SAP CASH AND LIQUIDITY MANAGEMENT

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SAP CASH AND LIQUIDITY MANAGEMENT course overview

Cash Management/Cash PositionManual Memo Records

Check DepositManual Bank Statement

Bank Statement – Electronic EntryCash ConcentrationLiquidity Forecast

Checking Reports, Data Transfer, ReorganizationLock Box Management

SAP CASH AND LIQUIDITY MANAGEMENT

cash management overview

Explain the purpose and function of the cash position and liquidity forecastin SAP Cash Management.Distinguish between levels, groups, and accounts. Recognize the specific features of the cash position. Outsort bank accounts. Access the flexible display structures for the cash position. Integrate a new house bank into your Cash Management setup. Set up and configure the G/L accounts (bank and bank clearing accounts)you need for short-term cash management. Set up the grouping structures used in the cash position and assign the newG/L accounts to them.

SAP Cash Management offers the following tools, designed to make cash flowsclear:• The cash position, which illustrates short-term trends in the bank accounts• The liquidity forecast, which illustrates medium-term trends in subledgeraccounts tooThe cash position illustrates trends in your bank accounts over the next fewdays. The liquidity forecast, on the other hand, illustrates liquidity changes inthe subledger accounts. Functions that enable you to gain relevant informationon expected forecast payment flows are also supported. This informationappears in the form of memo records in the cash position, or as planned items inthe liquidity forecast.Financial budgeting, which is the long-term cash flow view (target/actualcomparison) at G/L account level, is a component of the liquidity planner andnot of SAP Cash Management.

SAP CASH AND LIQUIDITY MANAGEMENT

SAP CASH AND LIQUIDITY MANAGEMENT

Funds centers are used to represent organizational units (areas of responsibility, departments, projects) and are arranged in a hierarchy.

Fund centers are created for a given FM area.

Each funds center hierarchy has one Top Funds Center located at the top of the hierarchy. Every other funds center is assigned to a more superior center, to denote its location in the hierarchyThe funds center master record contains important information, such as the name and description of the funds center and the name of the person responsible for the funds center.

You can only have one Funds Center hierarchy per FM area.

SAP CASH AND LIQUIDITY MANAGEMENT

Customizing: Cash Position

In SAP Cash Management, you now want to map a house bank. That is, a bankwhere you have an account and from which you want to call up bank statementinformation. You may already have created the bank when you implemented SAPFinancial Accounting. You must also create the relevant G/L accounts in thesystem and configure them according to defined criteria.To reproduce these accounts in the cash position, give them a suitable descriptionand assign them to a grouping term which is responsible for setting up the cashposition.Integrate a new house bank into your Cash Management setup.• Set up and configure the G/L accounts (bank and bank clearing accounts)you need for short-term cash management.•

SAP CASH AND LIQUIDITY MANAGEMENT

Liquidity Forecast

Explain the features and integration aspects of medium-term planning.• Explain the significance of planning groups.• Configure subledger accounts.• Configure field selection control for the subledger accounts.• Configure and access the display options for noted items.• Configure screen control for document entry.• Ensure integration of special general ledger transactions.Now that you have a comprehensive overview of how bank and bank clearingaccounts develop and how to make the necessary system settings, you now want toknow how to obtain a medium-term view of the 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

SAP CASH AND LIQUIDITY MANAGEMENT

Cash Concentration

Create and process concentration proposals.• Print and send concentration correspondence.• Handle the posting procedures used in cash concentration.• Enter the concentration specifications in Customizing.• Carry out cash concentration.Cash concentration involves moving the balances from various bank accounts toone target account, keeping defined minimum balances in the source accounts.The system creates a concentration proposal based on the grouping. The proposalcontains the balance for the end of the day, and the planning result -that as, thelikely account transfers. You can correct the concentration proposal at any stagein the process. The result is printed and takes the form of payment orders to thebanks. Payment advices are also created. They are necessary for the new bank

SAP CASH AND LIQUIDITY MANAGEMENT

Cash Concentration

Banks offer lockbox service to help companies process incoming check payments. A company with a lockbox account asks its customers to send check payments directly to the bank..

Bank collects these payments along with the customers' remittance information about what open items the payments intend to clear.

Bank enters the information into an electronic file for transmission to the company to which the lockbox account belongs.

They are BAI and BAI2 Lockbox Communications Standards format.

The information in this file is matched to the accounts receivable information in the R/3 system to clear the payments against the open items.