Defining and Approving a Cash Sweep Structure

To perform a cash sweep, you must set up an active physical cash sweep structure as of a specified effective date. You can update this structure and change the effective date to keep track of any changes you make.

You set up a physical cash sweep structure across multiple external bank accounts. You identify an external bank account as the master bank account for this cash sweep structure and identify one or more sub-accounts. You can only select one master bank account for each physical cash sweep structure. However, you can select the same external bank account as the master bank account across multiple physical cash sweep structures. When you select a master bank and bank account for a cash sweep structure, the sweep currency and business unit used to set up the bank account display as default values for the cash sweep structure. You cannot change these values unless you select a different bank account.

The activity type that you select for a physical cash sweep structure determines how the funds are moved. Activity types are:

• Funding

  This activity type moves funds out of the master bank account to the selected sub bank accounts.

• Concentration

  This activity type moves funds out of selected sub bank accounts to the master bank account.

• Bidirectional

  This activity type moves funds into and out of the master bank account depending on the calculated transfer amount. If the cash position of the subaccount is negative, Cash Sweep assumes that here is a shortage of funds in the subaccount and moves funds from the master bank account to the subaccount. If the cash position of the subaccount is positive, Cash Sweep assumes that there is a surplus of funds and moves funds from the subaccount to the master bank account. Negative balances in subaccounts are Funded and positive balances in subaccounts are Concentrated.

  Example 1: When activity type is bidirectional and the sub bank account cash position is - 12, 000 USD, Cash Sweep understands that the funds need to be moved from the master bank account to the sub bank account.

  Example 2: When the activity type is bidirectional and the sub bank account cash position is + 12, 000 USD, Cash Sweep understands that the funds need to be moved from the sub bank account to the master bank account.

You identify either your organization or the bank as the initiator of the cash sweep. When an organization initiates the cash sweep the Auto Generate Transfers check box is enabled. You select this check box to enable the system to automatically generate the EFT requests and bank transfers when the Cash Sweep (TR_CSH_SWEEP) process is run. If you select an organization and do not select this check box, then you must access the Request Cash Sweep component and perform the transfers manually. However, frequently an organization does not want to initially generate the EFT requests and bank transfers automatically (deselect the check box) so that it can review the recommended transfer amount for each cash sweep structure and make any necessary changes. Once the organization is satisfied with the recommended transfer amount, it can select the Auto Generate Transfers check box and the system will automatically generate the EFT requests and bank transfers when the Cash Sweep process is run. The Auto Generate Transfers check box is not selected if a bank initiates the cash sweep.

When the bank is the initiator of the cash sweep, the bank moves the funds, but the system only stores the recommended transfer amounts without creating the actual EFT requests or bank transfers.

You select a market index and rate type to assist in identifying the exchange rate to apply to the cash sweep when cash sweep currency is different from cash position currency.

You can select cash sweep rounding options or choose not to round the physical cash sweep amounts. Rounding never breaks below the target balance defined on the external bank account definition.

You can select one of the following rounding options:

• Nearest

  Selecting this value increases or decrease the physical cash sweep amount to the closest multiple specified. For example, if the physical sweep/concentration amount of 1,234,567.87 USD is rounded to the nearest hundred, the amount will be calculated as 1,234,600.00 USD. However, if a physical sweep/concentration amount of 1,234,347.87 USD is rounded to the nearest hundred, the amount will be 1,234,300.00 USD.

• None

  Rounding is not be performed when you select this value.

• Round Down

  Selecting this value will decrease the physical cash sweep amount to the nearest multiple specified. For example, if the physical sweep/concentration amount of 1,234,567.87 USD rounded down to hundreds, the amount will be calculated as 1,234,500.00 USD.

• Round Up

  Round up increases the physical cash sweep amount to the nearest multiple specified. For example, if the physical cash sweep amount of 1,234,567.87 USD is rounded up to the nearest hundred, the amount will be calculated as 1,234,600.00 USD.

If you select Nearest, Round Down, or Round Up as a rounding option, you must select one of these rounding factors:

• Units (1)

• Tens (10)

• Hundreds (100)

• Thousands (1,000)

• Ten thousands (10,000)

• Hundred thousands (100,000)

• Millions (1,000,000)

• Ten Millions (10,000,000)

You select an active cash forecasting worksheet name and position currency for each cash sweep structure. The master bank account and any sub-accounts identified for each cash sweep structure must share the same cash position worksheet.

