Cash Management (160) -...

EHP4 for SAP ERP 6.0

March 2010

English

Cash Management (160)

SAP AG Dietmar-Hopp-Allee 16 69190 Walldorf Germany

Business Process Documentation

SAP Best Practices Cash Management (160): BPD

© SAP AG of 31

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Icons

Icon Meaning

Caution

Example

Note

Recommendation

Syntax

External Process

Business Process Alternative/Decision Choice

Typographic Conventions

Type Style Description

Example text Words or characters that appear on the screen. These include Field names, screen titles, pushbuttons as well as menu names, paths and options.

Cross-references to other documentation.

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ENTER key.

Example text Exact user entry. These are words or characters that you enter in the system exactly as they appear in the documentation.

<Example text> Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.


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Contents

1 Introduction .............................................................................................................................. 5

1.1 Purpose ............................................................................................................................ 5

2 Prerequisites............................................................................................................................ 5

2.1 Master Data ...................................................................................................................... 5

2.2 Roles ................................................................................................................................ 6

2.3 Creating Demo Data ........................................................................................................ 7

2.3.1 Posting a Customer Invoice (in Domestic Currency) ................................................ 7

2.3.2 Posting a Vendor Invoice (in Domestic Currency) .................................................... 8

2.3.3 Posting a Vendor Invoice (in Foreign Currency) ..................................................... 10

2.3.4 Clearing of Vendor Invoices by the F110-Payment Run ........................................ 11

3 Process Overview Table ....................................................................................................... 11

4 Process Steps ....................................................................................................................... 12

4.1 Posting of a Planning Memo Record for Recurring Payments (Manual Planning) ........ 12

4.2 Archiving the Memo Record ........................................................................................... 14

4.2.1 Entering a Manual Bank Statement ........................................................................ 15

4.2.2 Reprocessing an Account Statement ..................................................................... 21

4.3 Cash Concentration ....................................................................................................... 23

4.3.1 Creating a Concentration Proposal ......................................................................... 23

4.3.2 Generation of Payment Requests ........................................................................... 25

4.3.3 Clearing the Payment Requests by the F111-Payment Run .................................. 26

4.4 Financial Overview / Cash Position & Liquidity Forecast ............................................... 28

5 Appendix ................................................................................................................................ 31

5.1 Reversal of Process Steps ............................................................................................. 31


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Cash Management

1 Introduction Cash Management in SAP ERP Financials provides three basic functions:

Quickly and reliably transfers all cash-relevant information from internal and external sources into the cash management system (inbound data)

Performs analysis and reporting of current and future cash flows to help you make cash management decisions (analysis and decision)

Communicates with banks and other business partners based on the results of the decision process (outbound data)

SAP ERP Financials offers the following tools, designed to make cash flows clear:

- The cash position, which illustrates short-term movements in the bank accounts

- The liquidity forecast, which illustrates medium-term movements in subledger accounts

The cash position shows how your bank accounts will move in the next few days. Meanwhile, the liquidity forecast illustrates liquidity changes in the subledger accounts. Functions are also supported which can be used to obtain relevant information on forecast payment flows. This information appears in the form of memo records in the cash position, or as planned items in the liquidity forecast.

This document will give you an overview how to use the SAP ERP Cash Management-functionality. The scenario includes the following sequence:

Posting of a vendor invoice in local and foreign currency

Posting of a customer invoice in local currency (from a sales order)

Posting of planning items and memo records

Execution of the report showing cash position and the liquidity forecast. All posted documents will be displayed on the value date basis.

After posting the manual bank statement, the flow between the planning levels will be demonstrated

Due to the actual postings of the bank statement, the memo records will be archived automatically (by using a special report).

The function of cash concentration will illustrate how to identify the relevant amounts and transfer them from one account to another.

1.1 Purpose

The cash position overview provides information on the current financial state of the bank accounts. It is the starting point for cash concentration in which the balances from various bank accounts are concentrated in one target account, taking minimum balances and payment optimization into consideration.

The example in this document shows a posting process that affects liquidity (customer invoice and incoming payment). It presents the main functions for retrieving information about the liquidity status.

2 Prerequisites

2.1 Master Data

You have entered the master data required to go through the procedures of this scenario. Ensure that the following scenario-specific master data exists before you test this scenario:


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Master Data Value Selection Comment

Customer * All Cash management planning group needs to be assigned to a customer.

