Centralisation of cash and optimisation of costs

A group can manage its financing internally, either through loans or borrowing, or by establishing a cash management agreement.

The Allmybanks software's intercompany management functions are based on two principles:

Loan and borrowing management

This enables internal term loans to be recorded, and provides an exhaustive picture of all loans and borrowing among all of the group's entities.

Current account management

Intercompany accounts are automatically maintained by treasury transactions carried out on the accounts belonging to the corresponding entities (balancing and cash pooling). You can also maintain them by importing data from other software or by entering additional transactions online. 

In Allmybanks, the intercompany management features allow users to:

  • Automate daily tasks

  

  • View intercompany positions in real time
  • Optimise liquidity

The intercompany management features of Allmybanks

Cash centralisation tools
The payment factory
Intercompany financing
  • Physical cash pooling
     
    • Bank cash pooling
      • Allmybanks allows every company to draw on the data derived from their bank's automatic cash pool. In order to detect treasury transactions that may affect the current account of each counterpart, the administrator defines the way in which an account statement can be read. So as soon as account statements have been received, the program records the corresponding transactions in the current accounts of each company (current account holder and counterpart).
         
    • Bank ZBA and assisted TBA
      • The treasurer defines the central account and participating accounts. For each account, the treasurer specifies the balance to be achieved (target: TBA). He/she can subsequently amend or cancel particular transfers and check the amount charged in the counterpart's current account. Following these checks, the treasurer validates execution of the balancing transfers and sends them to the bank. Each balancing transaction is automatically carried into the corresponding current accounts.
  • Notional cash pooling

Based on a cash management agreement and cross guarantees, the group can centralise cash and ask its bank to charge the banking costs via an amalgamation of banking charges. Allmybanks makes it possible to calculate the banking costs from the amalgamated charges.

Allmybanks allows you to centralise the payments for all or some of the companies in the group into the banks of your choice (Pay on Behalf).

For this purpose, Allmybanks offers you its Payment Factory module  

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In Allmybanks, the group can set up simple financing tools alongside the centralisation feature.

These tools allow you to monitor financing for the entire group and manage the needs of each subsidiary through funding modules available to them within the application.

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In Allmybanks, you can also access information on intercompany financing in the group treasury net situation reports.

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Setting up a cash management agreement

In the case of a cash management agreement with one of the group's entities, each company within the group may grant a mandate (cash management agreements) to another of the group's companies (the parent company) for this company to manage its treasury.

The parent company can therefore grant and receive advances. Funds will be made available via the current accounts.

 

In terms of organisation, intercompany management creates a system that avoids chaotic external financial transactions. In terms of economics, intercompany management is justified by the premise that a company within the group can finance a subsidiary or the parent company on more favourable terms than those offered by the banking market.