Post on 22-Oct-2014
Eleazar Ortega Van Steenberghe
Maximizing Cash Management with SAP® ERP Financials
Bonn � Boston
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Contents at a Glance
1 Business and Functional Overview ......................................... 19
2 Global Banking and Payment Systems and Practices ............. 33
3 Advanced Inbound Electronic Banking in SAP ERP ................ 45
4 Advanced Outbound Electronic Banking in SAP ERP ............. 87
5 Overview of SAP Bank Communication Management ............ 159
6 In-House Banking with SAP ERP ............................................ 199
7 Global Liquidity Forecasting with Liquidity Planner ............. 241
8 Integration with Procure-to-Pay, Order-to-Cash, and Other Financial Processes ....................................................... 289
9 Global Cash Position Reporting and Management ................. 305
10 Building an Integrated SAP ERP Treasury System .................. 337
11 Leveraging Tools and Enhancements ..................................... 349
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Preface ....................................................................................................... 13Acknowledgments ..................................................................................... 17
1 Business and Functional Overview ........................................... 19
1.1 International Cash Management ................................................. 191.1.1 Growing Importance of International Cash
Management .................................................................. 191.1.2 Key Business Processes in International Cash
Management .................................................................. 201.1.3 The Global Liquidity Crisis and the Treasury
Department ................................................................... 221.1.4 Challenges and Opportunities for the Treasury
Department ................................................................... 251.2 Regulatory Compliance and Governance Issues ........................... 25
1.2.1 SEPA .............................................................................. 251.2.2 International Accounting Standards (IAS) ....................... 271.2.3 Bank Secrecy Act ............................................................ 281.2.4 Stimulus Package ........................................................... 281.2.5 Regional Tax and Legal Requirements ............................. 291.2.6 Sarbanes-Oxley Act ........................................................ 30
1.3 Technology as an Enabler ............................................................ 301.3.1 Treasury Systems and Technology ................................... 301.3.2 The Case for ERP Treasury Systems ................................. 311.3.3 Key Drivers and Benefits of a Global ERP Treasury
System ........................................................................... 311.4 Summary .................................................................................... 32
2 Global Banking and Payment Systems and Practices .............. 33
2.1 Overview of International and Regional Banking ......................... 332.1.1 International Banking ..................................................... 332.1.2 Regional Banking ........................................................... 342.1.3 Universal Elements of a Payment Process ....................... 35
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2.2 Challenges for Global Treasury Management ............................... 362.2.1 Treasury Technology Platforms ........................................ 372.2.2 Centralized versus Decentralized Treasury Operations ..... 382.2.3 Integrated versus Standalone Treasury Operations .......... 40
2.3 Leveraging SAP ERP Treasury Functionality ................................. 412.3.1 Cash and Liquidity Management .................................... 412.3.2 Treasury and Risk Management ...................................... 422.3.3 SAP In-House Cash ......................................................... 422.3.4 SAP Bank Communication Management ......................... 422.3.5 Bank Communications and Interfaces ............................. 432.3.6 SAP ERP Tools and Architecture ..................................... 44
2.4 Summary .................................................................................... 44
3 Advanced Inbound Electronic Banking in SAP ERP .................. 45
3.1 Business Process Overview .......................................................... 453.1.1 Importing Bank Master Data .......................................... 463.1.2 Importing Electronic Bank Statements ............................ 463.1.3 Importing the Cashed Checks File ................................... 523.1.4 Processing Lockbox Files ................................................ 52
3.2 Inbound Processes: Screens and Examples ................................. 533.2.1 Importing Bank Master Data .......................................... 533.2.2 Importing Electronic Bank Statements ............................ 553.2.3 Importing Cashed Checks Files ....................................... 633.2.4 Importing Lockbox Files ................................................. 64
3.3 Configuration and Integration of Inbound Processes ................... 673.3.1 Importing Bank Master Data .......................................... 673.3.2 Importing Electronic Bank Statement ............................. 683.3.3 Importing Cashed Checks Files ....................................... 823.3.4 Importing Lockbox Files ................................................. 82
3.4 Summary .................................................................................... 85
4 Advanced Outbound Electronic Banking in SAP ERP .............. 87
4.1 Business Process Overview ......................................................... 874.1.1 Check Payment Processing and Positive Pay File
Generation ..................................................................... 884.1.2 ACH Payments: Domestic and International ................... 91
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4.1.3 Wire Transfers ................................................................ 944.1.4 Cash Concentration ........................................................ 101
4.2 System Configuration .................................................................. 1024.2.1 House Bank and Account ID Creation (Including ALE
Configuration) ................................................................ 1034.2.2 Payment Program Configuration ..................................... 1164.2.3 Cash Concentration Configuration .................................. 138
4.3 Business Process Examples .......................................................... 1404.3.1 Payment Process ............................................................ 1414.3.2 Cash Concentration ........................................................ 154
4.4 Summary .................................................................................... 157
5 Overview of SAP Bank Communication Management ............. 159
5.1 Evolution of Bank Communications and Introduction to the SWIFTNet Service ....................................................................... 160
5.2 SAP Bank Communication Management Functionality Overview ... 1645.2.1 Merge Payments ............................................................ 1655.2.2 Approve Payments — Batch and Payment Monitor ......... 1665.2.3 Bank Statement Monitor ................................................ 168
5.3 SAP Bank Communication Management Configuration ............... 1705.3.1 Basic Settings ................................................................. 1715.3.2 Payment Grouping ......................................................... 1715.3.3 Payment Status Management ......................................... 1755.3.4 Bank Statement Monitor ................................................ 1775.3.5 Release Strategy ............................................................. 178
5.4 SAP Bank Communication Management in Action ...................... 1845.4.1 Bank Statement Monitor ................................................ 1845.4.2 Batch and Payment Monitor ........................................... 189
5.5 Summary .................................................................................... 197
6 In-House Banking with SAP ERP .............................................. 199
6.1 Overview of SAP In-House Cash ................................................. 1996.1.1 Key Drivers for Implementing SAP In-House Cash .......... 2026.1.2 Business Scenarios Supported by SAP In-House Cash ...... 2036.1.3 Cost Benefit Considerations ............................................ 206
6.2 Master Data ................................................................................ 208
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6.3 System Configuration .................................................................. 2096.3.1 Bank Key Terms .............................................................. 2096.3.2 Virtual Bank Creation ..................................................... 2106.3.3 ALE Configuration .......................................................... 2116.3.4 SAP In-House Cash General Configuration ...................... 2146.3.5 SAP In-House Cash Payments Configuration ................... 2186.3.6 SAP In-House Cash Collections Configuration ................. 227
6.4 Periodic Tasks ............................................................................. 2296.5 Reporting ................................................................................... 2306.6 Examples of SAP In-House Cash in Action ................................... 2316.7 Summary .................................................................................... 239
7 Global Liquidity Forecasting with Liquidity Planner ............... 241
7.1 Business Process Overview .......................................................... 2417.1.1 Cash Accounting ............................................................ 2437.1.2 Liquidity Planning and Reporting ................................... 246
7.2 Liquidity Item Assignment Programs ........................................... 2497.2.1 Assigning Liquidity Items from Bank Statements ............. 2507.2.2 Assigning Liquidity Items from Financial
Accounting Documents .................................................. 2517.2.3 Assigning Liquidity Items from Accounts Payable
Invoices ......................................................................... 2527.2.4 Assigning Liquidity Items Manually ................................ 252
7.3 Configuration of Cash Accounting ............................................... 2537.3.1 Basic Settings Liquidity Calculations ............................... 2537.3.2 Assignment .................................................................... 2577.3.3 Query Definition ............................................................ 2617.3.4 Information System ........................................................ 2657.3.5 Additional Liquidity Planner Tools .................................. 268
7.4 Liquidity Planner in Action .......................................................... 2697.4.1 Cash Accounting: Calculation of Actual Cash Flows ........ 2697.4.2 Data Extraction to SAP NetWeaver BW .......................... 2757.4.3 Planning in Liquidity Planner .......................................... 2777.4.4 Reporting and Actual versus Plan Comparisons ............... 281
7.5 Summary .................................................................................... 286
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8 Integration with Procure-to-Pay, Order-to-Cash, and Other Financial Processes ......................................................... 289
8.1 Integration Points for the Cash Position and Liquidity Forecast Reports ......................................................................... 2898.1.1 Integration with Sales and Distribution ........................... 2908.1.2 Integration with Accounts Receivable ............................. 2928.1.3 Integration with Purchasing ............................................ 2948.1.4 Integration with Accounts Payable ................................. 2968.1.5 Integration with Transaction Manager ............................ 2988.1.6 Integration with SAP In-House Cash ............................... 300
8.2 Forecasting in Liquidity Planner .................................................. 3038.3 Summary .................................................................................... 304
9 Global Cash Position Reporting and Management .................. 305
9.1 Introduction to the Cash Position Report .................................... 3079.1.1 Working with the Cash Position and Liquidity
Forecast Reports ............................................................ 3089.1.2 Memo Records .............................................................. 314
9.2 Cash Management Configuration ................................................ 3209.2.1 Activating the Default Value Date ................................. 3209.2.2 Configuring Source Symbols ........................................... 3219.2.3 Configuring Planning Levels ............................................ 3229.2.4 Configuring Cash Management Account Names ............. 3249.2.5 Configuring Planning Groups .......................................... 3269.2.6 Structuring the Cash Position Report .............................. 3279.2.7 Configuring the Distribution Function ............................ 3299.2.8 Configuring Archiving Categories .................................... 3309.2.9 Configuring Memo Records ............................................ 3329.2.10 Defining Levels in Payment Requests .............................. 3339.2.11 Configuring Production Startup and Reorganization ....... 334
9.3 Summary .................................................................................... 336
10 Building an Integrated SAP ERP Treasury System ................... 337
10.1 Treasury Workstations versus ERP Systems .................................. 33710.2 Migrating Standalone Treasury Workstations to SAP ERP ............ 339
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10.3 Implementing SAP ERP Treasury Applications ............................. 34010.3.1 Project Methodology ..................................................... 34010.3.2 “Big Bang” or “Phased Roll Out” .................................... 34310.3.3 Time and Resources ....................................................... 34410.3.4 Lessons Learned ............................................................. 345
10.4 Summary .................................................................................... 347
11 Leveraging Tools and Enhancements ....................................... 349
11.1 Architecture Options for SAP FSCM ............................................ 34911.2 Tools and Architectures of SAP ERP ............................................. 350
11.2.1 Business Framework Architecture (BFA) .......................... 35111.2.2 SAP NetWeaver Process Integration
(SAP NetWeaver PI) ....................................................... 35211.3 SAP Enhancement Packs and New Treasury Functionality ............ 35311.4 Summary .................................................................................... 354
The Author ................................................................................................ 355Index ......................................................................................................... 357
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This chapter uses examples of business scenarios to explain how companies can leverage the SAP ERP Financials In-House Cash component to auto-mate and manage intergroup and intragroup payments, as well as inte-grate with SAP ERP Financials and Cash Management.
