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Administrator Guide
Last Updated: 2023-06-23
Setup Considerations: Cash Positioning

Setup Considerations: Cash Positioning

You can use this topic to help make decisions when planning your configuration and use of cash positioning. 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

In Workday, you can generate cash position reports to assess and manage your daily inflows, outflows, and bank account balances from bank statements and external cash flows.

Business Benefits

Cash positioning enables you to:
  • Track your cash balances and bank account transactions on specific dates.
  • Make informed decisions on moving funds across multiple bank accounts.
  • Make more accurate cash projections for the near term.
  • Analyze cash flow trends to understand how well your organization is managing cash.

Use Cases

You can use cash positioning to:
  • Compare your current day cash position with pending liabilities to minimize overdrafts.
  • Make efficient investment and borrowing decisions based on a surplus or shortfall of bank balances.
  • Maximize interest income by concentrating funds into a specific account.
  • Prepare for projecting the next opening available bank balances with float.

Questions to Consider

Question
Considerations
Do you need to create cash activity category worktags for cash position reporting?
You use cash activity category worktags to establish the cash position reporting structure. When you map cash activity category worktags to bank statement lines, you group your daily cash receipts and payments into logical categories for more granular level reporting.
Example: You can group all of your electronic payments associated to different bank statement type codes under the
EFT Payments
 cash activity category.
When you don’t use the worktags, Workday displays all cash activities under the
Other Inflows and Other Outflows
 column on the reports.
How can you view your prior day and intraday cash positions?
Workday provides these types of reports:
  • Prior day reports for viewing the actual closing balance and cash activities as of the end of the previous day. These reports are based on your prior day bank statements.
  • Intraday reports for viewing your daily cash positions with the opening balance and most recent cash activities, such as pending items that aren't yet cleared. These reports are based on your intraday bank statements.
How can you view concentration bank accounts and zero balance accounts (ZBA) on a consolidated cash position report?
You can define the relationship between the concentration and ZBA accounts using cash pools. Cash pools enable you to define the master and subaccount cash activities in a single logical grouping. You can filter by cash pool in cash position reports.
How do you compare a cash position with a cash forecast?
Create and generate a cash forecast to compare with your actual cash flows. When you define the cash forecast outline structure, you can map cash activity worktags to the outline rows. Then, you can run the
Cash Forecast to Actuals in Reporting Currency
 report to view the cash position values compared with cash forecasts.

Recommendations

  • Define cash activity worktags to the level of detail that you want in your cash position reports. You can choose how to organize your inflows and outflows into logical groups using the worktags. Then, assign the cash activity worktags to type codes on bank statement lines using bank statement worktag mappings. Workday groups your daily cash activities on the reports based on the bank statement worktag definitions.
  • You can record external cash activities to include in your intraday cash positions. External cash activities originate outside of Workday and aren't included on your intraday bank statements. Examples include investment payments from third-party systems or recurring cash activities such as rent payments. When you generate cash position reports, they display your daily cash position based on the external cash activities and bank account balances.
  • Consolidate related bank accounts into a cash pool. You can group multiple subaccounts across companies, financial institutions, and currencies into a single account to evaluate funding needs based on a collective bank account balance. You can filter the cash position reports by cash pool.
  • Use the advanced reporting capabilities in Worksheets to create a cash position. You can link your custom cash position reports as live data in a worksheet. To create cash position reports with the most current information, you can use the automatic scheduling feature in Worksheets to schedule regular updates.

Requirements

Upload or manually record prior day or intraday bank statements in these formats:
  • BAI2.
  • BTRS.
  • ISO 20022.
  • MT940/942.
  • Custom formats such as comma separated value (CSV).

Limitations

You can't use quick entry bank statements for cash position reporting since they don't contain type codes and cash activity category worktags. You can only use them for bank account reconciliations.

Tenant Setup

No impact.

Security

Domain
Considerations
Process: Cash Forecast Reporting
 in the Cash Management functional area
Users can:
  • Record external cash activities to include in intraday cash positions.
  • Create cash activity groups for recurring external cash activities.
Report Execution
Users can view the cash position standard and custom reports.
Process: Bank Statement - Reporting
 in the Banking and Settlement functional area
Users can create a custom report using the
Bank Statement Lines
 report data source to view all bank statement lines by bank account.
Reports: Cash Forecast Reporting
 in the Cash Management functional area
Users can compare forecasted cash activities with actual cash positions in the
Cash Forecast to Actuals in Reporting Currency
 report.
Users can also build custom reports using report data sources and filters.

Business Processes

Business Process
Considerations
Bank Statement Event
Configure to route prior day bank statements for approvals.
Intraday Bank Statement Event
Configure to route intraday bank statements for approvals.

Reporting

Report or Dashboard
Considerations
Cash Management dashboard
These worklets provide insights into your prior day and intraday cash positions:
  • Intraday Balance by Bank Account
  • Intraday Balance Summary
  • Prior Day Balance by Bank Account
  • Prior Day Balance Summary
  • Prior Day Ending Balance by Bank Account
  • Prior Day Ending Balance Summary
  • Prior Day Statements by Date
Intraday Cash Position in Bank Account Currency
 report
View current day cash receipts and payments in the bank account currency using intraday bank statements and external cash activities.
Intraday Cash Position in Reporting Currency
 report
View current day cash receipts and payments in a single reporting currency using intraday bank statements and external cash activities.
Prior Day Cash Position in Bank Account Currency
 report
View prior day cash receipts and payments in bank account currency using prior day bank statements.
Prior Day Cash Position in Bank Account Currency (Using Beginning Balance)
 report
View prior day cash receipts and payments in bank account currency using prior day bank statements. The cash position is based on bank statement ending balances.
Prior Day Cash Position in Reporting Currency
 report
View prior day cash receipts and payments in a single reporting currency using prior day bank statements.
Prior Day Cash Position in Reporting Currency (Using Beginning Balance)
 report
View prior day cash receipts and payments in a single reporting currency using prior day bank statements. The cash position is based on bank statement ending balances.
We suggest using these report data sources and filter to build custom reports:
Report Data Source or Filter
Considerations
Bank Statement Balance(All)
 data source
Displays the cash balances at the bank account level. It prompts you for the financial institution, currency, bank account, company, and starting and ending bank statement dates to filter the results.
Bank Statement Lines
 data source
Displays the prior day cash inflows and outflows. It prompts you for the bank accounts, bank statements, and start and end dates to filter the results.
Intraday Bank Statement Lines
 data source
Displays the intraday cash inflows and outflows. It prompts you for the bank account, and starting and ending bank statement line dates to filter the results.
Prior Day Carry Forward Bank Account Balances for Weekends and Holidays
 data source filter
Use this filter to carry forward ending balances from the last bank statements to opening balances for weekends or holidays. It enables your cash position report to reflect more accurate account balance totals for that period.
Example: A cash position report displays opening balances as 0.00 on country-specific holidays for several of your bank accounts. This zero balance resulted from unavailable bank statements on the holidays.

Integrations

Web Service
Considerations
Import Bank Statement
Mass imports prior day bank statements with cash balances and cash inflows and outflows to use for prior day cash positions.
Import Intraday Bank Statement
Mass imports intraday bank statements with cash balances and cash inflows and outflows to use for intraday cash positions.
Put Cash Activity Category
Loads cash activity categories into Workday to use for categorizing cash inflows and outflows on prior day and intraday cash positions.

Connections and Touchpoints

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.