Cash Sweep Processing Example

Entity STIFDEMO, a USD dollar based fund, is set to sweep cash into a US dollar based STIF security.

Day 1

At the time of the Cash Sweep, Entity STIFDEMO:

• Has a positive (Debit Balance) of $100,000.00 Settled USD Cash balance.

• A $50,000.00 debit pending USD cash settlements due to settle on Day 2.

• The sweep process is run and a purchase of STIF for 100,000 Par at $1 (total of $100,000) is generated and settled.

• Once the sweep has been processed, the portfolio has a 0 Settled Cash Balance, but still has a $50,000 Unsettled USD Cash balance.

Before

The following table shows Balances before the sweep process.

Sweep is run, settled cash is swept, and a buy of STIF is processed.

After

The following table shows balances after the sweep process.

Day 2

Entity STIFDEMO:

• Starts out with a 100,000.00 STIF Balance (position).

• Prior to running the cash sweep, the $50,000 debit unsettled balance from the previous day has been settled, along with new activity totaling a $65,000 credit to Settled Cash, leaving Eagle Accounting with a Credit Cash Balance of $15,000.

• The sweep process is run and a sale of STIF for 15,000 Par at $1 (total of $15,000) is generated and settled.

• This results in an end-of-day STIF Position of 85,000 Par, a Settled USD Cash balance of 0, and an Unsettled USD Cash balance of 0.

Before

The following table shows Balances before the sweep process.

Sweep is run, settled cash is swept, and a sell of STIF is processed.

After

The following table shows balances after the sweep process.

Day 3

Entity STIFDEMO:

• Starts out with an 85,000.00 STIF Balance (position).

• Prior to the cash sweep being run, new activity is entered and settled, thus creating a Settled Credit Cash balance of $97,000.

• The sweep process is run, and a sale of STIF for 85,000 Par at $1 (total of $85,000) is generated and settled.

• Due to an insufficient STIF position to cover the entire cash balance, an ending credit Settled Cash Balance of $12,000 remains.

Before

The following table shows Balances before the sweep process.

Sweep is run, settled cash is swept, and a buy of STIF is processed.AfterThe following table shows balances after the sweep process.

Day 4

Entity STIFDEMO:

• Starts Day 4 with a 0 STIF Balance (position), and a Credit Cash Balance of $12,000.

• Prior to the cash sweep being run, new activity is entered for a total of $12,000 Debit, and is then settled, creating a Settled USD Cash for Day 4 of $0.

• The sweep process is run, but no sweep transaction is generated, because there is no cash balance to sweep.

Before

The following table shows Balances before the sweep process.

Sweep is run, settled cash is swept but no STIF transaction is processed.

After

The following table shows balances after the sweep process.

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