In-House Banking6 with SAP ERP
ThischapterreviewsmostaspectsoftheSAPIn-HouseCashfunctionality.InSec-tion6.1,OverviewofSAPIn-HouseCash,weprovideanoverviewofthefunction-ality.InSection6.2,MasterData,wegointomorespecificsbydescribingthemainmasterdataobjectsinvolvedinthefunctionality.InSection6.3,SystemConfigura-tion,weprovidestep-by-stepconfigurationinstructions.InSection6.4,PeriodicTasks,welistthemainperiodictasks.InSection6.5,Reporting,welistandexplainthemainreportsavailable.Finally,inSection6.6,ExamplesofSAPIn-HouseCashinAction,weprovideawalkthroughofthefunctionality.
Overview of SAP In-House Cash 6.1
Inthissection,wedescribewhatSAPIn-HouseCashis,whyyoushouldimple-mentit,howtodeterminewhetherit’sagoodfitforyourcompany,andwhatthecostimplicationsare.
SAPIn-HouseCashisusedtoperformwhatisknownasin-house banking,whichprovidesyouwithsomeservicesthatareusuallyprovidedbyexternalbanks,forexample,intercompanycashtransfers,loanservices,investmentservices,andnet-tingservices.
ThebestwaytounderstandtheSAPIn-HouseCashfunctionalityistoseehowcompaniesworkwithandwithoutit,solet’sanalyzesomeexamples.Figure6.1showsatypicaldecentralizedtreasuryprocessthatdoesnotuseSAPIn-HouseCash,withpaymentstovendorsandcollectionsfromcustomersbeingprocessed
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In-House Banking with SAP ERP6
ateachsubsidiary,andinwhichheadquartersonlygetsacopyofeachsubsidiary’sbankstatementandreportsoncash.
Subsidiary A Subsidiary BReports Reports
Headquarters
Invo
ice
Paym
ent
Vendor
Bank
Invo
ice
Paym
ent
Customer
Bank
BankStatement
BankStatement
FinancialStatementsand CashReports
Decentralized Treasury Processing Without SAP In-House Cash Figure 6.1
Althoughthisistheeasiestprocesstosetup,thereissomeinefficiencyassociatedwithitbecauseyouareprocessingthesamefunctionsforeachcompanyandhav-ingtokeepaheadcountforthatpurpose.Forexample,ifyouhave100subsidiar-iesthatpaythesamevendor,youmayalsohavetomaintain100APdepartments,receiveandreview100invoices,cut100checks,andreconcile100outstandingchecks.Inthiscase,eventhoughthesetupisveryeasy,theongoingcostisveryhigh.
Figure6.2showsacentralizedtreasuryprocessthatalsodoesnotuseSAPIn-HouseCash.(AlthoughitisacommonmisconceptionthatyouneedSAPIn-HouseCashtocentralizetreasuryprocesses,thisisnottrue.)Inthisexample,payableinvoicesareforwardedtoasharedservicesdepartmentatheadquarters,wheretheyarevalidatedandpaid.Inaddition,paymentsfromcustomersareforwardedtoahead-quartersbankaccountviacashconcentration.
Theresultingdebitsandcreditsbetweensubsidiariesandheadquartersareresolvedthroughautomatedintercompanypostings.
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Overview of SAP In-House Cash 6.1
Subsidiary A Subsidiary BInvoices
Payment
Cash
Headquarters
Invo
ice
Vendor
Bank
Bank
Invo
ice
Paym
ent
Customer
FinancialStatementsand CashReports
Inter-CompanyPostings
Inter-CompanyPostings
BankStatement
Centralized Treasury Processing Without SAP In-House CashFigure 6.2
InthespecificexampleshowninFigure6.2,if100subsidiariesgetinvoicesfromthesamevendor,youneedmaintainonly1APdepartment,cutonly1check,andreconciletheclearingforonlythatcheck.Thesetupismorecomplicatedbecauseyouhavetoconfiguretheautomaticintercompanypostings,buttheongoingcostsaremuchlower.
What’sinconvenientaboutthisschemaisthatifyouwanttodeterminehowmuchcashbelongstoeachsubsidiaryatanymomentintime,youmustreadthelineitemsoftheintercompanyaccount,whichcanbetediousandtime-consuming.ItisabitlikemanagingfixedassetsusinggeneralledgeraccountsinsteadoftheAssetscomponent:It’spossible,buttime-consumingandnotuser-friendly.
InFigure6.3,paymentsandcollectionsareprocessedcentrally;however,insteadofusingtheintercompanyaccounttoreconcilehowmuchcashbelongstoeachsubsidiary,youuseSAPIn-HouseCash.Thiscomponentkeepstrackofcashatalltimes,producesbankstatementsforeachsubsidiary,andprovidesreportsofhowmuchcashbelongstoeachsubsidiaryatanymomentintime.Thesystemalsoallowsyoutoputtogethersurplusesofcashfromallsubsidiariesandusethosesurplusestolendmoneytothesubsidiariesthatneedit.Whiledoingthis,SAPIn-HouseCashcanchargeinteresttothosesubsidiariesthatborrowandpayinteresttothosesubsidiariesthatlend.
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In-House Banking with SAP ERP6
Subsidiary A Subsidiary BPayment Order
IDoc
Invo
ice
Vendor
Invo
ice
Customer
FinancialStatementsand CashReports
IHC BankStatement
IDoc IHC Center
Tran
sact
ions
Stat
emen
tsBank
Payment Cash
IHC BankStatement
IDocHeadquarters
Centralized Treasury Processing with SAP In-House CashFigure 6.3
In this section, we provide an overview of SAP In-House Cash, specifically focusingonthekeydriversforimplementingthecomponent,businessscenariossupportedforit,andcost-benefitconsiderationsassociatedwithit.
Key Drivers for Implementing SAP In-House Cash6.1.1
YourcompanymightconsiderinvestinginSAPIn-HouseCashforanumberofreasons,includingthefollowing:
To optimize your capital structure. EE
Instead of having to keep a large number of bank accounts and loans with mul-tipleinstitutions,incurringmultiplefees,SAPIn-HouseCashallowsyoutousevirtualbankaccountsformanyofyourneedsandonlyuseexternalbanksforthosethingsthatcannotberesolvedinternally.