For master data creation compare Central Master Data (152) scenario

Vendors * All Cash Management Planning Group needs to be assigned to a vendor.

For master data creation compare Central Master Data (152) scenario

G/L Accounts * 161010 - 161020 Cash Management Planning Level needs to be assigned to all bank G/L accounts which should be included in the Cash Position Overview

2.2 Roles

Use

The following roles must already have been installed to test this scenario in the SAP NetWeaver Business Client (NWBC). The roles in this Business Process Documentation must be assigned to the user or users testing this scenario. You only need these roles if you are using the NWBC interface. You do not need these roles if you are using the standard SAP GUI.

Prerequisites

The business roles have been assigned to the user(s) who perform the process steps described in this document.

Business Role Technical Name Process Step

Employee (Professional User)

SAP_NBPR_EMPLOYEE-S Assignment of this role is necessary for basic functionality.

Treasurer SAP_NBPR_TREASURER-S Posting of a Planning Memo Record for Recurring Payments (Manual Planning)

Archiving the Memo Record

Cash Concentration

Financial Overview / Cash Position & Liquidity Forecast

Bank Accountant SAP_NBPR_BANKACC-S Import Bank Statement (Electronic Bank Statement)

Entering a Manual Bank Statement

Reprocess Bank Statement

Accounts Payable Accountant

SAP_NBPR_AP_CLERK-S Create demo data: Posting a Vendor Invoice (in domestic currency)

Create demo data: Posting a vendor invoice (in foreign currency)

IT Administrator SAP_NBPR_IT_ADMIN-S Create demo data: Simulate Bank Statement and Open Customer


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Business Role Technical Name Process Step

(Professional User) Item for Electronic Bank Statement Processing

2.3 Creating Demo Data

2.3.1 Posting a Customer Invoice (in Domestic Currency)

Use

The following example describes how to enter a customer invoice.

Prerequisites

The customer has been created. The master data of the general ledger account is maintained.

Procedure

To execute this activity, run the processes in the Sales Order Processing: Sale from stock (109) scenario, using the master data from this document.

Example

Field name Description User action and values Comment

Material F126

Customer

CORPRATE CENTER

200234 ABAT MARKETING ACADEMY

UNICO

10000005 ABUEGO NIG LTD {MR. BIGG'

CAP

200030 ADERON VENTURES

UFL

201098 ADISCO NIG. ENTERPRISES

SWAN

11001049 AMUMU VENTURES

GCL

11000205 ADONAISON VENTURES

Amount in LC 20,000


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Currency NGN

Reference DR00001

2.3.2 Posting a Vendor Invoice (in Domestic Currency)

Use

The following example describes how to enter a vendor invoice in local currency into financial accounting. This procedure is used when purchasing for example office materials.

Purpose

Company has received a vendor invoice to be paid. The invoice must be posted.

Procedure

1. Access the activity using one of the following navigation options:

Option 1: SAP Graphical User Interface (SAP GUI)

SAP ECC menu Accounting Financial Accounting Accounts Payable

Document entry Invoice

Transaction code FB60

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role

Business role Accounts Payable Accountant

(SAP_NBPR_AP_CLERK-S)

Business role menu Accounts Payable Posting Invoices Enter Vendor Invoices w/o PO Reference

2. Enter the following data on the Enter Vendor invoice screen, Basic data tab.


Company Code <company code>

Vendor <any domestic vendor>

CORPRATE CENTER

Company Code 1000

Vendor 37000428 AFROMEDIA NIG

UNICO

Company Code 2000

Vendor 37000821 BIDMOT VENTURES

CAP

Company Code 3000

Vendor 35003366 BUMGRACE VENTURES

UFL

Company Code 4000

Vendor 31003298 ALIMSONS NIG. LTD


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SWAN

Company Code 4010

Vendor 31003245 PRIMAL NIG. LTD.

