Defining Cash Positions

This chapter provides an overview of trees and cash positions, and discusses how to:

• Set up trees and positions.

• Manage position worksheets.

• Manually create position worksheets.

• Create Cash Management position reports.

Understanding Trees and Positions

PeopleSoft provides a tool for managing your treasury organization’s positions. Using PeopleSoft Tree Manager, define hierarchical structures that describe the specific information that’s important for your organization. You can use these trees for risk analysis, cash management, position management, deal validation, limit analysis, and any other functions that you deem applicable.

Position trees are used in Treasury Management for many purposes, including:

• Cash position analysis

• Deal validation

• Limit checking

In Treasury Management, a position is the total financial value of a particular set of transactions that are performed on behalf of an enterprise. A cash position analyzes cash flows to determine the amount of cash that is available at a particular time.

Think of a position as a way of categorizing the entire PeopleSoft enterprise transaction database into subgroups, or sources, with totals. Using Tree Manager and PeopleSoft online pages, depict the hierarchy for a position (using tree nodes), specify the data sources to include, and define which fields to sum to provide the total for a particular position.

See Also

Managing Position Limits

Common Elements Used in This Chapter

Setting Up Trees and Positions

To define tree and position information, use the following components:

• Define Time Span component (POS_TIME_SPAN_PNL_GBL).

• Position Field Type component (POS_FIELD_TYPE_PNL_GBL).

• Position Source Definition component (POS_SOURCE_TBL_GBL).

• Create Position SQL component (POS_CREATE_SQL_GBL ).

• Manual Position Entry (POS_GENERIC_ENTRY_GBL).

Use the TR_POS_TIME_SPAN_GBL component interface to load data into the Time Span tables.

Use the TR_POS_CREATE_SQL_GBL component interface to load data into the Create Position SQL tables.

Use the POS_GENERIC_ENTRY_GBL component interface to load data into the Manual Position Entry tables.

Note. Addition integration-setup information is available for creating cash position worksheets from data imported from PeopleSoft EnterpriseOne General Accounting.

See PeopleSoft EnterpriseOne 8.11 SP1 Application Integrations with PeopleSoft Enterprise Applications, “Setting Up the Cash Position Worksheet Integration.”

Here’s the steps to set up trees and positions:

1. Define position field types.

2. Define position source.

3. Create a position tree.

4. Complete the position bin pages. (Four or five position bin pages, depending on tree.)

   • Enter position tree source information.

   • Specify tree wide options.

   • Define tree nodes.

   • Define node properties.

   • (Optional) Define node property SQL selection criteria.

   • Define position limits.

5. Create position SQL.

6. Schedule position tree SQL.

7. Define time buckets.

8. Schedule position time spans.

PeopleSoft Tree Definition

The position management tool enables you to calculate positions based on enterprise-wide data. PeopleSoft delivers sample position fields and sources in the sample database; however, we provide pages where you can define the data that you want to track within the position analysis. Typically, you implement page-level security to limit access to these pages to the appropriate people within your organization. Two pages control the database fields that are available to position management: Position Field Types and Position Field Source.

There are five pages in the Position Bins component used to define a tree. The purpose of the tree determines which position bin pages you need to complete—you don’t necessarily need to complete every page in the component. One of these pages, Position Limits, applies only to Treasury Management position trees. If you’re working with a cash position tree, this page doesn’t appear.

You need to set up your position sources and alias names before creating a position tree. After you have created the tree, you generate the SQL and define time sets and cash position worksheets. This graphic illustrates the set up process:

Setting up trees for Treasury Management

Each tree node corresponds to one or many position sources. Because you can define an unlimited number of position trees, you can analyze your data in as many ways as you see fit. For Treasury Management position trees, you can also associate limits with a node.

When analyzing positions, use time spans to define the periods for which to view the data. This adds another dimension, time, to your positions. The system stores the position records, and you can use them for historical analysis and to forecast future positions.

