AC805 Cash Management
AC805
AC805 Cash Management ... 0-1 Copyright ... 0-2 Treasury ... 0-4 Course Prerequisites ... 0-5 Target Group ... 0-6 Course Overview... 1-1 Course Goal ... 1-2 Course Objectives ... 1-3 Table of Contents (1) ... 1-4 Table of Contents (2) ... 1-5 Overview Diagram (1) ... 1-6 Overview Diagram (2) ... 1-7 Main Business Scenario ... 1-8 Chart of Accounts (1) ... 1-9 Chart of Accounts (2) ... 1-10 Chart of Accounts (3) ... 1-11 Overview of Cash Management ... 2-1 Overview of Cash Management:Unit Objectives ... 2-2 Overview Diagram (1) ... 2-3 Overview Diagram (2) ... 2-4 Overview of Cash Management Business Scenario ... 2-5 Overview of SAP Treasury ... 2-6 Problems and Objectives ... 2-7 Instruments in SAP R/3 Cash Management ... 2-8 Overview ... 2-9 Concepts in SAP R/3 Cash Management ... 2-10 Procedure for Day-to-Day Planning ... 2-11 Overview of Cash Management: Unit Summary ... 2-12 Overview of Cash Management: Exercises ... 2-13 Overview of Cash Management: Solutions ... 2-14 Cash Position ... 3-1 Cash Position: Unit Objectives ... 3-2 Overview Diagram (1) ... 3-3 Overview Diagram (2) ... 3-4
Prerequisites: Bank Accounting ... 3-9 Prerequisites: Bank Accounts ... 3-10 Prerequisites: Planning Levels ... 3-11 Cash Position: Display ... 3-12 Cash Position: Accounts and Levels ... 3-13 Currency Display ... 3-14 Cash Position: Unit Summary ... 3-15 Tagesfinanzstatus Exercises ... 3-16 Cash Position Solutions ... 3-17 Cash Position Customizing ... 4-1 Cash Position Customizing: Unit Objectives ... 4-2 Overview Diagram (1) ... 4-3 Overview Diagram (2) ... 4-4 Cash Position Customizing: Business Scenario ... 4-5 G/L Accounts: Account Groups ... 4-6 Documents: Field Status and Value Date ... 4-7 Bank Account: Configuration ... 4-8 House Banks - Correspondence Banks ... 4-9 Bank Accounts ... 4-10 Planning Levels ... 4-11 Cash Management Account Name ... 4-12 Grouping: Setup ... 4-13 Grouping: Functions ... 4-14 Cash Position Customizing: Unit Summary ... 4-15 Cash Position Customizing: Exercises ... 4-16 Cash Position Customizing: Solutions ... 4-18 Manual Memo Records ... 5-1 Manual Memo Records: Unit Objectives ... 5-2 Overview Diagram (1) ... 5-3 Overview Diagram (2) ... 5-4 Manual Memo Records: Business Scenario ... 5-5 Manual Planning ... 5-6 Creating Memo Records ... 5-7 Changing Memo Records Using Lists ... 5-8 Loading External Memo Records ... 5-9 Payment Advice Journal ... 5-10 Manual Memo Records: Unit Summary ... 5-11
Customizing Manual Memo Records ... 6-1 Customizing Manual Memo Records: Unit Objectives ... 6-2 Overview Diagram (1) ... 6-3 Overview Diagram (2) ... 6-4 Customizing Manual Memo Records: Business Scenario ... 6-5 Planning Types ... 6-6 Archive: Retention Period ... 6-7 Archive / Automatic Expiration - Examples ... 6-8 Customizing Manual Memo Records: Unit Summary ... 6-9 Customizing Manual Memo Records:Exercises ... 6-10 Customizing Manual Memo Records: Solutions ... 6-12 Check Deposit ... 7-1 Check Deposit: Unit Objectives ... 7-2 Overview Diagram (1) ... 7-3 Overview Diagram (2) ... 7-4 Check Deposit: Business Scenario ... 7-5 Check Deposit: Procedure ... 7-6 Account Assignment ... 7-7 Check Deposit: Initial Specifications ... 7-8 Check Deposit: Initial Specifications (2) ... 7-9 Check Deposit List ... 7-10 Check Deposit: Printing and Overview ... 7-11 Generating Postings ... 7-12 Check Deposit: Unit Summary ... 7-13 Check Deposit Exercises ... 7-14 Check Deposit Solutions ... 7-16 Check Deposit: Customizing ... 8-1 Check Deposit Customizing: Unit Objectives ... 8-2 Overview Diagram (1) ... 8-3 Overview Diagram (2) ... 8-4 Check Deposit Customizing: Business Scenario ... 8-5 Customizing Process - Transactions / Posting Rules ... 8-6 Postings and Account Determination ... 8-7 Simulating Postings ... 8-8 Creating Screen Variants... 8-9