To save in interest and banking fees. E
Byusingyourownsystemtoprovidefinancialservices,youavoidpayingcon-tractfees,wiretransferfees,interestonexternalloans,andsoon.
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Overview of SAP In-House Cash 6.1
To solve some financial needs internally instead of using a bank. EE
Insteadofprocessinganinternationalwiretransfertosendmoneyfromonecompanytoanother,youcandoapaymentorderinSAPIn-HouseCashandavoidthefee.Thiscanalsobedonewithloansandotherfeatures.
To use cash surpluses to finance other companies within the group. EE
Insteadofinvestingcashsurplusesat1%,youcanlendthemtoanotherofyourcompaniesforalittlemore.Thiswillstillbecheaperforthatcompanythanifitweretoborrowthemoneyfromabank.
To increase interest revenue. EE
Bylendingmoneywithinyourgroup,yougaininterestrevenue.
To have a better control of your cash. EE
Thesystemallowsyoutomonitorwhereyourcashgoesandhowmuchbelongstoeachcompanywithinyourgroup.
To gain the ability to net and combine payments for multiple subsidiaries. EE
Insteadofcuttingmultiplechecksforthesamevendor,youcombineandpro-duceonlyonecheck.
To comply with statutory cash reporting requirements. EE
SeveralrequirementsforregulatedindustriesandforinternationalcompaniescanonlybefulfilledwithSAPIn-HouseCash.
Business Scenarios Supported by SAP In-House Cash6.1.2
ThreemainscenariosaresupportedbySAPIn-HouseCash:
CentralpaymentsEE
IntercompanypaymentsEE
CentralcollectionsEE
InFigure6.4,weshowanexampleofacentralpaymentinwhichasubsidiaryreceivesaninvoicefromavendor,reviewsandapprovesit,andthenrunsthepaymentprogramatthesubsidiarylevel.ThisgeneratesanIDocwithapaymentorder.
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In-House Banking with SAP ERP6
Accounts Payableat subsidiary
verifies and preparesfor payment
Vendor submitsinvoice tosubsidiary
IDoc paymentorder is sent
to IHC
IDoc paymentrequest is sent
to Treasury
AP
Subs
idia
ryIH
C C
ente
rTr
easu
ryB
ank
Accounts Payableruns payment
program atsubsidiary
IHC reflects out-bound cash in IHC
bank statement
Treasury runspayment program
and sends paymentto the bank
Bank sends paymentto vendor and
reflects transactionin bank statement
IHC processespayment order
END
Central PaymentsFigure 6.4
ThepaymentorderisapprovedintheSAPIn-HouseCashcomponent,and,whenthisisdone,thecashbalanceofthesubsidiaryisupdated(lowered),andapay-mentrequestiscreated.Thetreasurydepartmentthenusesthepaymentprogramforpaymentrequeststoissueawirepaymenttothevendor.Thebankreceivesthewireinstructionsandsendsthecashtothevendor,whichisreflectedintheelectronicbankstatementthenextday.
InFigure6.5,weshowanexampleofanintercompanypaymentwhereonesubsid-iarysubmitsaninvoicetoanother,andthereceivingsubsidiaryreviews/approvesitandrunsthepaymentprogram.ThisproducesanIDocwithapaymentorder.
ThetreasurydepartmentapprovesthepaymentorderwithinSAPIn-HouseCash,whichlowersthecashbalanceofthepayingsubsidiaryandincreasesthecashbal-anceofthereceivingsubsidiary.SAPIn-HouseCashthenissuesupdatedinternalbankstatementstoeachsubsidiary;eachsubsidiaryreceivesthe internalbankstatementandautomaticallyupdatesitsgeneralledger.
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Overview of SAP In-House Cash 6.1
Subsidiary Bsubmits invoiceto subsidiary A
IDoc paymentorder is sent
to IHC
AR
Sub
sidi
ary
BIH
C C
ente
rA
R S
ubsi
diar
y A
Accounts Payableat subsidiary A
verifies and preparesfor payment
Accounts Payableruns payment
program atsubsidiary A
IHC updates accountbalances with cashmovements in IHCbank statements
IHC processespayment order
ENDGeneral Ledger
is updatedwith new cash
balance
General Ledgeris updated
with new cashbalance
Intercompany PaymentsFigure 6.5
Atthispoint,thecashbalanceinthegeneralledgermatchesthecashbalanceinSAPIn-HouseCash.Thetransferiscompletedwithouthavingtoissueanexter-nalpaymentortalktoanexternalbank;virtualcashismoved,butrealcashstaysinthesameplace.Thismaybehardtograspthefirsttimeyouheartheprocessexplained,buthundredsofcompaniesdothisaroundtheworldeveryday.
Figure6.6showsanexampleofcentralcollections,inwhichasubsidiarysendsaninvoicetoacustomer,andthecustomerreviewsitandsendsthepaymenttothebank.Thebankthenprocessesthepaymentandsendsanupdatedelectronicbankstatementtoheadquarters,andthenheadquartersprocessesallofthebankstatementsforallofthesubsidiaries.Afterthisiscompleted,SAPIn-HouseCashdetermineswhichdepositsbelongtowhichsubsidiaries,andsendsupdatedelec-tronicinternalbankstatementstoeachsubsidiary.Eachsubsidiaryreceivestheinternalbankstatementandautomaticallyupdatestheaccountingtoreflectthenewcashbalance.
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In-House Banking with SAP ERP6
IHC processes bankstatement and sendsupdated IHC accountstatement IDOC to
subsidiary
Invoice sentto customerfor payment
Bank processespayment and sends
updated bankstatement
AR
Sub
sidi
ary
Cus
tom
erB
ank
IHC
Cen
ter
Accounts Payableat customer verifies
and preparesfor payment
IHC reflects out-bound cash in IHC
bank statement
Customer sendspayment to
bank
ENDGeneral Ledger
is updatedwith new cash
balance
Central CollectionsFigure 6.6
Cost Benefit Considerations6.1.3
SAPIn-HouseCashisnotsuitableforallcompaniesbecauseithassignificantpro-cessimplicationsandcosts.It’simportanttomakesureitfitstheneedsofyourorganization,oryourreturnoninvestmentwon’tjustifyitsimplementation.
Someof the costs and implications associatedwithSAP In-HouseCash are asfollows:
TheAPEE processgainstwoextrasteps,whichmakestheprocessmorecomplex.
ThenewprocessrequirestheextensiveuseofIDocsEE ,sotheAPandtreasuryteamsmustbetrainedonhowtohandlethem.
At least one individual is needed to run and follow up on end-of-dayEE
processes.
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Overview of SAP In-House Cash 6.1
ThereistighterintegrationamongAP,treasury,andaccounting,whichrequiresEE
coordination.
SomecustomreportsandenhancementsmaybeneededtofulfillsomespecificEE
requirements.
FollowingaresomeguidelinesthatmightindicatethatyourcompanyneedsSAPIn-HouseCash:
You have more than one company in your group. EE
SAPIn-HouseCashrequiresmorethanonecompanyinyourgrouptowork.
You incur very high costs on banking feesEE . Ifyousendalotofinternationalwiretransfersbetweencompanies,andpayfeestoinvestexcesscashinsomecompaniesandsetuploansinothers,youmayhaveagoodbusinesscasetoimplementSAPIn-HouseCash.
You operate in more than one country. EE
Mostcountriesrequiredetailedcashreporting.Evenifthecashisdepositedinbankaccountsinadifferentcountry,cross-borderpaymentsarecloselymoni-toredbyauthorities(evenmoresoafter9/11).
Your company is part of a regulated industryEE that requires detailed report-ing on cash. Certainindustries,suchasutilities,cannotbeallowedtogobankrupt.Toavoidthatfromhappening,theyhavetheircashbalancesandliabilitiescloselymoni-toredbyauthorities.Inmostcases,therequiredreportscanbeaccommodatedbySAPIn-HouseCash.
You pool cashEE between companies. Ifyouarealreadyusedtolendingcashbetweencompanies,SAPIn-HouseCashcanmakethistaskeasier.Insteadofhavingtousetheintercompanyaccounttotrackthebalanceoftheseloans,SAPIn-HouseCashkeepstrackforyou.
Ifseveralofthesepointsapplytoyourcompany,youshouldconsideranSAPIn-HouseCashimplementation.
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In-House Banking with SAP ERP6
Master Data6.2
ThissectionlistsanddescribesthemainmasterdataobjectsassociatedwithSAPIn-HouseCash.