Effective Dating of Treasury Trees

Cash Management Cash Position functionality does not support trees defined with multiple effective dates. In Cash Management, each tree may only have one effective date. To use the same tree with different (multiple) effective dates, you must copy the tree, save it with a unique name, and specify an effective date. For example, to define the TR_CASH_POSITION tree with three effective dates (January 1, 2000; January 1, 2001; and January 1, 2002), you need to create the following three trees:

See Also

Enterprise PeopleTools 8.46 PeopleBook: PeopleSoft Tree Manager

Common Elements in this Section

Pages Used to Set Up Trees and Positions

Defining Position Field Types

Access the Position Field Types page.

Prompting Method

Select a Prompt option to indicate how to control prompting for values for this alias.

Define Meta Text

In the Treasury Management sample database, %THIS DEAL is an example of a meta field. The table below lists the alias names that are delivered with the sample database:

Defining Position Sources

Access the Position Source page.

PeopleSoft includes sample position sources in the sample database, including the ENTERPRISEONE -AP and ENTERPRISEONE -AR used for integrating with the EnterpriseOne database.

Note. At the time of installation, you should evaluate the appropriateness of the delivered data to your business context and assess whether to create your own position sources. In many cases, you must create your own.

Position Source Mappings

Note. To improve performance when calculating the CPW, high volume transaction tables should be reorganized at the database level. For example, for the PS_ITEM table, modify the PS0ITEM index by adding the DUE_DT field to the end of the index with the dates arranged in ascending order.

Custom indexes can be added depending on the size of the table and the complexity of the data used in the trees.

Entering Position Tree Source Information

Access the Position Tree Source page.

Position Source Set	Define the source for the tree (for example, CASH or DEAL). Select the check box to set this as the default source set. For a deal tree, you can specify this position source set as a deal test.
Position Source ID	The value that you select determines the display of the Amount Fields grid. Complete all of the fields.

Specifying Tree-Wide Options

Access the Tree Wide Options page.

Market Rate Index and Rate Type

When the currency of the amount used for determining a position is not the same currency that you define as the node currency, use these fields to revalue the amount.

You must establish market rates for each currency pair that you revalue from the source position’s currency to the node position’s currency, or the system excludes the data. For example, suppose that you have various sources of data where the currency is USD, GBP, DEM, JPY, and the position currency for the node is set to USD, you define the following exchange rates:

Note. When an exchange rate is entered from its own currency to its own currency, you must set the rate to 1.

Tree Options

Note. For deal validation using the Deal Test button, a tree must include %THIS DEAL in its root node selection criteria.

Defining Tree Nodes

Access the Node Definition page.

Node Mode

Your use of this option depends on the purpose of the node. For example, suppose that you’re setting up a tree to track currency exposure, you may want to track exposure for only four or five main currencies. In that case, you would set the parent node to Non-recursive, because you don’t intend to include all possible foreign exchange (FX) deals in the child nodes, and you want the parent node to provide total exposure for all currencies. On the other hand, if you want the parent node to provide total exposure for only the currencies selected in the child nodes, then you would set the parent node to Recursive. During position analysis, if your tree hierarchy contains parent nodes that are nonrecursive, and the children beneath that node don’t specifically select all the data, the remaining amounts will be incorporated into another node, so that the sum total of the child nodes equals that of the parent. Recursive: If a node is recursive, its total is determined by summing the totals of all the child nodes beneath it. Non-recursive: If a node is nonrecursive, its total is determined by summing the amounts for those transactions that meet the selection criteria for that node, independent of any child nodes that may exist beneath it.

Position Currency

Each node can report amounts in a different currency. Use to select the currency on which to base this node’s amounts. Any amounts that aren’t in this currency will be revalued to this currency, using the market rate settings that you made on the Tree Wide Options page.

Note. End nodes, or leaves, of a tree must always be set to Non-recursive, and nonrecursive nodes must have selection criteria defined for each position source they use.

