When an organization has cash flows

When an organization has cash flows in multiple currencies, some parts
of the organization may have excess cash while others may need to
draw down on available lines of credit. A cash forecast for specific cur-
rencies will enable surpluses and shortages to be forecast and managed more accurately. On a centralized basis, it may be possible to pool funds
from divisions or subsidiaries and make them available to other parts of
the organization.
Expert assistance is necessary in this area, since some countries prohibit
or restrict intercompany transactions, including cash pooling. Tax and
legal issues should be determined prior to engaging in such transactions.