Business partnersEE In this component, business partners are primarily banks, brokerage firms,othersubsidiariesinyourgroup,and,insomeinstances,customersorvendors.Ifyouhavemorethanonebankarea,youmustsetupeachbankareaasabusi-nesspartnertoo.
ConditionsEE IfyouchargeinteresttosubsidiarieswhoborrowfromtheSAPIn-HouseCashcenterandpayinteresttothosewhoinvestonit,orifyouchargefeestothesubsidiaries,youmustsetupconditions thatdetail interestrates,valuedates,andsoon.
LimitsEE Insomeinstances,particularlyinregulatedindustries,therearesomelimitstohowmuch you can borrow from the SAP In-HouseCash center (commonlyreferredtoasthemoney pool).Sometimes,companiescanborrowuptoacertainpercentageofthepoolassets;othertimes,therearerestrictionsknownaslimits.Iftheparticularconditionyouwanttoimplementisnotsupportedwithstan-dard limitfunctionality,youmayhavetodosomedevelopment.
Product definitionEE SAPIn-HouseCashusesproductsinasimilarwaytotheTransactionManager,inthesensethattheconditionsyouuse,thetransactiontypesassociatedwiththem,andseveralotherfunctionsaredeterminedbywhichproductyouconfig-ureanduse.
AccountsEE InSAPIn-HouseCash,youmustcreateanaccountforeachofyoursubsidiar-ies(possiblymore);theaccountcontrolsanumberofmanagementandadmin-istration functions, whichwe discuss inmore detail in Section 6.3, SystemConfiguration.
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System Configuration 6.3
System Configuration6.3
Tomaketheexplanationseasiertounderstand,thissectionisdividedintosixdif-ferentsubsections:
BankkeytermsEE
VirtualbankcreationEE
ALEconfigurationEE
SAPIn-HouseCashgeneralconfigurationEE
SAPIn-HouseCashpaymentsconfigurationEE
SAPIn-HouseCashcollectionsconfigurationEE
Bank Key Terms6.3.1
Beforewegetintobankconfigurationdetails,let’slookatthedefinitionsforsomeofthemostimportantbankterms:
Bank master dataEE Referstoallexistingbanksintheworld,regardlessofwhetherornotyourcom-panyhasabankaccountthere.
House bankEE Referstoonlythosebanksinwhichyourcompanyhasaccounts.
Account IDEE Referstothosebankaccountsownedbyyourcompany.
Bank ALE partnerEE ReferstothesettingsinALEneededtosend/receiveIDocsto/fromaspecificbank.
Bank areaEE ReferstothehighestorganizationalstructurewithinSAPIn-HouseCashandisusuallytheentitywhereSAPIn-HouseCashprocessesarecentralizedandper-formed.ItisalsoknownastheSAPIn-House Cash center.
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In-House Banking with SAP ERP6
Virtual Bank6.3.2 Creation
EventhoughtheSAPIn-HouseCashcenter isavirtualbank, ithas toexist intheSAPsystemtobeused.Tocreatethebank,executeTransactionF101(Figure6.7).
Create Bank: Initial ScreenFigure 6.7
OnthescreenshowninFigure6.7,enterthecountryandthenumbers99999999,whichdon’tbelongtoanyrealbank,andthuscanbeusedforavirtualbank.SelectEnter.
Change Bank: Detail ScreenFigure 6.8
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System Configuration 6.3
ThescreenshowninFigure6.8containsspecificbankinformation.Enter“In-HouseCashCenter”intheBankNamefield,andthenenterthestateandstreetaddress.Becausethisisavirtualbank,youdon’tneedtoenteradditionaladdressdetails.
ALE Configuration6.3.3
ApplicationLinkEnabling(ALE)istheSAPfunctionalityusedtoconnecttwosepa-ratesystems.ThiscommunicationoccursviaIDocs(intermediate documents),whicharefilesthathaveaspecificlayoutdefinitionandaresenttoaspecificdestination(port).IDocsarefrequentlyusedwhencustomershavemultipleinstancesofSAPanddecidetosetupSAPIn-HouseCashinmorethanoneofthem.Forthistowork,youneedIDocstosendandreceivetheinformationbetweensystems.
Figure6.9showsthetechnicalarchitectureoptionsforSAPIn-HouseCash.Asyoucansee,SAPIn-HouseCashcanbesetuponthesamesystemasSAPERP,oritcanbesetupinadifferentsystem(whichiscommonwhenyouhavediffer-entsubsidiariesindifferentinstancesofSAP)—butit’simportanttounderstandthat,ineithercase,ALEhastobefullyconfigured.Thisisthewaythesystemisdesigned.
SAP in-house cashand SAP ERP on the
same server
Note: In both options, ALE has to be configured 100%
SAP in-house cash andSAP ERP on different
servers
SAP ERP& SAP IHC
Center
SAPERP
SAPERP
SAP IHCCenter
Technical Architecture Options for SAP In-House CashFigure 6.9
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Figure6.10showstherequiredALEsettings,ascreenthatisaccessedviaTransac-tionWE21.Thepurposeofthetransactionsistocreateaport,whichisthedesti-nationofanIDoc.
ALE Port Creation Initial ScreenFigure 6.10
ClickontheCreateiconinthetop-leftcorner,andthepromptshowninFigure6.11appears.
ALE Port Creation PromptFigure 6.11
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System Confi guration 6.3
Thesystemasksifyouwantittocreatetheportname,orifyouwillassignityour-self.Ingeneral,werecommendlettingthesystemassignit.ClicktheEnterbutton,andthescreenshowsinFigure6.12appears.
Create ALE Port DetailsFigure 6.12
EnteradescriptionintheDescriptionfield;ifyourSAPIn-HouseCashsystemisonthesameserverasSAPERP,enter“SendIDocstoself.”Then,intheRFCDesti-nationfield,enterthetechnicalnameoftheSAPinstanceandclienttowhichyouwillbesendingtheIDocs.
NowexecuteTransactionWE20,whichisthescreenshowninFigure6.13.Createbankpartner99999999,which,youwillrecall,isthebankwepreviouslycreatedinTransactionFI01.ThebankneedstoexistinthesystemforALEtorecognizeit.
CreatetheALEpartnerforthebankaspartnertypeB(Bank),andthenlinkittoamessagetype.Inourexample,weusemessagetypePAYEXT,whichisthemessagetypicallyusedforpaymenttransactions.IntheMessageCodefield,enter“IHC”forSAPIn-HouseCash.Enter“F1”intheMessageFunctionfield.
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Bank ALE Partner Profi le Defi nitionFigure 6.13
IntheOutboundParameterstab,enterthereceiverportthatyoucreatedintheprecedingstep,selectTransferIDocImmed.,andenter“PEXR2002”intheBasicTypefield(thisistheIDocusedforsendingpaymentfilestobanks).
SAP In-House Cash General Configuration6.3.4
Inthissubsection,wediscusssettingsthatarenotspecifictoeitherpaymentsorcollectionsbutthatareneededforthesystemtooperate.Thefirststepistocreatethebankarea.ThisisthetoporganizationalentityinSAPIn-HouseCash;youusu-allycreateiteitherinthecompanythatholdsyourheadquartersortheonethatholdsyourSharedServicesCenter.IfyouhavemultipleSharedServicesCentersaroundtheglobe,youcancreatemultiplebankareas,but,remember,themoreyouhave,themorecomplexyourprocesswillbe.
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System Confi guration 6.3
Toaccesstheconfigurationofabankarea,usethefollowingmenupath:SAP Cus-tomizing Implementation Guide • Financial Supply Chain Management • In-House Cash • Basic Settings • Bank Area • Defi ne Bank Area.
OnthescreenshowninFigure6.14,enteradescription,thecountry,thebankkey(usually,99999999),thelanguageandcurrency,acalendar,atimeforpostcutoff(thisisthetimeatwhichyouclosepostingsfortheday),anexchangeratetype(Misthedefault),thecompanycodewherethebankareawillreside,andthegeneralledgervariant.
Youwillprobablyneedtocreateyourowngeneralledgervariant;todothis,gototheIMG,andusethefollowingmenupath:SAP Customizing Implementa-tion Guide • Financial Supply Chain Management • In-House Cash • Periodic Tasks • General Ledger Transfer • Maintain GL Variants.Inthatscreen,enteryourvariantnameanddescription,thechartofaccountsused,theclearingaccountfortransactions,thedocumenttype,andthepostingkeystouseforIHCpostings.ActivatethelogandtheIHCarea.