Defining Node Properties

Access the Node Properties page.

Use this Source	Clear the check box to prevent use of a position source ID.
Selection Criteria	Click to view the Selection Criteria page for the selected position source ID, or click View All Selection Criteria to view all selection criteria information.

Defining Node Properties SQL Selection Criteria for Position Source Sets

Access the Node Properties - All Selection Criteria page.

After you create SQL statements with selection criteria for position source IDs, use the Create Position SQL page to process the SQL statements for the tree.

See Also

Creating Position SQL

Defining Position Limits

Access the Position Limits page.

Position Type	Select from the following options: Long Limit Only: Select this option if you want notification in conditions where you have a long position. Specify values in the Min (minimum), Max (maximum), and Long fields. Short and Long Limit: Select this option if you want notification in conditions where you have either a short or a long position. Specify values in the Max Short and Max Long fields. Short Limit Only: Select this option if you want notification in conditions where you have a short position. Specify values in the Min Short and Max Short fields.
Internal/External	Indicate whether the limit is determined by an Internal source or is imposed from an External source, such as a counterparty.
Currency	Enter the long and short limit amounts for the defined currency.

Limit Check

Use the Limit Check grid to indicate when these position limits are checked. You can select both Pre-Defined and Deal Entry.

Limit Warning Notification

See Also

Defining Instrument Types and Instrument Templates

Managing Position Limits

Creating Position SQL

Access the Create Position SQL page.

Scheduling Position Tree SQL

Access the Schedule Position Tree SQL page.

Bind Variable Name

In the Parameters grid is an Application Engine run control function that enables you to specify the variable for which you are setting the value. Select the bind variable name of tree name, and enter the specific tree name to be calculated in the Value field. You can add records and specify as many bind variable names as are pertinent to the job.

Defining Time Buckets

Access the Define Time Buckets page.

Number	Indicates which sequential time segment you’re modifying.
Start	Select a start type to indicate how the system determines when a time segment starts. Values are: Defined by Period above: Starts the current time segment when the prior time segment ends. You can’t select this option for the first segment. Specific Date: Starts the current time segment on a specific date. When you select this option, enter the date in Start Date. Specific Period: Starts the current time segment on the first day of a specified period. When you select this option, select the calendar on which to base the period start. Today: Start the current time segment today. Select this value when you want the time span to be based on a current date. Every time the system calculates the time span, this is updated with the current date.
Cycle	Select a cycle Type to indicate the repetition frequency of a time segment: Relative: Cycles the time segment a relative number of times. When you select this value, enter the number of times it repeats, and then enter the frequency of repetition in the Relative field. You can repeat this a number of days, months or years. For example, suppose that you want this time segment to repeat daily for five days, enter 5 in the Number field, and select Days in the Relative field. Use Period Definitions: Cycles the time segment based on the period definitions from a business calendar. When you select this value, select the calendar on which to base this in frequency. For example, suppose that you want this time segment to cycle by quarters, select a defined quarterly calendar in frequency.
End	Use to control when a time segment ends. After completing the appropriate number of cycles, the following values are available to control the segment’s end: End of Next Cycle: Completes the time segment at the end of the next cycle. Select the calendar to use to determine the ending. End of Period: Completes the time segment when the period defined by the selected calendar ends. Select the calendar to use to determine the ending period. End of Previous Cycle: Completes the time segment when the prior cycle ends. Select the calendar to use to determine the ending period. Number of Periods: Completes the time segment after repeating the cycle a given number of periods. Enter the number of times the period should cycle.
Calculate	Click to generate the time span intervals. Your results appear in the Resulting Time Periods group box.

Calculate Position Time Spans

Access the Calculate Position Time Spans page.

Bind Variable Name

The Parameters grid contains an application engine run control function that enables you to specify the variable for which you are setting the value. Select the bind variable name of Time Set, and enter the specific time span to be calculated in the Value field. You can add records and specify as many bind variable names as are pertinent to the job.