GCL

Company Code 5000

Vendor 31002202 NEDUS VENTURES

Invoice date <Current date>

Posting date <Current date>

Amount 3,000

Currency NGN

Calculate Tax Select

Tax Code V1

GL Account 640020

Cost center

CORPRATE CENTER

Cost center 1002

CHIEF FINANCIAL OFFICER

UNICO

Cost center 2002 COMMERCIAL

CAP

Cost center 3010 FINANCE/IT

UFL

Cost center 4010

PROCUREMENT – HEAD OFFICE

SWAN

Cost center

4120

PROCUREMENT – HEAD OFFICE

GCL

Cost center 5177 Quality Assurance

Amount *

3. Select Payment tab, and enter the following data:


Payment method

E E represents a domestic transfer (payment)

Pmnt Terms NT30 If a cash discount is to be deducted for


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this payment, this must be taken into consideration when you enter the bank statement.

4. Choose Save (Ctrl + S).

2.3.3 Posting a Vendor Invoice (in Foreign Currency)

Use

The following example describes how to enter a vendor invoice in foreign currency into financial accounting. This procedure is used when purchasing for example office materials.

Purpose

Company has received a vendor invoice to be paid. The invoice must be posted.

Procedure



SAP ECC menu Accounting Financial Accounting Accounts Payable

Document entry Invoice

Transaction code FB60


Business role Accounts Payable Accountant

(SAP_NBPR_AP_CLERK-S)

Business role menu Accounts Payable Posting Invoices Enter Vendor Invoices w/o PO Reference

2. Enter the following data on screen Enter Vendor invoice, Basic data tab.


Company code <select company

code> 1000, 2000, 3000, 4000, 4010 or 5000

Vendor <any foreign vendor>

Invoice date <Current date>


Amount 10,000

Currency EUR For example, Euro

Calculate Tax Select

Tax Code V0

GL Account 640020

Cost center 1002, 2002, 3010,


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4010, 4120 or 5177

Amount *

3. Select Payment tab, and enter the following data:


Payment method F F is a transfer payment (cross-border)

Pmnt Terms NT30 If a cash discount is to be deducted for this payment, this must be taken into consideration when you enter the bank statement.

4. Choose Save (Ctrl + S).

2.3.4 Clearing of Vendor Invoices by the F110-Payment Run

Procedure

To execute this activity, run the processes in the Accounts Payable: Automatic Payment (158) scenario, using the master data from this document.


Run date <Current date>

Identification <Any Identification of the payment run>

For example your initials + sequential number (XX01)


Documents entered up to

<Current date>

Customer items due by

<Current date + 1 month > Enter date in future

Company code <select company code> 1000, 2000, 3000, 4000, 4010 or 5000

Payment method

EF

Next p/date Date of next Payment run execution

<Current date + 1 month > Enter date in future

Vendor Enter vendors of previous steps

3 Process Overview Table


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Process step

External process reference

Business condition

Business role

Transaction code Expected results

Posting of a Planning Memo Record for Recurring Payments

A memo record will give forecast information

Treasurer FF63 Memo record posted

Archiving the memo record

After the Memo record expires it should be archived

Treasurer FF6B

Entering a Manual Bank Statement

Bank accountant

FF67 Clearing the customer invoice and the clearing account

Reprocess Bank Statement

Bank accountant

FEBA_BANK_STATEMENT Residual Item settled

Cash concentration

Concentrate all your account balances in one target account

Treasurer FF73

F111

Create a concentration proposal.

Generation of payment requests.

Execution of F111 – payment program.

Financial overview / Cash Position & Liquidity Forecast

Cash Position and Forecast

Treasurer FF7A or FF7B Financial Status updated

4 Process Steps

4.1 Posting of a Planning Memo Record for Recurring Payments (Manual Planning)

Use

The following example describes how to enter a memo record. This example illustrates a monthly recurring payment. Since there is no invoice existing in FI, this memo record needs to be created, so the cash management report will include these expenses.


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For archiving the advice, a report will compare the bank statement with the memo record. The memo item will be identified because of the amount and archived.

In case of differences, the result will be represented. Due to this functionality, the user has the possibility to decide whether the line item will be archived or not.

