Daily cash positioning capability is probably the most basic, yet key function offered by treasury management systems. Today, we will look at cash positions at a high level- the types of cash positions that can be created using our Cash Management Operations module.
CMO supports two types of cash positions, a preliminary cash position (PCP) and a final cash position (FCP). The key distinction between the two being that preliminary cash positions are created for a future date and hence created based on forecasted data while final cash positions are created for the current day and would include any unsuppressed forecasts, reconciled current day transactions (reconciled with matching forecasts either automatically or manually by the cash analyst) and any current day transactions that were not forecasted.
Screenshot below shows positions for 9/29- both the PCP that was created yesterday and the multiple final positions created today utilizing the current day data in USD for the enterprise (enterprise is a tag and is a topic for another day). The multiple final positions shown above are based on changes in available cash based on intra-day updates from banks.
Note that since we support near-real time positioning of cash, positions are created using current day data. Eventually, when we do receive the prior day files the next day, the system reconciles these with matching current day transactions as well. However, for daily cash positioning purposes we utilize current day data. Having said that, we do offer the ability to position on prior day data only- the catch being that your positions will be a day late.
In short, CMO allows for multiple users within the treasury to collaborate and create forecasted positions (PCP) as well as near-real time final positions (FCP) based on current day data that is automatically imported from the banks.