SAP In House Cash Management

SAP AG 2003

FSC120 SAP In-House CashFS310 Collections and Disbursements

THE BEST-RUN BUSINESSES RUN SAP

© SAP AG 2005

FSC120

SAP In-House Cash

mySAP ERP 2004

2005/Q2 Material number: 50075855

SAP AG 2003

Copyright 2005 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in

any form or for any purpose without the express permission of

SAP AG. The information contained herein may be changed

without prior notice.

Copyright

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Recommended:

AC010 Business Processes in Financial Accounting

FS230 Bank Current Account

Course Prerequisites

Course FSC120 looks at the In-House Cash area in detail, including some of the related procedures and system settings.

This course replaces the previous courses CFM840 (In-House Cash) and FS120 (In-House Cash).

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Course Goals

Course Objectives

Course Content

Course Overview Diagram

Main Business Scenario

Contents:

Course Overview

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This course will prepare you to:

Use the core business processes and functions

offered by In-House Cash

Create the necessary master data and make the area-

specific settings in Customizing

Course Goals

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Course Objectives

At the conclusion of this course, you will be able to:

Describe the organizational units used in the

In-House Cash application

Maintain the master data

Automate intra-group payments and payments made

to external partners, and describe the procedure for

central incoming payments

Explain the cross-bank area posting function

Carry out special periodic activities

Carry out basic area-specific Customizing

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Unit 5 Master Data Maintenance

Unit 6 In-House Cashprocesses

Unit 7 Periodic Tasks

Preface

Unit 1 Course Overview

Unit 2 Overview of FinancialSupply Chain Mgmt.

Unit 3 Introduction to In-House Cash

Unit 4 Organizational Units

Appendix

Course Content

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Course Overview Diagram

Unit 4: Organizational Units

Unit 6: In-House Cash Processes

Unit 7: Periodic Tasks

Unit 5: Master Data Maintenance

Unit 3: Introduction to In-House Cash

Unit 2: Overview of Financial Supply Chain Mgmt.

Unit 1: Course Overview

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You first want to gain an overview of the Financial

Supply Chain Management (FSCM) components.

What are the goals and advantages of the SAP

In-House Cash solution?

To find out about the basic structure and the

preparations that need to be made, you want to gain

an overview of the organizational units involved and

then maintain the master data.

You want to manage your intra-group and external

payment transactions and the corresponding risks

as effectively as possible and, in doing so, secure

a competitive advantage.

Main Business Scenario I

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How can payment transactions within the group be

automated efficiently?

How can group payment transactions with third

parties be automated?

What is the procedure for central incoming

payments?

What settings need to be made in the application and

in Customizing in order to use the In-House Cash

solution effectively?

Main Business Scenario II

You are a member of a project team. Your task is to make the basic settings for the core business processes and functions in In-House Cash, and you assist in completing this task.

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Overview of Financial Supply Chain Management








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Financial Supply Chain Management

Financial Supply Chain Management (FSCM) is an integrated

approach for improved transparency and control of all processes relevant to liquidity:

Improved cash flow forecasts

Reduced working capital

Reduced operating expenses

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At the conclusion of this unit, you will be able to:

Provide an overview of the Financial Supply Chain

Management (FSCM) components.

Overview of Financial Supply Chain Management: Unit Objectives

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Before you begin working in the project team, you

want to obtain an overview of the components of SAP

Financial Supply Chain Management.

What are the components of FSCM, and what are

the most important functions of the individual

components?

Overview of Financial Supply Chain Management: Business Scenario

You are a member of a project team. Your task is to make the basic settings that are required for the core business processes and functions of the In-House Cash component.

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SAP FSCM: SAP Credit Management

SAP Credit Management

Increase the financial visibility of the customer base:

Gain control over how credit is issued

Optimize terms for customers

Reduce amount of bad or doubtful debt

Settle

&

Pay

Cash Flow

Forecast

Finance

Work Capital

Resolve

DisputesReconcile

Issue

Invoice

Evaluate

Credit

SAP Financial Supply Chain Management

Financial Supply

Chain

Management

Credit

Management

Electronic Bill

Presentment &

Payment

Dispute

ManagementIn-House Cash

Cash & Liquidity

Management

Treasury & Risk

Management

Collect

Cash

Collections

Management

Credit Management provides you with the tools you need to assess the customer's credit, enabling you to rely on internal assessment guidelines and external credit data. You can easily manage even the most complicated customer base with the most diverse customers and conditions.

As a result, you can make decisions regarding credits quickly and consistently, thus allowing you to reduce delays in payment and the number of uncollectible receivables as well as total transaction costs. Furthermore you are now able to offer an improved service to your best customers.

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SAP FSCM: SAP Biller Direct

SAP Biller Direct

Supplement traditional billing procedures:

Electronic invoicing for businesses

Electronic payment for customers

Integrate customer service with finance


Financial Supply

Chain

Management

Credit

Management

Electronic Bill

Presentment &

Payment

Dispute


Cash & Liquidity

Management

Treasury & Risk

Management

Settle

&

Pay

Cash Flow

Forecast

Finance

Working Capital

Resolve

DisputesReconcile

Issue

Invoice

Evaluate

Credit

Collect

Cash

Collections

Management

Using the electronic invoicing and payment tool Electronic Bill Presentment and Payment, your

customers can display accounts, settle invoices, resolve problems, and check the payment status online.

As a result, your payment, invoicing and reconciliation processes are simplified while, at the same time, your sales cash flow is accelerated.

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SAP FSCM: SAP Dispute Management


Financial Supply

Chain

Management

Credit

Management

Electronic Bill

Presentment &

Payment

Dispute


Cash & Liquidity

Management

Treasury & Risk

Management

Settle

&

Pay

Cash Flow

Forecast

Finance

Working Capital

Resolve

DisputesReconcile

Issue

Invoice

Evaluate

Credit

Collecte

Cash

SAP Dispute Management

Enhance customer profitability and reduce days sales outstanding:

Identify issues and disputes earlier in the payment cycle

Track and monitor reasons that drive DSO

Reduce the frequency of deductions and underpayments

Collections

Management

SAP Dispute Management allows you to resolve disputes with customers regarding invoices and payments quickly and efficiently. Dispute Management lets you analyze the problems and issues behind your days sales outstanding (DSO) as well as decrease the number of payment deductions. As a result, your accounts receivable accounting department will be able to work much more productively.

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SAP FSCM: SAP Collections Management

SAP Collections Management

Establish customer-centric receivables management

Identify, evaluate and prioritize accounts

Collect receivables proactively

Collaborate with external and internal business partners


Financial Supply Chain

Management

Credit

Management

Electronic Bill

Presentment &

Payment

Collections

Management

Dispute


Cash & Liquidity

Management

Treasury & Risk

Management

Settle

&

Pay

Cash Flow

Forecast

Finance

WorkingCapital

Resolve

DisputesReconcile

Issue

Invoice

Evaluate

Credit

Collecte

Cash

The SAP Collections Management component lets you actively manage receivables. Tracking and collecting outstanding amounts: You receive access to data that allows you to

monitor your customer accounts. Based on this data, you can contact the customer and point out any outstanding amounts.

You can record the customer's promise to pay in the system. Due to its integration with accounts receivable accounting, the system monitors whether the payment is received and the payment promise is kept.

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SAP FSCM: SAP In-House Cash


Financial Supply

Chain

Management

Credit

Management

Electronic Bill

Presentment &

Payment

Dispute


Cash & Liquidity

Management

Treasury & Risk

Management

Cash Flow

Forecast

Finance

Working

Capital

Resolve

DisputesReconcile

Issue

Invoice

Evaluate

Credit

Collect

Cash

SAP In-House Cash

Lower cost of managing banking relationships

Cost-effective processing of intra-group and external payment transactions

Consolidate banking relationships

Aggregate transactions by business units or regions

Lower cost of inter-company payments

Collections

Management

Settle

&

Pay

The SAP In-House Cash component is a solution for processing and optimizing a group's intra-

group and external payment transactions. It reduces the need for external bank accounts and for cross-border payments.

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SAP FSCM: Treasury & Risk Management


Financial Supply

Chain

Management

Credit

Management

Electronic Bill

Presentment &

Payment

Dispute


Cash & Liquidity

Management

Treasury & Risk

Management

Settle

&

Pay

Cash Flow

Forecast

Finance

Working

Capital

Resolve

DisputesReconcile

Issue

Invoice

Evaluate

Credit

Collect

Cash

SAP Treasury and Risk Management

Manage investments in securities and deposits:

Straight-through processing of financial transactions

Manag interest rates and currency exposure

Gain overview of deals and cash position

Control and limit market risks

Collections

Management

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SAP FSCM: SAP Cash & Liquidity Management


Financial Supply

Chain

Management

Credit

Management

Electronic Bill

Presentment &

Payment

Dispute


Cash & Liquidity

Management

Treasury & Risk

Management

Settle

& Pay

Cash Flow

Forecast

Finance

Working Capital

Resolve

DisputesReconcile

Issue

Invoice

Evaluate

Credit

Collecte

Cash

SAP Cash and Liquidity Management

Gain greater visibility and predictability of Cash Flows:

Plan and manage available cash flows

Reconcile payments with bank accounts

Forecast liquidity

Collections

Management

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SAP Financial Supply Chain Management (FSCM) includes the following components:

SAP Credit Management

SAP Biller Direct

SAP Dispute Management

SAP Collections Management

SAP In-House Cash

SAP Treasury & Risk Management

SAP Cash & Liquidity Management

Overview of Financial Supply Chain Management: Summary

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Introduction to In-House Cash








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Explain the objectives of In-House Cash

List the advantages of In-House Cash

Introduction to In-House Cash: Unit Objectives

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You want to manage your intra-group and external

payment transactions and the associated risks as

effectively as possible and, in doing so, secure a

competitive advantage.

How is this reflected in the objectives of In-House

Cash? What are the advantages to your company?

Introduction to In-House Cash: Business Scenario

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Subsidiary

Subsidiary

SubsidiarySubsidiary

Subsidiary

Subsidiary

Head office

(Europe)

Region 1Region 1

Region 2Region 2

US

Asia

Various and ever-changing multinational corporate structures . . .

. . . with a high volume of internal and external payment transactions

Current Situation

The current situation is characterized by: - Multinational group structures

- Separate banking relationships maintained by each of the group's units - Companies with subsidiaries or branches that do business with each other

-> Large number of intra-group payment flows - Companies with external payment obligations/receivables

-> Large number of external bank accounts - Companies with multinational customer relations

-> Large number of cross-border payments One effect of the global economy is the upsurge in the number of companies that have a

multinational customer base. As the number of internal trading partners is also growing, down the line, international companies are faced with a surge in bank connections and internal and external payment flows. This goes hand-in-hand with considerable costs for cross-border payments.

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CompaniesCompanies withwith subsidiariessubsidiaries oror branchesbranches thatthat do do businessbusiness

withwith eacheach otherother

=> Large => Large numbernumber of of intraintra--groupgroup paymentpayment flowsflows

CompaniesCompanies withwith externalexternal paymentpayment obligationsobligations//receivablesreceivables

=> Large => Large numbernumber of of externalexternal bankbank accountsaccounts

CompaniesCompanies withwith multinationalmultinational customercustomer relations relations

=> Large => Large numbernumber of of crosscross--borderborder paymentspayments

Current Situation

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The goal is to find a solution that facilitates these tasks:

Payment transaction control on a regional and global level

Cost-effective processing of intra-group and external payment transactions

Reduction of external bank accounts

Reduction of cross-border payments

Automation and standardization of business processes

Objectives of In-House Cash

The SAP In-House Cash component is a solution for processing and optimizing a group's intra-

group and external payment transactions. It reduces the need for external bank accounts and for cross-border payments.

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No need to install additional software in subsidiaries

Reduction of transaction volume due to internal netting

Reduction of bank accounts and fees

Bundling of currency quantities

Standardized, rationalized, and integrated business processesand controls

Significantly greater efficiency and lower costs in

processing international payment transactions

Advantages of SAP In-House Cash

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Use of standard payment programs

Use of standard bank statement programs

Maintenance of accounts in any currency

Free choice of payment terms

Interest on Credit balance

Current account overdraft facility for subsidiaries (using

credit limits)

Advantages of SAP In-House Cash

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In-House Cash enables you to automate payment

transactions within the group and with third parties

and supports the central cash receipt process.

In-House Cash offers numerous advantages, including

automated and standardized business processes,

fewer external bank accounts, and a reduction in the

volume of cross-border payments.

Introduction to In-House Cash:Summary

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Organizational Units








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List the organizational units involved and

describe their roles

Summarize the basic functions of the In-House

Cash Center and the financial accounting system

Organizational Units: Unit Objectives

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Before you decide how to set up the system, you

need to gain an overview of the organizational units

involved.

Which functions are dealt with by the In-House Cash

Center and which by Financial Accounting?

Organizational Units: Business Scenario

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Head officeGroup

Tasks and functions of the organizational

units involved

Subsidiary03

Subsidiary02

Subsidiary01

In-House Cash

Center

Bank Account

Management

Financial

Account-

ing

Organizational Units Involved

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Group

Subsidiary03

Subsidiary02

Subsidiary01

Company

Individual trading entity (e.g. subsidiary) with its own systems.

This company has one or more accounts with the group head office

(In-House Cash Center).

The company defines new accounts with the In-House Cash Center as

though it were a normal house bank.

Organizational Units: Company

The companies are independent entities that have their own systems. The In-House Cash Center fulfils the role of an internal house bank. The subsidiary maintains an

account relationship with the In-House Cash Center as if it were an external house bank.

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Head officeGroup

In-House Cash

Center

Bank accounts

management

Financial

Account-

ing

Head office

The head office manages the current accounts for the group companies in

the In-House Cash Center (IHC Center).

The financial accounting department at the head office manages the IHC

general ledger accounts.

