What is Cash Positioning?
Cash Positioning is a set of daily calculations that are completed by a treasury team to project the holistic ending cash balance of the company and to proactively identify accounts that could contain excess/deficit cash opportunities.
This activity is fundamental to managing cash more effectively through overnight investing, loan repayments, and decreasing the risk of overdrawing an account.
Typically, a cash manager will prepare a cash position in the morning and revise the position in the afternoon if necessary.
Core Calculations
Current Cash Position = Total Target Balances + Projected Net Excess Cash
OR
Current Cash Position = Total Target Balances + Projected Net Deficit Cash
Summary Section
Provides a consolidated view of:
Current Cash Position, which is the sum of
Net Excess Cash (or Deficit, if negative) of all included accounts.
Total Target Balance of all included accounts.
Proportions of Net Excess Cash compared to Total Target Balance can be referenced in the donut chart.
Position Status indicates how many accounts are projected to be lower than the set target balance.
Column Breakdown
The data table in a cash position is unique because it marries current bank data with user-created assumptions and includes calculations that can change as additional transactions are recognized throughout the day.
All values in the table are reflected in the underlying account’s native currency so that user-created assumptions are not altered by currency conversions. Below, are the following columns that are available in an active “Current Day” Cash Position:
Opening BAL - Opening Balance for the given day.
Current TXN - A snapshot of transactions that have taken place so far.
Assumed TXN - Allows users to input transaction assumptions that are not represented in the previous column.
Expected BAL - Calculation that equals Opening BAL + Current TXN + Assumed TXN.
Target BAL - Allows user to input their target ending balance at a an account level. We recommend using this column as a “Safety Net” to decrease the risk of overdrawing an account.
Net - Calculation that equals Expected BAL - Target BAL.
Below, are the following columns that are made available after a Cash Position has officially closed for the day:
Actual TXN - Actual transactions on a given day.
Closing BAL - Actual closing balances on a given day.
Note: Net in a closed Cash Position version is calculated using Closing BAL instead of Expected BAL.
Add Daily Assumptions
Proactively account for future known cash activities by creating assumptions under the Assumed Transactions (TXN) column.
Click the plus sign
Add a Note, and input the transaction value. (- for debits)
~Optional~ “Save current assumption label” will roll the assumption note to the next period, if selected.
select “Include current values” to also roll the assumption value to the next period.
Make sure to click “Save a version” at the top of the screen after you’ve completed a round of assumption updates or other edits.
Reconcile Daily Assumptions
If a Current TXN is received later in the day that matches an assumption from an older version:
Click into the assumption
Zero out the assumption
Click the “Done” button
Account Options
Click the three dots on the far right side of an account row to see the Account Options:
Account Summary - Save daily notes at an account level and view your account fields vertically from Opening Balance to Closing Balance.
Account Settings - Individually edit the balance property for your Opening and Closing Balance columns.
Remove Account - Remove an account from the cash position.
Cash Position Options
Click the three dots in the top right corner of the cash position.
Compare a Version
Toggle a side by side view while adding current day assumptions to understand what has happened in the past.
Pro Tip: To save screen space while in compare mode, use the column config feature to only display columns you’re interested in.
Version History
Time-travel into the past to view any saved version which contains a snapshot of received current day activity and assumed transactions.
Settings
General allows you to change position settings like Name, Currency, Rounding, Weekend Preferences and Daily Close Time.
Daily Close Time represents when the current day position will be locked for edits. At this time, columns for Actual Transactions and Closing Balances will be made available in the “Closed” version.
Always displayed in local time
Defaults to 8:00pm in the timezone of the user who creates the cash position.
Actual Transactions and Closing Balances that have not been received will be retroactively reported.