Cash Management

Final report of the European Commission Expert Group on E-Invoicing

The final report of the European Commision Expert Group on e-Invoicingwas open to consultation until 26 February 2010. A total of 51 % of the replies agreed with the report’s main messages, recommendations and conclusions; 23 % of the replies disagreed and 26 % have no opinion. Respondents reconfirmed that VAT is the main legal barrier to the uptake of electronic invoicing.

Open for discussion: final report of the European Commission Expert Group on E-Invoicing

The report defines a list of business requirements which represent necessary conditions for achieving mass adoption of e-Invoicing, in particular the widespread use of e-Invoicing by SMEs. These requirements are validated against current market reality, resulting in a number of identified gaps or areas for improvement identified in the report. A set .of recommendations addressing these gaps constitutes the proposed European e-Invoicing Framework

SEPA EXPLAINED

A basic introduction to the Single Euro Payments Area

SEPA will create a single euro payments area. Following the introduction of euro notes and coins in 2002, attention has now turned to harmonising the diverse national and cross‐border retail payment systems for the euro. Integrating these systems is a natural step towards making the euro a truly single and fully functioning currency. The SEPA programme is all about harmonising millions of everyday ‘retail’ payments. As a result, there will be a number of changes to today’s commonly used payments in order to provide SEPA‐wide standardised instruments. In short SEPA will help to realise the benefits of the Single Market in goods and services.

 

TRENDS IN THE USE OF PAYMENT INSTRUMENTS IN THE US (2004)

This article analyzes the results of two payments surveys conducted in 2004, one of depository institutions and one of electronic payments networks, processors, and credit card issuers. It also draws on the results of two similar surveys conducted in 2001. The primary purposes of the 2004 surveys were to estimate the number and value of payments made by means of several types of noncash payment instruments in 2003 and to estimate rates of change from 2000 to 2003. The surveys have focused on the amount of and trends in noncash payments. Indirect evidence discussed later, however, suggests that the use of cash has declined as a share of all payments in recent decades. Whether the total number of cash transactions has begun to decline, as has the number of checks, is less clear.

WORKING CAPITAL MANAGEMENT AND COMPANY VALUE AT HEINZ NORTHERN EUROPE

Working capital management is an area largely lacking in theoretical perspective. One of the reasons is that the idea behind working capital is straightforward. If you minimize the amount tied up in receivables, inventory and maximize the amount tied up in payables, you maximize your cash flow. In reality the decision of how much to invest in working capital is not as straightforward however. Like all financing decisions it involves a risk – return trade-off. This article focuses on the relationship between the investment in working capital and the value of the company at Heinz Northern Europe.

LIQUIDITY MANAGEMENT, PERFORMANCE MEASUREMENT AND BENCHMARKING

Performance measurement in corporate treasury is the subject of increasing interest.In this paper, we present a summary of the most practical and most important approaches to liquidity management performance measurement in a single currency. The focus is restricted to companies with net debt but similar conclusions would apply in other situations too.Inevitably, a large part of any discussion on liquidity management appraisal revolves around the choice of a benchmark.In this article, we explore approaches to liquidity management assessment in corporate treasury and we pursue that most elusive of will-o-the-wisps, the choice of a benchmark of performance. The sections that follow focus upon the purposes of performance measurement in corporate treasury, main methods of measurement, benchmarking problems, financial market based benchmarks, reference strategy based benchmarks, optimum strategy based benchmarks, benchmarking without a treasury, value-at-risk and conclusions.