The head office may also be using other SAP solutions, such as CO, MM, ...

Organizational Units: Head Office

Typically, the SAP In-House Cash Center is set up at a central location.

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Head officeGroup

In-House Cash

Center

Bank Account

Management

Financial

Account-

ing

In-House Cash Center

The IHC Center is normally situated at the head office and can be a

separate organizational entity (such as a Call-Center).

The IHC Center manages the current accounts of the subsidiaries as a

subledger.

The In-House Cash Center processes intercompany payments and

payments between the group and third parties.

Organizational Units: In-House Cash Center

The In-House Cash Center is like a bank, with which the subsidiaries have current accounts. This processing of current account transactions focuses on keeping track of payables and receivables between the In-House Cash Center and the participating affiliated companies. The turnovers and balances of the current accounts are transferred to SAP Financial Accounting as totals records.

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Charges

Interest

Debit Debit

interestinterestCredit Credit

interestinterestOverdraftOverdraft

interestinterestTransactionTransaction

interestinterest

Item Item

chargeschargesDirectDirect

chargeschargesPeriodicPeriodic

chargescharges

DispatchDispatch

chargeschargesAccountAccount maintmaint. .

chargescharges

Account A

+ 100.00

- 10.00

+ 0.45

Account charges 10.00€ Credit interest 0.5%

In-House Cash Center: Condition Structure

The IHC Center acts as a service department responsible for looking after the financial interests of the group and takes on the role of a virtual bank for the group companies. The IHC Center manages current accounts for the subsidiaries.

The account management functions provided in the IHC Center allow you to maintain and manage accounts in any currency. This includes functions for calculating interest, debiting charges, granting overdrafts, and creating bank statements for the affiliated companies.

The IHC Center manages the payment transaction processes, such as the automation of payment transactions within the group (internal payments), central payments for the affiliated companies (central payments), or it manages the external incoming payments for the subsidiaries in house bank accounts at the head office (external incoming payments).

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Head officeGroup

In-House Cash

Center

Bank accounts

management

Financial

Account-

ing

Financial Accounting

Contains the G/L accounts required for the IHC subledger.

Financial Accounting manages the summarized balances from the IHC Center

and draws up the Balance Sheet for the head office, including the IHC Center.

The financial accounting department uses SAP-FI.

Organizational Units: Financial Accounting

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Companies are independent entities (such as

subsidiaries) that have their own systems.

The head office includes financial accounting

and the IHC Center.

The solution is based on account management in

the IHC Center and the IDoc link to FI.

The IHC Center manages the

current accounts of the subsidiaries as a

subledger of the head office.

Organizational Units: Summary

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Master Data Maintenance








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Explain the principle of the central business

partner, including the role concept

Define the bank area as the central organizational

unit for the current account management system

Create a current account with all its

components

Describe the framework for entering

conditions

Explain the limit categories

Master Data Maintenance: Unit Objectives

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You first want to maintain the necessary master

data. Mater data is usually created once at the beginning and

then provides the framework for the transaction data. However,

changes can be made later on, if necessary. Master data forms

the basis that enables you to work with the system.

What is the role of the bank area as the

central organizational unit?

How do you create a current account with its key

components? (The In-House Cash Center manages the

current accounts of the subsidiaries as a subledger of the head

office.)

Master Data Maintenance: Business Scenario

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Central Business Partner


FSCM

IBU Insurance

IBU Banking

IBU Utilities

. . .

CustomerRelationshipManagement

CRM

IBU Health Care

Business? Business? PartnerPartner

SAP Business Partner was developed using the Business Data Toolset (BDT). The applications (such as

FSCM) incorporate the additional attributes, roles and relationships they require into BDT dialog maintenance. The Business Data Toolset (BDT) supports the maintenance of master data and simple transaction data. The BDT is completely independent of the application data and is open for other application objects, such as CRM, FSCM and industry solutions like IBU Insurance, IBU Banking, etc., where IBU stands for Industry Business Unit.

SAP Business Partner Stores data in a central master record, reducing the maintenance effort and storage space needed

and preventing data inconsistencies (Business Partner is present only once in the system) Contains central data, such as names, addresses, communication details and bank details

Business Partner can be involved in different business processes Business Partner: Role Concept (see next page)

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• Account holder

• Authorized drawer

• Bank statement recipient

• Contact person

• Account maintenance

officer ...

Business Partner: Role Concept

FSCM

In-House CashExample

You create an SAP Business Partner once as a central data object. It can then be used by various SAP applications, including In-House Cash, in different roles.

A Business Partner can have several roles. For example, the following roles are available as role categories and standard roles: Account holder (BKK010):

The account holder is the owner of the current account. Each account is assigned one account holder. Note: If the account holder is an organization or group, you must also define an authorized drawer.

Authorized drawer (BKK020): The authorized drawer is not the owner of the account. You can assign more than one authorized drawer to an account.

Bank statement recipient (BKK030): The bank statement recipient is the addressee for bank statements. You can assign more than one bank statement recipient to an account.

Contact person: The contact person is a group's or organization's point of contact. The contact person must be an actual person. You can assign more than one contact person to an account. The assignment is for informational purposes only.

Account maintenance officer (BKK200): Typically, the account maintenance officer is an internal employee who is responsible for certain accounts.

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Bank areaIn-House Cash

Center

Bank area

002

Bank current accounts

Bank area

003

Bank key 999 999 99Bank key 999 999 99 Bank key XBank key X Bank key YBank key Y

• A company code has to be assigned to each bank area.

• There is a Bank Area that represents the IHC Center.

• If you have more than one IHC Center, multiple bank areas

are required.

Bank area

Company code AFI

The bank area is the central organizational unit of current accounts. It processes and manages all the current accounts in an independent, self-contained system. Since the same bank key can be assigned to multiple bank areas, account numbers that have already been assigned are blocked in the other bank areas using the same bank key.

You should consider at an early stage how many bank areas you will need and how they will be defined, because accounts and conditions are created for a specific bank area. There is a Bank Area that represents the ICH Center. If you have more than one IHC Center, multiple bank areas are required. The IHC Center receives its own Bank Key (for instance, 999 999 99).

The bank area determines: The bank key/bank identification number of the institution The check digit procedure used to determine the check digit in the account number The company code to which the BCA (Bank Customer Accounts) balances are transferred The products that can be used within the bank area The country, language and public holiday calendar used.

To avoid problems when checking the length of the bank key or the bank number, use transaction code FIHC for creating the IHC Center. See also SAP Notes 335278 and 376180.

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C

U

S

T

O

M

I

Z

I

N

G

CC

UU

SS

T T

OO

MM

II

ZZ

II

NN

GG

Product configurator:

Example

Account

fields

Conditions

and limits

Features

Payment

transaction

operations

Administration Product name, validity period, status

Attribute control:

- Attribute control of the fields visible at the

time of account creation

- Storing of default values for account fields

- Control of the field modifications

Hide

Required entry

Optional entry

Display

Permitted combinations of payment media

and activity types

Product: Overview

A product is a set of current account attributes. It is used as a template for defining fields, conditions and limits, features and payment transaction operations. Products are used to control general processing characteristics which are transferred to the assigned accounts.

You first define products and then create accounts based on these products. Products serve as templates for accounts. A product configurator is available for defining the products. The Product Configurator facilitates the definition of the business and technical features of a product, its version creation and the layout of the functions on the screen.

Initially, you create products across all bank areas. Then you assign them to the bank areas in which they are to be used.

You create products in Customizing. There are separate sections for product administration, the fields in the account, conditions and limits, the account features, and the payment transactions supported for the product.

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Business Business partnerspartners

ConditionsConditions

BlocksBlocks

TurnoversTurnovers

No. Post.date Crcy AmountVal.date

1 12/30/04 12/31/04 EUR 100.00 C

2 12/31/04 12/31/04 EUR 9.58 D

.........ReportingReporting

LimitsLimits

Account A

Bank Bank statementsstatements

+ 100

- 120

...

IHC

Center

General

ledger

FI

General General ledgerledger transfertransfer

Account Overview

Master data

Accounts are seen as characteristics of a product. Each account must be assigned to an account holder. You must create an account in In-House Cash for each participating affiliated company.

Account master data: In the account master data views, first you store the bank area, account number and business partner key for the account holder. Assigning an account holder to an account is prerequisite for opening the account.

The account master data also contains all the information on the accounts managed in the current account system.

Examples: Administration: Status, date account was opened Identification: Currency, product, account name (To facilitate identification, the name of the

account should include the account currency.) Condition groups: Condition area, interest, charges, value dates Account holder: Master data for the business partner Bank statement recipient: Business partner in the role of bank statement recipient Other business partners: Contact person, authorized drawer, for example

You can also define limits. SAP delivers the standard limit categories Account Overdraft limit, Internal Account limit and External Limit. The master data for the limits is required to limit the amount that can be drawn from an account and thus affects account maintenance.

You can define blocking reasons with respect to the account. Blocking reasons enable you to block features, transaction types or media type defined for the product specific to a particular account. (The term 'media' refers to the media used to communicate the payment order to the bank, such as a document, EFT, SWIFT.)

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Account maintenance 10.00€Posting date + 1 day

Credit interest 0.5%

4912132213D C

100.00

0.4210.00

ChargesCharges

InterestInterest

ValueValue datedate

Condition Master Data

Condition master data: This data contains all the information needed to calculate the interest and charges for an account and determine the value date for postings.

Conditions control the settlement of the accounts with regard to the crediting and debiting of interest and charges. The conditions also determine the value dates in the area of payment transactions and account settlement.

Structure: Each condition belongs to a certain condition category. The available condition categories are divided into the condition group categories “interest”, “charges” and “value dates”.

Individual conditions supplement standard conditions. You can create individual conditions for a specific account. The individual condition overrides the corresponding standard condition, If the individual condition is a markup condition (flag in the condition header), it is added to the

standard condition. If an individual condition becomes invalid, the standard condition automatically applies again.

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Condition group categoryCondition group category


Condition

category

Condition

category

Condition groupCondition group

0004

Interest of affiliated

companies

InterestInterestInterest

Debit

interest

Debit

interestOverdraft

interest

Overdraft

interest

Credit

interest

Credit

interest

EUR overdraftinterest

EUR debitinterest

EUR creditinterest

Condition Group Category: Interest

EUR transinterest

EUR EUR transtransinterestinterest

Transaction interestTransaction interest

The condition categories “debit interest”, “credit interest" and “overdraft interest” are summarized,

for example, in the condition group “interest of affiliated companies”. (Another condition group could be, for example, “interest of non-affiliated companies”.)

Condition groups, in turn, are summarized in the condition group categories “interest”, “charges” and “value dates”.

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Condition item: as of Jan. 1 9.0%

Condition item: as of May 1 9.5%

Condition header: EUR debit int.

Condition header:

Condition area, description, condition category,

differentiation, condition currency, calculation method

Condition item:

Amount, interest rate, interest rate reference

Creating Conditions I

You create the condition header in the condition area. The condition area is the central

organizational unit in which standard conditions are defined. In the condition header, you maintain: the description, the condition category, the differentiation, the condition currency, and the calculation method.

You can further define the condition categories using the differentiation type. For example, based on the turnover of an account, you can set up different rates of debit interest: for example, 9% for a turnover of up to EUR 100,000, 7% for a turnover of up to EUR 200,000.

The interest calculation method determines on which time base interests are calculated on payments throughout the year. Variances in the number of days in a month as well as leap years are taken into account by the different methods in various ways.

Each condition has one or more condition items. The condition items are time-dependent. The system uses the amount or percentage that is currently valid. Alternatively, you can define interest markups and markdowns on reference interest rates.

SAP AG 2003

Condition Condition

areaarea

Account A

Condition

group

e.g. G1

Account B

ProductProductDebit Debit interestinterest

Credit Credit interestinterest

TransactionTransaction

interestinterest

OverdraftOverdraft

interestinterest

Standard

conditions

The condition area controls which conditions can be

assigned to an account.

Creating Conditions II

Conditions are always created in relation to a condition area (central organizational unit), which you

assign to the product in the ‘Create product’ section. You can assign precisely one condition area to each product.

The conditions are always created in the application, in relation to a condition area. In a second step, you assign the conditions you have created to the condition groups belonging to that condition area.

In Customizing, you set how standard and individual conditions are displayed. You define condition areas, condition groups, and the counters used for item-based and activity-based charges.

When you assign interest conditions to the condition group, make sure that the condition group category Interest has been defined for both. In the condition group, you can only define one condition per condition category, differentiation type and currency key.

When you assign charges to the condition group, make sure that the condition group category Charges has been defined for both. In the condition group, you can only define one condition per condition category, differentiation type and currency key.

SAP AG 2003

0004

Charges of affiliated

companies

ChargesChargesCharges

Item

charge

Item

chargeAccount

maintenance

charge

Account

maintenance

charge

Trans-

action

charge

Trans-

action

charge

Dispatch

expenses

Dispatch

expenses

EUR-PER-CEUR-IT-C EUR-TR-C

Direct

charge

Direct

charge

EUR-DI-C



Condition

category

Condition

category


EUR-DE

Condition Group Category: Charges

Condition categories belonging to the condition group category “charges”: Item charge:

Balancing condition Fixed amount per posting item, depending on the type of item Free items can be taken into account

Dispatch expenses Balancing condition Based on dispatch expenses counter Business event for individualized calculation of the expense involved in dispatching the bank

statements Account maintenance charges

Balancing condition Fixed amount per period

Transaction charge Charge for payment transaction operations (for example, returned direct debit charge) The transaction charge is posted directly when the transaction is executed

Direct charge Charge for certain services (for example, closing an account)

The direct charge is posted when the activity is carried out

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Condition categoryCondition category


Value dateValue dateValue date

Value date

subject to final

payment

Value date

subject to final

payment

Value dateValue date

EUR-VD-f.p.EUR-VD

0004

Value date of affiliated

companies

Condition Group Category: Value Date

Condition categories belonging to the condition group category value date: Value date Value date condition Determines the value date of a posting item according to the type of item (for example, bank

transfer) Specification of the difference (in days) from the posting date Validation against the specified value date condition, taking tolerances into account The value date affects the account balancing, and as such, the interest calculation.