Confi guration of a Bank AreaFigure 6.14
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Thenextstepistoassignproductstoabankarea;todothis,usethefollowingmenupath:SAP Customizing Implementation Guide • Financial Supply Chain Management • In-House Cash • Master Data • Product Defi nition • Product •
Assign Products to Bank Areas.ThistakesyoutothescreenshowninFigure6.15.
Assign Products to Bank AreaFigure 6.15
InthescreenshowninFigure6.15,assignSAPIn-HouseCashproducttypestoyournewlycreatedbankarea.Youcancopytheonesassignedto0001toyourownbankarea.
Thenextstepistodefinetransactiontypes.Todothis,usethefollowingmenupath: SAP Customizing Implementation Guide • Financial Supply Chain Man-agement • In-House Cash • Account Management • Payment Processes in In-House Cash • Defi ne Transaction Types.ThistakesyoutothescreenshowninFigure6.16.
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System Confi guration 6.3
SAP In-House Cash Transaction TypesFigure 6.16
Therearetwotypesoftransaction,debitsandcredits,andforeachofthose,therearebothexternalandinternaltransactions.InthescreenshowninFigure6.16,youconfigurethesettingsspecifictoeach,specifyinginformationsuchaswhichrequiresacheck,whichrequiresatransfer,whichisexternal,andsoon.Ifyouarenotsure,youcanprobablycopythesettingsinthisexample.
Thenextstepistodefineaclearingpartner,whichyoucanthinkofastheclear-inghouseusedbythebankstosettleinterbanktransactions.Usethefollowingmenupath:SAP Customizing Implementation Guide • Financial Supply Chain Management • In-House Cash • Account Management • Payment Processes in In-House Cash • Defi ne Clearing Partner.ThistakesyoutothescreenshowninFigure6.17.
Clearing Partner Defi nitionFigure 6.17
Intheprecedingexample,theclearingpartneriscalledFI,whichisthedefaultsetting.WeexplainhowthisworkslaterinFigure6.21.
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SAP In-House Cash Payments Configuration6.3.5
Let’s nowdiscuss the settings that are necessary for payment transactions toworkproperly.Usethefollowingmenupath:SAP Customizing Implementation Guide • Financial Supply Chain Management • In-House Cash • Account Man-agement • Payment Processes in In-House Cash • Make Basic Settings for Pay-ment Processes. In theresultingscreen,selectyourbankarea,andthenclickonProcessingTransactionon the leftmenu.Thescreenshown inFigure6.18appears.
Initial Screen of Basic Settings for Payment Processes Figure 6.18
Figure6.18istheinitialscreenforprocessingpaymenttransactions.Inthisscreen,youmustlinkyourbankareaandeachofthetransactiontypestoaprocessingmethod,whichcanbeprovisionalorfinal.IfyouselectProvisional,youmustrunanotherprocesstomakethefinalposting;ifyouselectFinal,theextraprocessisunnecessary.WerecommendselectingFinal.
Ifyouselect theForwarder indicator foraprovisionalprocessingmethod, thesystemsendsIDocswiththepaymenttotheclearingpartner;ifyoudon’tcheckit,theIDocisonlycreatedwhenyouruntheadditionalprocesstomakethefinalposting.
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System Confi guration 6.3
NowclickonSettlementAccounts,andthescreenshowninFigure6.19appears.
Confi guration of Settlement AccountsFigure 6.19
EnteryourbankareaintheBankcolumn,enteryourmaincurrencyintheCrcycolumn,enter“Final”intheSettlmtCatcolumn(unlessyouselectedProvisionalintheprevioussection),andentereachofyourSAPIn-HouseCashaccounts(eachofyoursubsidiaries)asPayerintheItemTypecolumn.Theonlyexceptiontothislastoptionisthecompanywhereyourbankareasits;inthiscase,entertheItemTypeasCounterparty.IntheCred/Debcolumn,youneedanentryforDebitandanentryforCreditforeachofyoursubsidiaries.LeavetheTrancolumnblank.EnterthebusinesspartnerthatyoucreatedforeachsubsidiaryinthePartcolumn.EntertheSAPIn-HouseCashaccountthatyoucreatedforeachsubsidiaryintheAccountNumcolumn.
ClickonPostingData,andthescreenshowninFigure6.20appears.
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Posting Data Confi gurationFigure 6.20
EnteryourbankareaintheBankAreacolumn,enter“Final”(unlessyouprevi-ouslyenteredProvisional)intheSettlmtCatcolumn.AddoneentryforDebitandanotherforCreditMemo.LeavetheTransactioncolumnblank.IntheMediumandPayMethcolumns,enter“0001”;intheTATypecolumn,enter“5110”forcreditand“0150”fordebit.Youcanthinkofthesenumbersastheequivalentof40and50forthepostingkeysinthegeneralledger.
ClickonAccountsforClearing,andthescreenshowninFigure6.21appears.
Accounts for Clearing Partner Confi gurationFigure 6.21
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System Confi guration 6.3
Enteryourbankarea,theclearingpartnercreatedpreviously(FI,inourexample),yourcurrency,andthesettlementcategoryyou’reusing(mostlikelyFinal).IntheAccountNumberfield,entertheSAPIn-HouseCashaccountofthesubsidiary(orheadquarters)wherethebankareasits.
ClickonPaymentMethodData,andthescreenshowninFigure6.22appears.
Payment Method DataFigure 6.22
InthescreenshowninFigure6.22,enteryourbankarea,clearingpartner,andcurrencyintheappropriatecolumns.IntheTransactioncolumn,createanentryforeachtransactiontype(EXTDEB,EXTPAY,INTDEB,andINTPAY).ForEXTPAY,insteadofoneentry,enteroneforeachpaymentmethodthatyouwilluse.IntheexampleinFigure6.22,ourpaymentmethodswereWire,Check,andACH—hencetheA,C,andW.However,don’tconfusetheseletterswiththenamesofthepaymentmethodsusedinthepaymentprogram;wemapthesetothepaymentmethodsusedinthepaymentprogramlater.
ClickonCommunicationData,andthescreenshowninFigure6.23appears.
Itisimportantthatyouconfigurethisscreencorrectly,ortheIDocswon’twork.Enteryourbankarea,clearingpartner,andcurrencyintheappropriatecolumns.IntheRec.Partn.Type,enter“B”forthebankpartnertype.InthePartn.No.column,enterthebankkeyforyourSAPIn-HouseCashcenter(theonewecon-figuredinSection6.3.2,VirtualBankCreation).IntheMsg.Var.column,enter“IHC”;inMsg,Funct.,enter“FI”;intheAccountcolumn,entertheaccountofthe
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subsidiarywhereyourSAPIn-HouseCashcentersits.(YoumayrememberthatthesearethesamevaluesweconfiguredinSection6.3.3,ALEConfiguration.)
Communication DataFigure 6.23
ClickonRoutes,andthescreenshowninFigure6.24appears.
Route Confi gurationFigure 6.24
Enteryourbankarea,“Route1”intheRoutecolumn,andyourclearingpartner(mostlikely“FI”).
ClickonExternalPayments,andthescreenshowninFigure6.25appears.
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System Confi guration 6.3
External Payment Confi gurationFigure 6.25
Inthisscreen,youconfiguretheclearingaccountandtransactiontypeusedforexternalpayments.Enteryourbankareaandcurrency,checktheTransferindi-cator,andenter theaccountof thecompanywhereyourbankareasits intheClearingAccountcolumn.Enter“EXTPAY”inthelastcolumn.(This isanotherconfigurationthataffectstheIDoc,anditmaybecomerelevantifyouhavetotroubleshoottheIDoc.)
Thenextstepistoconfigurethedefaultsettingsfortransactiontypes.Todothis,usethefollowingmenupath:SAP Customizing Implementation Guide • Finan-cial Supply Chain Management • In-House Cash • Account Management • Pay-ment Processes in In-House Cash • Defi ne Default Setting for Transaction Type.ThisbringsyoutothescreenshowninFigure6.26.
Default Settings for Transaction TypesFigure 6.26
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In this screen,you link theEXTDEB transaction toExternalDebitMemo, theEXTPAYtoExternalTransfer,theINTDEBtoInternalDebitMemo,theINTPAYtoInternalTransfer,andtheEXTPAYtoExpertMode.
Thenextstepistodefinetransactiontypesforautomaticpayments.Todothis,usethefollowingmenupath:SAP Customizing Implementation Guide • Finan-cial Supply Chain Management • In-House Cash • Account Management •
Payment Processes in In-House Cash • Defi ne Transaction Type for Automatic Payments.ThescreenshowninFigure6.27appears.
