Cash Management provides system-suggested movements of money based on where a fund's money is currently held in relation to where a fund's investment strategy says it should be. It is recommended that cash management be done at least once a month before the revenue share calculation. However, it is recommended that cash balance swaps are made weekly, if not daily, to make sure the funds have the most up-to-date investment balances.
Cash management transfers involve two main components:
-
Manage Cash - An account and fund level setting that must be enabled for each fund and account that participates in balance swap.
- Any funds that you want to participate in the balance swap must have this setting enabled. The system uses the Z_Cash_Balance fund as a holding fund in the balance swap process.
- Any bank and investment accounts that will participate in cash management and balance swaps must have this setting enabled.
- Investment Strategies - The defined accounts where a fund's money should live in the real-world. Each fund that participates in balance swaps must have an investment strategy assigned.
Set Up Cash Management
Cash management is the system's functionality that recommends the movement of money based on investment strategies and other cash management setup items on funds and accounts. Money movement or rebalancing is handled through the Cash Balancing Fund, which is a system default fund that nets to zero (0) total assets. Investment strategies are used to assign investment accounts to funds.
- Resource:
Review and Process Balance Swaps
At the end of each week, it is recommended to review and process balance swaps. This is often referred to as a paper movement of money.
- Resource:
Transfer Money
Once the real-world transfer of money with the bank is initiated, simultaneously transfer the money in your system. This must be done at the time in which the actual real-world transfer with your bank is made. A bulk transfer option is available.
- Resource:
Cash Management Calculations
This article has an example that shows how the cash management calculations are made in the system.
- Resource:
Cash Management Video
This video provides an overview of cash management in CommunitySuite, covering how to review and complete fund level balance swaps and review the impact of balance swaps on the cash management fund.
- Navigating to Cash Management (:27) - Navigate to the Accounts area and then to Cash Management from the CommunitySuite Home page.
- Reviewing Suggested Balance Swaps (:48) - Review suggested balance swaps and understand why the system recommends moving funds between accounts.
- Accepting Balance Swaps (1:28) - Accept individual balance swaps and review the updated cash balancing fund totals.
- Processing Multiple Balance Swaps (2:52) - Work through multiple fund balance swaps, including funds with negative checking account balances.
- Reviewing Cash Balancing Fund Totals (6:06) - Review updated totals after completing all balance swaps and identify remaining physical transfers needed.
- Transferring Funds Between Accounts (6:33) - Complete a physical transfer between investment and checking accounts using the transfer screen.
- Confirming Final Balances (7:32) - Confirm the investment pool subtotal and determine whether remaining balances require a physical transfer.