Value date “subject to final payment” (f.p.) Value date condition Determines the account balance that is subject to final payment, according to the type of item (for

example, bank transfer) Value dates that are subject to final payment affect the allocation of funds.

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Configuring Limits: Overview

Overdraft limit

Internal credit limit

External credit limit

Valid from

01/01/2005

Valid from

01/01/2005

Valid from

01/01/2005

Valid to

12/31/9999

Valid to

12/31/9999

Valid to

12/31/9999

Limit amount

100,000,000

Limit amount

100,000,000

Limit amount

100,000,000

Currency

EUR

Currency

EUR

Currency

EUR

The limits you assign to an account always belong to a certain category. SAP distinguishes between the following standard limit categories:

Overdraft limit Internal credit limit External credit limit

These limit categories control the coverage check for the account during the payment transactions as well as balance-dependent conditions. Because the limit categories are each linked to various functions, we advise you not to change them.

The overdraft limit controls the calculation of overdraft interest. If the limit is exceeded, any existing overdraft interest condition takes effect.

The internal credit limit controls the credit limit for payment transactions. The external credit limit is the credit limit communicated to the customer. It is for information

purposes only and has no effect whatsoever on any other functions. The external limit must be less than or equal to the internal limit.

The limits are currency-dependent. The currency of the limit is governed by the account currency.

SAP AG 2003

Account balancing

Time periods, next date

Reference accounts

Cash concentration

Bank statement

Time periods, next date

Bank statement history

Display of the current bank statement

Account Master Data: Balancing Information

Account balancing: Here you enter the conditions under which accounts are to be balanced, in other words, when interest and charges are to be calculated. You can also post the interest and charges resulting from account balancing to a reference account.

Cash concentration: Here you specify at which intervals a cash concentration run is to take place. Bank statement: This is where you specify how often you want bank statements for this account to

be generated. You can also display current and historical bank statements for each account.

SAP AG 2003

Product Product -- CreateCreate

-- ChangeChange

-- DisplayDisplay

-- CopyCopy

Product Product -- DisplayDisplay AccountAccount -- CreateCreate

-- ChangeChange

-- DisplayDisplay

-- ReleaseRelease

-- DeleteDelete

Assign bank

areas

Define bank

area

Maintain product

attributes

AccountAccount

-- Define statusDefine status

-- Locking reasons Locking reasons

-- Account relationshipAccount relationship

typestypes

-- Formats for bankFormats for bank

statementsstatements

-- Dispatch type for bankDispatch type for bank

statements statements

-- Resubmission ReasonsResubmission Reasons

APPLICATIONAPPLICATION

CUSTOMIZING

Relationship Between Product and Account

Additional functions in Customizing (Implementation Guide - IMG) ‘Change Product’:

Change existing products Create new versions of existing products. This does not mean changing the whole product, but

just versions of the product. ‘Display product’: Display products which have already been created. ‘Copy product’: Copy existing products. ‘Assign products to bank areas’: You can assign a product to several bank areas. Unless assigned, a

product is not available in any bank area. When you open an account in a bank area, you can only select products assigned to the bank area.

Account management centers on the current account. Accounts are created as characteristic of a product.

You always create accounts for a certain bank area. As a result, you can have accounts with the same account number in different bank areas.

SAP AG 2003

You create an SAP business partner once as a central

data object. It can then be used by various SAP

applications, including In-House Cash, in different roles.

The bank area is the current account's central

organizational unit.

Accounts are seen as characteristics of a product.

You must create an account in In-House Cash for

each participating affiliated company.

The available condition categories are divided into the

condition group categories interest, charges and value

dates.

SAP has standard limit categories for overdraft

limits, internal credit limits and external credit limits.

Master Data Maintenance: Summary

SAP AG 2003

ExerciseExercise

Create Current AccountCreate Current Account

Master Data Maintenance: Exercise: Create Current Account

Data for the exercises

Symbols used in the exercises and solutions

Exercises

Solutions

Unit objectives

Business scenario

Hints and tips

Warning or caution

Data used in the exercises

Data Data in the training system

Company codes Participating companies: TR01 to TR38 Instructor: TR01 to TR02 Do not use. Participants: TR03 to TR38

Financial accounting system of parent company: TR00

Bank Area IHC

G/L accounts 113590 IHC EUR Account 113592 IHC Transfers (EUR) 113599 IHC Customer Payments (EUR) 113550 IHC USD Account 113552 IHC Transfers (USD) 113559 IHC Customer Payments (USD)

Customer Company01 to Company38

Vendor

External vendor

Company01 to Company38

EXTERN

Current accounts

in In-House Cash

10490190 to 10493890

10490150 to 10493850 (to be created as part of the exercise)

Business partners

Role: Account holder and Bank statement recipient

Role: Authorized drawer and Account maintenance officer

Company01 to Company38

Employee01 to Employee38

Notes on the exercises:

Since all participants will be working in the same bank area, it is important that you follow

the instructions in the exercises exactly.

Do not delete any existing entries in Customizing. You should only add new entries.

Group 1st Company Code 2nd Company

Code

Customer Vendor

## XX YY XX YY

01 TR03 TR04 COMPANY03 COMPANY04








Master Data Maintenance: Exercises

Unit: Master Data Maintenance

Topic: Create Current Account

After completing these exercises, you will be able to:

Create a current account

Assign this current account to an existing house bank

Complete the details for the payment program (optional)

In addition to your existing current account in EUR, you now want to

create a current account in USD. As a result, you also need to adjust your

house bank data.

1-1 Create a current account in the bank area IHC with the number 1049XX50 for the

respective account holder CompanyXX. Use the product IHC MAX_T as the basis

for the account.

Make sure that you remember to create a USD account.

Enter an authorized drawer in the Other Business Partners section of the Basic Data

tab page. Choose the business partner EmployeeXX in the role of "Authorized

drawer".

Based on the default values for the product, limits have already been defined in EUR.

However, the limit currency must be the same as the account currency, in this case

USD. Delete the existing EUR limits and enter new USD limits. First, go to the

screens for the individual limit period and delete all the existing EUR limits. Delete

the external account limit first, since the external limit is not allowed to be greater

than the internal limit. Enter the following values for all three limit types:

Valid from: 1st Jan 0001

Valid to: 31st Dec 9999

Amount: 100,000,000.00 USD

Define the business partner CompanyXX as the bank statement recipient. Now repeat

the whole of Exercise 1-1 for YY.

Do this for both of your company codes.

1-2 You now also have a USD current account with the In-House Cash Center. You now

need to add this account to your house bank data.

To do so, define account 1049XX50 for the house bank IHC using the account ID

IHCUS in YOUR OWN company code, TRXX. Remember to assign the necessary

G/L account 113550. Now do the same for YY.

1-3 OPTIONAL: Maintain the details for the payment program.

Enter the following bank determination details for your own company code:

Payment method: I

Currency: USD

Ranking order: 1

House bank: IHC

Maintain the bank accounts as follows:

House bank: IHC

Payment method: I

Currency: USD

Account-ID: IHCUS

Bank subaccount: 113552

Maintain the available amounts:

House bank: IHC

Account-ID: IHCUS

Days: 999I

Currency: USD

Available for outgoing payment: 999,999,999.00

Scheduled incoming payment: 999,999,999.00

Master Data Maintenance: Solutions

Unit: Master Data Maintenance

Topic: Create Current Account

SAP menu: Extras > Settings > Display technical names

1-1 Create USD current account:

Accounting


In-House Cash

Account

Create (F9K1)

Field name or data type Values

Bank Area IHC

Account number 1049XX50

Account holder CompanyXX

Product IHC MAX_T

Deactivate Check Digit Set indicator

If the indicator is set the

system creates the account

number without running the

check digit calculation.

Enter


Currency USD

Authorized drawer Employee

Tab page: Limits; button: breakdown, Select and delete the limit (trash can icon).

Start with the External Account Limit and delete all 3 limits.

Button: breakdown. Create new limits for all 3. Start with the Internal limit this time.


Valid from 1st Jan 0001

Valid to 31st Dec 9999

Limit amount 100,000,000.00

Currency USD

Tab page: Account statements


Business partners CompanyXX

Save

1-2 Add account to house bank data:

Menu: Tools > Customising > IMG > Execute Project (SPRO) > SAP

Reference IMG

Customizing: (SPRO transaction)


Bank Accounting

Bank Accounts

Define House Banks (FI12)


Company code TRXX

Select IHC, double-click Bank accounts, button: New entries


Company code TRXX

House bank IHC

Account ID IHCUS

Description In-House Cash Account XX

USD

Bank account Number 1049XX50

General ledger 113550 (IHC USD bank

account)

Currency USD

Save

1-3 Solution for: Maintain payment program. Do this for both of your company codes

Accounting


Vendors

Periodic Processing

Payments (F110)

Environment

Maintain config.

Button: Bank determination

Select your company code TRXX.

1. Ranking Order:

Button: New entries


Payment method I

Currency USD

Ranking order 1

House bank IHC

2. Bank Accounts:

Button: New entries


House bank IHC

Payment method I

Currency USD

Account ID IHCUS

Bank subaccount 113552 (IHC USD outgoing

domestic payment)

3. Available Amounts:

Button: New entries


House bank IHC

Account ID IHCUS

Days 999 (value date days are not

taken into account)

Currency USD

Available for outgoing payment 999,999,999.00

Scheduled incoming payment 999,999,999.00

Save. Now repeat steps 1-1 to 1-3 for YY.

SAP AG 2003

In-House Cash Processes








SAP AG 2003


Explain how classical payment transaction

processes are handled by the In-House Cash

solution, based on the organizational units

described earlier, and work with these

processes in the system

Make some of the area-specific Customizing

settings

Describe the principle of cross-bank area

posting

In-House Cash Processes: Unit Objectives

SAP AG 2003

How can payment transactions within the group be

automated efficiently?

How can group payment transactions with third

parties be automated?

What is the procedure for central incoming payments?

What basic settings need to be made in the

application and in Customizing?

In-House Cash Processes: Business Scenario

SAP AG 2003

IHC-2 (Bank transfer - USD) 0000113552

Table of account numbers for course FSC120

Relevant chart of accounts: INT

Account description Account number

IHC-0 (Current account - EUR) 0000113590

Chart of Accounts

IHC-2 (Bank transfer - EUR) 0000113592

IHC-9 (Incoming payment - EUR) 0000113599

IHC-0 (Current account - USD) 0000113550

Sales revenues 000800200

IHC-9 (Incoming payment - USD) 0000113559

Consumption (material consumption) 0000400020

Bank Customer Accounts *

In-House Cash account EUR 1049##90

In-House Cash account USD 1049##50

* Will be created as part of the exercises

SAP AG 2003

Table of customers/vendors and business partners

used in course FSC120:

Account description Account number

Customer Company##

Vendor Company##

External vendor EXTERN

Business partner (Role: Account holder) Company##

Business partner (Role: Authorized drawer) Employee##

Customers / Vendors / Business Partners

SAP AG 2003

HeadHead officeoffice

Company 03

Company 02

Company 01

Pmnt program OI

Group

1.

2a.

2b.

Example: Company 01 makes a payment to Company 02

Payment Bank statement

IHC Center

Account

management

Financial

Account-

ing

Process 1: Internal Payments

The term internal payment clearing refers to the process of clearing payables and receivables between group affiliates.

Example: Company 01 instructs the In-House Cash Center to make a payment to Company 02. The In-House Cash Center posts the payment to the relevant current accounts and generates and sends bank statements to Company 01 and Company 02.

In the accounts of the financial accounting system at head office, the data is managed in summarized form. The end-of-day processing function in the In-House Cash Center summarizes the account turnovers and then transfers the data to the general ledger.

SAP AG 2003

1st

IDOC:

Payext

2n

d ID

OC

:F

insta

3rd

IDO

C:

Fin

sta


(IHC)

Account

Company 01

(10490190)

Head office

Company 01Company 01

CoCd: TR01CoCd: TR01

Vendor: Vendor:




Customer:Customer:


Account

Company 02(10490290)

Acct crcy: EUR Acct crcy: EUR


Bank statement

Payment run

An IDoc (Intermediate document) is a container for the data of a business object or technical SAP

object. Each IDoc has a message type, which indicates the nature of the business object or the business

purpose of the data (for example, Payext for a payment order and Finsta for a bank statement).

SAP AG 2003

Company 03

Company 02

Company 01

Pmnt program OI

Head officeGroup

Company 01:

Defines a new (virtual) house bank “IHC Center” (before making the

payment)

Runs the standard payment program and creates a payment order

House bank: IHC Center

Payment recipient: Vendor Company 02

Partner bank: IHC Center

When using IHC, you still have the full choice of payment terms

In-House Cash

Center

Account

management

Financial

Account-

ing


To settle the invoice, Company 01 runs the standard payment program (SAPF110). The system determines the open items and generates a proposal dataset for the payment run. If the In-House Cash Center has been specified as the vendor's bank, the In-House Cash Center is instructed to make the payment to Company 02. During the payment run, the payment program posts the payment documents and simultaneously generates an IDoc (type PAYEXT), which contains all the relevant information for the In-House Cash Center.

Functions of the payment program: Automatic selection of the items to paid, taking account of exceptions (such as blocked items) Generation of payment documents (debit/credit) Generation of payment data Generation of payment lists and logs Print programs write this payment data to payment media, such as checks.

Usually, you carry out a payment proposal run first. This generates a proposal dataset, which you can check and edit before the update run.