Determine SAP In-House Cash Transaction TypeFigure 6.27
Onthisscreen,copythesettingsshownherewithyourownbankarea.ThiswilltellthesystemthatforbothcreditsanddebitsitshouldusetheEXTPAYIDoc.
Inthenextstep,wesetuprouteprocessing.Accessthefollowingmenupath:SAP Customizing Implementation Guide • Financial Supply Chain Management • In-House Cash • Account Management • Payment Processes in In-House Cash • Set Up Route Processing.ThescreenshowninFigure6.28appears.
Rules for Route ProcessingFigure 6.28
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System Confi guration 6.3
Asyouwillrecall,wecreatedRoute1inapreviousstep.NowiswhenwetellthesystemwhatRoute1means.Inthiscase,allyouneedtodoistellthesystemthatyourpayerisalwaysbank999999999(yourownIHCbank)andwhatyourbankareais.
Atthispoint,it’stimetoconfigurethesettingsforpaymentorders.Todothis,accessthefollowingmenupath:SAP Customizing Implementation Guide • Finan-cial Supply Chain Management • In-House Cash • Account Management • Pay-ment Processes in In-House Cash • Outgoing Payment Orders • Set Up Cre-ation of Payment Requests for Inbound IDOC in FI.ThescreenshowninFigure6.29appears.
Clearing Partner Selection ScreenFigure 6.29
Onthisscreen,selectyourclearingpartner (most likelyFI),andthenclickonAccountDetails.ThescreenshowninFigure6.30appears.
Account DetailsFigure 6.30
Onthisscreen,enteryourclearingpartner,andleavetheIndexcolumnblank.IntheSenderTypecolumn,enter“LS”(logicalsystem);inthePartn.No.Column,
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enterthenameofyourSAPserverandtheclientusedbyBasis;intheCtrycol-umn,enteryourcountry;intheBankNumbercolumn,enter“999999999”;andintheAccountNumberfield,entertheSAPIn-HouseCashaccountofyourclear-ingpartner.
ClickonPostingAccounts,andthescreenshowninFigure6.31appears.
Posting AccountsFigure 6.31
Onthisscreen,enteryourclearingpartner,anentryfordebit,andanentryforcredit (intheD/Ccolumn). IntheCocolumn,enter thecompanywhereyourbankareasits.Enteryourcurrency(Crcy)andthegeneralledgeraccountsthatyouwilluseforSAPIn-HouseCashdebitsandSAPIn-HouseCashcredits(G/LAccountcolumn).
ClickonProcessingParameters,andthescreenshowninFigure6.32appears.
Processing Parameters ScreenFigure 6.32
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System Confi guration 6.3
Onthisscreen,mapyourclearingpartnersandtheSAPIn-HouseCashpaymentmethodsconfiguredpreviously(inFigure6.22)tothepaymentmethodsconfig-uredinthepaymentprogram,andthebankaccountsandaccountIDsusedbythecompanythatissuespayments.
SAP In-House Cash Collections Configuration6.3.6
Thisconfigurationensuresthatwhenyouuploadyourbankstatementreflectingthecashcollected,thesystemfindstheSAPIn-HouseCashaccountthatcorrespondstoeachbankaccountandeachitemintheelectronicbankstatement.Accessthefol-lowingmenupath:SAP Customizing Implementation Guide • Financial Supply Chain Management • In-House Cash • Account Management • Payment Pro-cesses in In-House Cash • Central Cash Receipt/Incoming Bank Statements •
IHC Account Determination from External Bank Account.ThescreenshowninFigure6.33appears.
Dispatcher per Account NumberFigure 6.33
MaptherealroutingnumbersandbankaccountstoyourbankareaandSAPIn-HouseCashaccounts.
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Thenext step is to setup the accountdetermination for incomingpayments.Todothis,accessthefollowingmenupath:SAP Customizing Implementation Guide • Financial Supply Chain Management • In-House Cash • Account Man-agement • Payment Processes in In-House Cash • Central Cash Receipt/Incom-ing Bank Statements • Set Up Account Determination for Incoming Payment.ThescreenshowninFigure6.34appears.
SAP In-House Cash Bank Statement Determine SenderFigure 6.34
Onthisscreen,mapyourhousebanksandaccountIDstoyourbankareaandyourSAPIn-HouseCashaccounts.
Thenextstepistodefinetransactiontypesforincomingpayments.Todothis,accessthefollowingmenupath:SAP Customizing Implementation Guide • Finan-cial Supply Chain Management • In-House Cash • Account Management • Pay-ment Processes in In-House Cash • Central Cash Receipt/Incoming Bank State-ments • Defi ne Transaction Types for Incoming Payment.ThescreenshowninFigure6.35appears.
Onthisscreen,mapyourbankarea,thetransactiontypeyouuseintheelectronicbankstatement(BAI,inthisexample),andtheexternalbankstatementcodestotheSAPIn-HouseCashtransactiontypethatcorrectlyreflectsthenatureofthetransaction.
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Periodic Tasks 6.4
Transaction Types for External Inbound PaymentsFigure 6.35
Periodic Tasks6.4
ThissectionbrieflydescribesseveralperiodictasksthathavetobeperformedforSAPIn-HouseCashtobeinsyncwiththegeneralledger,CashManagement,Trans-actionManager,andsoon.Thefollowingarethemostimportant:
Posting cut offEE Thisprocessendsthetransactionsforaspecificdateandsetsthedateofthenext transaction day in the system. This is particularly important regardingreportingandaccountingbecause,inmanyinstances,interestsandfeesarecal-culatedbasedonthebalancesandtransactionsthatoccuronacertainday.
Balancing accountsEE If you configured conditions for interest and fees, these are calculated andpostedduringthebalancingprocess.
Generating SAP In-House Cash bank statementsEE Thisprocessconsistsofcreatingstatementsforindividualsubsidiaryaccounts.Whenyourunit,thesystemcreatesanIDocthatisthenimportedintoeachsubsidiary, and automatically updates the general ledger of the subsidiaries
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withthecorrectSAPIn-HouseCashaccounttransactionsandbalances.Forthistohappen,configurationfortheelectronicbankstatementhastobedoneforthebank,inadditiontotheconfigurationalreadyinplaceforrealexternalbankstatements.
General Ledger integration EE
TheSAPIn-HouseCashstatementsupdatethetransactionsandbalancesinthegeneralledgerofthesubsidiaries,butthegeneralledgertransferupdatesthetransactionsandbalancesinthegeneralledgerofthecompanycodethathoststheSAPIn-HouseCashcenter.Thisissimilartobanks,whereyouhaveyouraccountingofthebankinyourbooks,andthebankhasitsownaccountingofyourbalanceandtransactions.
Reporting6.5
ThissectionbrieflydescribesthemainreportsavailableinSAPIn-HouseCash.Toaccessthesereports,gototheapplicationmenuandaccess:Accounting • Finan-cial Supply Chain Management • In-House Cash • Information System.
Condition historiesEE Ifyouconfiguredconditionsforinterestandfeecalculation,theauditorswillwanttoverifytheintegrityofthemasterdata.Thisreportshowsyouallofthechangesdonetothemasterdata.
Balance listEE ThisgivesyouanoverviewofthebalancesinallyourbankareasandSAPIn-HouseCashaccounts.
Balance List by key date EE
Thisreportshowsyouanoverviewofthebalancesbutalsoallowsyoutofilterbykeydatetoreviewthespecificsofacertainperiodoftime.
Overdraft listEE Thisgivesyoualistofthoseaccountsforwhichthelimithasbeenexceeded.
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Examples of SAP In-House Cash in Action 6.6
Display account locksEE Thisshowsyoulockedandinactiveaccounts.
Interest scale EE
Thisreportdisplaystheinterestscalesusedforacertaincombinationofbankarea, account number, product, business partner category, and calculationperiod.
Limit overviewEE Thisreportdisplaystheinternalandexternallimitsoftheselectedaccounts.
Display individual conditionsEE With this report,youcanseewhichconditionsare stillvalidandwhichareexpired.
Examples of SAP In-House Cash in Action6.6
Inthissection,weexploreanexamplethatshowshowalargecorporationusesSAPIn-HouseCash,whichwillhelpyoubetterunderstandthetypicaluseofthefunctionality.Thisparticularcompany(namesandactualaccountnumbersarechangedtoprotectconfidentialinformation)concentratesthecashofallitssub-sidiariesintoacentralaccountandthenallowssubsidiariestoinvestorborrowmoneyfromit.Vendorinvoicesareapprovedforpaymentatthesubsidiarylevel,buttheSharedServicesCenterprocessesthepayments,nettingasmanypaymentsaspossibleintoonepayment(asduedateandotherrestrictionsallow).
