Creating and Configuring Disposition Methods

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Creating and Configuring Disposition Methods

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Glossary

On this page, you will find information about disposition methods in Lucanet Banking & Cash Management (BCM). A disposition method defines how BCM distributes liquidity between the accounts of a disposition group. BCM offers three types of disposition methods:

Spread liquidity

: BCM distributes liquidity evenly across all accounts of the disposition group. This type is suitable for companies with multiple operational units that each require a basic level of liquidity.

Consolidate to main account

: BCM transfers positive balances to a main account and offsets negative balances from the main account, so that the other accounts of the disposition group have a balance of 0. This type is suitable for companies that want to maximize interest income or control their liquidity centrally.

Reduce debit balances

: BCM offsets negative balances with the available liquidity of accounts with a positive balance to avoid overdraft interest. This type is suitable for companies that want to minimize interest costs from account overdrafts.

The Disposition methods workspace can be found under Banking & Cash Management | Cash management | Disposition groups | Disposition methods and is displayed as follows, for example:

The Disposition methods workspace is displayed. — 'Disposition methods' workspace

To create a Disposition method:

Navigate to Cash management | Disposition groups | Disposition methods.

Click + New in the upper left corner and select the type of the disposition method:

The New button with the three types of disposition methods is displayed. — Selecting the type of the disposition method

The configuration of the disposition method is displayed.

Configure the disposition method according to your requirements. For more information, see Configuring Disposition Methods.

The configuration of a disposition method is displayed as follows, for example:

The configuration options of the Spread liquidity disposition method are displayed. — Configuring the 'Spread liquidity' disposition method

All types of disposition methods contain the following options:

Option	Description
Caption	Unique name of the disposition method
Description	Optional description of the purpose and configuration logic of the disposition method
Rounding	Amount to which BCM rounds the transfer amounts, for example 1,000 for rounding to full thousands, or No rounding
Balance type	Balance that BCM uses as the calculation basis. Current balance takes only posted transactions into account, Today's value balance takes the value date into account.
Include advices	Activate the check box so that BCM also includes transactions that are not yet posted, that is, advices, in the liquidity calculation.

The Consolidate to main account disposition method additionally contains the Main account option and is displayed as follows:

The configuration options of the Consolidate to main account disposition method are displayed. — Configuring the 'Consolidate to main account' disposition method

Option	Description
Main account	Account to which BCM transfers the available liquidity of the other accounts and from which BCM offsets their negative balances. The main account must be included in the disposition group to which you assign the disposition method. You select an existing account from the drop-down list or create a new account using the Plus icon. You manage accounts in the Master data functional area.