SAP AG 2003

IHC Center:

Debits the current account of Company 01

=> Head office has a receivable due from Company 01

Credits the current account of Company 02

=> Head office has a payable due to Company 02

Generates and sends bank statements to Company 01 and

Company 02

The netting amount is worked out on the basis of the account balance

(for several items)

Company 03

Company 02

Company 01

Pmnt program OI

Head officeGroup

In-House Cash

Center

Account

management

Financial

Account-

ing


The In-House Cash Center receives the IDoc and posts the payment transaction to the corresponding current accounts: It debits the account of Company 01 (ordering party) and credits the account of Company 02 (payment recipient). As a consequence, the In-House Cash Center has a claim against Company 01 and a liability towards Company 02. This clears payables to group companies without the need for physical payments. The In-House Cash Center generates and sends bank statements to Company 01 and Company 02 at the predefined intervals, or upon request.

SAP AG 2003

Tools

ALE

ALE administration

Monitoring

IDoc display

Display

WE02 WE60

Type information:

Basic type:

PEXR2002

Message type:

PAYEXT

Payment Order: PAYEXT

Tools

ALE

ALE administration

Services

Documentation

IDoc types and segments

For payment orders from the affiliated companies to the In-House Cash Center, you use the message

type PAYEXT with the basic type PEXR2002 and the process code PEXN as the inbound parameter. When an IDoc list is displayed, you can go to a specific IDoc by double-clicking the corresponding bar.

A traffic light indicates whether the current status is considered a success or failure status or whether further processing is scheduled so that a decision has not yet been made with respect to success or failure (yellow light).

The individual IDoc is shown in a tree structure. The top node is the IDoc number. The lower-level nodes include the control record as well as data and status records. (Further explanations via WE60)

For the control record, for example, the “letter header” (sender and recipient), the direction, and the IDoc type are displayed.

For the data records, the segments including their names (E1 structures in SAP segments), the segment number, and the short description are displayed.

For the status records, the individual status values are displayed with a short description.

SAP AG 2003

Bank area

Account number

Statement date

Control parametersControl parameters

Simulation runSimulation run

Standard outputStandard output

Statement w/o turnoversStatement w/o turnovers

With addressWith address

Generates a single bank statement

(on request)

Company 01

...

BNo/Acct number: 99999999 10490190

Account name: COMPANY01, Frankfurt

Bank statement no.: 2004/001

Beg. balance: EUR 0.00

Creation date/time

Acct currency: EUR

...

Bank transfer 12/18/2003 80,000.00EUR

Ending balance: 80,000.00EUR

...

Generates a single bank statement Generates a single bank statement

(on request)(on request)


......

BNoBNo/Acct number: 99999999 10490190/Acct number: 99999999 10490190

Account name: COMPANY01, FrankfurtAccount name: COMPANY01, Frankfurt

Bank statement no.: 2004/001Bank statement no.: 2004/001

Beg. balance: EURBeg. balance: EUR 0.000.00

Creation date/timeCreation date/time

Acct currency: EURAcct currency: EUR

... ...

Bank transfer 12/18/2003 80,000.00EUR Bank transfer 12/18/2003 80,000.00EUR

Ending balance: Ending balance: 80,000.00EUR80,000.00EUR

......

Generate Bank Statement (F9N7)

In the In-House Cash Center, bank statements can be generated and sent periodically (daily or monthly, for example) or upon request, depending on what has been agreed with the affiliated companies. You can maintain your own settings regarding the bank statement frequency and the administrative data (business partner, bank statement format, bank statement duplicates).

You can also define multiple bank statement recipients for each account. You can create bank statements using a single run or a mass run.

When it generates an internal bank statement, the In-House Cash Center creates an IDoc (type FINSTA01), which contains all the relevant bank statement information. This IDoc is then sent automatically to the corresponding company.

SAP AG 2003

WE02 WE60

Type information:

Basic type:

FINSTA01

Message type:

FINSTA

Bank Statement: FINSTA

Tools

ALE

ALE administration

Monitoring

IDoc display

Display

Tools

ALE

ALE administration

Services

Documentation

IDoc types and segments

For bank statements from the In-House Cash Center to the affiliated companies, you use the message

type FINSTA with the basic type FINSTA01 and the process code FINS as the inbound parameter. Use transaction WE60 to access documentation on IDoc types.

SAP AG 2003

Companies 01 and 02:

Import bank statements (FF_5) using the standard bank statement

programs

Open items are cleared automatically

Company 3

Company 2

Company 1

Pmnt program OI

Head officeGroup

In-House Cash

Center

Account

management

Financial

account-

ing


The group companies import the bank statements, which trigger corresponding postings on their bank clearing accounts, and automatically clear the open subledger items.

SAP AG 2003

Electronic and manual

bank statement

Account Statement

Application

Statement dateStatement number

House bank

Account ID

Company code

Currency

Posting parameters

Post immediately Bank accounts only

Generate batch input sessions Session names

Do not post

Assign value date to account

Cash Management & Forecast

Algorithms

Output Control

Post Bank Statement - Cash Management

The report RFEBKA30 creates postings for bank statements in the bank data store. It is possible either

to create batch input sessions or direct postings for the update to general and special ledger accounts.

SAP AG 2003

House Banks

Company code TR##Company code TR##

House banks

House bank Bank country Bank key ...

IHC DE 99999999

House bank dataBank country DEBank key 99999999

AddressBank name ___Region ___Street ___City ___

Control data ________Swift code ___Bank group ___Post office bank acct ___Bank number 99999999

House banks for each company code are stored under a freely definable ID (maximum five

characters). All details of the house banks (address, control data,...) are managed in the bank directory.

SAP AG 2003

Company code TR##Company code TR##

Bank accounts

House bank Account ID Bank account ...

... ... ...

IHC IHCEU

... ... ...

G/L account

Current account IHC

Company code TR01

House bank IHC

Bank account key IHCEU

Bank account data

Bank account 10490190

Currency EUR

General ledger 113590

...10490190

Bank Accounts

You specify the relevant bank accounts for house banks you have defined for the company code using

an account ID. You enter the external account number with the bank and its currency, along with the relevant G/L account number, thereby ensuring that postings go to the right accounts.

Each bank account must be assigned to a G/L account. (see, for example, transaction F110 Environment Maintain config. House banks)

SAP AG 2003

Exercise Exercise

Internal PaymentsInternal Payments

In-House Cash Processes: Exercise – Internal Payments

SAP AG 2003


Head officeGroup

External

business

partner

Partner bank House bank of head office

1.

2.

7. 6.

Example: Company 01 makes a payment to an external partner

Company 03

Company 02

Company 01

Pmnt program OI

In-House Cash

Center

Account

management

Financial

Account-

ing

5.

4.

3.

Process 2: Central Payments

Central payment describes a process whereby the payables between affiliated companies and external business partners are settled by a central office within the group. In this process, the In-House Cash Center handles the payments on behalf of the subsidiaries. This can greatly simplify the workflow.

SAP AG 2003

1st IDOC:

Payext

External

business partner

External bank

IHC Center

External

business partner



Vendor: EXTERNVendor: EXTERN


(IHC)

Account

Company 01(10490190)

Head officeHead office

Payment

program

2n

d ID

OC

:

Fin

sta


SAP AG 2003

Company 03

Company 02

Company 01

Pmnt program OI

Head officeGroup

External

business

partner

Partner bank House bankof head office

Company 01

Same as for process 1

IHC Center

Debits current account of Company 01

Generates and sends a bank statement to Company 01

In-House Cash

Center

Account

management

Financial

Account-

ing


View of the subsidiary (Company 01): Company 01 receives the invoice from an external business partner and enters it as a payable in the system. It then runs the payment program (SAPF110) to clear the vendor account. This clears the open item in the vendor account and generates a corresponding offsetting entry in the bank clearing account. During the payment run, the system automatically creates an IDoc (type: PAYEXT), which passes the payment information to the In-House Cash Center.

IHC Center View: On the basis of the imported IDoc, the In-House Cash Center debits the current account of Company 01 and forwards the payment information to the head office's financial accounting system. When it generates the bank statement, the In-House Cash Center creates an IDoc (type: FINSTA), which contains all the relevant bank statement information. This IDoc is then sent to Company 01.

Company View: Company 01 imports the bank statement and clears the posting in the clearing account.

SAP AG 2003

Company 03

Company 02

Company 01

Pmnt program OI

Head officeGroup

External

business

partner


IHC Center

IHC Center forwards payment information to SAP FI (Financial Accounting)


On the basis of this payment information, SAP FI generates a payment

request

The payment request is sent to the head office's house bank, either

immediately or later (aggregation of multiple payment requests = external

netting)

Head office

In-House Cash

Center

Account

management

Financial

Account-

ing


The In-House Cash Center makes the payment to the external partner's bank by sending a payment

request to the house bank of the head office. The interface for the outgoing payment resides in the financial accounting system at the head office. The financial accounting division at the head office runs the payment program for payment requests (SAPF111).

SAP AG 2003

Payment Notes for Central Payments (Splitting)

Account

mgmt

Company

IHC FI

PAYRQ

F111

Splitting of payment order

IDocs in

n payment requests

PAYEXT

Reference information

contained in the

individual payment

requests

A separate payment

request is generated

for each invoice

Available data

•XBLNR (invoice no. of the vendor)

•BLDAT (invoice date)

•SGTXT (segment text with *)

•KIDNO (payment reference in Finland)

•LZBKZ (state central bank indicator)

PAYEXT

When making a central payment, you can transfer the payment note (for example, the invoice number) to the payment request. The available data is shown on the slide.

This information enables the payment recipient to assign the payment more easily to the respective invoice.

In Customizing of In-House Cash: Under +++Automatically Created Payment Orders, you can set the Split indicator. If the payment is to a third party, a separate payment request is generated for each invoice and sent to the FI system that is responsible for the payment.

SAP AG 2003

Company 03

Company 02

Company 01

Pmnt program OI

Head officeGroup

External

business

partner


House bank of the head office

Partner bank

Process flow as for a “normal”

payment order to a house bank

Head office

In-House Cash

Center

Account

management

Financial

Account-

ing

SAP FI

Imports bank statement using the standard bank statement programs

(FF_5)


The financial accounting division imports the bank statement from the house bank and posts the items to a bank clearing account.

The bank statement log is available in the application menu of In-House Cash: Periodic Processing, Application Logs: Bank Statement

Upon receipt of the payment information, the house bank of the head office makes the payment to the house bank of the external business partner.

The external business partner receives a bank statement from its bank.

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1st IDOC:

PAYEXTExternal bank

IHC Center

External bank

Partner

Company 01

CoCd: TR01

Vendor: EXTERN


(IHC)

Account

Company 01

(10490190)

Head office

Payment

program

2n

d ID

OC

: F

INS

TA

Handling of Returns

External

business partner

STOP

The subsidiary pays the invoices that are due for a vendor. The vendor's payment data is incorrect or the payment should not be transferred. The financial

accounting system of the In-House Cash Center stops the payment before the data file is sent to the external house bank.

You can reverse the payment request and the payment order in the current account in In-House Cash.

You can view the log in the In-House Cash menu: Account Management → Application Log: The subsidiary receives the reversed items, including the payment advice notes, in the bank

statement of the In-House Cash Center.

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1st IDOC:

PAYEXTExternal bank

IHC Center

External bank

Partner

Company 01

CoCd: TR01

Vendor: EXTERN


(IHC)

Account

Company 01

(10490190)

Head office

Payment

program

2n

d ID

OC

: F

INS

TA

Handling of Returns

External

business partner

The vendor's bank account is

closed or the account number

is incorrect.

STOP

The subsidiary pays the invoices of a vendor. The vendor's bank account is closed or the account number is incorrect. Depending on the bank, there are several possible scenarios: First scenario: Financial Accounting imports the bank statement from the house bank and posts it. Because some payment information is missing, the In-House Cash Center's house bank cannot

transfer the amount to the house bank of the external business partner, and the payment “comes back”. Financial Accounting would be notified through a bank statement some days later.

Financial Accounting imports the house bank's statement and posts the item to a bank clearing account. The subsidiary receives the In-House Cash Center's bank statement and has to post the item. The FI document must be canceled, and the subsidiary has to execute the payment program F110 again.

Second scenario: Because the payment information is missing, the bank does not transfer the amount immediately. The transfer is made only after the payment information has been corrected.

Third scenario: The bank does not accept the data file. The data file must be corrected and then sent to the external house bank.

See SAP R/3 Note 501068.

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Central Reporting (Z1)

The subsidiary pays a vendor in foreign currency. This payment is

the subject of Central Bank Reporting.

The subsidiary provides the central bank indicator and the

country code of the central bank. This information is contained in

the IDoc.

The In-House Cash Center processes the IDoc and saves the data

in the payment request.

External payments are reflected in the reporting of the group's head office. If the subsidiaries do not report directly to the central bank, as is supported in the standard version

of the financial accounting system, this procedure is enabled through the use of the In-House Cash component.

Recommendation: The foreign subsidiary itself should report to their respective central bank.

Usually, you carry out a payment proposal run first. This generates a proposal dataset, which you can check and edit before the update run.

Using the global settings for payment handling, you can specify which input parameter fields appear and which are hidden. You can specify which of the following fields should appear on the screen for entering payment parameters in the Customizing section of Bank Accounting: - Vendor accounts - Customer accounts - G/L accounts - Created on - Origin

You can use the origin indicator to specify the application for which payments should be generated.

