In the Cash management functional area, you manage interest for various loan scenarios and financing structures. Lucanet Banking & Cash Management (BCM) calculates the interest from the account information: BCM posts the transactions to a shadow account and executes the interest calculation via this shadow account.

Interest conditions and interest statements are often used in combination with Cash pooling — BCM sends automatic payments and calculates the interest from the money transfers.

You control interest management via three workspaces in the Cash management functional area:

WorkspaceDescription
Interest conditionsDefine the interest rates and calculation methods for bank accounts — with fixed interest rates or variable rates based on reference interest rates.
Interest statementsDocument the calculated interest for defined periods and generate PDF reports.
Reference interest ratesManage standard market interest rates such as EURIBOR as the calculation basis for variable interest conditions.