Run Balance Swaps – Foundant Technologies

Balance Swaps consist of system-suggested movements of money based on how a fund is defined and where its money is currently invested or held. For example, if a fund has $0.00 in checking but $50,000.00 in a primary investment account, the fund can still write a $1,000.00 check out of the checking account. Manage Cash will recognize that money going out needs to come from checking, and the system will suggest a cash management transfer to re-balance.

Balance swaps have no cash impact. The account transfer is the real-world transaction that moves money between accounts at the financial institution and will appear on the bank reconciliation.

Always run balance swaps in chronological order, going forward in time. Do not change the date to a past date and re-run swaps if swaps have already been processed for a later date. This will create duplicate or reversed swaps and affect average daily balance calculations. It is recommended that balance swaps be processed weekly, if not daily, to maintain an accurate and up-to-date record.

Navigate to the Cash Management page.
Click Balance Swaps in the left-side menu.
- Filters can be used to refine the list.
Check the boxes with a balance that needs to be swapped from one account to another.
Enter the Swap Date, and then click Swap Checked Balances.
- The Swap Date will be the date of the journal entry.
To initiate a real-world transfer and rebalance your assets, click transfer.
- Assuming all balance swaps are done, and Cash Management configuration is correct, the Cash Management screen shows your current cash position and the amount by which that position is out of alignment with your current fund balances, based on the Investment Strategies and recent transactions.
- Balance Column - Reflects the balance held in the Z_Cash Balancing fund. This is the balance that will be due to another account if it's a positive, or from another account if it is a negative.
- Open Transfers Column - Reflects any open account transfers. The account receiving the transfer will have a positive balance, and the account initiating the transfer will have a negative (0.00) number displayed.
- Total Balance Column - Reflects the total general ledger balance of that account as of today. This includes all the funds, including the Z_Cash Balancing fund. Shows how far out of alignment your funds are.
- Last Reconcile Column - Reflects the balance of the account at the time of the last reconcile.
- Rev Share (Revenue Share) Column - Indicates whether or not an account is a revenue share account.

The Cash Balance Fund - Transfer Cash Balance Fund Assets section of Account Transfers provides more details on completing the transfer details.

Why are balance swaps not running as expected?

If balance swaps are not running as expected or accounts and funds are not appearing in balance swaps, confirm that the following items:

Is Manage Cash enabled on the account?
The Z_Cash Balancing fund can only interact with bank or investment accounts that have Manage Cash enabled in the accounts settings. Confirm that Manage Cash has been enabled on accounts that will participate in balance swaps.

Is Manage Cash enabled on the fund?
Manage Cash must be enabled in the Cash Management section of a fund's settings for the fund to use investment strategies and cash management.

Does the fund have an investment strategy assigned?
A fund must have an investment strategy assigned to control where the fund's money should live.

Does the investment strategy have accounts attached?
Confirm that accounts were added to the investment strategy after it was created and assigned to a fund. The investment strategy can point to a single investment account, multiple investment accounts, or a checking account, depending on your organization's needs.

Cash Management Setup provides additional details.