You can identify one or more external bank accounts as sub-accounts on a physical cash sweep structure. The system issues a warning message to alert the user that setting an external bank account as sub-account on multiple physical cash sweep structures could result in a sub-account that is overdrawn. Duplicate sub-accounts in the same cash sweep structure are not permitted. You also cannot identify the same external bank account as a master bank account and a sub-account in the same physical cash sweep structure. However, you can identify an external bank account as a sub-account in one physical cash sweep structure, and as a master bank account in another physical cash sweep structure. You can pool multiple sub-accounts for a cash sweep.

You can select EFT Transfer or Bank Transfer as the Transfer Class for each sub-account. Selecting either transfer class moves funds across bank accounts. However, if you select Organization as the Initiator on the Cash Sweep Structure page, you must select one of these values for each sub-account that you establish.

You can select a Funding or Concentration template to apply to each sub-account. These templates enable you to set up transactions in advance with parties with which you conduct regular, specific transactions. You select a Funding Template for each sub-account if you selected Funding or Bi-Directional as the activity type on the Cash Sweep Structure page. You select the Concentration Template if you selected Concentration or Bi-Directional as the activity type.

You specify the minimum amount and a maximum amount to transfer during the Cash Sweep process between a master bank account. A zero amount indicates that there is no minimum amount limit. Specific rules dictate how the minimum and maximum transfer amounts either do or do not affect the calculated amount that the cash sweep process generates:

• Minimum Transfer Amount

  The minimum amount to be transferred during a cash sweep process between Master Bank Account and Sub Bank Account. A zero amount indicates that there is no minimum amount limit.

  When the activity type is Funding and calculated transfer amount is less than the minimum transfer amount, cash sweep process sets the calculated transfer amount to the minimum transfer amount.

  When the activity type is Concentration and the calculated transfer amount is less than the minimum transfer amount, cash sweep process sets the calculated transfer amount to zero. There are not enough funds in the sub-account to meet the minimum transfer amount and still maintain its target balance, so no amount is set to transfer.

• Maximum Transfer Amount

  The maximum amount to be transferred during a cash sweep process between Master Bank Account and Sub Bank Account. A zero amount indicates that there is no maximum amount limit.

  The maximum transfer amount rule is the same for both Funding and Concentration activity types. During the cash sweep process if the calculated transfer amount is greater than the maximum transfer amount, then the calculated transfer amount is set to the maximum transfer amount.

You can select an Exclude check box on the Cash Sweep Structure page to temporarily prevent a sub-account row from being included in the Cash Sweep Process. Once you deselect the check box, the row is included the next time the Cash Sweep Process runs.

Once you have set up and saved a cash sweep structure, a designated approver must approve the cash sweep structure using the Cash Sweep Structure Approval component before running the Cash Sweep process. The status of a cash sweep structure can be pending, approved, or denied. If the approver either approves or denies approval of the cash sweep structure, you can modify the cash sweep structure without having to leave the Approve Cash Sweep Structure page . When you modify an approved or denied cash sweep structure and save it, the status of the cash sweep structure changes to pending until the designated approver approves or denies it again. If the structure is approved, it is ready for the Cash Sweep Calculations process to be run. When a designated approver approves or denies a cash sweep structure, the user ID of the approver and the date that the structure was approved or denied appears on the Approve Cash Sweep Structure page. An assigned user other than the user who entered the Cash Sweep Structure must approve all changes before you can run the Cash Sweep Calculations process.

See Setting Up Cash Forecasting.

Use the Cash Sweep Structure page (CSH_SWEEP_DEFN) to define the master bank account, currency, and cash position worksheet for a physical cash sweep.

Set up cash sweep sub-accounts.

Navigation:

Cash Management > Cash Sweep > Define Cash Sweep Structure > Cash Sweep Structure

This example illustrates the fields and controls on the Cash Sweep Structure page. You can find definitions for the fields and controls later on this page.

Audit Information

The system tracks and displays this information about a selected cash structure:

• Date Created

  Identifies when the cash sweep structure was created.

• Created By

  Identifies the user who created the cash sweep structure.

• Date Modified

  Identifies the last date that the cash sweep structure was modified.

• Modified By

  Identifies the last person who modified the cash sweep structure

• Date Approved

  Identifies the date that the cash sweep structure was approved.

• Approved By

  Identifies the user who approved the cash sweep structure.

