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Cash Concentration

Hello Experts

Need your help in understanding the required functionality.

At our company we sweep all customer cash collections from our subsidiaries into Cash Account at Holding company. Due to this all the bank main accounts in subsidiaries have a zero balance at the end of day. But there will be in transit checks, wire transfers due to timing difference. These are residing in clearing accounts.

Based on payments required by subsidiaries, we transfer the required cash to subsidiary accounts from holding company.

As I researched this requirement, I thought that Cash Concentration is the correct functionality for this process. But at the same time I thought of checking with you all regarding use of In-House Cash (IHC). I did not think that IHC is correct solution since we do not handle payments at holding company level. They are still decentralized at subsidiary companies.

Can you please suggest how the business process requirement can be fulfilled? Is Cash Concentration the right tool?

Appreciate if you can share your knowledge and experience.

Thanks

Satya

Former Member
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