months • Without Kyriba: 4- 6 months

With a customers ideal mix of connections

As Safe as a Bank


Payments

Initiated by corporate treasury

Generated from other apps (FP&A, Excel…)

Payments Efficient:

Bank Connections, Payment Workflows, Centralization (Payment Factory, On-behalf), many Payment Types (ACH, Wire, SEPA…), Straight-Through Processing (STP = no one touches Payment).

Payments Secure:

Kyriba sets up impenetrable defense against Payment Fraud (Dual-factor authentication, Payment Workflow, IP Filtering, STP (STP was for efficiency, now CFO’s also equate STP with security.)

53% of US Public companies have been target of financial fraud, of those, half have suffered a loss. Internal fraud average loss is $1.9m, external fraud average loss is $887k. Kept secret.

Security overall: NetSuite has ERP GRC (Governance Risk Compliance). Excel ≠ GRC. Kyriba enables Cash & Payments GRC.

Built for NetSuite

Payments are sent to banks and non-banks via Kyriba’s secure, automated connectivity






Next Steps

Agenda


Solution : Cash is King: Add Cash Management & Forecasting, & GL Reconciliation

Issues • What is visibility into global

cash? • What is Cash Forecast

Accuracy? • Every $1m of Idle Cash = $10k

ROI • International Sales, LLCs? Solution • Play1: NS to Bank Payments • Cash Visibility • Cash Forecasting • Cash Accounting, GL

Reconciliation • Built for NetSuite

Built for NetSuite


Cash and liquidity management

The cash position worksheet is the most viewed screen in the system

Consolidates actual and project cash in a single view

Delivers global visibility of global cash and liquidity


Cash Positioning without a TMS

Daily Step 1: Log into each

bank separately

Daily Step 3: Separately convert

each bank statement

Daily Step 4: Combine statements into master spreadsheet

Daily Step 5: Finally! Start making

decisions

Daily Step 2: Download each bank

file

Monthly: Spend 2 to 4 days doing Bank to Book (ERP) integration


Cash Positioning with Kyriba

Daily Step 1: Analyze first thing in the

morning, make decisions. Take Action.

Managed Service does overnight

Step 2. Put Idle Cash to work, Invest it, or pay

down Revolvers. Quickly. Efficiently.

Smartly.

Monthly: Bank to Book is automated. With GRC (SoD, Audit trail). Remember us at month end.

Step 4. Spend you time doing strategic work, the kind of work you dreamt about when you

got your CTP.

Step 3. Have a Starbucks. You deserve it.


Importing of forecasted data – NOT an IT exercise – System can take any flat file format – Ability to take summary/totals and spread

over days

Recurring Cash Flows – One-time setup for things like taxes, payroll

etc

Historical Trending – Leverage copying, averaging, and regression

analysis on historical activity

Forecasting Inputs


Compare multiple forecasts, and track against actual activity to track accuracy and reliability

Forecast Accuracy – analyzing forecast variances


SMB Liquidity tight: ‘Accurate Liquidity Forecast, Pay Down Revolver’

1. SMB accounts hit hard in ‘08 Crisis 2. Banks prefer to loan to Large Enterprise

3. SMB Customers can’t get loans 4. Cash Visibility is King for SMB

1 2 3 7 30 60 90 Days Out: 1 2 3 7 30 60 90

Idle Cash


FX Exposure Risk

EUR/USD 1Yr 1/15 – 12/15

EUR/USD 2Yrs 1/14 – 12/15

EUR/USD $1.1871 on 1/12/15

EUR/USD $1.0934 on 12/31/15

EUR/USD $1.3670 on 1/14/14

EUR/USD $1.2162 on 12/31/14

USD strengthened 8.6% in 2015

USD strengthened 12.4% in 2014


FX Exposure Risk: 1st step, accurate Forecast of FX Positions

Midmarket accounts with International revenue have significant FX impacts on revenue. 1) $50m revenue, 20% intl. revenue, 8.6% USD in 2015 ~ $900k revenue impact (1.8%) 2) $350m revenue, 30% intl. revenue, 12.4% USD in 2014 ~$13.6m revenue impact (3.9%)

International revenue sets up currency pairs, FX risk. Most accounts will choose to hedge FX risk. But if Cash Forecast Visibility is ~ 60%, you’ve got poor visibility to FX risk. The best hedging algorithm in the world can’t hedge the unknown.


FX Risk Management – It’s a Journey

1. Accurate Cash Position Bank Connectivity + Cash Management = 95%+ Cash Visibility

2. FX Conversion Rates Kyriba supports multiple FX rate feeds

3. Global Cash Forecasting Known flows first, forecast unknown flows. Regression, multiple scenarios.

4. Currency Exposure Positions FX Exposures against Cash Position and multiple forecast scenarios

5. FX Exposures hedged with FX Forwards Spot/Forward/Swaps/Options, settlement, MTM, Valuation

6. Hedge Accounting Testing for Effectiveness, OCI Balance Sheet

Getting to Step 4 is essential Accurate Info

Step 5 Accurate Info = Accurate Hedge

Step 6 Optional Accounting Accurate Info = Effective = OCI






Next Steps

Agenda


Q&A

Demo in Booth – Booth 307 – Greg Person

Connect with Kyriba – Joe Mulligan – VP Channel and Indirect Sales – [email protected] – +1 310-299-6628

Next Steps

mailto:[email protected]

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