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Background documentationKey Date-Related Cash Pooling

 

Key date-related cash pooling is a process in effective cash pooling where the balances of the participant accounts in a master contract are bundled on a particular key date on a main account. This enables the financial management of the company to create resultant liquidity or to clear liquidity deficits from corresponding day-to-day activities or forward transactions.

Key date-based cash pooling has the following scenarios:

In Deposits Management, the following cash pooling methods are available for key date-based cash pooling:

  • BVK (without taking into account future value dates)

    In the BVK method, the system ensures that the value date-based balances of the subaccounts are EUR 0.00 on a particular key day. It does not take into account any postings whose value dates are in the future.

    The system bundles postings for a subaccount until the key date, and then executes an aggregated posting on the main account during cash pooling on the key date. The balance of the main account might, therefore, not be EUR 0.00 after the cash pooling.

    Example Example

    Execution date: 2nd January, 2001

    Subaccount

    Posting

    Amount

    Posting date

    Value date

    Subject to Final Payment date

    Resulting transfer amount

    Amount

    Posting date

    Value date

    A

    1

    Credit 100

    01/01/2001

    01/01/2001

    01/01/2001

    1

    Debit 210

    01/02/2001

    01/02/2001

    A

    2

    Credit 110

    01/02/2001

    01/02/2001

    01/02/2001

    B

    3

    Credit 120

    01/02/2001

    01/02/2001

    01/02/2001

    2

    Debit 120

    01/02/2001

    01/02/2001

    B

    4

    Credit 130

    01/02/2001

    01/03/2001

    01/03/2001

    -

    -

    01/02/2001

    -

    C

    5

    Credit 140

    01/02/2001

    01/02/2001

    01/02/2001

    3

    Debit 290

    01/02/2001

    01/02/2001

    C

    6

    Credit 150

    01/02/2001

    01/02/2001

    01/03/2001

    Subaccount B: The SubFinPayt date 01/03/2001 is ignored in this case.

    End of the example.

  • BCK

    In the BCK method, the system ensures that the cleansed posting date-based balances of the subaccounts are EUR 0.00 on a particular date. "Cleansed posting date-based" means that the system does not include payments in the cash pooling if they have been flagged as being subject to final payment. These remain on the value date-based and posting date-based balances of the subaccounts.

    The system bundles postings for a subaccount until the key date, and then executes an aggregated posting on the main account during cash pooling on the key date.

    Example Example

    Execution date: 2nd January, 2001

    Subaccount

    Posting

    Amount

    Posting date

    Value date

    Subject to Final Payment date

    Resulting transfer amount

    Amount

    Posting date

    Value date

    A

    1

    Credit 100

    01/02/2001

    01/01/2001

    01/01/2001

    1

    Debit 210

    01/02/2001

    01/02/2001

    A

    2

    Credit 110

    01/02/2001

    01/02/2001

    01/02/2001

    B

    3

    Credit 120

    01/02/2001

    01/02/2001

    01/02/2001

    3

    Debit 120

    01/02/2001

    01/02/2001

    B

    4

    Credit 130

    01/02/2001

    01/03/2001

    01/03/2001

    -

    -

    01/02/2001

    -

    C

    5

    Credit 140

    01/02/2001

    01/02/2001

    01/02/2001

    4

    Debit 290

    01/02/2001

    01/02/2001

    C

    6

    Credit 150

    01/02/2001

    01/03/2001

    01/02/2001

    Subaccount B: The system does not transfer the amount of EUR 130 on 01/002/2001 because the SubFinPayt date is after the execution date. The system ignores the value date in this case.

    End of the example.

  • BBK

    In the BBK method, the system ensures that the posting date-based balances of the subaccounts is EUR 0.00 on the execution date. The system includes payments that have been flagged as being subject to final payment in the cash pooling.

    Example Example

    Execution date: 2nd January, 2001

    Subaccount

    Posting

    Amount

    Posting date

    Value date

    Subject to Final Payment date

    Resulting transfer amount

    Amount

    Posting date

    Value date

    A

    1

    Credit 100

    01/02/2001

    01/01/2001

    01/01/2001

    1

    Debit 210

    01/02/2001

    01/02/2001

    A

    2

    Credit 110

    01/02/2001

    01/02/2001

    01/02/2001

    B

    3

    Credit 120

    01/02/2001

    01/02/2001

    01/02/2001

    3

    Debit 120

    01/02/2001

    01/02/2001

    B

    4

    Credit 130

    01/02/2001

    01/03/2001

    01/03/2001

    -

    -

    01/02/2001

    -

    C

    5

    Credit 140

    01/02/2001

    01/02/2001

    01/02/2001

    3

    Debit 290

    01/02/2001

    01/02/2001

    C

    6

    Credit 150

    01/02/2001

    01/03/2001

    01/02/2001

    Subaccount B: The system includes the amount of EUR 130 in the transfer.

    End of the example.