Demo Virtux Treasury: cash and banking control day

Demo Virtux Group operates companies in UAE, India, and Saudi Arabia. Treasury manages 14 bank accounts, supplier payments, payroll funding, customer collections, revolving credit, and USD/EUR exposure. OSERP is the controlled source for bank masters, payment proposals, approvals, cash forecasts, settlements, FX revaluation, and reconciliation. It does not replace a bank; it proves what the group instructed, what the bank confirmed, and what remains unmatched.

1. Set up accounts and signatories

Create bank accounts with company, branch, currency, IBAN or account number, bank, purpose, opening balance, reconciliation method, statement format, and signatory policy. Classify accounts as operating, payroll, tax, collection, escrow, or loan. A user may view an account without being allowed to create or approve payments.

Field	Demo value	Impact
Account	UAE-OPS-AED	Daily operating cash
Currency	AED	Functional settlement basis
Purpose	Supplier payments	Payment proposal filter
Approval tier	Two approvers above AED 50,000	Fraud and segregation control
Statement source	Bank API / CAMT	Automated reconciliation
Opening balance	AED 2,400,000	Starting cash proof
Reconciliation cutoff	17:00 GST	Same-day cash visibility
Signatory group	CFO + treasury manager	Dual control
Loan link	RCF-UAE-01	Debt and covenant reporting
Restricted flag	Yes for escrow	Prevents general use

The chart maps each bank account to cash, outstanding payments, bank charges, FX, and loan accounts. Opening balance requires bank statement evidence and approval.

2. Build a daily cash position

Open Treasury → Cash Position and select company, date, currency, and account group. The view shows opening reconciled cash, bank-confirmed receipts, expected customer receipts, approved payments, payroll, tax, loan service, minimum buffer, and projected closing cash.

For UAE operations, opening cash is AED 2,400,000. Expected collections are AED 1,100,000, approved supplier payments AED 950,000, payroll AED 420,000, tax AED 180,000, and loan service AED 75,000. Projected closing cash is AED 1,875,000. An account below its AED 1,000,000 minimum buffer creates a funding recommendation, not an automatic transfer.

Forecast lines should carry source document, expected date, confidence, currency, company, and owner. A forecast is not actual cash until a bank statement or posted payment confirms it.

3. Import statements and reconcile

Import a bank statement with account, period, opening/closing balance, transaction ID, value date, booking date, amount, currency, counterparty, bank text, and reference. OSERP matches by reference, amount, date tolerance, and known payer or supplier.

A customer receipt of AED 180,000 is matched to three invoices. A bank charge of AED 250 uses the bank-fee mapping. An unknown AED 40,000 transfer becomes an unapplied item with owner and due date. The reconciliation screen shows statement balance, ledger balance, outstanding payments, deposits in transit, and unresolved items.

Never force-match by amount alone when duplicate invoices exist. A manual match records user, reason, source lines, and approval.

4. Create and approve a payment batch

The payment proposal selects due supplier invoices, company, account, currency, payment date, discount, withholding, and priority. Lines show supplier, invoice, due date, gross, deduction, net, bank account, beneficiary validation, and source cost dimension.

A batch of 42 supplier invoices totals AED 950,000. OSERP validates invoice approval, duplicate payment, blocked supplier, beneficiary change, tax withholding, period, and available cash. A new beneficiary bank account triggers independent callback verification. The preparer submits; the treasury manager reviews; the CFO approves; a payment file is generated with checksum and batch ID.

When the bank confirms payment, post bank and supplier liability. Rejected transactions remain open with bank reason and retry status. Cancelling a batch releases payment status without deleting the approval history.

5. Payroll and tax funding

Payroll funding uses a separate payroll account. The funding transfer records source account, destination account, amount, currency, value date, payroll run, and approval. Tax payments link authority, period, return, amount, and bank reference. A payment may be scheduled before due date but remains forecast until bank confirmation.

Restricted escrow or client-money accounts cannot fund normal suppliers. Rules are enforced by account purpose and permission, with an exception route requiring CFO approval and audit reason.

6. Loans, covenants, and interest

Create revolving facility RCF-UAE-01 with lender, limit AED 10,000,000, margin, benchmark, commitment fee, maturity, collateral, covenant, currency, and repayment rules. Drawdown records date, amount, purpose, project, and approval. Interest accrual calculates from outstanding principal and rate; payment clears accrued interest and principal separately.

The covenant dashboard uses approved financial statement values and source period. If debt service coverage falls below 1.25, create an alert with owner and action. Loan changes require a new version so historical interest remains reproducible.

7. FX exposure and settlement

India supplier invoices are INR, Saudi receipts SAR, and equipment purchases USD. The exposure report groups open receivables, payables, loans, and forecast cash by currency and maturity. A USD supplier invoice of 100,000 is recorded at transaction rate; payment at a different rate posts realised FX gain/loss.

Month-end revaluation updates open balances using the approved closing rate and posts unrealised FX to mapped accounts. A hedge or forward contract record stores counterparty, notional, currency pair, maturity, rate, purpose, and settlement. Treasury users cannot edit a posted rate to erase a variance.

8. Fraud, approvals, and close

High-risk events include beneficiary change, urgent payment, manual bank match, cash transfer, new bank account, and payment release outside business hours. Each requires risk flag, supporting evidence, independent approval, and notification. The audit log records user, role, IP or session reference where available, old/new value, timestamp, and correlation ID.

Month end reconciles every bank account, outstanding payment, deposit in transit, unapplied receipt, bank fee, loan, interest, FX, payroll, tax, and cash forecast. Close gates require no unexplained bank difference above threshold and all manual matches approved.

KPI	Baseline	After OSERP discipline	Improvement
Bank reconciliation cycle	3 days	4 hours	94% faster
Payment exception rate	5.1%	0.9%	82% lower
Unknown cash items	AED 680k	AED 95k	86% lower
Beneficiary verification coverage	62%	100%	+38 points
Forecast variance	14%	5%	64% lower
Duplicate-payment attempts	17/qtr	0	Blocked

Practice challenge

Create multi-company bank accounts, import statements, build a cash forecast, propose and approve a supplier batch, fund payroll, draw a loan, settle an INR invoice from an AED account, revalue USD exposure, and close the bank reconciliation. Explain every field, approval, journal, FX result, source document, fraud rule, and exception drill-down.

Related: Multi-currency settlement, Accounting, Advanced GL Mapping, Month-end close, and API library.