Bank Statement - Manual Entry: Unit Objectives ... 9-2 Overview Diagram (1) ... 9-3 Overview Diagram (2) ... 9-4 Bank Statement - Manual Entry: Business Scenario ... 9-5 Manual Bank Statement: Procedure ... 9-6 Entering the Bank Statement ... 9-7 Processing the Bank Statement (1): Bank and Payment Advices... 9-8 Processing the Bank Statement (2): Bank Document / Selection ... 9-9 Processing the Bank Statement (3): Further Processing ... 9-10 Manual Bank Statement Posting Examples... 9-11 Manual Bank Statement Posting Examples... 9-12 Manual Bank Statement Posting Examples... 9-13 Bank Statement - Manual Entry: Unit Summary ... 9-14 Bank Statement - Manual Entry Exercises ... 9-15 Bank Statement: Manual Entry Solutions ... 9-18 Manual Bank Statement: Customizing ... 10-1 Manual Bank Statement Customizing: Unit Objectives ... 10-2 Overview Diagram (1) ... 10-3 Overview Diagram (2) ... 10-4 Manual Bank Statement Customizing: Business Scenario ... 10-5 Posting Rules and Transactions... 10-6 Posting Details ... 10-7 Determining Accounts from House Bank Data ... 10-8 Posting Rule and Account Determination ... 10-9 Manual Bank Statement Customizing: Unit Summary ... 10-10 Manual Bank Statement - Customizing: Exercises ... 10-11 Bank Statement: Electronic Entry ... 11-1 Bank Statement - Electronic Entry: Unit Objectives ... 11-2 Overview Diagram (1) ... 11-3 Overview Diagram (2) ... 11-4 Bank Statement - Electronic Entry: Business Scenario ... 11-5 Electronic Bank Statement: Features (1) ... 11-6 Electronic Bank Statement: Features (2) ... 11-7 Electronic Bank Statement - Various Formats Supported ... 11-8 Generating Test Data - RFEBKATX ... 11-9 Importing Bank Statement Data ... 11-10 MultiCash Files ... 11-11
Processing Incomings: Postings on Account ... 11-14 Important Criteria ... 11-15 Bank Statement - Electronic Entry: Unit Summary ... 11-16 Electronic Bank Statement: Exercises ... 11-17 Solutions ... 11-19 Electronic Bank Statement: Customizing... 12-1 Electronic Bank Statement - Customizing: Unit Objectives ... 12-2 Overview Diagram (1) ... 12-3 Overview Diagram (2) ... 12-4 Electronic Bank Statement - Customizing: Business Scenario ... 12-5 Transactions ... 12-6 Account Determination ... 12-7 Interpretation Algorithm ... 12-8 Electronic Bank Statement - Customizing: Unit Summary ... 12-9 Extended Bank Processing: Checking Programs ... 13-1 Extended Bank Processing: Checking Programs Unit Objectives ... 13-2 Overview Diagram (1) ... 13-3 Overview Diagram (2) ... 13-4 Extended Bank Processing: Checking Programs Business Scenario ... 13-5 Comparing Payment Advices with the Bank Statement or Account ... 13-6 Comparing Value Dates ... 13-7 Cashed Checks Analysis: G/L Account / Vendor ... 13-8 Extended Bank Processing: Checking Programs Unit Summary ... 13-9 Extended Bank Processing - Checking Programs: Exercises ... 13-10 Extended Bank Processing: Solutions ... 13-11 Cash Concentration ... 14-1 Cash Concentration: Unit Objectives ... 14-2 Overview Diagram (1) ... 14-3 Overview Diagram (2) ... 14-4 Cash Concentration: Business Scenario ... 14-5 Cash Concentration: Overview ... 14-6 Cash Concentration: Program ... 14-7 Cash Concentration: Posting Processes ... 14-8 Cash Concentration and Payment Program ... 14-9 Payment Program Parameters ... 14-10
Cash Concentration - Customizing: Unit Objectives ... 15-2 Overview Diagram (1) ... 15-3 Overview Diagram (2) ... 15-4 Cash Concentration - Customizing: Business Scenario ... 15-5 Cash Concentration - Specifications ... 15-6 Concentration - Configuration Examples ... 15-7 Cash Concentration - Correspondence ... 15-8 Confirmation: Address / Account No. ... 15-9 Field Selection Control in the Payment Program ... 15-10 Customizing Source Symbols ... 15-11 Cash Concentration - Customizing: Unit Summary ... 15-12 Cash Concentration Exercises ... 15-13 Cash Concentration: Solutions ... 15-15 Liquidity Forecast ... 16-1 Liquidity Forecast: Unit Objectives ... 16-2 Overview Diagram (1) ... 16-3 Overview Diagram (2) ... 16-4 Liquidity Forecast: Business Scenario ... 16-5 Characteristics of the Liquidity Forecast... 16-6 Integration: Liquidity Forecast ... 16-7 Requirements (1): Planning Groups ... 16-8 Requirements (2): Master Record ... 16-9 Payment History - Planning Date ... 16-10 Integration: Payment Block ... 16-11 Integration: Special Transactions ... 16-12 Liquidity Forecast: Unit Summary ... 16-13 Liquidity Forecast: Exercises ... 16-14 Liquidity Forecast: Solutions ... 16-16 Liquidity Forecast Customizing: Unit Objectives ... 17-1 Liquidity Forecast: Customizing ... 17-2 Overview Diagram (1) ... 17-3 Overview Diagram (2) ... 17-4 Liquidity Forecast Customizing: Business Scenario ... 17-5 Master Data: Subledger Accounts ... 17-6 Percentage Distribution ... 17-7 Planning Data: Screen Control ... 17-8 Blocked Documents ... 17-9
