Setting up ZBAs (Zero Balance Account)

The Zero Balancing Account function is a system of group cash centralization which enables the daily mutual balancing of two accounts from different subsidiaries through pivot accounts.

The process controls and limits overdrafts by transferring cash surpluses to the subsidiaries which need them. This type of management provides the group with substantial savings on bank charges and on the opportunity costs linked to cash surpluses.

To create a ZBA system, you need to set up the following elements:

To access cash flows, click Common Elements, and select Transaction Codes.

To access Transaction Codes and Flows, click Common Elements, select Transaction Codes, then Transactions.

A section recaps the basic elements defined during the input.

The details can be set up in the two tabs:

  • In the Identification tab, a category is assigned to the transaction code.

  • In the Flow Code tab, the flows generated from the transaction code are listed.

To access the creation page for Bank Import Terms, click Treasury, select Bank Import, then Import Bank Statement and finally Bank Import Terms.

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You can create as many flow codes as you need, to differentiate Sent Transfers from Received Transfers for instance.

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The setup for automatic Cash Pooling is optional. This area enables you to manage mirror accounts.

To access the Bank Structure wizard, click Treasury, select Bank Import, then Import Bank Statement and finally Bank File Structure.

The bank structure wizard consists of three steps:

  • Step 1: definition of line length, direction signs and decimal separator
  • Step 2: setup of the various elements of the flow structure
  • Step 3: retrieval of the data required for the ZBA system setup.

During this phase, the records that contain the descriptions must be defined, as well as the position and length of the selected banks.

To access the Bank Structure wizard, click Treasury, select Bank Import, then Import Bank Statement and finally Bank File Structure.

This enable's the definition of a unique bank description and the identification of the transactions originated from the ZBA system. This setup is crucial to the ZBAs performed by banks.

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The interco. pair is automatically displayed according to the company owning the selected bank account and to the interco. chart to which the bank account is linked.