Procedure

Enter the memo record manually as described below:

1. Access the transaction choosing one of the following navigation options:


SAP ECC menu Accounting Financial Supply Chain Management Cash and

Liquidity Management Cash Management Incomings

Memo Record Create

Transaction code FF63


Business role Treasurer (SAP_NBPR_TREASURER-S)

Business role menu Cash Management Cash Management Planning Create Planning Memo Record

2. On the Create Memo Record: Initial Screen, make the following entries:



Planning Type <any planning type> <DI>

3. Choose Enter.

4. Enter the following data on the next screen:


Planning Day <any date> < current day>

Planning Group <any planning group> < A6>

Amount <any amount> < 15.000

Currency <any currency> < NGN>

Assignment <any text> < Recurring tax>

5. Choose Enter and Copy.

6. Enter the following data on the next screen:


Number <any number> Enter number of memo records to be created (recurring payments) for example, 12


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Increment in days/weeks/months

<any number> Determines the increment in days, weeks or months for the memo record copy function.

for example, 1 in the field for the month

Set to previous Friday/working day instead of skipping

select When selected, the date is shifted to the previous Friday instead of skipping the weekends (skipping to Monday).

7. Choose Enter.

8. Choose Save.

Result

The selected number of memo records (for example, 12) is generated and posted. The memo records have updated the financial status in cash management and can be found under the corresponding planning level (for example, DI).

4.2 Archiving the Memo Record

Use

The planning memo records of the cash position and the liquidity forecast are managed with this transaction. The system displays the memo records in a list. You can select an individual record for display and modification.

In the list, you can select memo records in order to transfer them afterwards into an archive. After they are archived, the records are no longer relevant to the cash position and liquidity forecast, but are still available for evaluations (for example, for calculating the average interest on fixed-term deposits from last year).

Memo records in the archive can be processed in a similar manner. To list these records, specify the required archive category during the transaction. The system displays a list of the memo records stored in this archive.

If such records are selected, they can then be reactivated later.

Prerequisites The bank statement has been processed.

Procedure




Liquidity Management Cash Management Check Planning

Memo Record Change Using List

Transaction code FF6B


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Business role Treasurer

(SAP_NBPR_TREASURER-S)

Business role menu Cash Management Cash Management Planning Change Memo Record

2. Make the following entries:



Cash Position select

Liquidity forecast select

3. Choose Execute (F8).

Result

The entered memo records are listed. By choosing Convert the selected memo records are sent to the archive and are no longer relevant for the Cash Management.

4.2.1 Entering a Manual Bank Statement

Use

The incoming payment for customer invoices is posted by entering and posting the manual bank statement.

Prerequisites

There is an open customer invoice in the system.

The following transactions are available for bank statement processing:

Transaction Text Details

001+ Cash receipt via interim account

The Customer pays an invoice with a credit transfer. This cash receipt is visible in the bank statement. As the linked customer item is still open, the interim account will be used for clearing.

002+ Cheque deposit

An incoming cheque was given to the bank. The cheque deposit is visible in the bank statement.

Posting:

Debit: ‘Bank’ Credit: ‘Check In’ (Interim Account)

003- Cashed cheque

The cheque was cashed from the vendor. The corresponding amount is visible in the bank statement.

Posting:

Debit: ‘Check Out’ (Interim Account)

Credit: ‘Bank’


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Transaction Text Details

004- Domestic transfer

Outgoing Domestic bank transfer in local currency

005- Foreign transfer

Outgoing Foreign bank transfer in any currency

006- Other disbursements

Outgoings which don’t fit to the other transactions.

007+ Other receipts Incomings which don’t fit to the other transactions.

008- Cash payment Any cash outgoing payment

009+ Cash receipt Any cash incoming payment

010+ Collection/direct debit

The cash receipt of the automatic debit was successful and is now visible in the bank statement. The clearing of the open customer item already took place with the processing of the payment order (F110).

011- Returns collection/direct debit

Automatic debit which was returned by the customer

012- Bank fee Bank fee

013+ Interest received

Interest received for credit on bank account

014- Interest paid Interest paid for debit on bank account

016- Vendor direct debit

The vendor executed an automatic debit. The bank account will be debited and the open vendor item will be settled.

Procedure




Liquidity Management Cash Management Incomings

Manual Bank Statement Enter



Business role Bank Accountant

(SAP_NBPR_BANKACC-S)

Business role menu Bank Accounting Incomings Manual Account Statement

2. When you call up the transaction for the first time, the Specifications dialog box appears for you to enter the following data:


Internal Bank Determination

select If this indicator is set, you can enter the house bank ID and the


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account ID. If the indicator is not set, you have to enter the bank number and the bank account number.