Integrating Orders and Purchase Orders ... 17-12 Integration with Other SAP Modules ... 17-13 Selection of Financial Instruments ... 17-14 Treasury Management: Functions ... 17-15 Transaction and Balance Management Process ... 17-16 Trading: Create Fixed-Term Deposit ... 17-17 Postings Using Bank Clearing Accounts Interaction of TR-TM and TR-CM ... 17-18 Transfer to Financial Accounting: Logical Process ... 17-19 Liquidity Forecast Customizing: Unit Summary ... 17-20 Data Transfer and Reorganization... 18-1 Data Transfer and Reorganization: Unit Objectives ... 18-2 Overview Diagram (1) ... 18-3 Overview Diagram (2) ... 18-4 Data Transfer and Reorganization: Business Scenario ... 18-5 Implementation Support ... 18-6 Transferring Data from Accounts With/Without Open Items ... 18-7 Data Reconciliation ... 18-8 Reorganization ... 18-9 Data Transfer and Reorganization: Unit Summary ... 18-10
SAP AG 1999
AC805 Cash Management
AC805
AC805
Cash Management
Cash Management
SAP R/3 System Release 4.6A September 1999 Material No. 5003 4193 SAP AG 1999
Copyright 2000 SAP AG. All rights reserved.
Neither this training manual nor any part thereof may
be copied or reproduced in any form or by any means,
or translated into another language, without the prior
consent of SAP AG. The information contained in this
document is subject to change and supplement without prior
notice.
All rights reserved.
Copyright
Trademarks:
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
Microsoft®, WINDOWS®, NT®, EXCEL®, Word® and SQL Server® are registered trademarks of Microsoft Corporation.
IBM®, DB2®, OS/2®, DB2/6000®, Parallel Sysplex®, MVS/ESA®, RS/6000®, AIX®, S/390®, AS/400®, OS/390®, and OS/400® are registered trademarks of IBM Corporation.
ORACLE® is a registered trademark of ORACLE Corporation, California, USA.
INFORMIX®-OnLine for SAP and Informix® Dynamic ServerTM are registered trademarks of Informix Software Incorporated.
UNIX®, X/Open®, OSF/1®, and Motif® are registered trademarks of The Open Group.
HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Laboratory for Computer Science NE43-358, Massachusetts Institute of Technology, 545 Technology Square, Cambridge, MA 02139.
JAVA® is a registered trademark of Sun Microsystems, Inc. , 901 San Antonio Road, Palo Alto, CA 94303 USA.
over the world. All other products mentioned are trademarks or registered trademarks of their respective companies.
SAP AG 1999
Treasury
Treasury Overview AC030 3 daysLevel 2
Level 3
Financial Accounting and Reporting AC010 5 days Cash Budget Management AC215 1 day Basic Functions in Treasury Management AC810 3 days Cash Management AC805 3 daysMoney Market, Foreign Exchange and Derivatives
AC825 3 days
Loans Management for Financial Services
AC815 5 days
Loans Management for Corporates
AC816 3 days
Securities Management
AC820 4 days
Market Risk Management
SAP AG 1999
Practical knowledge of R/3 FI Financial
Accounting
Recommended:
Attendance at AC010 - Overview of Financial
Accounting and Reporting
Attendance at AC030 - Overview of Treasury
Course Prerequisites
SAP AG 1999
Participants:
Members of the project team
System managers
Personnel from the user department and Controlling
Duration: 3 days
Target Group
Advice for Users
The training documentation is not designed to be a teach-yourself course. You will only have complete information if you have the documentation and listen to the course instructor. The documentation includes space for you to write your own notes.
