This lesson examines the infrastructure for transferring funds, including clearing systems and settlement mechanisms. 

4.1. Clearing and Settlement Systems

The ACT identifies “clearing and payment systems” as a core area of treasury operations.  Key systems include:

  • RTGS (Real-Time Gross Settlement): Continuous settlement of funds transfers individually on an order-by-order basis.

  • ACH (Automated Clearing House): Electronic network for financial transactions, typically processed in batches.

  • SWIFT: The secure global messaging network used by financial institutions to communicate payment instructions.

  • Fedwire and CHIPS (US) / CHAPS and TARGET2 (EU): Key domestic and cross-border clearing systems.

4.2. Payment Processing

Payments processing is a core operational activity. The SAP S/4HANA Treasury course covers the “steps to process Treasury-related payments” and “Multi-Bank Connectivity for interfacing to banks.”  Automation in payments processing improves accuracy and security. 

4.3. Bank Connectivity and Electronic Banking

Efficient treasury operations require robust connectivity to banking partners. The SAP course covers “Multi-Bank Connectivity for interfacing to banks from SAP” as a key learning area.  Automation in cash positioning and reporting, along with real-time dashboards, supports decision-making.

 
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