Managing Position Worksheets

To define position forecasting rules, use the Position Forecasting Rules component (POS_FORECAST_RULES_GBL).

Once you have created your position trees, use the Position Manager to generate the worksheet and manipulate the cash position data.

The Position Manager is based on trees that use the TR_CASH_POSITIONS structure. Trees provide a hierarchical structure and enable you to generate numbers that are not automatically captured. Many options are available for generating your worksheet; for example, you can:

• Forecast your position over a period of time or evaluate it for just one day.

• Base your position on a prior worksheet, adjusting the amounts by a specified factor, to estimate future cash positions.

• Calculate the position for an entire tree or for just a particular node of a tree.

• Step through the tree nodes that compose the worksheet, zooming into the detail transactions.

You can copy worksheets to compare actual totals with projected amounts.

Note. For each tree, only one worksheet can be stored for each calculation date. If you recalculate (using the same calculation date) a worksheet that was stored previously, the new worksheet overwrites the values of the first worksheet. The calculation date is set by the system when the worksheet is generated. You should print files for later comparison.

This section discusses how to:

• Generate position worksheets.

• Define Position Manager options.

• Create an ad-hoc position worksheet.

• View Position Manager results.

• View transaction details by source.

• Create forecasting rules.

• Copy worksheets.

• Schedule the Position Manager.

• Export worksheets with PS/nVision.

Common Elements in This Section

Pages Used to Manage Position Worksheets

Generate Position Worksheets

Access the Position Manager page.

	Click Edit to access the Position Manager Options page and define options and limitations for working with your positions.
Calculate	Click to generate position results for the specified worksheet, position, and calculation preferences.

Note. Poor performance while generating the CPW might be rectified through modifications that affect how the position sources data is accessed.

See Also

Defining Position Sources

Defining Position Manager Options

Access the Position Manager Options page.

Load External Data

Select to generate the CPW from data imported from the EnterpriseOne General Accounting tables. See PeopleSoft EnterpriseOne 8.11 SP1 Application Integrations with PeopleSoft Enterprise Applications, “Using the PeopleSoft Enterprise Treasury with PeopleSoft EnterpriseOne General Accounting Integration,” Retrieving Data from PeopleSoft EnterpriseOne for the PeopleSoft Enterprise Cash Position Worksheet

Time Horizon

Indicate how to group the position totals over time. The time spans must be calculated before you generate the worksheet.

Recalculation Option

Position Impact Functions

Select any combination of the following options:

Transfer Options

Select a transfer option and specify a corresponding template to use on the Funds Transfer page, accessible from the Position Results page.

Revalue Positions

Additional Criteria

As an additional layer of flexibility you can specify criteria to further limit which amounts are included in the Position Manager, either a particular currency or bank information.

Note. To view a worksheet that was calculated with additional criteria, you must specify the same criteria when you select the Use Data Calculated On value to display the worksheet.

See Also

Defining Time Buckets

Creating an Ad Hoc Position Worksheet

Access the Ad-Hoc Position Worksheet page.

The Ad-Hoc Position Worksheet page contains similar functionality as the Position Manager Options page, with the addition of theWorksheet andPosition fields and the Calculate button.

See Also

Defining Position Manager Options

Viewing Position Manager Results

Access the Position Manager Results page

The cash position calculation is run from the position manager page. Once the calculation of the worksheet is complete, the results appear automatically.

Note. All entries must be of a currency for which an exchange rate has been established, otherwise they will not be included in the generation of the CPW. Exchange rates are set on the Market Rates page.

See Defining Market Rates.

The rest of the page displays the worksheet, with the amounts broken down by the time set’s periods. Each period is listed, along with its start and end date.

Navigating Tree Nodes

Each row of the worksheet represents a child node of the Position listed.

• If a row contains additional nodes beneath it, you can navigate down the tree to those child nodes by clicking the Next Step button. The Position field updates to indicate the current node.