SAP AG 1999
Course Overview
Contents
Course goal
Course objectives
Course content
Course overview diagram
Main business scenario
SAP AG 1999
Course Goal
This course will prepare you to:
Understand how and where you can use
SAP Cash Management
Use the detailed functions available for liquidity
monitoring and Electronic Banking
SAP AG 1999
Course Objectives
At the conclusion of this course, you will be able to:
Describe how and where SAP Cash Management
can be used
Set up the structures required for short- and
medium-term liquidity monitoring in your business
Explain the various options available for
integrating external bank data with SAP Cash
Management
Define the system settings needed to control
internal processing
SAP AG 1999
Table of Contents (1)
Unit 7
Check Deposit
Unit 8
Check Deposit:
Customizing
Unit 9
Bank Statement
-Manual Entry
Unit 10
Manual Bank Statement
Customizing
Unit 1
Course Overview
Unit 2
Overview of Cash
Management
Unit 3
Cash Position
Unit 4
Cash Position:
Customizing
Unit 5
Manual Memo Records
Unit 6
Manual Memo Records
Customizing
Preface
SAP AG 1999
Table of Contents (2)
Unit 14
Cash Concentration
Unit 15
Cash Concentration:
Customizing
Unit 16
Liquidity Forecast
Unit 17
Liquidity Forecast:
Customizing
Unit 18
Date Transfer and
Reorganization
Unit 11
Bank Statement
-Electronic Entry
Unit 12
Electronic Bank
Statement
Customizing
Unit 13
Extended
Bank Processing
Checking Reports
Appendix
SAP AG 1999
Overview Diagram (1)
Cash Position
Cash Position Customizing
Overview of Cash Management
Manual Memo Records
Customizing Manual Memo Records
Check Deposit
Check Deposit: Customizing
Bank Statement: Manual Entry
Manual Bank Statement: Customizing
Course Overview
SAP AG 1999
Overview Diagram (2)
Electronic Bank Statement: Customizing
Bank Statement: Electronic Entry
Cash Concentration
Cash Concentration: Customizing
Liquidity Forecast
Liquidity Forecast: Customizing
Data Transfer/Reorganization
SAP AG 1999
Main Business Scenario
You have successfully implemented the R/3 FI
application component. You now want to
activate short- and medium-term liquidity
monitoring and use the Electronic Banking
facilities.
You are a member of a project team whose task is to supply the decision makers in your company with information on movements in company liquidity.
SAP AG 1999
Chart of Accounts (1)
Index of account numbers used in FI training courses in Germany. The chart of accounts is called INT.
Account name Account number
Costs from exchange rate differences 0000230000 Costs from currency revaluation 0000230010
Output tax 0000175000
Bills of exchange receivable 0000125000
Office supplies 0000476000
Customer receivables 0000140000
Customer receivables - correction account 0000140099
DEUBA-0 (Current) 0000113100
DEUBA-1 (Outgoing checks) 0000113101 DEUBA-5 (Misc. clearing) 0000113105 DEUBA-8 (Incoming checks) 0000113108 DEUBA-9 (Cash receipts) 0000113109
DEUBA USD account 0000113150
DREBA-0 (Current) 0000113200
SAP AG 1999
Chart of Accounts (2)
Index of account numbers used in FI training courses in Germany. The chart of accounts is called INT.
Account name Account number
Customer 1 T-T05Axx
Result carried fwd from previous year 0000900000 Down payments received 0000170000
Sales deductions 0000889000
Revenue from exchange rate differences 0000280000 Revenue from currency revaluation 0000280010 Guarantees given by customers 0000196100
Down payments made 0000159000
Cash 0000100000
Customer 1 T-T05Axx
Vendor payables 0000160000
Collection charges 0000275300
VAT clearing
SAP AG 1999
Chart of Accounts (3)
Index of account numbers used in FI training courses in Germany. The chart of accounts is called INT.
Account name Account number
Cash transaction incidental costs 0000479000
Cash discount paid 0000880000
Cash discount received 0000276000
Raw materials 0000300000
Net sales - without CO-PA 0000800200 Unauthorized deduction of cash discount 0000881000
Materials usage 0000400020
SAP AG 1999
Contents
Instruments
Overview of functions
Concepts
SAP AG 1999
Overview of Cash Management:
Unit Objectives
At the conclusion of this unit, you will be able to:
Give colleagues an overview of SAP R/3
Treasury
Distinguish between the cash position and
the liquidity forecast in Cash Management,
and what they do
Distinguish between levels, groups, and
accounts
SAP AG 1999
Cash Position
Cash Position Customizing
Overview of Cash Management
Manual Planning
Manual Planning: Customizing
Check Deposit
Check Deposit: Customizing
Bank Statement: Manual Entry
Manual Bank Statement: Customizing
Introduction
SAP AG 1999
Electronic Bank Statement: Customizing
Bank Statement: Electronic Entry
Cash Concentration
Cash Concentration: Customizing
Liquidity Forecast
Liquidity Forecast: Customizing
Data Transfer/Reorganization
Extended Bank Processing: Checking Programs
Overview Diagram (2)
SAP AG 1999
Before starting work in your project team, you
want to obtain an overview of SAP R/3 Treasury.
What are the objectives of the new financial
planning system, and what instruments are
available for safeguarding short- and
medium-term liquidity?
What is the significance of accounts, groups,
and levels in planning?
Overview of Cash Management Business Scenario
You are a member of a project team whose task is to supply the decision makers in your company with information on movements in company liquidity.
The objective of SAP Treasury is to ensure an efficient, commercial system of liquidity, portfolio, and risk management.
SAP Treasury is divided accordingly, as follows:
Cash Management (CM) offers functions aimed at achieving efficient liquidity analysis.
Treasury Management / Loan Management (TM/LO) supports management of financial transactions and balances.
SAP AG 1999
Current Problems
Current Problems
1. Too many bank accounts
2. Accounting by value date is required 3. Unreliable planning tools
4. Investment instruments not used to their fullest potential
5. Lack of payment strategy
Outcome
Outcome
All necessary information must be accessible in the cash management system
Business Objectives
1. Ensuring optimum liquidity for maturing obligations
2. Preparing and transferring short, medium, and long-term funds at maturity
3. Control over incoming and outgoing payments
4. Information on managing short-term cash investments or borrowings
Problems and Objectives
Most businesses have too many bank accounts, held at too many different banks. This makes it difficult to keep an overview of the relevant account balances.