Import Advices select

Start Variant YB01

Processing Type

4 If you choose this processing type, you have to use transaction FEBA for further processing.

Transfer Value Date

select

You can also display this dialog box by choosing Settings Specifications. Check that the correct data is entered.

3. On the Process Manual Bank Statement screen, make the following entries:


Company Code <select company code> 1000, 2000, 3000, 4000, 4010 or 5000

House Bank House bank ID The House bank ID of the House Bank for which the bank statement is being entered.

For example, FIRST BANK PLC

Account ID Account ID The account ID of the bank account for which the bank statement is being entered.


Statement Number

Bank statement

number If you have forgotten the number of your previous statement for the selected account, you can choose Overview to call up all previous bank statements. You can then transfer the last statement from the overview or create a new statement. In this way, the statement number, statement date, and beginning


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balance are filled automatically.

Statement Date Date of bank

statement <Today’s date>

Opening Balance

Opening balance Opening balance = Ending balance of previous statement.

For example, 0

Closing Balance

Closing balance Closing balance = Opening balance - all debit amounts + all credit amounts.

For example, 0 + 2000 – 3000 – 4000 = - 5000

4. Choose Enter.



Transaction * Process code for cash receipts.

for example, 001+

Value Date value date Value date of credit transaction.

For example, Today’s date

Amount amount Transaction amount.

For example, 20.000

Bank Ref. reference from

customer invoice Enter reference from customer invoice.

For example, DR00001

Customer

CORPRATE CENTER

200234 ABAT MARKETING ACADEMY

UNICO

10000005 ABUEGO NIG LTD {MR. BIGG'

CAP

200030 ADERON VENTURES

UFL


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201098 ADISCO NIG. ENTERPRISES

SWAN

11001049 AMUMU VENTURES

GCL

11000205 ADONAISON VENTURES

Transaction 001+ is for ‘Cash receipts’ and contains the posting logic for the document to be posted. In this case, the following documents are posted:

Bank account / Bank Subaccount (without clearing) Bank Subaccount / Customer Invoice (with clearing)


Transaction * Process code for domestic transfer.

For example, 004-

Value Date value date Value date of debit transaction.

For example, Today’s date

Amount <any amount> Transaction amount.

For example, 3.000-

Bank Ref. <reference from

customer invoice> The reference entered here has to be in line with the reference number in the invoice document header,for example, DR00002

Transaction 004- is for Domestic transfer and contains the posting logic for the document to be posted. In this case, the following documents are posted:

Bank Subacc. (outg. Dom. payments) / Bank Account (with clearing)


Transaction * Process code for bank transfer (debit memo)

for example, 006-

Value Date value date Value date of debit transaction

for example, Today’s date

Amount any amount Transaction amount

for example, 4000-

Bank Ref. Bank reference The reference entered here has to be in line


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with the reference number in the invoice document header.

6. Choose Save and then Post.

When you only choose Save the account statement is included in the system, but is not posted yet.

Transaction 006- is for Other disbursements and contains the posting logic for the document to be posted. In this case, the following documents are posted:

Bank Subaccount / Bank Account

A different step will be necessary for clearing the open item against the correct expense account. But this is not part of the further scenario.

7. Repeat this process step and enter another bank statement. Use the same data but change the entry for the account-id to USD. On the Process Manual Bank Statement screen, make the following entries:



House Bank House bank ID The House bank ID of the House Bank for which the bank statement is being entered.

for example, FIRST BANK PLC

Account ID Account ID The account ID of the bank account for which the bank statement is being entered.

for example, NGN

Statement Number

Bank statement

number If you have forgotten the number of your previous statement for the selected account, you can choose Overview to call up all previous bank statements. You can then transfer the last statement from the overview or create a new statement. In this way, the statement number, statement date, and beginning balance are filled


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automatically.

Statement Date Date of bank

statement for example, Today’s date

Opening Balance

Opening balance Opening balance = Ending balance of previous statement

for example, 0

Closing Balance

Closing balance Closing balance = Opening balance - all debit amounts + all credit amounts

for example, 0 - 10000 = -10000

8. Choose Enter.



Transaction * Process code for foreign transfer,

for example, 005-

Value Date value date Value date of debit transaction,

for example, Today’s date

Amount any amount Transaction amount,

for example, 10000-

10. Choose Save and then Post.

Transaction 005- is for Foreign transfer and contains the posting logic for the document to be posted. In this case, the following documents are posted:

Bank Subaccount (outg. foreign payments) / Bank Account (with clearing)

Result

The bank statement has been entered manually and all corresponding transactions have been posted. The customer invoice was cleared automatically (using the unique reference). The open items on the bank subaccounts have been cleared.

