PROCESS TITLE: REFLECTING CASH MOVEMENTS

PROCESS REFERENCE: 04-LOANS-004

DOCUMENT SUMMARY

PROCESS GROUP
OWNER TREASURY
TARGET TREASURY
AUDIENCE TEAM
SYSTEM EXCEL
AUTHOR LISA
KOCHANEK
REVIEWER ANTHONY
MERCER
VERSION 1.0
PUBLISH DATE
REVIEW DATE

VERSION CONTROL

1.1 FIRST ISSUED 17TH NOVEMBER 2016

1.2 ISSUED 20TH JANUARY 2020

Page 1 of 3
 Reflecting Cash Movements

Cash Movements are transactions where money is lent or borrowed between the two parties or STIL (AIR) pays an
invoice on behalf of another division. On this type of transactions funds gets physically moved.

You can get a list of all cash loan movements on the Intercompany Tracker (Treasury Share Point=> 16
Intercompany tracker=> Current year=>Current month). This spreadsheet is the main data source for both cash
and non-cash items. For an overview of how this spreadsheet is used for reflecting cash movements, please see
procedure notes 04-Loans-003- Intercompany tracker.

All postings into CODA for these movements are done by the finance GALA team in Manchester as they do the
bank recs for STIL (AIR) and cover these postings while doing that.

1. STIL (AIR) lending money to a division (including MA)

Example: STIL is lending GBP 10,000.00 to BN on the 17 th November.

Period Nov 2016

Interest Accrued Loan Movements Cumulative Loan
Interest Accrued To
From Balance
Ccy Ccy Amount Trans XR Loan Ccy Loan Amount
31-Oct-16 17-Nov-16 NZD - 1.0000 NZD - 934,742.78
17-Nov-16 30-Nov-16 GBP 10,000.00 1.7029 NZD 17,029.40 951,772.18
NZD - 951,772.18

a b c d e NZD
NZD
-
-
951,772.18
951,772.18
NZD - 951,772.18
NZD - 951,772.18
NZD - 951,772.18
NZD - 951,772.18
NZD - 951,772.18
Total movement on loan in period NZD 17,029.40

Closing Facility Usage NZD 951,772.18

a) The start date from which interest gets calculated is the day on which the transaction has happened, in
this case the 17th Nov.,
b) The interest accrued to date is either the last day of the month or in case of more transactions getting
settled it should be the date on which the next transaction occurred.
c) Here the currency of the cash that has been send to the division should be reflected, in this case GBP
d) Enter the amount paid. As STIL is lending money to BN it has to be entered as a Debit (positive figure). For
loans receivables it will increase the cumulative loan balance. For loans payable it will decrease the loan
balance.
e) You now need to translate the sterling amount into the currency the loan is in. For this you use the EOP
rates. These get send to you monthly, alternatively they are also included in the Intercompany tracker
from which you get your list of loan movements. Please note that for all cash/non-cash loans items you
will use prior month EOP.

You need to update the Comment for each of the transactions. If an invoice has been paid on behalf of a
division you can see the invoice number on the Intercompany Tracker and use this as reference for the
transaction. This will make it easier for the division checking the loan statement to reconcile it to their
records.

Page 2 of 3
 2. STIL (AIR) borrowing money from a division (including MA)

Example: BN is paying NZD 50k to STIL AIR on the 22 nd November.

Period Nov 2016

Interest Accrued Loan Movements Cumulative Loan
Interest Accrued To
From Balance
Ccy Ccy Amount Trans XR Loan Ccy Loan Amount
31-Oct-16 17-Nov-16 NZD - 1.0000 NZD - 934,742.78
17-Nov-16 22-Nov-16 GBP 10,000.00 1.7029 NZD 17,029.40 951,772.18
22-Nov-16 30-Nov-16 NZD (50,000.00) 1.0000 NZD (50,000.00) 901,772.18
NZD - 901,772.18
NZD - 901,772.18
NZD - 901,772.18
NZD - 901,772.18
NZD - 901,772.18
NZD - 901,772.18
NZD - 901,772.18
Total movement on loan in period NZD (32,970.60)

Closing Facility Usage NZD 901,772.18

a) The start date from which interest gets calculated is the day on which the transaction has happened, in
this case the 22nd Nov.,
b) The interest accrued to date is either the last day of the month or in case of more transactions getting
settled it should be the date on which the next transaction occurred.
c) Here you need to enter the currency of the cash that has been paid to STIL from the division.
d) Enter the amount of the money sent. As STIL is receiving money from BN it has to be entered as a credit
(negative figure). For loans receivables it will decrease you cumulative loan balance. For loans payable it
will increase your loan balance.
e) For cash movements in a different currency compared to the loan currency you need to enter the EOP to
translate the amount. As this example is a NZD cash payment the rate should be 1.00

As the intercompany tracker is updated on a weekly basis it is recommended that the loans statements to be
updated every week with the cash movements that occurred. Publishing the draft loans statements every
week will give divisions the opportunity to check if all transactions were posted correctly and completely on
their ledgers and to come back with queries. Cash movements updates on the loans statements can be
completed on the last day of the month, but a final check with the intercompany tracker is recommended on
the first or second day of the next month.

Page 3 of 3