As banks send statements daily, precise, value-date accounting does not take place often. Businesses miss out on the full benefits of investment instruments because value date information is lacking.
Payments are often made from one account only, regardless of whether it contains sufficient funds.
The tasks of a cash management system are to:
Analyze financial transactoins in completed accounting periods
SAP AG 1999
Instrument
Instrument
Data
Data
Typical
Typical
Time Horizon
Time Horizon
1. Cash position - Bank accounts
- Short term - Bank clearing
- By value date accounts 1 - 2 days
- Memo records
2. Liquidity forecast
- Customers
- Medium term - Vendors 1 - 24 weeks
- Projection of - FI, MM, SD flows in and out - Planned items - Taxes
Instruments in SAP R/3 Cash Management
SAP R/3 Cash Management offers the following tools, designed to make cash flows clear: The cash position, which illustrates short term movements in the bank accounts
The liquidity forecast, which illustrates medium-term movments in subledger accounts too
The cash position shows how your bank accounts will move in the next few days. Meanwhile, the liquidity forecast illustrates liquidity changes in the subledger accounts. Functions are also supported which you can use to obtain relevant information on forecast payment flows. This information appears in the form of memo records in the cash position, or as planned items in the liquidity forecast.
Financial budgeting and the long-term view of cash flow (target/actual comparison) at G/L account level are not supported by SAP R/3 Cash Management, but are included instead in SAP R/3 Cash Budget
SAP AG 1999
Cash Position
Cash Position
Liquidity Forecast
Liquidity Forecast
Inclusion of all dataInclusion of all data resident in the resident in the system
system (Example: (Example: purchase orders)purchase orders)
Project of flows in and out over
Project of flows in and out over
a given period
a given period
Help in optimizing investments
Help in optimizing investments
and borrowings
and borrowings
Safeguarding company liquidity
Safeguarding company liquidity
Up
Up--toto--date presentation of bank date presentation of bank
accounts, and presentation by
accounts, and presentation by
value date
value date
Daily liquidity forecast
Daily liquidity forecast
Liquidity movements
Liquidity movements
Data input eliminates redundancy
Data input eliminates redundancy
All cash management transactions
All cash management transactions
can be documented or
can be documented or
revised
revised
Basis for cash concentration
Basis for cash concentration
Overview
SAP Cash Management has the same goals as conventional cash management systems, namely to:
Safeguard company liquidity so that payment obligations can be met
Monitor payment flows
SAP Cash Management uses the cash position to reflect movements in bank accounts, while movements in the subledger accounts are represented using the liquidity forecast.
The liquidity forecast is based on payments in and out from/to customers and vendors, per the open items. As planning for incoming and outgoing payments covers a larger timeframe, the probability of the payments occurring on the day given is less than in the cash position.
SAP AG 1999
Cash Position
Cash Position
Liquidity Forecast
Liquidity Forecast
Source of data
Source of data
=
=
Level
Level
Account
Account
/
/
Group
Group
Outcome: Outcome:Level
Level
Manual memo records Bank postings
Bank accounts Bank clearing
accounts
Permits a high-quality statement on balances in accounts/groups ("Levels explain accounts/groups.")
Manual planning records Invoices
Orders Purchase orders
Concepts in SAP R/3 Cash Management
Planned items, Customer groups Vendor groups (Examples: personnel expenses, taxes) Planned items, Customer groups Vendor groups (Examples: personnel expenses, taxes)
The format of the cash position and the liquidity forecast is determined by two features:
Both reports contain levels. These supply high-quality information on the commercial reasons for a movement in an account - that is, they explain how the account opening and closing balances came about. For example, levels give information on whether a balance in a bank account is the result of a bank posting or of a memo record entered manually.
They can also be classified according to how secure the receipt is - for example, by confirmed or
unconfirmed memo record.
In the cash position, accounts (bank and bank clearing accounts) supply information on the current balance.
The liquidity forecast contains groups instead of accounts. Vendors and customers are assigned to a planning group by means of an entry in the master records. Each group reflects certain features, procedures, or risks.
The main tasks of an MRP controller are to: Maintain company liquidity
Clear deficits
SAP AG 1999
Cash position: liquidity monitoring in bank
accounts and bank subaccounts
Liquidity forecast:
safeguarding/monitoring liquidity,
including movements in vendor/customer
accounts
Structure by groupings, levels, and
accounts/groups
Overview of Cash Management: Exercises
Unit: Overview of Cash Management
Topic: Overview of Functions and Concepts
At the conclusion of these exercises, you will be able to:
Give colleagues an overview of SAP R/3 Treasury
Distinguish between the cash position and the liquidity forecast in
Cash Management, and what they do
Distinguish between levels, groups, and accounts
Before starting work in your project team, you
want to obtain an overview of SAP R/3 Treasury.
What are the objectives of the new financial planning system, and what
instruments are available for safeguarding short- and medium-term
liquidity?