• Approval Status

  Identifies the cash sweep structure as Pending, Approved, or Denied.

Cash Sweep Details – Subaccounts Information

Select the Cash Sweep Details – Sub Accounts tab.

Field or Control	Description
Bank SetID, Bank Code and Bank Account	Select a bank SetID, bank code, and bank account for each subaccount that you set up for this physical cash sweep structure.
Transfer Class	Select one of these values to transfer the physical cash sweep amount. EFT Transfer Bank Transfer Note: You must select one of these values if you selected Organization as the Initiator of the physical cash sweep on the Cash Sweep Definition page.
Funding Template	Select a funding template if you selected either Funding or Bi-Directional as the Activity Type on the Cash Sweep Definition page. If you selected Bank Transfer as the Transfer Class, the system only displays a list of external bank account funding transfer templates.
Concentration Template	Select a concentration template if you selected either Concentration or Bi-Directional as the Activity Type on the Cash Sweep Definition page. If you selected Bank Transfer as the Transfer Class, the system only displays a list of external bank account transfer templates. Important! You must select the funding and concentration templates that are set up for the purpose of performing a cash sweep and are appropriate for the cash sweep structure that is being defined, otherwise the system may generate incorrect transfers.
Exclude	Select this check box to exclude the sub-account row for which it is selected from being included in the cash sweep process.

Cash Sweep Details – Amount Information

Select the Cash Sweep Details – Amount tab.

Field or Control	Description
Minimum Transfer Amount	Enter the minimum amount to be transferred during a cash sweep process between the master bank account and a sub-account. A zero minimum amount indicates that there is no limit to the minimum transfer amount regardless of the activity type selected on the Cash Sweep Definition page. However if the calculated transfer amount is less than the minimum transfer amount, these rules apply: When the activity type is Funding and the calculated transfer amount is less than the minimum transfer amount, the Cash Sweep process sets the calculated transfer amount to the minimum transfer amount. When the activity type is Concentration and the calculated transfer amount is less than the minimum transfer amount, the Cash Sweep process sets the calculated transfer amount to zero. There are not enough funds in the sub-account to meet the minimum transfer amount and still maintain its target balance, so no amount is set to transfer.
Maximum Transfer Amount	Enter the maximum amount to be transferred during a cash sweep process between the master bank account and the subaccount. A zero amount indicates that there is no maximum amount limit. The maximum transfer amount rule is when you select either Funding or Concentration as the activity type on the Cash Sweep Definition page. When you run the Cash Sweep process, if the calculated transfer amount is greater than the maximum transfer amount, then the calculated transfer amount is set to the maximum transfer amount for both activity types.
Sweep Currency	The default currency that appears in this field is derived from the Master Bank Account.

Cash Sweep Details – Account Information

Select the Cash Sweep Details – Account Information tab.

This grid defines the bank account details for each sub-account including the Bank ID, the Bank Account # (bank account number) as well as the bank account's currency, associated business unit, and description.

Use the Approve Cash Sweep Structure page (CSH_SWEEP_APPR) to approve or deny selected cash sweep structures.

Navigation:

Cash Management > Cash Sweep > Approve Cash Sweep Structure > Approve Cash Sweep Structure

This example illustrates the fields and controls on the Approve Cash Sweep Structure page. You can find definitions for the fields and controls later on this page.

Search Criteria

Select values for the search criteria fields as needed. If you only select a SetID and leave all other fields blank, the system will list all of the Cash Sweep Structures that have a status of Pending, Approved, and Denied when you click the Search button. You can also select an approval status of Pending, Approved, or Denied and only cash sweep structures with the selected approval status appear on the list when you click the Search button.

Cash Sweep Structure

A list of cash sweep structures appears in the Cash Sweep Structure group box based on you selected search criteria. You can select all of the structures in the list or select individual structure check boxes and click the Approve or Deny button to approve or deny the selected cash sweep structures.

Field or Control	Description
Cash Sweep ID	Click the link of an individual cash sweep structure and access the actual cash sweep structure.
Approval Status	These values can appear in this field: Pending This value appears for a cash sweep structure that has never been approved or has been modified after approval or denial. Approved This value appears when an authorized approver clicks the Approved button on this page. Denied This value appears when an authorized approver clicks the Denied button on this page.
Approved By and Date Approved	Displays the User ID of the individual who approved or denied the cash sweep structure along with the date that the structure was approved or denied.