Figure6.36showsoneoftheavailablereports,whichdisplaysalloftheaccountsassociatedwithabankarea,aswellasthebalanceandlimitofeach.NotethattheSAPIn-HouseCashcenterbalanceiszero;thisisusuallythecasebecausetheSAPIn-HouseCashcenteractsasaSharedServicesCenterthatprocessestransactionsbuthasnobusinessofitsown,otherthansupportingtheoperationalcompanies.Therefore,allofthemoneyheldbytheSAPIn-HouseCashbankisreallyownedbydifferentsubsidiaries.
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SAP In-House Cash Balances at the Beginning of the DayFigure 6.36
Figure6.37showsthescreenwhereyoumanuallychangethenextpostingdate.Afteryoudothis,everytransactioninthesystemhasthenewpostingdate.Youcancreateabatchjobtorunthistransaction.
Posting CutoffFigure 6.37
Figure6.38showsaninvoicefor$1,000,000USDbeingenteredforCompanyA.Thewaytheprocessworks,thepaymentprogram(TransactionF110)isexecutedtopaytheinvoiceatthesubsidiarylevel,butinsteadofcuttingacheckorissuinganelectronicpayment,thesystemcreatesanIDocthatcontainsanSAPIn-HouseCashpaymentorder.
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Examples of SAP In-House Cash in Action 6.6
Enter Vendor Invoice for Company AFigure 6.38
Figure6.39showsanotherinvoicefor$500,000USDbeingprocessedforCom-panyF.Aswiththepreviousexample,thepaymentprocessbeginsbyrunningthepaymentprogramatthesubsidiarylevel,whichtriggersanIDocwithanSAPIn-HouseCashpaymentorder.
Enter Vendor Invoice for Company FFigure 6.39
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ThepaymentorderscreatedbytheIDocsjustmentionedareshowninFigure6.40.Alsoonthisscreen,youcandrilldown,sort,addtotalsandsubtotals,and—mostimportantly—approvethepaymentorder.
Browser for IHC Payment OrdersFigure 6.40
Whenyouapprovetheorder,severalthingshappen:
AnIDocEE withapaymentrequestiscreated.
TheSAPIn-HouseCashaccountEE balanceforthesubsidiarywherethevendorpaymentwasoriginateddecreases.
TheSAPIn-HouseCashaccountbalanceforthesubsidiaryEE wheretheSAPIn-House Cash center sits (either headquarters or the Shared Services Center)increases.
Inasubsequentstep,youcanpaythatpaymentrequestusingapaymentprogramforpaymentrequests(TransactionF111).Oneoftheadvantagesofthisprocess
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istheabilitytonetmultiplepaymentrequests(i.e.,whenthesamevendorsendsinvoicestomultiplesubsidiaries)intoasinglewireorcheck,savingonwirefeesandmakingthepaymentprocesseasier.
Figure6.41showshowtheSAPIn-HouseCashbalanceofCompanyAwasreducedby$1,000,000USD,andthebalanceforCompanyFwasreducedby$500,000USD, while the balance for the SAP In-House Cash center was increased by$1,500,000USD.Asweexplainedpreviously,wheneverthebalanceintheSAPIn-HouseCashcenterincreases,itshouldbetemporary;thebalanceshouldusuallybe$0.Inthisexample,thebalancewillbe$0againwhenthepaymentrequestsarepaidtotheexternalvendors.
SAP In-House Cash Balances after Payment OrdersFigure 6.41
Figure6.42showsaninternaltransferfromCompanyAtotheSAPIn-HouseCashcenter.Thiscanbedonetoinvestmoney,toprocessanadjustment,andsoon.
Figure6.43showstheSAPIn-HouseCashbalanceincreasedforthe$2,000,000USDthatweretransferredtoit,andCompanyA’sbalancedecreasedbythesameamount.
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Internal TransferFigure 6.42
SAP In-House Cash Balances after Internal TransferFigure 6.43
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Figure6.44showsaninternalpaymentorderreversing$1,500,000USDofthe$2,000,000;thiscouldbeduetoamistakeintheoriginalamount,orsomeotheradjustmentbeingprocessed.
Reversal for Part of the Payment OrderFigure 6.44
Figure6.45showstheupdatedbalancesoftheSAPIn-HouseCashcenterdownby$1,500,000USD,andCompanyAupbythesameamount.
Figure6.46showstheparameterentryscreenforthepaymentprogramforpay-ment requests (TransactionF111); this isdifferent fromthepaymentprogramforvendors(TransactionF110)becauseit’sspecificallydesignedtobeusedbytreasurydepartmentprocesses.Thispaymentprogramwouldbeusedtosendthe
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$2,000,000USDthatsitintheSAPIn-HouseCashcentertoavendorortoabro-keragefirmforinvestment.
SAP In-House Cash Balances after Reversal for $1,500,000 USDFigure 6.45
Payment Program for Payment RequestsFigure 6.46
Finally,Figure6.47showsthebalancesattheendoftheday.TheSAPIn-HouseCashcenterbalanceisagain$0,andtheindividualbalancesareupdatedwiththeamountthataccuratelyreflectstheirtransactionsduringtheday.
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Summary 6.7
SAP In-House Cash Balances at the End of the DayFigure 6.47
Summary6.7
Inthischapter,wereviewedtheSAPIn-HouseCashfunctionality,startingwithanoverviewofwhatitisandhowitworks,andthencontinuedwithanexplanationofthecriteriayoushouldusetodecidewhenitisagoodideatoimplementit.Wealsoexplainedthemainbusinessscenarioscoveredbythefunctionalityandprovidedbusinessprocessdiagramsforthem.
Wethenprovidedanexplanationofthemasterdataassociatedwiththefunction-ality,aswellastheconfigurationrequiredforbanking,ALE,andtheSAPIn-HouseCashfunctionality.Toconcludethechapter,weexplainedthemainperiodicpro-cessesandreports,andprovidedanexampleofthefunctionalitybeingused.
AlthoughtherearemanyareasofSAPIn-HouseCashthatcannotbecoveredinasinglechapter,weexpectthattheinformationcontainedherewillallowusers,consultants,andprojectmanagerstoresolvesomeoftheirquestionsandmakethecorrectdecisionsaboutthisimportantfunctionality.Inthenextchapter,wereviewtheuseandconfigurationoftheLiquidityPlannerfunctionality.