1-1
Are the following statements
true (T) or false (F)?
1-1-1 The liquidity forecast works with bank value dates.
1-1-2 The typical timeframe for the cash position is 1-2 days.
1-1-3 The main objective of the cash position is to safeguard company liquidity.
1-1-4 Levels in the cash position provide information on the origin of account
movements.
1-1-5 Groups in the liquidity forecast permit high quality statements on the account
balance.
Overview of Cash Management: Solutions
Unit: Overview of Cash Management
Topic: Overview of Functions and Concepts
1-1
Solutions for the statements:
1-1-1 False - The liquidity forecast works with bank value dates.
The liquidity forecast, on the other hand, works with customer and vendor
groups.
1-1-2 True - The typical timeframe for the cash position is 1-2 days.
1-1-3 False - The main objective of the cash position is to give you a current
overview, correct by value date, of short term developments in your bank
accounts. The main objective of the liquidity forecast, on the other hand, is to
safeguard company liquidity.
1-1-4 True - Levels in the cash position provide information on the origin of account
movements.
1-1-5 False - It is the levels, not the groups, that enable a qualitative statement on the
account balance. The groups, on the other hand, reproduce the account balance.
SAP AG 1999
Contents
Features
Organizational and technical requirements
for integration
Accessing the cash position
Grouping function
Currency display and currency risk
Cash Position
SAP AG 1999
At the conclusion of this unit, you will be able to:
Recognize the specific features of the cash position
Outsort bank accounts
Access the flexible display structures and set up the
various currency displays
SAP AG 1999
Cash Position
Cash Position Customizing
Overview of Cash Management
Manual Memo Records
Customizing Manual Memo Records
Check Deposit
Check Deposit: Customizing
Bank Statement: Manual Entry
Manual Bank Statement: Customizing
Course Overview
SAP AG 1999
Electronic Bank Statement: Customizing
Bank Statement: Electronic Entry
Cash Concentration
Cash Concentration: Customizing
Liquidity Forecast
Liquidity Forecast: Customizing
Data Transfer/Reorganization
Extended Bank Processing: Checking Programs
Overview Diagram (2)
SAP AG 1999
Cash Position: Business Scenario
First, you want to create an instrument which
will give you useful information about your
bank accounts.
You use the cash position for this,
considering first its specific attributes and
aspects of
integration.
To be able to use the cash position
effectively,
you must first set up your FI bank accounts in
a particular structure, and configure them
accordingly.
This unit surveys the flexible configuration
options available in the cash position.
You are a member of a project team whose task is to supply the decision makers in your company with information on movements in company liquidity.
SAP AG 1999
Cash Position
Cash Position
Bank account balances by value date
Bank account balances by value date
Parallel management of foreign currencies
Parallel management of foreign currencies
Cash position covering the next few days
Cash position covering the next few days
Manual memo records as plan items
Manual memo records as plan items
Automatic payment using expected value
Automatic payment using expected value
days
days
Cashed check monitoring
Cashed check monitoring
Features of the Cash Position
The cash position is the result of the entry, by value date, of all the payments in a given, short time horizon.
There are three sources of data for the cash position:
FI postings to cash-management-relevant G/L accounts
Memo records entered manually
Cash flows from business transactions managed with the Treasury Management application component.
After the bank statements are posted in FI, the account transactions can be displayed in the cash position.
The balances in the bank accounts, which you can display using the cash position, form the basis for planning decisions.
Bank accounting is to provide a bank (current) account for each currency and, in each case, a clearing account, on a lower level and per processing type.
You can tailor the clearing accounts to the needs of your business.
Objectives:
- Accounts can be reconciled at any time
- Foreign currency and local currency are managed in parallel - Can be managed by value date
- Interest can be calculated - Line item analysis possible
- Contingent liabilities can be monitored
- Items posted automatically using automatic payment transactions - Automatic breakdown using electronic banking transactions
Only transactions which are, according to the bank statement, active are posted in the bank (current) accounts.
SAP AG 1999
1.
1.
Payment transactions
Payment transactions
2.
2.
Bank statements
Bank statements
Cash Management
Cash Management
Outgoing checks
Outgoing checks
Bank transfer
Bank transfer
Foreign
Foreign
BTfr
BTfr
01
01
02
02
03
03
04
04
. . .
. . .
113100
113100
BANKA
BANKA
Current account
Current account
09
09
Cash receipt
Cash receipt
Prerequisites: Bank Accounting
You want to implement SAP Cash Management and have to configure the chart of accounts.
You need to create a general ledger account for each active account you have at the bank, by currency if applicable. In addition, you need to create bank clearing accounts for each bank account, also by currency if applicable. In this connection, we recommend the following grouping:
113100 Bank 1 (current account - domestic - currency UNI) 113101 Bank 1 (outgoing checks)
113102 Bank 1 (outgoing bank transfer, domestic) 113103 Bank 1 (outgoing bank transfer, foreign) 113104 Bank 1 (automatic deposit)
113105 Bank 1 (miscellaneous interim postings) :
113108 Bank 1 (incoming checks) 113109 Bank 1 (customer cash receipts)
Processing sequence
1. Payment transactions: are posted against the clearing accounts using the payment program. 2. Bank statements: balance the clearing entries against the bank account.
