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Virtual Accounts - Guide

Virtual accounts create a ledger of specific transaction activity which occurs in a physical account to calculate a corresponding balance.

James Stigler avatar
Written by James Stigler
Updated over a month ago

Overview

A Virtual Account is an account type that enables managing a ledger of activity which corresponds and updates a set balance.

An opening balance for the account is set for a specific start date. Transactions from physical account(s) can be selected using transaction activity (TQL) search. This activity will calculate a running balance to generate subsequent closing and opening ledger balances.
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When to use a Virtual Account

  • In-House Bank Account Balances - when one main account serves multiple entities, each requiring its own reporting

  • Lines of credit (LOCs) or other debt facilities paydown activity can be directly applied to the outstanding balance

  • Investment account balances that sweep from an operating account to an investment portfolio that does not have any reporting capability

Common Use Cases

Virtual Accounts are designed to help generate a sub-account/account ledger that relate specific transactions to an automated balance when direct bank data is unavailable, reducing manual effort.

1) In-House Bank Balance Reporting

2) Line of Credit Balance Reporting

3) Overnight Investment Balance Reporting

How to Create a Virtual Account

  1. Make sure you have the necessary permissions to create a Virtual Account.

  2. Go to the Balances page, click “New Account,” and select “Virtual Account.”

  3. The setup form will appear on the right side of the screen.

  4. Add your Virtual Account Info and select the start date for balance reporting. Then, input the initial Opening Balance.

  5. Configure a TQL statement that defines the transaction activity used to calculate your daily closing balance.

  6. Toggle Ledger Offset ON or OFF

    1. ON: Treats debits as positive values and credits as negative. (Recommended for tracking credit-based or investment accounts.)

  7. Finally, review your selections and click "Create Account".

Virtual Account Details

Click a virtual account to view

  • Balances (tab) - shows daily calculated balances

  • Transaction (tab) - shows underlying activity from source accounts (denoted above the table in blue)

    • NOTE: All transactions are sourced from other accounts in your instance.

Editing a Virtual Account

Click the pencil icon to access edit options.

Click "Edit Account Information" to update

  • The Opening Balance Amount

  • The Date

  • The TQL Statement

Keep in Mind: Editing either field will automatically recalculate all balances retroactively.

Audit Log

All changes to a Virtual Account are recorded in the Audit Log.

  • Click “View Audit Log” to review activity

  • Use the Download link in the top-right corner to export all audit records

Using Virtual Accounts in Other Areas of the Platform

  • Balances from Virtual Accounts are available across all key pages including Balances, Analysis, Forecasts, and Cash Positioning.

    • We've added a TQL property called "Trovata Account Type" that can be used in a balance report or analysis to include or exclude virtual accounts.

    • For example, to exclude virtual accounts you could leverage the following statement in the search bar: "Trovata Account Type IS NOT VIRTUAL"

  • Transactions from Virtual Accounts are only available:

    • At an account level on the Balances page

    • Within Statements. If a statement includes both a Virtual Account and a source account with overlapping activity, transactions may appear duplicated.

Entitlements for Virtual Accounts

  • Users with full account and resource permissions will automatically have access to Virtual Accounts.

  • Balances are only visible to users with access to the specific Virtual Account.

  • Since Virtual Account transactions originate from other accounts, users can only see activity they’re entitled to view.

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