With LYNKS' cash concentration feature, you are able to automate payments within your accounts based on different liquidity management strategies, like cash pooling or account balancing.

Cash concentration overview

Cash concentration automations can be viewed from 3 different perspectives:

1. as a plain list, listing all automations set up,

   

2. as cash pools, with automations grouped by the master account which gathers the automatically transferred funds. Expand and collapse the cash pools to see all accounts sweeping cash to that the master account.

   

3. as an interactive map, where you get a comprehensive look of all your automated cash flows.

   

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In all of these views, the time of execution of the automation will be displayed in the user’s default time zone.

Cash concentration rules

Each rule is composed by a series of parameters, these being:

• a Source account: where the money is swept from, based on the rule’s criteria
• a Master account: where the money is being swept towards
• (optional) a Funding account: to back up funding source accounts when their account balance is below the desired level
• Target balance: ideal balance that the source account should maintain, to which it will be set after sweeping or funding.
• Upper threshold: balance of the source account over which you would like to sweep funds towards the master account
• Lower threshold: balance of the source account below which you would like to fund said account to re-establish it to its desired target balance.
• Frequency: at which the source account’s balance will be evaluated against the upper and lower threshold criteria.
• Start date, time and time zone: Date and time of start of the evaluation of the source account balance against the upper and lower threshold*

*the rule might be setup in a desired time zone, which will be respected for the evaluation of the criteria; however when displayed in the list, grouped or map views, they will show the user’s default time zone.

Cash concentration automation details

By clicking on an existing cash concentration rule, you will be able to access its details page. In a cash concentration rule detail page we can

• See who created the rule
• See what was the last amount swept towards the master account
• See the rule’s status
• See all past payments initiated by the rule, and their impact to the source account’s balance.
• See and download an action log of all previous actions, whether manual or automated actions are logged.

Cash concentration payments details

Payments in FX

Payments initiated by a cash concentration automation will be made in the currency of the source account. If the master account is in a different currency, exchange rate and fees are to be expected.

Payment charges

Charges of SEPA payments are shared by default, while non-SEPA charges are borne by the creditor:

1. If the transaction is SEPA-Compliant
   1. The charge bearer must be SHA or SLEV, regardless of the direction of the cash concentration transaction.
2. If the transaction is NOT SEPA-Compliant
   1. Sweeping Transaction (Credit from the Source Account):
      1. Charge bearer must be BEN or CRED.
   2. Funding the Source Account (Credit received from the Funding Account):
      1. Charge bearer must be OUR or DEBT.

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To start using our cash concentration feature, please reach out to our Customer Success and Delivery team

Creation of new cash concentration automation rule

The creation of cash concentration automation rules is covered in the dedicated HOW TO section:

• Cash concentration creation
• Cash concentration editing