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You use the Origin indicator to specify the applications for

which you want to generate payments

The following origin indicators are available:

- TR-CM-BT Bank account transfers

- TR-LO Loans Management

- TR-TM Treasury Management

- TR-IHC In-House Cash

Origin Indicator

In the Origin indicator field, you specify the application for which you want to generate payments and how the payments should be processed. SAP supplies origin indicators for the following applications, which generate payment requests: TR-CM-BT (bank account transfers from Cash Management) TR-IHC (for In-House Cash transactions) TR-TM (transactions from Treasury Management: money market, forex, securities, and derivatives) TR-LO (transactions from Loans Management)

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Show/hide fields on the screen

for entering payment parameters

Vendor accounts

Customer accounts

G/L accounts

Entry date

Origin

Entry date

G/L accounts

Restrictions

Customer accounts

Vendor accounts

Origin

Distribution

ALE active

Payment Program: Field Selection Control

In the global settings for payment handling in Customizing for bank accounting, you can define which of the following fields should appear when the user specifies the payment parameters, and in which of these fields entries can be made: - Vendor accounts - Customer accounts - G/L accounts - Created on - Origin If you always want to pay all the items that are due without any restrictions, do not select any of the fields.

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Customizing settings for each origin indicator:

Select available amounts? (yes/no)

Use account determination (bank clearing account) from theapplication? yes/no (If no, account determined by the payment program)

Use “grouping” indicator to apply settings for this indicator? (yes/no)

Display "Origin Control" View: Overview

Origin control

In-House Cash

Planned amnts

Bank account transfers

DescriptionOrigin Account deter... Grouping Collective posting

TR-CM-BT

TR-IHC

TR-TM Transaction Manager

TR-LO Loans Management

Origin Indicator: Customizing

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Define business transaction codes

Maintain transaction types

Assign offsetting transaction types

Maintain features

Maintain media/payment method

Maintain accounts for payment transactions

Assign medium/payment method to posting processes

Maintain posting categories

Assign transaction types to posting categories

Account Management

The medium determines the method for transferring a payment order or payment item to the bank. Examples: Document, data medium exchange (DME).

The payment method determines how (with which medium) the recipient items of a payment order are transferred in a payment transaction.

Maintain Accounts for Payment Transactions: In this IMG activity, you define the clearing accounts that you need for processing the payment transactions. When you create an account, create a CPD (suspense) account and a clearing account for each bank area and for each currency within the bank area.

Each posting process involves one or several posting categories, which describe how the items resulting from the process are posted. In the next IMG activity, you assign transaction types to the posting categories. This completes the definition of the posting process.

The postings that the system generates automatically are organized internally using posting categories.

The items that the system generates automatically are posted to the corresponding accounts on the basis of transaction types. You can assign a transaction type for the posting item to each of the internal posting categories.

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Transaction types characterize payment transaction

operations (such as bank transfers, debit memos).

You can configure transaction types by changing

various attributes.

A transaction type is assigned to every posting

created by the system.

Transaction Types: Definition

In a payment transaction, a payment order consists of at least two payment items: one ordering party item, and one or several recipient items. A transaction type describes how such a payment item is posted.

Examples of transaction types: Debit memo, credit memo, returned debit memo, cash deposit, cash withdrawal, and so on.

By setting attributes, you store information relating to the checks to be performed, the control, the use and the assignment to business transaction codes of the respective transaction types.

Based on the transaction type assignment, every posting generated in the system is supplied with the technical information required for the update.

Standard settings: SAP supplies all transaction types pre-configured.

For each of these transaction types, you can specify which checks are to be carried out before the item is updated. These checks relate to the

business partner permitted functions/blocks for the account limit specified value date

Control attributes: Is the transaction type a debit or credit? Is the update subject to final payment (f.p.)? On which position type is the transaction type based? Is a reversal or value date specification allowed? Is an item to be handled with priority in post processing? If you set the several recipients indicator, the screen layout of the payment order is changed,

enabling entry of several recipient items. Sample transaction types are supplied for this purpose.

Use: Is online entry possible for the transaction type? Reversing/value dating allowed Assignment: Which business transaction code corresponds to the transaction type?

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Payment order

Use: Internally-initiated payment transactions

Payment item:

Offsetting transaction type

e.g. credit from donation

Payment item:

Transaction type

e.g. bank transfer

Payment item:


e.g. credit from investment

scheme

Payment item:


e.g. credit from bank transfer

Offsetting Transaction Types: Definition

Offsetting transaction types are the corresponding transaction types for the second item of a payment order. When you enter an internally initiated payment order, the system automatically assigns the transaction type for the second item on the basis of the transaction type for the first item.

It is possible to assign several offsetting transaction types per transaction type. In this case, when you enter a payment order, you need to select one of the offsetting transaction types entered here from the possible entries list.

Standard settings: SAP also supplies the respective assignment of the offsetting transaction type for the pre-configured transaction types.

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Local Payments

Example The illustration shows a group whose organization enables local payments: · Two companies use SAP In-House Cash and act as internal banks for some of the other

subsidiaries. · Furthermore, they act as mutual clearing partners. · Subsidiaries 3 and 4 function as clearing partners and make local payments for other

subsidiaries.

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Preliminary and Final Postings

The In-House Cash Center or the clearing partner should not receive profits or

bear losses resulting from differences in exchange rates. Instead, they should

apply to the business partner who initiated the payment.

The main current account is always the current account to which the final

postings are made. These postings are shown on the bank statement that the

In-House Cash participant receives.

Each of the companies participating in In-House Cash has a current account in

the main currencies for preliminary postings as well as one for final postings.

Reasons for preliminary postings:

Payments to external business partners are transferred to In-House Cash two

days in advance to obtain a better idea of the Cash Management situation.

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Example for local payment

Company DE does not have a local payer in Norway. The payment from

Company DE to the external business partner in Norway, for example, is carried

out via the Cash Center's house bank. The In-House Cash Center does not

manage any accounts in NOK. In other words, the payment is effected via a

EUR account. Therefore the NOK payment amount must be converted to EUR.

Yesterday's exchange rate for NOK:

1000NOK = 124EUR

Today's exchange rate for NOK:

1000NOK = 130EUR

The IHC can offer the same exchange rate to the group companies as is given

to the IHC by the external bank. Therefore the payment order of Company DE is

posted with a preliminary exchange rate of 1000 NOK = 124 EUR first as long as

the final exchange rate of the house bank is not yet known.

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External

business partner

IHB

7a.

Ext. BP

2 1

1000NOK

(124EUR)

IHB cl. acct

7a. 2

House bank

Company

Cash Center

Partner bank of

external BP

House bank

5a

Bank clearing

4b5a

FIFI

Payment transfer

7b4b

IHCIHC

4b

Company DE

Pmnt program

F110 generates

payment order

IDoc „PAYEXT’

2

Bank

statement

Clearing of

cl. acct

7a

Company In-House Bank

Prel (EUR) Company CC

+ 124EUR (1000NOK) - 124EUR (1000NOK)

Prel (EUR) Company DE

3b 3a.

Entry into Payment request table

Pmnt program F111 4b

IC Company DE

9a

130EUR

IC Company CC

9b

130EUR

PT clear.act IHC

9a9b

130EUR 130EUR

End of day processing:

G/L transfer and

Balance sheet preparation

Generation of „FINSTA‟

4a.

7

9

Clearing of cl. acct

FI Company Cash Center1000NOK

(124EUR)

Expenses

1

1000NOK

(124EUR)

1000NOK

(124EUR)

1000NOK

(130EUR)

CA (EUR) Company CC CA (EUR) Company DE

6b 6a.+ 130EUR (1000NOK)

- 124EUR (1000NOK) +124EUR (1000NOK)6b 6a.

- 130EUR (1000NOK)

1000NOK

(124EUR)

6EUR

1000NOK

(124EUR)

6EUR

130EUR

(100NOK)

130EUR

(1000NOK)

5b

Profits/losses

5b

6EUR

1000NOK

(130EUR)

Profits/losses

8a

6EUR

6EUR 8a.IHC

7b

1000NOK

(130EUR)

1000NOK

(130EUR)

Bank

statement

5

8b

8b

6EUR

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Exercise Exercise

Central PaymentsCentral Payments

In-House Cash Processes: Exercise – Central Payments

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Head officeGroup

External

business

partner

Pmnt program OIPartner bank House bank

of head office1.

2.

5.

3.

Example: External partner makes a payment to Company 01


Company 03

Company 02

Company 01

In-House Cash

Center

Account

management

Financial

Account-

ing

4.

Process 3: Central Incoming Payments

The term “central incoming payments” is used when external business partners make payments to a central office to clear their payables towards group affiliates. In this process, the In-House Cash Center acts as the payment recipient and handles the payments on behalf of the subsidiaries.

Example: An external business partner makes a payment to Company 01 via the In-House Cash Center.

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Company 03

Company 02

Company 01

Head officeGroup

External

business

partner Partner bank

House bank of head office

Business partner

Partner bank

House bank of the head office

Process flow as for a “normal”

payment order to a house bank

Head officeIn-House Cash

Center

Account

manageme

nt

Financial

Account-

ing


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Company 03

Company 02

Company 01

Head officeGroup

External

business

partner

Partner bank House bank of head office

SAP FI

Imports bank statement using the standard bank statement programs

Identifies items that are relevant for the IHC Center

Forwards the corresponding items to the IHC Center

In-House Cash

Center

Account

management

Financial

Account-

ing

IHC Center

Credits the payment to the current account of Company 01

Generates and sends a bank statement to Company 01


The external business partner instructs its bank to make the payment. Once the payment has been debited, the external business partner receives a bank statement from its bank. The partner bank makes the payment to the house bank of the head office.

The financial accounting system at the head office imports a bank statement from its house bank. Using special internal algorithms, the system determines whether the items belong to In-House Cash account management and, if so, which current account is affected. Once the items have been identified, the system automatically transfers them to In-House Cash so that they can be posted to the appropriate current accounts.

The In-House Cash Center credits the payment to the current account of Company 01 and generates a corresponding bank statement.

Company 01 receives a bank statement from the In-House Cash Center. When the bank statement is imported, the system generates postings to the corresponding accounts automatically.

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Head officeGroup

3.


Company 03

Company 02

Company 01

In-House Cash

Center

Account

management

FI

4.

Process 3: Central Incoming Payments With Zero Balancing

House bank

Company 03 House bank

Company 02 House bank

Company 01

Zero Balancing1.

2.

3.

3.

House bank

of head office

Each company has only one bank account for incoming payments, such as its receivables. Example:

The external business partner makes a payment to Company 01 via the house bank of Company 01. The head office's house bank carries out the ‘zero balancing’ process on a daily basis.

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Central incoming payments/incoming bank statementsCentral incoming payments/incoming bank statements

Set up link to IHC in FISet up link to IHC in FI

IHC account determination using payment notesIHC account determination using payment notes

IHC account determination using external bank accountIHC account determination using external bank account

Central Incoming Payments/Incoming Bank Statements

In this IMG activity you define which of the items from an incoming bank statement should be posted in In-House Cash. The system first checks if it can determine the account using the notes to the payee.

SAP recommends that you define a unique character string for each account in the In-House Cash Center for identification purposes. Ensure that all customers use this character string in their payment orders.

IHC account determination from the external bank account: By making corresponding settings, you can enable the system to determine the relevant In-House Cash Center on the basis of the external bank number of the house bank, the external account number of the account with the house bank for the affiliated companies, and the bank number and account number of the ordering party. The system can then work out the internal bank area and account number and post the items on the incoming bank statement in In-House Cash. Prerequisite: The In-House Cash Center maintains one account for each affiliated company with the house bank of the In-House Cash Center.

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Central incoming payments/incoming bank statementsCentral incoming payments/incoming bank statements

Assign posting categories to business transaction codes

Determine IHC accounts via the account currency

Charge posting

Central Incoming Payments/Incoming Bank Statements

External business transaction code: Allows you to assign posting categories to business transaction

codes. You can also post charges that were calculated separately using Business Add-In. Account determination using the account currency: The incoming bank statement always

references the same account without referring to the transaction currency. In the In-House Cash Center, the account determination function uses the account number of the external bank. A separate account exists in the In-House Cash Center for each currency (and for each subsidiary). The user can specify the In-House Cash account based on the external account number AND the

currency. Posting charges for central incoming payments: The incoming bank statement from the external

bank contains items for charges. You can determine the charge by analyzing the reference text of the bank statement item. The original amount and the charge must be entered separately. The posting categories for the charge and for the original posting should be different, so that the subsidiaries can differentiate between the two when they receive the bank statement from the In-House Cash Center.

SAP Note 494777

SAP AG 2003

Subsidiary

Subsidiary

Subsidiary

Head office

(Europe)

Subsidiary

Subsidiary

Region 1Region 1

Region 2Region 2

Subsidiary

IHC US

IHC Asia

Initial Situation –Cross-Bank Area Posting

Cross-bank area posting enables you to route payments between two In-House Cash Centers via all existing In House Cash Centers. Each In-House Cash Center is defined in a client as a separate bank area.

By defining routes and rules for route determination, you can make payments via several In-House Cash Centers. Route determination enables you to define the desired route for a payment and avoid the charges that would be incurred when making a direct payment. You can also define the payment flow between In-House Cash Centers.

SAP AG 2003

Company 01

Pmnt program OI

1.

2.

In-House Cash

Center_DE

Account

management

Company 02

4.

In-House Cash

Center_US

Account

management

CA for Company 01 -

CA for IHC_US +

CA for Company 02 +

CA for IHC_DE -

*CA= Current Account

3.

Process 1: Example of Internal Payment –Cross-Bank Area Posting

In-House Cash Center IHC_US is defined in the bank details for the vendor (here Company 02). Consequently, Company 01's house bank (= In-House Cash Center IHC_DE) is instructed to make a payment to Company 02 via the In-House Cash Center IHC_US.

The IDoc received by the In-House Cash Center IHC_DE triggers postings on the following current accounts: The payment amount is debited from the account of the ordering party (Company 01) and credited to the account of the In-House Cash Center IHC_US. Consequently, the In-House Cash Center IHC_DE has a receivable position due from Company 01 and a payable position owed to the In-House Cash Center IHC_US.

In the In-House Cash Center IHC_US, the payment is credited to the current account for Company 02 and debited from the current account of the In-House Cash Center IHC_DE.