4.2.2 Reprocessing an Account Statement

Use

Every time you post a manual account statement you must reprocess it, because the system cannot always clear all the items automatically. This is particularly important if the customer has not paid the total amount, or has quoted the wrong reference. In this particular case, no clearing posting is carried out and, consequently, reprocessing is necessary.


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Prerequisites

The manual account statement has been posted.

Procedure

1. Access the transaction by choosing one of the following navigational options:


SAP ECC menu Accounting Financial Accounting Banks Incomings Bank

Statement Reprocess

Transaction code FEBA_BANK_STATEMENT


Business role Bank Accountant

(SAP_NBPR_BANKACC-S)

Business role menu Bank Accounting Incomings Postprocessing Bank Statement

2. On the Selection of Bank Statements by Banks and Account Nos screen, enter the required data.



House Bank House bank for which bank statement is being processed


Account ID House bank account for which bank statement is being processed


3. Choose Statement Overview.

4. The corresponding statements from this bank, and the statement items, are displayed.

5. On the Bank Statement Overview screen, select the bank row with a double-click you want to post.

6. On the Bank Statement Overview screen, all the statement numbers are displayed.

A green light next to the statement item indicates that the postings have been processed without errors. You can see the posted document number in the individual statement items. Double-click an item to display further information, such as the reference, business partner, bank details, external transaction, note to payee, and so on. To display the document that was created, double-click the document number.

A red light next to the statement item indicates that the account statement items could not be posted. You have to reprocess these items.

The following steps need only to be carried out if a red light appears

7. On the Bank Statement Overview screen, select the statement number with a double-click you want to post (statement with the red light).

8. On the Bank Statement Overview screen, select the amount row which has to be posted.


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9. On the Bank Statement Overview screen choose Statement items Post.

10. On the Post with Clearing Select open items screen, make the following entries:



Account <account number

from the customer> For example, 100000

Account Type D Customers

11. If you can select additional selections (for example amount or document number or reference) you can clear with selection criteria. Choose the relevant additional selection. In this case on the Post with Clearing Enter selection criteria screen, enter the relevant selection and choose Process open items.

12. If no selection criteria are needed, choose enter.

13. On the Post with Clearing Process open items screen, select the document number(s) you want to clear.

14. In the field Amount entered you can see the bank statement amount which has to be cleared. When you pick the relevant document number(s) the field Assigned shows the total amount.

15. For assigning the amount, double-click the amount (NGN Gross).

16. In the Not assigned field, you can see the difference between Amount entered and Assigned. When the field is zero you can post and clear the statement.

17. Choose Post (Ctrl + S).

Result

The items are posted which could not be cleared automatically

4.3 Cash Concentration

Use

Before making cash management decisions, it is often advisable, for business reasons, to concentrate all your account balances in one target account.

Cash concentration is based on specified bank G/L accounts that are summarized under a dedicated grouping (for example, YCASHCONC).

4.3.1 Creating a Concentration Proposal

Use

The system generates a proposal for concentrating cash based on your grouping. This proposal contains the end-day-balance and the cash planning results, that is, the expected account transfers. You can correct the proposal at any stage manually by changing for example, the minimum amount, planned amount related to a certain bank account.

The system prints the outcome of the cash concentration process in the form of payment orders to banks. It also creates the payment advices needed for determining the new bank account balances.


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Prerequisites

The general ledger master data is maintained accordingly. The bank accounts show balances which are relevant for cash concentration (which excess the minimum balance specified during the cash concentration execution).

Procedure



SAP ECC menu Accounting Financial Supply Chain Management Cash

and Liquidity Management Cash Management Planning

Cash Concentration Create





Business role menu Cash Management Cash Management Planning Cash Concentration

2. On the Automatic Cash Concentration screen, make the following entries:



Planned Date <any date> For example, Today’s date

Grouping YCASHCONC Selection of accounts for the cash concentration

Account Currency

NGN Cash concentration is set up only for local currency bank accounts

Minimum Balance

<any amount> Accounts with a balance less than the value specified here are not included in the cash concentration process.