SAP AG 1999
Field Control
Field Control
Sort key
Sort key
Open item management
Open item management
Line item display
Line item display
Planning level
Planning level
Value date
Value date
Customizing:
Customizing:
Field status
Field status
-
-
payment transactions
payment transactions
Bank Account
Bank Account
Subaccount
Subaccount
027
X
F0
B?
X
X
005
X
X
Prerequisites: Bank Accounts
Bank accounts must be configured so that the bank postings are included in planning.
If you want to derive the balance in the cash position, which is always managed by value date, you should managed the bank (current) accounts by value date also. It is not necessary to manage open items. Data is recorded in G/L account currency. All bank (current) accounts should be assigned to a unique planning level, where bank statements and, with them, the actual bank balance are represented.
On the other hand, you should manage bank clearing accounts on an open item basis. They can, for example, be sorted by local currency amount. Depending on the type of bank clearing account, a specific planning level is then assigned - for example, for:
113102 Bank 1 (outgoing bank transfer, domestic): B2 level
113109 Bank 1 (customer cash receipts): a B9 level
SAP AG 1999
Master record 113101
Master record 113101
Customizing table
Customizing table
Master record 113100
Master record 113100
: : Planning level: Planning level: B1B1 : : B1:B1: Outgoing checksOutgoing checks :
:
F0:
F0: FI bank postingFI bank posting
: : : : Planning level: Planning level: F0F0 : :
Cash Position
Cash Position
DEUBA Level MM/DD/YY ---F0 60000 B1 10000Prerequisites: Planning Levels
Planning level explain the beginning and ending balances in an account and supply information on what brought them about. You can define them in a customizing table.
The planning level field (FD-EBENE) must be activated in the bank account master record using the field status group.
SAP AG 1999
Company code .
Company code .
. . . .
. . . .
AC01
AC01
:
:
X Cash position
X Cash position
:
:
Grouping .
Grouping .
. . . .
. . . .
Banks
Banks
Display by .
Display by .
. . . .
. . . .
Date
Date
Display in .
Display in .
. . . .
. . . .
UNI
UNI
:
:
Display type .
Display type .
. . . .
. . . .
K / D
K / D
Cash Position: Display
You use the grouping to set up the display. The grouping determines which levels and accounts are displayed.
On the initial screen specify the selection options for the following accounts analysis:
Company code: company code whose bank data you want to display Cash position: X displays bank data
Grouping: Special view - selects the accounts
Display by: (aggregated) starting date of the account forecast Planned currency:
Display in: Currency code. Affects selection of the documents to be totaled and the currency translation (currency risk)
Increment: Increment: time frame (1-99) in days (T), weeks (W) or months (M) Display type: As wells as the accumulated display, you can access a delta display
showing disbursements and receipts. The beginning and end balances can also be selected for the delta display.
Scaling This is where you determine the number of decimal places for the display.
The first thing you see is a partial selection, showing the most important entries. Choose All selections to view the other selections too. Use Variants.
SAP AG 1999
Grouping:
Grouping:BanksBanks BANKA BANKA BANKB BANKB : : Accounts:
Accounts:BANKABANKA Account 1 Account 1 Account 2 Account 2 Account 3 Account 3 Level:
Level:Account 1Account 1
CA Confirmed advice CA Confirmed advice B2 Incoming check B2 Incoming check F0 Bank posting F0 Bank posting
Line Item Display
Line Item Display
Assignment Assignment YYYY0801 YYYY0801 08/01/YY 08/01/YY 50 50 40 40- -08/01/YY 08/01/YY 60 60 10 10- -08/01/YY 08/01/YY 20 20 40 40 Doc.
Doc.no.no. 1 1 08/02/YY 08/02/YY 70 70 20 20- -08/02/YY 08/02/YY 60 60 10 10- -20 20 08/02/YY 08/02/YY 10 10 50 50 ... ... 08/03/YY 08/03/YY 60 60 30 30- -08/03/YY 08/03/YY 60 60 20 20- -20 20 08/03/YY 08/03/YY 10 10 30 30 20 20 Amount Amount 40000 40000
Cash Position: Accounts and Levels
The grouping term specifies how the system summarizes the data.
The next screen after the initial screen is a basci screen, whose format is determined by the grouping and summarization terms entered in customizing. From here, you can branch to the levels, and from there to the relevant accounts, or vice versa. Various information appears, depending on the settings.
The overall balance for a bank appears by
- Group (= account) where postings are made. They are listed along with their cash management account names.
- Level (= source) of a bank or account transaction.
You can branch to the FI line items (top down).
Note:
When you migrate from to 4.5B from an earlier release, you must completely reconstruct cash management because the update logic is different. In the case of the G/L account, the G/L account currency is not always adopted. Now, either the document currency (for G/L accounts managed on an open item basis) or the G/L account currency (for other G/L accounts) is used.
Use the Data Setup function in transaction FDFD to delete the data and reconstruct it. See the last unit of this course documentation for details.