• To navigate back up to the prior level, click the Step Back button.

The worksheet displays only the nodes at the next immediate level below the position node. As shown in the following diagram, when the position node is CASH POSITION, you see only the nodes at the next immediate level; you see the four children of that node. To see the worksheet that is composed of the rows AR RECPTS, LOCKBOX RCPTS, AP DISBURSMTS, and CONTR DISB, change the position node to OPER. REC./DISBURSE.

Viewing children of a position node

See Also

Creating Forecasting Rules

Copying Worksheets

Creating Position Worksheet Data Manually

Viewing Transaction Details by Source

Access the Position by Source page.

Creating Forecasting Rules

Access the Position Forecasting Rules page.

You can create forecasting rules where the rule applies to three variables: business day convention, increasing/decreasing by a factor, or shifting days. A forecasting rule would apply at the tree level. In addition, you can refine these variables at the node or source level.

Copying Worksheets

Access the Copy/Apply Forecasting Rules page.

Worksheet Offset

Specify the search parameters to return data for the Worksheet Data region.

Note. The system retains only one historic worksheet per calculated date.

Scheduling Position Manager

Access the Schedule Position Manager page.

Bind Variable Name

The Parameters grid contains an application engine run control function that enables you to specify the variable for which you are setting the value. Select the bind variable name of Start Date, and enter the specific date to be calculated in the Date field. (When you select START_DATE, the Value field changes to the Date field.) You can add records and specify as many bind variable names as are pertinent to the job.

Exporting the Worksheet with PS/nVision

Access the Position Report Periods page.

PeopleSoft provides a PS/nVision layout with which you can generate a Microsoft Excel™ file for your Position Manager. The layout uses the TR_CASH_POSITION tree to create the file. The PS/nVision layout must be customized to create a spreadsheet based on a different tree.

Loading CPW Data from an EnterpriseOne Database

Access the Position Manager Data Load page.

Run the Position Manager Data Load Application Engine process (TR_POS_WKSLD) that loads the CPW data tables with data from the EnterpriseOne database specified on the Installation Options - Treasury page. The Application Engine requires passing the name of the Integration Map ID to use for importing the data. The Map ID is set using the Bind Variable Name field. This process allows for importing the data prior to generating the worksheet. There is an option to re-import the data just before the worksheet is generated.

See Also

Defining Position Sources

Creating Intraday Bank Reporting Worksheets

This section discusses how to:

• Review same day bank statement information.

• Calculate intraday cash position reporting worksheets.

Intraday Bank Reporting and Cash Positions

Intraday reporting and cash position functionality included with Cash Management enable you to monitor your organization's cash position several times in a day. You can establish three cash positions (10 am, 2 pm, and 4 pm). You then monitor each position's progress during the day by importing updated same bank statement information, making changes, and locking down your cash positions as required.

To help you with intraday bank reporting and cash positions, we have added a tree (INTRADAY_CASH_POS) to the Tree Manager sample data, a worksheet (INTRADAY_CASH_POS) and two node (INTRADAY_INFLOWS and INTRADAY_OUTFLOWS) to the Position Manager page.

The INTRADAY_CASH_POS tree includes the following five nodes:

• Bank Balance.

• Intraday Outflows.

• Intraday Inflows.

• Treasury Cash flows.

• Target Balance.

The INTRADAY_CASH_POS worksheet corresponds to the INTRADAY_CASH_POS tree, and is preconfigured with three source sets for 10 am, 2 pm, and 4 pm. The INTRADAY_INFLOWS and INTRADAY_OUTFLOWS positions are tied to their corresponding tree node. When you select one of these positions to calculate the worksheet, the system derives information from the sources specified for that node. You can then track the intraday activity through the position worksheet calculations.

During the course of a day, you use the Load Electronic Statements feature to load the same day bank statement table with updated information. Using the worksheet's lock feature, you can store any position with its existing current information. When the worksheet is recalculated, existing data in any open unlocked positions is overwritten with the updated bank information. For example, you can load the updated bank statement information and lock the positions in this manner:

• Perform the initial daily load of the bank statement table at 10 am, and lock the 10 am position.