For example, 1000

Target Account Name

<any main bank

account assigned to

grouping YCASHCONC>

Cash Management account name of target account,

for example, H1-NGN-BNK

Target <select company code> 1000, 2000, 3000,


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Company Code 4000, 4010 or 5000

Value Date <any date> For example, Today’s date

Expiration Date <any date> For example, Today’s date

Planning Type CL Planning type for the payment advices to be created during the cash concentration process

Minimum Amount

<any amount> No bank transfers with an absolute amount less than the minimum amount specified here are created during the cash concentration process.

For example, 1000

3. Choose Execute. On the Display Balances from Cash Concentration screen, you can see the concentration proposal created by the system and revise it.

4. Choose Process Payment Advices. On the Edit Payment Advice for Cash Concentration screen, you can change the amounts available for planning as required.

5. To create the payment advices for the concentration proposals, choose Save Payment Advices.

6. Confirm with Yes. The system displays the message Payment advices created. You can display the newly created payment advices in the cash position in order to analyze the cash concentration result.

7. To exit the transaction, choose Back.

Result You make internal preparations for clearing the bank accounts by executing a concentration proposal and generating the corresponding payment advices. The next step is to generate payment requests from the payment advices that were created by the cash concentration proposal. The payment requests will subsequently be regulated by the payment program F111. The DME file will be created with the regular reports for DME-file creation.

You can also create the payment advices for the cash concentration manually.

4.3.2 Generation of Payment Requests

Use


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Once you have created the payment advices by the concentration proposal, the corresponding payment requests needs to be created from this payment advices. Payment requests are in the next step read by the payment program and used of execution of the outgoing payment and creation of the payment file.

Prerequisites

Payment advices have been created by the cash concentration proposal.

Procedure




Liquidity Management Cash Management Planning

Generate Payment Request FF.D - From Payment Advice Notes

Transaction code FF.D




Business role menu Cash Management Cash Management Planning Generate payt req. from advices

2. On the Generate Payment Request from Cash Management Advices screen, make the following entries:



Planning Type CL

Payment method E Payment method for domestic transfer.

3. Choose Execute.

Result

The payment requests have been created. The corresponding payment advices have been archived.

4.3.3 Clearing the Payment Requests by the F111-Payment Run

Use

You can use this payment program to make payments to customers and vendors, or between G/L accounts. Unlike the standard payment program, the payments are not based on open items (FI documents) but on payment requests.

Prerequisites

The payment requests have been created within the previous step.


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Procedure




Liquidity Management Cash Management Planning

Payment Program F111 -- Payment Requests

Transaction code F111




Business role menu Cash Management Cash Management Planning Automatic Payment of PRequest

2. Enter the following data:


Run date <any date> For example, current date

Identification <any

identification> For example, your initials

3. Choose Parameters.


Posting date <any date> For example, current date

Next payment run on

<any date in

future> The next payment date must be after the due date (value date) of the payment request, otherwise the payment requests will not be regulated by this run. The value date was derived from the payment advices created during the cash concentration proposal.

For example, current date + 1 month


Payment method E The payment method must correspond to the payment method of the payment request (otherwise the payment request will not be regulated by this run).

Origin TR-CM-BT Bank Account Transfer


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4. Choose Additional Log.


Payment method selection in all cases

select

Line items of the payment documents

select

Due date check select

5. Choose Save, and go back to the Status tab.

6. Schedule proposal by choosing Proposal.

7. Select Start immediately and Create payment medium and choose Enter. By choosing Status, you can see the status of the payment proposal. The payment proposal is generated when the system displays message Payment proposal has been created.

8. Choose proposal log, Proposal. Check the selection of your document.

9. If there are no errors, schedule payment run by choosing Pmnt run.

10. Select Start immediately and Create payment medium, and choose Enter.

11. Choose payment log Payments to display the executed payments.

Result

The payment document and the payment medium have been created.

The FI document that was created contains two line items. One line item has been posted to the account for outgoing domestic transfers (bank subaccounts ending with character 2). The posting was allocated to the planning level B2 (resulting from the assignment of the planning level B2 to all bank subaccounts ending with the digit 2).

The other line item has been posted to the subaccount of the recipient bank, which has an account number that ends with the digit 5. The account has been assigned to the planning level B5.

