Cash management system
In cash management systems is software for the acquisition, implementation and optimization of cash and payment flows in the cash handling and banking.
In a narrower sense, cash management systems are electronic information and disposition systems that commercial banks offer their corporate customers inexpensively for liquidity and currency risk planning via a web portal .
Scope of services
The scope of services ranges from simple applications for managing cash holdings to extensive applications that are based on the approaches of operational liquidity management in their range of services :
Cash pooling
The liquidity of different payment transaction accounts is balanced within the group on an actual or fictitious account.
Netting
With netting, internal company receivables and liabilities are offset against each other within a period in order to avoid actual payment transactions.
Money transfer
Combination of different payment types electronically, also in different currencies, which can minimize transaction costs.
Balance reporting
The constant monitoring of sales and account balances, taking into account the respective value dates and disposition balances of all accounts, if possible. Companies receive current information on their account balances via balance reporting; with some systems also about market interest rates, current stock exchange quotations or currency rates.
Networking and interfaces
Various interfaces enable hardware to be connected, use in ATMs and in-house collaboration with other ERP applications.
Using suitable modules, different cash management systems can exchange data with one another, for example with the central bank or the systems of money and value service providers .
literature
- Ulrich Ammelung / Christian Kaeser: Cash Management Systems in Corporations , in: DStR 2003, 655–660.
- Axel Jäger: Raising capital and liability risks in cash management systems of GmbH groups , in: DStR 2000, 1653–1658.
- Axel Jäger: Capital preservation and liability risks in cash management systems of GmbH groups , in: DStR 2000, 1736–1741.