Setup Considerations: Banking Cash Pools
You can use this topic to help make decisions when planning your configuration and use of banking cash pools. It explains:
- Why to set it up.
- How it fits into the rest of Workday.
- Downstream impacts and cross-product interactions.
- Security requirements and business process configurations.
- Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.
What It Is
You can create a cash pool to consolidate bank balances on different accounts in a single structure. This enables you to analyze the balances and optimize the interest paid and received on a pooled account to improve global liquidity management.
Business Benefits
Cash pools enable you to:
- Maintain master and subaccount relationships within Workday instead of external spreadsheets.
- Track bank account balances and activity in cash position and balance reports by cash pool.
- Evaluate when to transfer funds across bank accounts in a banking network based on the collective cash pool balance.
- Maintain optimal balances in master and subaccounts to maximize interest income and reduce bank fees.
Use Cases
You can use cash pools to:
- Group multiple subaccounts across companies, financial institutions, and currencies into a master account to simplify your reporting.
- Translate subaccount currencies into a single master bank account currency to display on cash position reports.
- View your daily cash position, bank account target balances, and surplus and deficit amounts within a cash position report filtered by cash pool.
- Initiate fund transfers across subaccounts based on current day and prior day cash pool balances.
Questions to Consider
Question | Considerations |
|---|---|
How does Workday report multicurrency subaccount balances with the master bank account currency? | Workday uses the currency rate type you select in the cash pool balance summary reports to translate all account currencies to the reporting currency. You can view the cash pool net balance and subaccount balances in a single currency. |
How do you move funds across subaccounts in a cash pool? | You can create bank account transfers for settlement to move funds across subaccounts within the same or different cash pools. You can transfer and settle the funds using the EFT or wire payment type.
Once Workday settles the transferred amounts, the Intraday Cash Pool Balance Summary report reflects the new account balances using the updated intraday bank statement. |
Recommendations
- If you manage a large number of bank accounts, consider grouping them into cash pools by payment category or type. Example: A cash pool for payroll payments, and separate pools for supplier invoice payments and check payments. You can then track the account balances and transactions by their pooled accounts.
- To maintain a hierarchical structure across multiple cash pools, you can define a selected bank account as a master account in 1 cash pool and a subaccount in another cash pool. Example: A subaccount in a global pool as a master account in a regional pool.
- You can use cash pool report fields in custom reports to track bank account balances, bank account transfers, and cash forecasting.
Requirements
To transfer funds across bank accounts for multiple companies, set up an intercompany profile for multicompany cash pools using the
Edit Company Intercompany Profile
task.Limitations
A cash sweep solution for cash pools isn't currently available. You can use cash pool and cash position reports to determine where to manually transfer funds using a bank account transfer for settlement.
Tenant Setup
No impact.
Security
Domain | Considerations |
|---|---|
Set Up: Cash Pool in the Cash Management functional area | Enables users to create, view, and edit cash pools and custom cash pool reports. Users can also use the Find Cash Pools report and access all of its related actions. |
Reports: Cash Forecast Reporting in the Cash Management functional area | Enables users to view the cash pool standard and custom reports. |
Set Up: Company Accounting in the Common Financial Management functional area | Users secured to this domain can create an intercompany profile to transfer funds across bank accounts for different companies. |
Business Processes
No impact.
Reporting
Report or Dashboard | Considerations |
|---|---|
Find Cash Pool report | Enables you to search for and view the cash pools for your organization.
You can select these related actions on a cash pool:
|
Intraday Cash Pool Balance Summary report | Displays the current day balances in reporting currency by cash pool using your intraday bank statements. The report displays the balances for the master account and each subaccount. |
Prior Day Cash Pool Balance Summary report | Displays the prior day balances in reporting currency by cash pool using your prior day bank statements. The report displays the balances for the master account and each subaccount. |
Intraday and Prior Day Cash Position reports | You can use cash position reports to view your cash receipts and payments using intraday or prior day bank statements and external cash activities. You can filter the bank accounts by cash pool.
The reports help identify where you need to transfer cash based on surplus or deficit amounts and the target balance and closing balance of the accounts. |
We provide these business objects that you can use to build custom reports:
- Cash Pool
- Cash Pool Type
We provide the
Cash Pool
report data source that you can use in custom reports. This data source returns 1 row per cash pool. It prompts you for the bank account, subaccount, cash pool, and account currency to filter the report results.Integrations
- Workday provides these web services that you can use to import and export cash pool data:
- Get Cash Pools
- Put Cash Pool
- To make bank account transfer payments, set up bank integrations to generate the payment files for settlement processing and delivery to your banks. You can assign an integration system to each electronic payment type for the bank accounts you plan to use for settlement processing.
Connections and Touchpoints
You add bank account transfer payments to manual or automatic settlement runs. When the transfer payments settle, Workday moves the funds between the bank accounts and generates the associated accounting entries.
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.