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357
A
ABAP,97Accountdetermination,228AccountID,68,69,103,209,249Accountlock,231Accounts,208Accountspayable,252AccountsPayable,35,95,201,206Accountsreceivable,66Accuity,46ACH,43,87,91,112,132,153,160,174Actualcashflow,241AIG,24ALE,107,211,212,239,350
configuration, 211functionality, 43partner, 213
AllianceLite,163AmericanBankersAssociation,34AmericanRecoveryandReinvestmentActof2009,28Analysisofactualcashflows,338Annuitypayments,298Approvepayments,166Archivingcategory,332ArchivingCategoryfield,318ASAPmethodology,340Assignmentprogram,273Automatedclearinghouse,91
B
BAI,52,59,64,71,82,228BAI2,52,64,82Balancelist,230Balancingaccounts,229
Bank,45,87Bankaccounting,44Bankaccounts,116,227BankAccountsoption,68BankALEpartner,209Bankarea,209,218,228,301BankAreacolumn,220Bankdetails,142BankforInternationalSettlements,33Bankgroup,131Bankkey,71BankKeyfield,104Bankmasterdata,46,67,209BankNumbercolumn,226Bankreconciliation,46,49Bankrelationshipmanagement,20BankSecrecyAct,28Bankstatement,49,201,204,227,244,246BankStatementMonitor,159,168,177,184,188,305BAPIs,350Baselinedate,296BasicTypefield,214BatchandPaymentMonitor,159,189,194,197Batchinput,56BCM,94,97Bestinclass,25BICDirectory,46Bigbangmethod,343BIS,33Bond,298Borrowings,307BPS,247Brazil,24Businessblueprint,341BusinessFrameworkArchitecture,351Businesspartners,44,45,122,208
Index
324 Book_LOOSE.indb 357 9/7/10 10:55:46 AM
358
Index
C
CashAccounting,241,242,243,253,286CashandLiquidityManagement,41Cashbalances,38,46Cashcenterbalance,238Cashconcentration,38,87,154,200,306Cashedchecksfiles,63,82,91Cashmanagement,20,41,141CashManagement,160,229,286,289Cashmanagementapplications,38Cashmanagementgroup,294,301Cashpooling,207Cashposition,46,49,169,291,308,337Cashpositionandliquidityforecastreport,290Cashpositionreport,306Cashtransfers,25CEMLA,34CentralBank,34Centralcollection,203Centralized,38,200Centralpayment,203CentrodeEstudiosMonetariosLatinoamericanos,34Check,52,87,88Checklot,128Checkregister,90China,24ClearingAccountcolumn,223Clearingdocument,261Clearingpartner,217,218,221CommitteeonPaymentandSettlementSystems,34Communicationsmethod,88Companycode,256Conditionhistories,230Conditions,208,231Consolidatorbank,160Controlfigures,40
Copydata,246Counterparty,219CPSS,34CraigJeffery,37Creatememorecord,305Creditdefaultswaps,24CreditRiskAnalyzer,42CTX,92,174Currencyexchangeratefluctuations,25
D
DataMediumExchangebutton,114Decentralized,38Deleteabankstatement,57DepartmentoftheTreasury,28,91Differencestatus,170,187,188Digitalsignatures,167,183,197Directconnection,161,163DME,114,175
E
ECB,34EDI,20,36,43,160EDIPartnerProfilesbutton,105EFT,313Electronicbanking,337Electronicbankstatement,68,228,305,307Electronicbankstatements,160Electronicfundstransfer,91End-of-dayprocesses,206EnhancementPack,353EPC,26ERP,30ETL,59Euro,26,34Europe,26EuropeanCentralBank,34EuropeanPaymentsCouncil,26
324 Book_LOOSE.indb 358 9/7/10 10:55:46 AM
359
Index
ExternalDebitMemo,224Externaltransactiontypes,78ExternalTransfer,224
F
FASB133,38FederalReserve,52Fedwire,95,98,99,175FIdocument,258Finalpreparation,341FinancialAccountingdocuments,273Financialcrisis,19Foreclosures,24Foreignexchangerates,25Foreignexchangetransaction,307Formulas,246FundsManagementDivision,91
G
GAAP,27Generalledger,66,72,204,229,300
accounts, 48, 49Globaldata,254Globalliquiditycrisis,23Globaltreasury,36Go-liveandsupport,342Greece,24
H
Headquarters,200,205Highcostsonbankingfees,207Housebank,69,103,116,209,249
I
IAS39,38IAT,93
IBAN,134IDoc,43,97,108,203,206,232,234IFRS,20,27Inboundprocesses,45Incomingactivity,50Incomingpayment,228India,24Indirectconnection,163InfoProvider,276In-HouseBanking,199,338Integrated,40IntegratedPlanning,247,277Intercompanyaccount,201Intercompanycashtransfer,199Intercompanypayment,203Interest,298Interestrevenue,203Interface,40InternalDebitMemo,224InternalTransfer,224Internationalbanking,33Intradaybankstatement,57Intradayelectronicbankstatement,305Investment,307Investmentservice,199Invoice,261Invoiceverification,89
K
Keyexecutives,25
L
Lessonslearned,340Leveragedbuyouts,23Limitoverview,231Limits,208Liquidityforecast,21,291,305,308,338Liquidityitem,244,267
324 Book_LOOSE.indb 359 9/7/10 10:55:46 AM
360
Index
Liquidityitemassignmentprograms,249LiquidityPlanner,41,241,276,303,304,308LiquidityPlanningandReporting,243,246,286Loan,298Loanservices,199Lockbox,52,64,65,82Logistics,291Long-termcashforecasting,241
M
Manualbankstatement,62MarketRiskAnalyzer,42Mask,72Memorecord,314,332MergeID,175Mergepayments,165Messages,163Messagetype,110,213Mexico,29MT103,98,99MultiCash,58,59mySAP,160
N
NACHA,91,174Nettingservices,199Notetopayee,245
O
OFAC,93OfficeofForeignAssetsControl,93Order-to-cash,289Outbound,45Outgoingactivity,50Overdraftlist,230
P
Payable,35Payee,36Payer,35,219PAYEXT,108Payingcompanycode,118Paymentadvices,155Paymentdocuments,190Paymentgrouping,171Paymentmedia,35,162,174.192,195,197PaymentMediaWorkbench,174Paymentmethod,35,221,227Paymentorder, 203,232,233,237Paymentprogram,153,190,227,232Paymentprogramconfiguration,117,130Paymentrequest,333PaymentRunbutton,189Payments,25,307Paymentsystem,33Paymentterms,296PEXR2002,108Phasedrollout,343Planningfunction,248Planninggroups,293Planninglevel,322Planningtype,332PortfolioAnalyzer,42Positivepay,88,151Postingcutoff,229Postingrules,78Postprocess,67PPD,92Principalpayments,298Printingprogram,127Privateequityfirms,23Processchain,276Processingstatus,170,187Procure-to-pay,289,294Productdefinition,208Producttypes,216,299
324 Book_LOOSE.indb 360 9/7/10 10:55:46 AM
361
Index
Projectpreparation,341PublicCompanyAccountingOversightBoard,30Purchaseorder,305Purchaserequisition,295
Q
Query,249Querysequence,244,250,257
R
Realestatebubble,24Realization,341Reconciledcash,50Reconciliationstatus,170,187ReconNet,47Redemptions,307Regulatedindustry,207Releasestrategies,178,179Repaymenttype,298Returnoninvestment,206Revaluatedata,246Riskmanagementsystem,38Role-basedsecurity,44Rollout,340Routes,222Routingnumbers,227Russia,24
S
SalesandDistribution,290,292Salesinvoice,305Salesorder,305Same-daycashposition,241SAPBankCommunicationManagement,42,94,101,153,159,162,166,175,189,305
SAPBusinessObjectsgovernance,risk,andcompliancesolutions,30SAPBusinessObjectsPlanningandConsolidation,241,247SAPFSCM,349SAPIn-HouseCash,42,199,200,214,300,333SAPIn-HouseCashaccounts,219,227,234SAPIn-HouseCashbankstatement,229SAPIn-HouseCashcenter,210SAPIntegrationPackageforSWIFT,159SAPNetWeaverBW,243,246,275,307SAPNetWeaverPI,162SAPNetWeaverProcessIntegration,162,350,352SAPscript,122SAPSRM,89SAPSupplierRelationshipManagement(SAPSRM),89Sarbanes-OxleyAct,30Scopingandplanning,346Searchstring,80Secondpresentment,52Secude,184SEM-BPS,277SEM-BusinessPlanningandSimulation,247SEPA,26,134SEPACreditTransferSchema,26SEPADirectDebit(SDD),26Serialnumberstatus,170,187Servicebureau,163SettlementAccounts,219SharedServices,200,214,343SharedServicesCenter,214Short-termplanning,289SingleEuroCashArea(SECA),27SingleEuroPaymentArea,26SocietyforWorldwideInterbankFinancialTelecommunications,35,98Sourcesymbol,321SOX,30
324 Book_LOOSE.indb 361 9/7/10 10:55:46 AM
362
Index
Eric Bauer, Jörg Siebert
The SAP General Ledger
This book gives you complete overview of the SAP General Ledger, including all of the new features like Document Splitting, Profit Center Accounting, parallel accounting, and Balanced Scorecard. It also includesa complete chapter on the SAP General Ledger’s role in reporting for IFRS, including parallel valuation. A must-have for all finance professionals who have migrated or are migrating to the SAP General Ledger, this book is a resource that can be used in both daily work and atthe implementation level.
approx. 505 pp., 2. edition, 79,95 Euro / US$ 79.95
ISBN 978-1-59229-350-6, Aug 2010
>> www.sap-press.com
Provides guidance for design, customization, and implementation of
SAP General Ledger
Includes details on new ledger definitions,Document Splitting, Profit Center Accounting, and parallel accounting
Features a complete chapter on parallel valuation for IFRS reporting
www.sap-press.com
Standalone,40Statusmessages,176Stimuluspackage,28StrategicTreasurer,37Subledger,66Subsidiary,201,205,219,221,234SWIFT,20,35,98,114,134,161,175,354SWIFTMT940,58SWIFTNet,36,43,161,164Symbols,72
T
Three-waymatch,89Tokensecurity,167TransactionManager,42,305,313Transactiontypes,71,228Treasurydepartment,40Treasuryprocesses,33Treasurytechnologyplatforms,37Treasuryworkstations,38,337TreatyofRome,26Trintech,47
U
Updatetype,300
V
Valueaddednetwork,160Vendorinvoice,305Virtualbank,210Virtualcash,205
W
Wire,43,87,91,160,305Wirestransfer,94,112,153,160Workflow,167,182
Z
ZBA,102Zerobalanceaccount,102
324 Book_LOOSE.indb 362 9/7/10 10:55:47 AM