Example of a Cash Concentration
Hierarchy 
The examples below serve to explain the functions of cash concentration.
1. Example
General process flow and result of the cash concentration run for a three-level master contract
The carryforward amounts for cash concentration are calculated as follows:
Submitting Account |
Recipient Account |
Carryforward Amount |
1101 |
1107 |
1000 EUR |
1100 |
1101 |
1000 EUR |
After cash concentration, the accounts show the following balances:
Account |
Balance |
Remarks |
1100 |
– 500 EUR |
|
1101 |
+ 2000 EUR |
= Minimum balance |
1107 |
+ 2000 EUR |
= Minimum balance |
1108 |
+ 1002 EUR |
> Minimum balance due to minimum transfer amount |
2. Example
The following example explains the different transfer rules. For purposes of simplicity, it is assumed that the hierarchy has only two levels with a target account (TA) and two subaccounts (SA1 and SA2).
The subaccounts are to be completed cleared by the cash concentration, or brought to a base amount of zero.
The following turnover tables show the flows taken by the accounts, and their relevant data.
Subaccount 1
Operation Number |
Posting Date |
Value Date |
Amount and Dr/Cr Indicator |
1 |
06/05 |
06/06 |
200 C |
2 |
06/05 |
06/06 |
400 D |
3 |
06/07 |
06/06 |
500 C |
4 |
06/07 |
06/07 |
800 C |
5 |
06/08 |
06/07 |
100 D |
6 |
06/08 |
06/09 |
300 D |
7 |
06/08 |
06/08 |
100 D |
8 |
06/08 |
06/08 |
400 C |
Subaccount 2
Operation Number |
Posting Date |
Value Date |
Amount and Dr/Cr Indicator |
1 |
06/05 |
06/07 |
300 C |
2 |
06/06 |
06/06 |
400 D |
3 |
06/06 |
06/07 |
200 D |
4 |
06/07 |
06/07 |
400 D |
5 |
06/07 |
06/08 |
600 C |
6 |
06/08 |
06/08 |
500 D |
7 |
06/08 |
06/09 |
200 C |
8 |
06/08 |
06/08 |
500 C |
This results in the following balances:
Account |
Posting Date/Value Date |
Posting date-based balance |
Value date-based balance |
SA1 |
06/05 |
200 D |
200 C |
SA1 |
06/06 |
200 D |
300 C |
SA1 |
06/07 |
1100 C |
1000 C |
SA1 |
06/08 |
1000 C |
1300 C |
SA1 |
06/09 |
1000 C |
1000 C |
SA2 |
06/05 |
300 C |
0 C |
SA2 |
06/06 |
300 D |
400 D |
SA2 |
06/07 |
100 D |
700 D |
SA2 |
06/08 |
100 C |
100 D |
SA2 |
06/09 |
100 C |
100 C |
The value date-based transaction figures for the contracts are as follows:
Account |
Value Date |
Value Date-Based Debit Balance per Day |
Value Date-Based Credit Balance per Day |
SA1 |
06/05 |
|
200 C |
SA1 |
06/06 |
400 D |
500 C |
SA1 |
06/07 |
100 D |
800 C |
SA1 |
06/08 |
100 D |
400 C |
SA1 |
06/09 |
300 D |
|
SA2 |
06/05 |
|
|
SA2 |
06/06 |
400 D |
|
SA2 |
06/07 |
600 D |
300 C |
SA2 |
06/08 |
500 D |
1100 C |
SA2 |
06/09 |
|
200 C |
Assuming that the last cash concentration run was on June 4, and that the date of the next cash concentration run for all the involved contracts is on June 8, the following transfer postings are made for each transfer rule in the cash concentration run on June 8:
Transfer rule 1: Key Date-Based: Value Date-Based Balance
Account |
Posting Date/Value Date |
Amount |
SA1 |
06/08 |
1300 D |
SA2 |
06/08 |
100 D |
SA (transfer postings from SA1) |
06/08 |
1300 C |
SA (transfer postings from SA2) |
06/08 |
100 C |
Transfer rule 2: Key Date-Based: Posting Date-Based Balance
Account |
Posting Date/Value Date |
Amount |
SA1 |
06/08 |
1000 D |
SA2 |
06/08 |
100 D |
SA (transfer postings from SA1) |
06/08 |
1000 C |
SA (transfer postings from SA2) |
06/08 |
100 C |
Transfer rule 3: Non-Key Date-Based: Value Date-Exact
|
Amount on Posting Date June 8, and Value Date: |
|||
Account |
06/05 |
06/06 |
06/07 |
06/08 |
SA1 |
200 D |
100 D |
700 D |
300 D |
SA2 |
|
400 C |
300 C |
600 D |
SA (transfer postings from SA1) |
200 C |
100 C |
700 C |
300 C |
SA (transfer postings from SA2) |
|
400 D |
300 D |
600 C |
Transfer rule 4: Non-Key Date-Based: Value Date-Exact – Differentiated By Posting Day, with set indicator Post Payment Items for Debit and Credit Separately
|
Amount on Posting Date June 8, and Value Date: |
|||
Account |
06/05 |
06/06 |
06/07 |
06/08 |
SA1 |
200 D |
500 D |
800 D |
400 D |
SA1 |
|
400 C |
100 C |
100 C |
SA2 |
|
|
300 D |
1100 D |
SA2 |
|
400 C |
600 C |
500 C |
Target account (transfer postings from SA1) |
|
400 D |
100 D |
100 D |
Target account (transfer postings from SA1) |
200 C |
500 C |
800 C |
400 C |
Target account (transfer postings from SA2) |
|
400 D |
600 D |
500 D |
Target account (transfer postings from SA2) |
|
|
300 C |
1100 C |
These transfer postings mean that the subaccounts in the hierarchy (SA1 and 2)have a zero balance on the key date (current posting date for end-of-day processing) or on the value dates (days on which the account has been cleared according to value date).
The flow balance is displayed in the table fields for the target account.
You are also provided with the turnovers for each value date, separated according to debit and credit for transfer rule 4 Non-Key Date-Based: Value Date-Exact, Differentiated According to Posting Day.
The following table displays the contract balances after cash concentration when the different transfer rules are used.
|
|
Date |
|||
Balances |
Account |
06/05 |
06/06 |
06/07 |
06/08 |
Value date-based balance |
SA1 |
200 C |
300 C |
1000 C |
0 C |
SA2 |
0 C |
400 D |
700 D |
0 C |
|
FUT |
0 C |
0 C |
0 C |
1400 C |
|
Posting date-based balance |
SA1 |
200 D |
200 D |
1100 C |
0 C |
SA2 |
300 C |
300 D |
100 D |
0 C |
|
FUT |
0 C |
0 C |
0 C |
1100 C |
|
Value date-exact |
SA1 |
0 C |
0 C |
0 C |
0 C |
SA2 |
0 C |
0 C |
0 C |
0 C |
|
FUT |
200 C |
300 D |
400 C |
900 C |
|
Value date-exact, differentiated by posting day |
SA1 |
0 C |
0 C |
0 C |
0 C |
SA2 |
0 C |
0 C |
0 C |
0 C |
|
FUT |
200 C |
300 D |
400 C |
900 C |
|