The impact of the outgoing cash concentration payment on Cash Position is visible in the Cash Management Report.

4.4 Financial Overview / Cash Position & Liquidity Forecast

Use

The cash position gives you an overview of daily cash inflow and outflow on the selected bank accounts. The cash position is suitable to plan short-term liquidity.

You can use the liquidity forecast to identify the medium-term cash inflows and outflows generated by the posted debit-side and credit-side invoices.

In customizing you define the grouping structures that group together particular bank and/or subledger accounts in the cash position or the liquidity forecast display. The selection of a certain grouping during execution of Cash position & Liquidity Forecast, influences the result of this report.

The following groupings are defined:


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Grouping Purpose

YALL includes all customer and vendor accounts provides an overview categorized according to the planning groups

YTOTAL includes all bank accounts and vendor/customer accounts

YCUST-VEND includes all customer and vendor accounts provides an overview of all incoming and outgoing payments

YBANKS-ST includes all the house banks’ main bank accounts provides an overview of the actual bank account balances

YBANKS includes all house bank accounts and subaccounts provides an overall overview of the short-term cash position

YBANK-DB includes all house bank accounts and subaccounts with Deutsche Bank

YBANK-DR includes all house bank accounts and subaccounts with Dresdner Bank

YCASHCONC Includes all main bank accounts and selected bank subaccounts that are managed in a local currency and that are to be included in the cash concentration process

Procedure




Liquidity Management Cash Management Information

System Reports for Cash Management Liquidity Analyses Cash Position

Transaction code FF7A




Business role menu Cash Management Cash Management Reporting Cash Position

2. On the Cash Management and Forecast: CURRENCY OVERVIEW screen, make the following entries:



Cash Position select Analysis of the bank accounts

Liquidity Forecast

select Analysis of cash inflows and outflows or planned items in subledger accounts.

Grouping YTOTAL This grouping provides a total


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overview of the accounts.

Display as of <any date> For example, today’s date

Display in NGN Display Currency should be local currency of company code in this case - cash concentration was executed in the local currency

3. Choose Execute.

4. The Cash Management and Forecast: Currency Overview screen appears. This provides an overview of the liquidity trend for a longer period of time.

5. To change the current display, select New Display.

6. In the New Display dialog box, select Delta Display with Balances and choose Continue.

The data is displayed in accordance with the control parameters selected in the form of a delta display with the beginning and ending balance.

Result

Open Invoices and memo records

All open vendor invoices are visible within the A* planning group.

All open customer invoices are visible within the E* planning group.

The memo records are visible under the corresponding planning group.

Bank Accounts

The bank accounts are visible under planning level F0.

The following relationship exists between the bank accounts and the cash management accounts:

Bank account Description Cash Management account

161010 NG – NGN account H1-NGN-BNK

161020 NG – EUR account H2-NGN-BNK

Cleared Open Vendor Items

The cleared amounts for open vendor items are displayed on the corresponding bank subaccounts (G/L accounts for outgoing payments), for example, under planning level B2 - Domestic transfer or B3 – Foreign Transfer.

Depending on the house bank & account that was determined by the payment run and the used payment method (U= domestic transfer, L= foreign transfer) the amount should be visible on one of the following bank subaccounts:

Bank account Description Cash Management account

161022 NG bank transfer domestic (NGN account) H2-NGN-TRD

161023 NGbank transfer foreign (EUR account) H2-NGN-EUR

Cleared Open Customer Items


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The cleared amounts for open customer items are displayed on the corresponding bank subaccounts (G/L accounts for incoming payments) for example, under planning level B4 - Automatic Debit or B9 – Customer Incoming Payment.

5 Appendix

5.1 Reversal of Process Steps

In the following section, you can find the most common reversal steps, which you can take to reverse some of the activities described in this document.

Archiving the Memo Record

Transaction code ( SAP GUI) FF6B

Reversal: Reactivate archived Memo Records





Comment When on the selection screen of the report a Archiving Category is chosen, all archived memo records are displayed. The function Convert can be used to reactivate a previously archived memo record.

Creating a Concentration Proposal

Transaction code ( SAP GUI) FF73

Reversal: Archiving the Memo Record





Comment To reverse the result of a cash concentration run, all generated payment advices need to be archived.

(compare step 4.6).

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