Prerequisite: Both In-House Cash Centers have been set up in the same system and client. Each In-House Cash Center represents a bank area.

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Process Flow: Cross-Bank Area Posting

In-House Cash

Center_DE

Account

management

In-House Cash

Center_US

Account

management

Company 01

Pmnt program OI

Route determination

Company 02

Executing bank = recipient bank

Route determination

On receiving a payment order, the In-House Cash Center first checks whether it is a payment within the In-House Cash Center (i.e., if the ordering party and recipient bank numbers are the same). If the bank numbers differ, the system checks whether a route has been defined for the recipient bank number and if a different In-House Cash Center has been defined for this route.

If no other In-House Cash Center has been defined, then the system assumes that the recipient bank is an external bank (“external payment”).

If another In-House Cash Center has been defined, the system uses the route determination settings to identify the route by which the order should be executed. The route determines the next In-House Cash Center and the account to which the payment order is forwarded.

Once the account has been established, the payment order is ‘split’. The system creates an additional payment order and modifies the original payment order.

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Payment order split (*)

Additional payment order

ORDERING PARTY NEW:

internal account of the original


ORDERING PARTY:

stays the same

RECIPIENT: NEW

internal account of next

In-House Cash Center instructed

modified

RECIPIENT:

Data from original payment

order

The system creates an additional payment order and modifies the original payment order: - In the additional payment order, the In-House Cash Center is the ordering party and the recipient data is taken from the original payment order. - In the original payment order, the system enters the next In-House Cash Center instructed to make the payment as the recipient.

Note: (*) This example is simplified for a payment between two In-House Cash Centers.

SAP AG 2003

Cross-bank area posting

Set route determination

Set Route Determination

RoutePayment

method

Transaction

Currency

Bank KeyBank

country

Determines the last executing bank in the posting chain

Determines the next In-House Cash Center/clearing accounts

In this section, you specify the route for payments from one In-House Cash Center to another. All entries are made from the point of view of the In-House Cash Center instructed to make the

payment. Therefore the bank area of the instructed In-House Cash Center is a key field for the table entries.

Bank Country of Recipient Bank: The bank key and the bank country of the recipient bank determine the last executing bank in a cross-bank area payment transaction. For external payments, this is the business partner's (external) house bank. For internal payment orders, the recipient bank is the last In-House Cash Center instructed to make the payment. In both cases, the recipient bank manages the current account of the payment recipient.

The payment method is the method previously mapped out. Route:

The route is the main key field for cross-bank area posting. You can use the route to process the original payment order via several In-House Cash Centers. The route determines the next In-House Cash Center and the relevant clearing accounts for the payment.

SAP AG 2003


Define routes

Define Routes I

DE09US09IHC_USUSUS-1

Account with

Executing Bank

Account in

Bank Area

Bank KeyBank

country

Route

Example: There are two IHCC, one in Germany (IHC_DE), one in the

United States (IHC_US). IHC_DE manages account US09 for IHC_US,

IHC_US manages account DE09 for IHC_DE.

IHC_DE

Route: The route is the main key field for cross-bank area posting. You can use the route to process the original payment order via several In-House Cash Centers. The route determines the next In-House Cash Center and the relevant clearing accounts for the payment.

Account in Bank Area: Account of next executing In-House Cash Center with the In-House Cash Center that has just been selected. The account holder is therefore the next executing In-House Cash Center. This is clearly defined in the Bank country and Bank Key fields in the route definition table.

Account with Executing Bank: Own In-House Cash Center account (just selected) with the next executing In-House Cash Center. The account holder is therefore your own In-House Cash Center. The next executing In-House Cash Center is clearly defined in the Bank country and Bank Key fields in the route definition table.

SAP AG 2003


Define routes

Define Route II

US09DE09IHC_DEDEDE-1

Account with

Executing Bank

Account in

Bank Area

Bank KeyBank

country

Route

Example: There are two IHCC, one in Germany (IHC_DE), one in the

United States (IHC_US). IHC_DE manages account US09 for IHC_US,

IHC_US manages account DE09 for IHC_DE.

IHC_US

These route definitions only apply in the respective bank area. You can display and check the route settings in Customizing. A red light indicates that a route

contains errors, which you can correct in the corresponding IMG activities. If a yellow light is displayed, either no check was carried out, or the check resulted in a warning.

SAP AG 2003

The term “internal payment clearing” refers to the

process of clearing payables and receivables

between group affiliates.

Central payment describes a process whereby

the payables between affiliated companies and

external business partners are settled by a

central office within the group.

The term “central incoming payments” is used when

external business partners make payments to a

central office to clear their payables towards group

affiliates.

In-House Cash Processes: Summary

In-House Cash Processes: Exercises

Unit: In-House Cash Processes

Topic: Internal Payments


Describe the process of internal payments in the SAP system

A group company TRYY delivers goods to another group company

TRXX. You want to process the payment via the In-House Cash Center.

Note: To do this exercise, you need to split up into different roles.

The tasks you do for the exercise will depend on the role assigned to

you.

Role assignment: Companies with an odd number take on the role

of customer. Companies with an even number act as the vendor.

Companies with an even number assume the role of In-House Cash

Center (IHC).

Before you start, check that the posting date is set correctly in the

system. Accounting -> Financial Supply Chain Management -> In-

House Cash -> Periodic Processing -> Posting Date -> Payment

transactions (F9B1). Make sure that the New Posting Date field has

the current date in it and then Save.

Example: Company 4 (TRYY) delivers goods to Company 3 (TRXX):

1-1 Company 03 (TRXX) enters the vendor invoice on vendor CompanyYY

Company 04 (TRYY) enters a customer invoice on customer CompanyXX

1-2 Company 03 (TRXX) runs payment program SAPF110

1-3 Track postings to the current accounts in the In-House Cash Center

1-4 View IHC payment order and finalize the posting

1-5 Company 04 (TRYY) acts as In-House Cash Center and creates bank statements

1-6 Company 03 (TRXX) imports bank statement

Company 04 (TRYY) imports bank statement

1-1 Company with odd number (TRXX):

Post the vendor invoice you have received from vendor CompanyYY (even number) in

your company code TRXX (odd number).

Incoming invoice: EUR 11,000.00

Vendor: CompanyYY

G/L account: 400020 (material consumption)

Invoice date/Posting date: 7 days ago

Terms of payment: ZB00

Input tax: 16% domestic (VN)

Make a note of the document number: (____________________________________)

Company with even number (TRYY):

Enter the customer invoice you have sent to customer CompanyXX (odd number) in

your company code TRYY (even number).

Outgoing invoice: EUR 11,000.00

Customer: CompanyXX

G/L account: 800200 (revenues)



Output tax: 16% domestic (AN)


1-2 Payment processing is under Periodic Processing for accounts payable.

The company with the odd number (TRXX) performs a payment run to settle the

invoice from vendor CompanyYY (even number).

Enter the current date as the run date. Use ID GR## (where ## is your group number).

Define the parameters. Include your company code TRXX (odd number e.g. TR01)

and payment method I in the run. The next posting date is in one month. Enter

vendor CompanyYY (even number e.g. Company02).

Make the following log settings: Due date check, Payment method selection in all

cases, Line items of the payment documents, Accounts required: Vendor

CompanyYY (even number e.g. Company02).

Printout/data medium: Program RFFOEDI1, variant IHC_PAYEXT

Save your entries and schedule a proposal run to start immediately. Display the log

for the proposal run.

Now start the update run. Look at the log, in particular the information about the

generated IDoc.

Has the open vendor item been cleared? Display the corresponding cleared items.

Make a note of the document number for the payment program:

(__________________________________)

Display the IDoc generated by the payment run (message type: PAYEXT).

Make a note of the IDoc number: (__________________________________)



Trace the postings in the In-House Cash Center by looking at the turnovers on the

relevant current accounts.

1-4 Display the IHC payment order that was created and finalize its posting.

To do this, open the payment order browser and display the payment orders for the

bank area IHC. Finalize the posting of the payment order and check the log.

1-5 Company with even number (TRYY) acting as the In-House Cash Center:

The function for generating bank statements is under Periodic Processing in In-House

Cash. Generate bank statements for the two current accounts in the In-House Cash

Center. Use the bank area IHC.

Make a note of the current bank statement number: (________________________)



Display the IDoc (type FINSTA) that was generated.


Trigger posting of the bank statement in your company code.

Be careful to only post the bank statement for your own company codes. Otherwise,

the other course participants will no longer be able to post their bank statements. Look at

the relevant bank accounts and bank clearing accounts.

Exercises


Topic: Central Payments


Describe the process of central payments in the SAP system

An external business partner, EXTERN, delivers goods to a group

company, CompanyYY. You want to process the payment via the In-

House Cash Center.

Each company does this exercise for itself. The roles used in the

exercise for internal payments no longer apply.

2-1 Post the vendor invoice you have received from vendor EXTERN in your company code

TRXX.

Incoming invoice: EUR 5,500.00

Vendor: EXTERN

G/L account: 400020



Input tax: 16% domestic (VN)


2-2 Your company performs a payment run to settle the invoice from vendor EXTERN.

Enter the current date as the run date. Identification: Choose one of the possible

entries.

Define the parameters. Include your company code TRYY and payment method I

in the run. The next posting date is in one month. Enter the vendor EXTERN.

Make the following log settings: Due date check, Payment method selection in all

cases, Line items of the payment documents, Accounts required: Vendor EXTERN.

Printout/data medium: Program RFFOEDI1, variant IHC_PAYEXT

Save your entries and schedule a proposal run to start immediately. Display the log for

the proposal run. Now start the update run. Look at the log, in particular the information

about the generated IDoc.

Has the open vendor item been cleared? Display the corresponding items.

Make a note of the document number for the payment program:

(__________________________________)

Display the IDoc (type PAYEXT) that was generated.


2-3 Trace the postings in the In-House Cash Center by looking at the turnovers on your

current account 1049XX90.

2-4 Post the payment order.

Display the entry for the payment request in the Payment Request table.

2-5 Perform the payment run for payment requests and display the cleared payment

request.

2-6 Generate a bank statement for your current account 1049XX90 in the In-House Cash

Center as a single update run. Use the bank area IHC.

Make a note of the current bank statement number: (________________________)

2-7 Display the IDoc of the type FINSTA.


Trigger posting of the bank statement in your company code (TRXX).

Be careful to only post the bank statement for your own company code. Otherwise,

the other course participants will no longer be able to post their bank statements.

Have a look at the relevant bank clearing account (113592) and bank account (113590).

In-House Cash Processes: Solutions


Topic: Internal Payments

1-1 Enter a vendor invoice

Company with odd number (TRXX):

Application:

Accounting


Vendors

Document Entry

Invoice (FB60)

Company Code button: Company Code TRXX

Button: Tree On – Select screen variant Standard 1 – Button Tree Off


Vendor CompanyYY

Invoice date -7 Days

Posting date -7 Days

Reference Optional, e.g. 4711

Amount 11000.00 EUR

Input tax 16% domestic(VN)

Calculate tax Set indicator

Payment terms Due immediately

(ZB00)

Payment method I

G/L account 400020 (material

consumption)

Text Vendor invoice

Amount 11,000.00

Save

Enter a customer invoice


Application:

Accounting


Customers

Document Entry

Invoice (FB70)

Company Code button: Company Code TRYY

Button: Tree On – Select screen variant Standard 1 – Button Tree Off


Customer Company##



Reference Optional, e.g. 4711

Amount 11000.00 EUR

Output tax 16% domestic (AN)


Payment terms Due immediately (ZB00)

G/L account 800200 (revenues)

Amount 11,000.00

Text Customer invoice

Save

1-2 Execute payment run:


Application:

Accounting


Vendors

Periodic Processing

Payments (F110)


Run date Today's date

Identification Enter GR## where ## is your

logon group

Tab page: Parameter


Company codes TR##

(odd number e.g. TR01)

Payment methods I

Next posting date Today's date + 1 month

Vendor CompanyYY


Field name Document number (BKPF-

BELNR)

Values Document number of the

vendor invoice

Tab page: Additional log


Required logging type Due date check

Payment method selection in

all cases

Line items of the payment

documents

Accounts required / Vendors CompanyYY

Tab page: Printout/data medium


Program: RFFOEDI1 Variant: IHC_PAYEXT

Tab Page: Status

Save

Button: Schedule Proposal: set indicator for Start immediately

Button: Pmnt Run Schedule: set indicators for Start immediately and Create payment

medium

Display the log and look at the information about the generated IDoc.

Button: Display Payment Run Log

Application:

Accounting


Vendors

Account

Display/Change Line Items (FBL1N)


Vendor account CompanyYY (Even Number )

Company Code TRXX

All items Select this option

The vendor item should now be cleared.

Display IDoc:

Application:

Accounting


In-House Cash

Environment

IDoc and EDI Basis

Display IDoc (WE02)


Logical message PAYEXT

Execute.

Note: If you get the message difference is too large for a clearing go to transaction code

FEBA_BANK_STATEMENT (Accounting -> Financial Accounting -> Banks -> Input -

> Bank Statement -> Reprocess. Select the item to be matched Statement Items -> Post

and match manually.

1-3 Display postings in the In-House Cash Center:



Application:

Accounting


In-House Cash

Account

Display (F9K3)


Bank Area IHC


Button: Display turnovers, Enter




Application:

Accounting


In-House Cash

Account Management

IHC Payment Orders

Payment Order Browser (IHC0)


Bank Area IHC

Year 2005

Button: Select

Double-click the payment order to open it, switch to change mode, and press the Post

button.

Next, select the Log tab and the message text, and press the Detail View On/Off button.

1-5 Generate bank statement in the In-House Cash Center:

Company with even number acts as the In-House Cash Center:

Application:

Accounting


In-House Cash

Periodic Processing

Bank Statement

New Run

Single Run (F9N7)


Bank Area IHC


Statement date Today's date

Control parameters With address

Execute

Note: You should get a message Finsta Idoc created for account 1049YY90,

Bank Area IHC. Repeat the whole of exercise 1-5 for Accout 1049XX90.

