What are the Cash Flow Item Types?
What is a Cash Flow Item?
Cash flow items are major cash flow events which impact the balance of an account. These can be inflows or outflows from the account. CashWise uses this data to calculate cash requirements on a daily basis. It is recommended that any cash flow event which is greater than 50% of your target balance setting should be entered as a cash flow item.
*Note if you've integrated Xero, it has the capability to create Reserve Cash items, read more about it here.
There are essentially 4 types of cash flow items:
Reserve Cash
Reserve Cash is a cash flow item type that instructs CashWise to reserve cash for manual processing in your transactional account (Airwallex, DBS, OCBC, etc) on a specific date.
Once the cash has arrived in the transactional account, it will be held awaiting manual payment processing for up to 5 business days.
If the payment is not processed and 5 business days have passed, the cash will be redeployed back to investments
The 5 business days are subject to the configuration for “Fund holding period” for each transactional account.
Payout
Payouts is a cash flow item type that instructs CashWise paid out to a specific payee on a designated date. CashWise will validate whether enough funds are in the account a few days prior to the payout and release funds from the investment account if required.
Only Fully Automated accounts support this capability. For security, Payees must be pre-defined in the Bank / Payment system first.
All payouts to the payees will be processed by CashWise at 9am on the specified payment date.
Payouts can be manually scheduled within the CashWise app under the Cash Flows module and will be scheduled as Reserve Cash when approving payments in Xero when the integration is enabled
Inflow
Inflow is a cash flow item type that informs CashWise of an anticipated cash inflow event. It could represent a revenue, investor deposit or other transfer
This is to allow the system to have more information and make better cash flow management decisions.
Schedule FX
Schedule FX is a cash flow type that instructs CashWise to convert funds from your investment accounts in one currency (e.g., USD or SGD) and deposit into a transactional account in a different currency.
FX protection can be enabled via a simple trailing stop mechanism, more info on this here
Cash Flow Types Summary
Here is a comparison chart of how the different cash flow types are handled by CashWise.
