Management System for Obligations (MSO)

In process of expansion of scales of activity of the company and formation of a layered business design usual mechanisms of the organization of work of the enterprise become inefficient. They do not provide transparency and controllability of business, and methods of total control and approvals only slow down work of divisions. As a result financial and economic indicators upon strongly differ from the planned values, and attempt to centralize treasury or to enter limitation on money, contrary to expectations, do the financial mechanism bulky and slow.

Even if in the company budgeting, automated management of agreements are implemented and there is a payment schedule, it does not guarantee smooth operation of the general system and does not give the chance to quickly estimate and regulate solvency. The reason is that the companies do not manage emergence of the obligations. This control is not provided in a classical budgeting model therefore the budget of cash flow does not work effectively, especially in layered designs.

The corporate System of Management of Obligations (SMO) which is the establishing order step following after budgeting in finance of the large company (holding) is urged to solve a problem.