1-6 Display IDoc:

Application:

Accounting


In-House Cash

Environment

IDoc and EDI Basis

Display IDoc (WE02)


Logical message FINSTA

Post electronic bank statements:



Application:

Accounting


Banks

Input

Bank Statement

Post (FEBP)


Algorithms Enter bank statement number

in BELNR Number Interval

fields

Posting parameters Post immediately

Assign Value Date to Account

Output control Print Bank Statement

Print Posting Log

Print Statistics

Separate lists

Execute

Display bank clearing account and bank account:


Application:

Accounting


General Ledger

Account



G/L account 113592 (IHC EUR domestic

outgoing payment)

Company code TRXX

(odd number)

Line Item Selection: Select All items

Execute

The payment document should be matched by the bank statement posting.


G/L account 113590 (IHC EUR bank

account)

Company code TRXX

(odd number)


Execute

The account should now reflect the Bank Statement position.

Posting the bank statement generates a debit posting on the bank clearing account

(113592) and a credit posting on the bank account (113590).

Display bank clearing account and bank account:


Application:

Accounting


General Ledger

Account



G/L account 113599 (IHC EUR customer

payments)

Company code TRYY


Execute


G/L account 113590 (IHC EUR bank

account)

Company code TRYY

(even number)


Execute

Application:

Accounting


Customers

Account



Customer account CompanyYY

Company code TRYY

Line Item Selection: Select Cleared items

Execute

Posting the bank statement generates a debit posting on the bank account (113590) and

a credit posting on the clearing account for incoming payments (113599. At the same

time it generates a debit posting on the clearing account for incoming payments

(113599) and a credit posting (clearing posting) on the customer account for

CompanyXX.

Solutions


Topic: Central Payments

2-1 Enter a vendor invoice:

Application:

Accounting


Vendors

Document Entry

Invoice (FB60)


Vendor EXTERN



Amount 5500.00 EUR

Input tax 16% domestic(VN)


Payment terms Without cash discount (ZB00)

Payment method I

Partner bank VW01

House bank IHC

G/L account 400020

Amount 5500.00 EUR

Save

2-2 Execute payment run:

Application:

Accounting


Vendors

Periodic Processing

Payments (F110)



Identification GR##A (where ## is your

group number)

Tab page: Parameter


Posting date Today's date

Docs entered up to Today's date + 1 week

Company codes TRYY

Payment methods I

Next posting date Today's date + 1 month

Vendor EXTERN

Tab page: Additional log




all cases


documents

Accounts required / Vendors EXTERN

Tab page: Printout/data medium



Tab page: Status

Save

Button: Schedule Proposal, Start immediately: set indicator

Button: Pmnt Run, Create payment medium: set indicator

Display the log and look at the information about the generated IDoc.

Button: Display Payment Run Log

Display cleared items:

Application:

Accounting


Vendors

Account



Vendor account EXTERN

Company Code TRXX

Cleared items Select this option

Display IDoc:

Application:

Accounting


In-House Cash

Environment

IDoc and EDI Basis

Display Idoc (WE02)


Logical message PAYEXT


Application:

Accounting


In-House Cash

Account

Display (F9K3)


Bank Area IHC


Button: Display turnovers, Enter

2-4 Display and post payment order:

Application:

Accounting


In-House Cash

Account Management

IHC Payment Orders

Payment Order Browser (IHC0)


Bank Area IHC

Year 2005

Button: Select

Double-click the payment order to open it, switch to change mode, and press the Post

button.

Next, select the Log tab and the message text, and press the Detail View On/Off button.

Display the payment request in the Payment Request table

Transaction SE16 (table display)


Table name PAYRQ

2-5 Execute payment run for payment request:

Application:

Accounting


Banks

Outgoings

Automatic Payment

Payment Requests (F111)



Identification GR##B (where ## is your

group number)

Button: Parameters


Company codes TRXX

Payment methods U

Next posting run on Today's date + 1 month

Vendor EXTERN

Button: Additional log




all cases


documents

Accounts required / Vendor EXTERN

Button: Payment medium



Save

Button: Proposal, Start immediately: set indicator

Button: Pmnt Run, Create payment medium: set indicator

Display Payment Request (F8BT):

Application:

Accounting

Corporate Finance Management

Transaction Manager

Information System

Reports

Liquidity

Liquidity Planning

Compare and Check

Display Payment Requests


Company code TRXX

Selection of Payment Requests Cleared and Open

Origin TR-IHC

Execute

2-6 Generate bank statement in the In-House Cash Center:

Application:

Accounting


In-House Cash

Periodic Processing

Bank Statement

New Run

Single Run (F9N7)


Bank Area IHC


Statement date Today's date

Control parameters With address

Execute

2-7 Display IDoc:

Application:

Tools

ALE

ALE Administration

Monitoring

IDoc Display

Display (WE02)


Logical message FINSTA

Post electronic bank statement:

Application:

Accounting


Banks

Input

Bank Statement

Post (FEBP) /Reprocess (FEBA_BANK_STATEMENT)


Statement Date Current Date

Statement number 2

House bank IHC

Account ID IHCEU

Company code TRXX

Currency EUR

Posting parameters Post immediately

Output control Print Bank Statement

Print posting log

Print Statistics

Separate lists

Execute

Note: If you get the message difference is to large for a clearing go to transaction code

FEBA_BANK_STATEMENT (Accounting -> Financial Accounting -> Banks -> Input -

> Bank Statement -> Reprocess. Select the item to be matched Statement Items -> Post

and match manually.

SAP AG 2003

Periodic Tasks








SAP AG 2003


Give an overview of the periodic tasks

Organize the process flow for end of day

processing

Perform cash concentration and set up account

hierarchies

Explain the procedure for the transfer to the

general ledger, including the logic and scope as

well as the posting system used and some of the

settings to be made in Customizing

Periodic Tasks: Unit Objectives

SAP AG 2003

What end-of-day processing options are available?

Which steps might be involved?

What is meant by cash concentration?

How is data transferred to the general ledger?

What settings need to be made?

Periodic Tasks: Business Scenario

SAP AG 2003

Posting date

Cash concentration

Account balancing

Bank statement

Balance notification

G/L transfer

Examples of Periodic Tasks

Posting date: Posting cut-off for payment transactions: Function for setting the posting date for payment transactions. Any payment transactions entered after this cut-off time take the next posting date. Set next posting date for account balancing: After performing all the account balancing activities, you change the posting date for balancing postings.

Cash concentration: Cash concentration enables you to fill up or clear the balances of accounts within an account hierarchy you have defined. You can specify, for example, that an account should always have a certain minimum balance, or that the remaining credit balance should be transferred to a different account at the end of each month.

Account balancing: In the framework of periodic tasks, account balancing is executed to prepare for period-end closing. The settings defined in the account determine when account balancing is triggered. You define when accounts should be balanced by defining the account balancing frequency (daily, weekly, monthly), the key date, and the next date. Interest and charges for the accounts due to be balanced are calculated and posted on the basis of the defined conditions.

Account closure: You can close an account immediately or on a specific future date.

SAP AG 2003

En

d-o

f -d

ay

pro

cessin

gE

nd

-of -

day

pro

cessin

g

Execute cash concentration

Execute account balancing

Generate bank statement

Increase the balancing posting date

Execute posting cut-off for payment transactions

General ledger transfer

Procedure for End-of-Day Processing: Overview

The process flow of end-of-day processing is a process that you can adjust to suit the respective situation in your day-to-day business.

Posting cut-off for payment transactions: When the posting cut-off has been set, all subsequent postings have the date of the next working day. This means that no additional postings can be made to the period to be balanced during the account settlement run (although value dates in the past are still possible). The posting date for the balancing postings is not affected and remains in the period to be balanced.

Cash concentration: Creation of carry forwards for those accounts organized in the hierarchy type cash concentration. You can execute cash concentration either before or after account settlement.

Account balancing: Calculation and posting of interest and charges for due accounts. Create bank statements: Mass run for transferring the account statement data to the appropriate

interface. Increase posting date for balancing postings: Increase this daily, even if there is no balancing run, to

ensure that the posting date for the balancing postings is always at the end of the period to be balanced.

General ledger transfer / interest accrual/deferral: This task is independent of the other periodic tasks. Ideally it is carried out daily, at the conclusion of end-of-day processing.

Set posting date for payment transactions (posting cut-off): Sets the date on which the postings from internally and externally initiated payment transactions are made by the system. You set this date to the following day by executing the posting cut-off. Set manually: You can enter the following posting date for every bank area in the application. Set automatically: In the Implementation Guide (IMG), you can store a fixed time of day for the

posting cut-off. Posting date for balancing postings: Posting date used to generate the postings for account

settlement and cash concentration.

SAP AG 2003

Account 4Account 4

Root accountRoot account

2.

3.3.

Level 1

Level 2

Level 3Level 3

Sett

lem

en

ts

eq

uen

ce

3.3.

Account 3Account 3

3.3.

Account 2Account 2

Account 5Account 5Account 6Account 6

2.

Account 7Account 71.1.

Cash Concentration: Process Flow

Cash concentration involves the automatic generation of payment orders to be credited or debited to accounts within an account hierarchy. You create a tree structure for the accounts in question with the hierarchy type ‘Cash concentration’.

You can execute cash concentration on a cross-bank area basis. Process flow: The system first works through the lowest hierarchy level, then proceeds with the

accounts on the next hierarchy level, continuing right up to the root account. Amounts below the minimum balance are debited from the structurally superior account, amounts in

excess of the maximum balance are transferred to the superior account. Cash concentration functions: Fill up account to minimum balance. The required amounts are transferred from the structurally

superior account. Amounts that have already been transferred from sub-accounts are taken into consideration.

Transfer of amounts in excess of a specified maximum amount to the root account. Specification of a minimum transfer amount as a threshold for trivial amounts. Specification of the number of digits for rounding off. Individual specification of maximum and minimum balances for each cash concentration run if

required. Simulation of the cash concentration run.

Please note that the Cash Management data transferred in this context is not related to the Cash Management data that is updated from the G/L accounts of the general ledger. To avoid updating IHC data twice in the general ledger, the IHC G/L accounts used for the general ledger transfer must not be connected to SAP Cash Management.

SAP AG 2003

Root accountRoot account

300.00

Account 3Account 3Account 2Account 2

50.00

200.00

50.00

200.00 200.00100.00

2.2.

1.1.

2.2.1.1.

Cash Concentration: Example

Account hierarchy

Hierarchy level 1: Account 1 (root account)Hierarchy level 2: Account 2 and Account 3

Specifications:

Type of carry forwards:

Per posting date-based account balance

Amount specifications per account:

Account 2: Maximum balance = 50.00 creditAccount 3: Minimum balance = 0

Account balances before cash

concentration

Root account: 300.00 Debit

Account 2: 100.00 CreditAccount 3: 200.00 Debit

Account balances after cash

concentration

Root account: 450.00 Debit

Account 2: 50.00 Credit

Account 3: 0,-

During a general ledger transfer, the items posted to the current accounts are transferred as one total to the corresponding accounts of the general ledger.

Make sure that the accounts to which you want to transfer the aggregated current account balances have been created in the chart of accounts and that they have been specified in Customizing accordingly.

SAP AG 2003

Posting of payables and

receivables

Posting of interest and charges

income and expense

Balance sheet netting of

current accounts

Interest accrual/deferral

Transfer to General Ledger: Features

The following features are used in the course of a general ledger transfer: Allocation of the balances from the superior BCA accounts to the accounts payable and receivable,

depending on the +/– sign of the individual BCA account balance Updating of the items posted on the G/L accounts and updating of income and expense Netting of the current accounts on the balance sheet in accordance with the applicable accounting

regulations An interest accrual/deferral run (optional) can be performed during the general ledger transfer.

SAP AG 2003

Determine account balances

Balance sheet preparations

Interest accrual/deferral

Transfer to G/LTransfer to G/L

The results of the individual steps within G/L transfer are displayed in the respective report in the

application log.

Determine accrual/deferral

amounts

Prepare G/L transfer

Generate the FI documents

Posting on the general ledger

General Ledger Transfer: Process Flow

Balance sheet preparation: Preparation of the current balances from the BCA accounts for the transfer posting from payment transaction clearing accounts to the accounts payable and receivable.

Interest accrual/deferral: Debit interest and credit interest must be recorded in the balance sheet as soon as they are

incurred. The accrual amounts are calculated per account and prepared for transfer together with the

posting date and transaction type. Transfer: FI documents are generated from the data determined earlier (posting totals and interest

accrual/deferral details). Posting of the FI documents to the general ledger accounts.

Example: Company 01 makes a bank transfer to Company 02. (1) IHC clearing account / clearing of payment transaction (2) Clearing of payment transaction / IHC clearing account General ledger transfer: (3) Intercompany receivables / IHC clearing account (4) IHC clearing account / intercompany payables

Example: Company 01 makes a bank transfer to an external business partner. (1) IHC clearing account / clearing of payment transaction F111 Payment program for payment requests (2) Clearing of payment transaction / bank clearing General ledger transfer: (3) Intercompany receivables / IHC clearing account Bank statement of external house bank: (4) Bank clearing / payables to bank

SAP AG 2003

Company codeCompany code

Bank area 02Bank area 02Bank area 02Bank area 01Bank area 01Bank area 01 Bank area 03Bank area 03Bank area 03

General ledger variantGeneral ledger variant

G/L transactionG/L transaction General ledger groupGeneral ledger group

Transaction typeTransaction type

General Ledger Transfer: Customizing

General Ledger Transfer: Customizing In Customizing, you specify the FI balance sheet and income accounts to which the balances and

transactions are transferred. Structure: You make the Customizing settings for a specific bank area. To keep the maintenance

effort to a minimum when you are assigning several bank areas, you can create G/L variants as transfer templates. You can then assign these variants to multiple bank areas. All further settings then relate to a certain G/L variant.