• Reload the bank statement table at 2 p.m. (the system recalculates the 2 p.m. and 4 p.m. positions), and lock the 2 p.m. position.

• Perform the final load of the bank statement table at 4 p.m. (the system recalculates the 4 p.m. position), and lock the 4 p.m. position.

You can lock any one position and have the other positions display as unlocked. You can also use one position as the final position for the day—either the current locked position or the last position for the day (the 4 p.m. position).

Prerequisites

Before creating position worksheets, you should reconcile bank transactions and review same day bank balance information to identify your true cash flow.

See Also

Reconciling Statements

Updating Current Day Bank Statements

Pages Used to Create Intraday Bank Reporting Worksheets

Calculating Intraday Cash Position Reporting Worksheets

Before calculating an intraday cash position, determine if you need to load information into the bank statement table.

See Intraday Bank Reporting and Cash Positions.

The following example assumes that you are working with the 10 a.m. position.

To calculate an intraday, cash-position reporting worksheet:

1. Select the INTRADAY_CASH_POS Worksheet on the Position Manager page.

2. Select a tree node value for the position:

   • INTRADAY INFLOWS

   • INTRADAY OUTFLOWS

   • OPENING AVAILABLE

   • TARGET BALANCE

   • TOTAL

   • TREASURY CASH FLOWS

3. Specify TODAY for the worksheet Calculation Preferences.

4. Click the Edit button to access the Position Manager Options page.

5. In the Time Horizon Option region, specify a time horizon of Source Set, and a source set of the current (system) date.

6. For the Recalculation Options field, specify the Recalculate Entire Worksheet value.

7. Select the Use Lock Reminder check box, save the page, then click the Return to Position Manager link.

8. Click Calculate on the Position Manager page.

9. On the Position Manager Results page, the bottom row of lock buttons are the Lock All Nodes buttons. Each lock button is associated with a particular time: 10:00 am, 2:00 pm, and 4:00 pm. (Hold your cursor over the button to view the mouseover text.)

   Edit the particular node and click the associated Lock All Nodes button (in this example, the 10 am node). Save the page.

10. Click the Return to Position Manager link. The system displays the reminder message. Check your locked positions, and click the Return to Position Manager link.

11. Click Calculate on the Position Manager page.

12. Review the calculation results on the Position Manager Results page.

You need to repeat this process to recalculate the worksheet for the next intraday position. To do this, reload the same day bank statements and repeat steps 1–12 for the 2 pm or 4 pm position. This causes the system to refresh the worksheet calculations with the updated same day bank information.

See Updating Current Day Bank Statements.

Creating Position Worksheet Data Manually

With Manual Position Entry, you enter data manually, create a source over it, and then place the source on a particular tree node. Here is an overview of handling Manual Position Entry:

Manual Position Entry process

This section discusses how to:

• Enter manual position information.

• Define additional search criteria.

• Copy data forward.

• Enter additional manual position entry information.

Pages Used to Create Position Worksheet Data Manually

Entering Manual Position Information

Access the Enter Manual Position page.

Additional Search Criteria	Click the link to narrow your search by selecting supplementary search categories.
Category	Displays another name for the target tree node.
Copy	Click to specify parameters in copying forward rows of position entry information.

Note. All lines added to the Manual Position Entry grid must be of a currency for which an exchange rate has been established, otherwise they will not be included in the generation of the CPW. Exchange rates are set on the Market Rates page.

See Also

Defining Market Rates

Defining Additional Search Criteria

Access the Additional Search Criteria page.

Copying Data Forward

Access the Copy Data Forward page.

Generating Cash Management Position Reports

Once you have created your cash position worksheet, you can generate reports to analyze the position data.

Pages Used to Generate Cash Management Position Reports