Within the general ledger variant, transaction types are grouped together into general ledger transactions. The accounts are grouped in G/L groups. Precise specifications for the transfer are then based on these two criteria.

SAP AG 2003

Clearing

account

Document

type

Posting key

Debit

Posting key

Credit

IHC

50SA198500

General ledger variant

Chart of

accounts

INT 40

Customizing: General Ledger Variant

For each general ledger variant, you must specify the following in Customizing: The chart of accounts you use in the general ledger. A clearing account for internal purposes. This allows large postings to be divided up for the transfer

to the general ledger. After the transfer, the balance on this clearing account is zero. The document type with which the transfers are to be posted, together with a posting key for debit

as well as for credit postings.

SAP AG 2003

0001

G/L transaction

Transaction type

Transaction type

Transaction type

0150 0155

Bank transfer Standing order

Transaction type

Payments

Transaction type

General ledger group

IHCP ...

IHC general ledger variant

Customizing: G/L Transaction and G/L Group

A general ledger transaction groups together transaction types, enabling assignment to a G/L account and to the update type.

You create a G/L transaction for a G/L variant. This assignment reduces the maintenance effort required, since you then do not need to maintain the

G/L account assignment for each individual transaction type. You use G/L groups to group together accounts in account groups. When you create an account, you

assign it to a G/L group by maintaining the corresponding field. You define the possible G/L groups in Customizing.

SAP AG 2003

0001

...

INT

...

198500

...

198000

...

G/L Account Assignment Maintenance

General ledger variant: IHC

G/L group AcctCurG/L trans. Add. key ChAc G/L clear.act Offset. act Re Relt

IHCP

...

From G/L variantAccount master

Customizing: General Ledger Account Assignment

The G/L account assignment settings are dependent on the G/L group, account currency and G/L transaction and define the accounts to which the items are posted when they are transferred to the general ledger: The G/L account to which the aggregated items are to be transferred (G/L clearing account) An offsetting account for the corresponding G/L posting (the payment transaction clearing account

for payment transaction operations, the relevant income account for income-affecting transactions)

If the G/L transaction is tax-relevant, you can set an indicator to this effect and specify the corresponding FI tax key.

Entering an additional key allows customer-specific logic to be additionally taken into consideration for account determination. The contents of the additional key has to be entered using a business transaction event (BTE) when a payment item is posted in the BCA.

Items in postprocessing: In this section you define how items should be treated that are being postprocessed and have not yet generated a posting. These items can also be transferred to the general ledger.

Note: If no entry is made in the currency field, the same accounts are stored for all currencies.

SAP AG 2003

INT

...

ChAcG/L clear.act G/L acct debitG/L acct credit

198500

...

198501

...

198502

...

General ledger variant: IHC In-House Cash Center

Transfer Posting Group Maintenance

Payables/

receivables accountsG/L clearing account

Customizing: Transfer Postings for Payables/Receivables

Transfer posting of the balances transferred from the current account system, initially posted to a clearing account, to the appropriate payables and receivables accounts in the general ledger.

SAP AG 2003

Transfer type

Transfer type

Control of general ledger

transfer

FI general ledger in same

system as BCA

FI general ledger in

different system than BCA

General Ledger Transfer Types

You can also define the type of G/L data transfer to Financial Accounting: You can specify whether the FI general ledger and the bank current accounts are in the same system or in separate systems.

You can also run a check on the G/L data before it is transferred to the general ledger. The system always performs this check when you carry out a simulation run. This additional check is geared towards test systems and is particularly useful when you have changed the Customizing settings. You should not perform this additional check if the general ledger is in an external system that is being used productively.

SAP AG 2003

During a general ledger transfer, the items posted to

the current accounts are transferred as one total to

the corresponding accounts of the general ledger.

Cash concentration refers to the automatic

generation of payment orders to be credited or

debited to accounts within an account hierarchy.

Within the general ledger variant, transaction

types are grouped together into general ledger

transactions. The accounts are grouped in G/L

groups.

Periodic Tasks: Summary

SAP AG 2003

100Company 02 Company 01Head office

Revenues

1

Customer 01

1

100

5a

100100

5b

Clear.act IHC

5a

100 100

Payables/receivables IHC

100

Vendor 02

3 2

Expense

2

Clear.act IHC

5c 3

Payables/receivables IHC

100

5c

100 100100

100100

5b

Pmnt program

F110 generates

pmnt order

IDoc „PAYEXT‟

3

Current accountCompany 02

+ 100 - 100


5b

4b 4a

5a

Creation of internal

bank statement generates

IDoc „FINSTA‟

IHCIHC

Bank

statement

Bank

statement

Clearing of

clear. actClearing of

customer5b

5a

Invoice for delivery of goods

End-of-day processing:


IC Company 02

6b

100

PT clear. IHC

6a6b

100 100

IC Company 01

6a

100

FIFI

Posting Logic for “Internal Payments”

1. Company 02 delivers goods and sends invoice to Company 01. Posting record: from Customer 01 receivables to revenues.

2. Company 01 posts the invoice: posting record: expenses to Vendor 02. 3. Company 01 pays the invoice: posting record: from Vendor 02 to IHC clearing account. 4. IDoc Payext debits current account of Company 01 and credits current account of Company 02.

(debits –, credits +) 5. IHC creates bank statements and generates IDoc Finsta. 5a First posting at Company 02: IHC clearing account to Customer 01. 5b Second posting at Company 02: IHC payables/receivables to IHC clearing account. 5c Posting at Company 01: IHC clearing account to IHC payables/receivables. 6. General ledger transfer posts in FI of head office. Posting records are created: 6a IC Company 01 to PT clear. IHC, i.e., the head office has a claim against Company 01. 6b PT clear. IHC to IC Company 02, i.e., the head office has a liability towards Company 02.

SAP AG 2003

External

business partner

Ext. BP

2 1

Expense

1

Clear.act. IHC

6 2

Payables/

receivables IHC

1000

6

1000 10001000

10001000

Pmnt program

F110 generates

pmnt order

IDoc „PAYEXT‟

2

Bank

statement

Clearing of

clear. act

6

Invoice for delivery of goods/service

3


Partner bank of

external BP

- 1000

Current account Company 01



IDoc „FINSTA‟

IC Company 01

9

1000

House bank

11

1000

PT clear. IHC

98

1000 1000

FIFI


General ledger transferEntry in

Payment

Request

table

Bank clear.

8

10001000

11

Pmnt program

F111

Clearing of

clear. act

11

IHCIHC

9

External

bank

statement

5

10

Company 01

4

7

Head office

Posting Logic for “Central Payments”

1. External business partner delivers goods and sends invoice to Company 01. Company 01 posts the invoice: posting record: expenses to vendor/ext. BP. 2. Company 01 pays the invoice with F110: posting record: vendor/ext.BP to clearing account IHC. 3. IDoc Payext debits current account of Company 01 (debits –). 4. IDoc Payext adds entry to Payment Request table. 5. IHC creates bank statements and generates IDoc Finsta. 6. Company 01 posts bank statement: IHC clearing account to IHC payables/receivables. 7. Head office runs payment program F111. 8. Posting record: PT clear. IHC to bank clearing. 9. General ledger transfer posts in FI of head office. Posting records are created: IC Company 01 to PT clear. IHC, i.e., the head office has a claim against Company 01. 10. External bank statement from the head office's house bank is received. 11. Posting record for bank statement: bank clear. to house bank.

SAP AG 2003

External

business partner

Ext. BP

1 6a

Revenues

1

Clear.act. IHC

6a 6b

Payables/

receivables IHC

1000

6b

1000 10001000

10001000

Bank

statement

Clearing of

OI

6


4


Partner bank of

external BP

+ 1000

Current account Company 01



IDoc „FINSTA‟

IC Company 01

7

1000

House bank

4

1000

PT clear. IHC

47

1000 1000

FIFI



Direct

posting to

PT clear.act

4

IHCIHC

9

External

bank

statement

5

3

Company 01

Head office

2

Posting Logic for “Central Incoming Payments”

1. Company 01 delivers goods and sends invoice to external business partner. Company 01 posts the invoice: posting record: customer/ext. BP to revenues. 2. External business partner instructs its bank to make a payment to the house bank of the head office. 3. House bank of head office sends bank statement to head office. 4. Head office posts bank statement: first posting: house bank to PT clear. IHC; second posting is made in IHC: credit to current account of Company 01 (credit +). 5. IHC creates bank statement and generates IDoc Finsta. 6. Company 01 posts bank statement: 6a. First posting: Clear.act IHC to ext. customer. 6b. Second posting: payables/receivables IHC to clearing account IHC. 7. General ledger transfer posts in FI of head office. Posting records are created: PT clear. IHC to IC Company 01. The head office has a liability towards Company 01. Note: In case neither Financial Accounting nor In-House Cash assumes the responsibility for making

the posting, a posting is made from the house bank to for bank clearing. The employee responsible can make the correct posting when postprocessing the bank statement.

SAP AG 2003

100Company 02 Company 01

Head office

Revenues

1

Customer 01

1

100

5a

100100

5b

Clear.act IHC

5a

100 100

Payables/

receivables IHC

100

Vendor 02

3 2

Expense

2

Clear.act IHC

5b 3

Payables/

receivables IHC

100

5b

100 100100

100100

5b

Pmnt program

F110 generates

pmnt order

IDoc „PAYEXT‟

3


+ 100 - 100


5b

4b 4a

5a



IDoc „FINSTA‟

IHCIHC--22

Bank

statement

Bank

statement

Clearing of

clear. actClearing of

Customer5b

5a

Invoice for delivery of goods



IC Company 02

6b

100

PT clear. IHC-2

6c6b

100 100

IC Company 01

6a

100

FIFI--22 FIFI--11

IHCIHC--11

PT clear. IHC-1

6a6c

100

IC IHC-1 IC IHC-2

Current accountIHC-1

Current accountIHC-2

+ 100- 100 4a4b

100

100100

6c6c

Posting Logic for “Cross-Bank Area Internal Payments”

1. Company 02 delivers goods and sends invoice to Company 01. Posting record: from Customer 01 receivables to revenues.

2. Company 01 posts the invoice: posting record: expenses to Vendor 02. 3. Company 01 pays the invoice: posting record: from Vendor 02 to IHC clearing account. 4. IDoc Payext is received: 4a: The amount is debited to the current account of Company 01 in IHC-1 and

credited to the current account in IHC-2. (debits –, credits +) 4b The amount is credited to the current account of Company 02 in IHC-2 and debited to the current

account in IHC-1. (debits –, credits +) 5. IHC-1 creates bank statement for current account of Company 01, IHC-2 creates bank statements for

current account of Company 02 and generates IDocs Finsta. Note: No bank statements are created for the current accounts IHC-1 and IHC-2.

5a Posting of bank statements: first posting at Company 02: clearing account IHC to Customer 01; second posting at Company 02: payables/receivables IHC to clearing account IHC.

5b Posting at Company 01: clearing account IHC to payables/receivables IHC. 6. General ledger transfer posts in FI of head office. Posting records are created: 6a IC Company 01 to PT clear. IHC-1, i.e., the head office has a claim against Company 01. 6b PT clear. IHC-2 to IC Company 02, i.e., the head office has a liability towards Company 02. 6c In IHC-1: PT clear. IHC-1 to IC IHC-2;

In IHC-2: IC IHC-1 to PT clear. IHC-2

SAP AG 2003

External

business partner

Ext. BP

2 1

Expense

1

Clear.act. IHC

6 2

Payables/

receivables IHC

100

6

100 100100

100100

Pmnt program

F110 generates

pmnt order

IDoc „PAYEXT‟

2 Clearing of

clear. act

6


3a


Partner bank of

external BP



IDoc „FINSTA‟

House bank

11

100

FIFI--22End-of-day processing:

General ledger transferEntry in

Payment

Request

table

Bank clear.

8

100100

11

Pmnt program

F111

Clearing of

clear. act

11

IHCIHC--22

9

3a

10

Company 01

4

7

Head office

IHCIHC--11Current accountIHC-2


Current account

IHC-1

- 100 + 100

- 100

Bank

statement

3b

5

FIFI--11

PT clear. IHC-1

9a9b

100 100

IC Company 01

9a

100

100

9bIC IHC-2

PT clear. IHC-2

9c

100

9c

IC IHC-1

External

bank

statement

8

Posting Logic for “Cross-Bank Area Central Payments”

1. External business partner delivers goods and sends invoice to Company 01. Company 01 posts the invoice: posting record: expenses to vendor/ext.BP.

2. Company 01 pays the invoice with F110: posting record: vendor/ext.BP to clearing account IHC. 3. IDoc Payext :3a The amount is debited to the current account of Company 01 in IHC-1 and credited to

the current account in IHC-2. (debits –, credits +). 3b In IHC-2, the current account of IHC-1 is debited (debits –). 4. IDoc Payext adds entry to Payment Request table. 5. IHC-1 creates bank statements and generates IDoc Finsta for Company 01. Note: No bank statements

are sent for the accounts IC IHC-1 and IC IHC-2. 6. Company 01 posts bank statement: IHC clearing account to IHC payables/receivables. 7. Head Office runs payment program F111. 8. Posting record: PT clear. IHC-2 for bank clearing. 9. General ledger transfer posts in FI of head office. Posting records are created:

In bank area of IHC-1: 9a IC Company 01 to PT clear. IHC-1, i.e., the head office has a claim against Company 01; 9b PT clearing IHC-1 to IC IHC-2. In the bank area of IHC-2: 9c IC IHC-1 to PT clear IHC-2 .

10. External bank statement from the head office's house bank is received. 11. Posting record for bank statement: bank clear. to house bank.

SAP In House Cash Management

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