SAP AG 1999 Display Display in in Cash Position
Company code AC00 Business area: ** : Display in: LC Rate FC/LC : Rate LC/FC : : Planned Planned currency
currency FC/LCFC/LC LC/FCLC/FC ResultResult
In the list of examples below, "LC" means "local currency. That is, when posted, an amount in foreign currency (FC) is automatically translated into LC.
LC - - Amounts posted in local currency LC LC - - Amounts posted in LC, no FC FC FC - - Amounts posted in FC, no
translation
FC HC - - Forex accounts: Amounts posted in FC
translated at rate on day of posting (TCURR) FC LC 1.84 - Posted FC amounts, translated at 1.84
FC1 FC2 1.84 1.20 Posted FC1 amounts translated into FC2 via local currency: 1.84 / 1.20 = 1.52
Currency Display
Amounts entered are shown in the currency you specified in the Display field. You can use the currency fields to display the foreign exchange risk.
On the one hand, you can show the cash position split by currency, depending on the specifications entered in the initial screen. However, you can also display the extent of your currency exposure from the cash position.
The average rate is usually used for the translation from planning currency to display currency. If you want to use a different rate for the translation, make the appropriate specification in the rate type field.
SAP AG 1999
Cash Position: overview of cash activity in
bank accounts and bank clearing accounts
Top-down analysis to the document level
Currency analysis
Detailed account balance analysis by breaking
down levels
Tagesfinanzstatus
Exercises
Unit: Cash Position
Topic: Setup and Display Options
At the conclusion of these exercises, you will be able to:
Check G/L accounts and correct them as necessary.
Enter G/L account postings so that you can see them in the cash
position.
To obtain an overview of the structure and display capabilities of the cash
position, you will now enter a number of G/L account postings. These
simulate postings in the bank accounts which are generated when the
bank statement is imported. Any earlier postings are ignored.
1-1
Check and correct the following account masters to ensure that the field contents
required for cash management are complete and correct (sort key, open item
management, planning level: 113100, 113101, 113108, 113109, and 113200).
1-2
Today's bank statement results in the following G/L account postings:
Outgoing check, vendor:
30,000 Value date: Today
Transfer from customer:
50,000 Value date: Today
Post against the clearing accounts 113101 and 113109 (posting records:
113101/113100 or 113100/113109).
1-3
Check the cash position (grouping "Bank, actual") to see how the postings look there.
This display contains only the bank accounts, without bank clearing accounts.
Cash Position Solutions
Unit: Cash Position
Topic: Setup and Display Options
1-1
Solution: Check and correct account masters 113100, 113101, 113108, 113109,
113200 in respect of the field contents required for Cash Management.
Accounting
Financial Accounting
General Ledger
Change Master Records
Enter Account Number and Company Code
The type/description header shows the description of the accounts and the designation
of this account as a balance sheet account.
The control data shows, among other things, the account currency and the data needed
to manage the account in the company code. Unlike bank clearing accounts, bank
accounts are not managed on an open item basis. Similarly, whereas the local currency
is used as the sort key for clearing accounts, the value date is used in the bank
accounts.
The entry, bank, and interest information contains the planning level and the
assignment of the house bank ID and account ID.
1-2
Solution: Posting against the Clearing Accounts 113101 and 113109 (113101/113100
or 113100/113109).
Accounting
Financial Accounting
General Ledger
Postings
G/L Account Posting (company code ACxx)
Enter your data.
Pay attention also to the value dates specified for the debit and credit postings.
Example: 113101 - Debit - 30000 - Value date: Today
Accounting
Treasury
Cash Management
Information System
Reports on Cash Management - Liquidity Analyses
Cash Position
Now enter your data (company code ACxx, grouping, "Bank, actual", display as of
"Today", display in UNI).
Press the "All selections" button. You can make further selections here. Enter the
required increment (for example, in days) and choose "Delta display with balances" as
the display type, so that you can identify your postings more easily.
Run the program, ignoring the warning that the date is in the past.
You now see your postings under the appropriate bank account. Navigate through the
cash position.
SAP AG 1999
Bank account configuration
Bank accounting and house banks
Planning level structure
Cash management account name
Groupings structure
Contents
SAP AG 1999
At the conclusion of this unit, you will be able to:
Integrate a new house bank into your
Cash Management setup
Set up and configure the G/L accounts
(bank and bank clearing accounts) you
need for short term cash management
Set up the grouping structures used in the
cash position and assign the new G/L
accounts to them
Cash Position Customizing:
Unit Objectives
SAP AG 1999
Overview Diagram (1)
Cash Position
Cash Position Customizing
Overview of Cash Management
Manual Memo Records
Customizing Manual Memo Records
Check Deposit
Check Deposit: Customizing
Bank Statement: Manual Entry
Manual Bank Statement: Customizing
SAP AG 1999
Electronic Bank Statement: Customizing
Bank Statement: Electronic Entry
Cash Concentration
Cash Concentration: Customizing
Liquidity Forecast
Liquidity Forecast: Customizing
Data Transfer/Reorganization
Extended Bank Processing: Checking Programs
Overview Diagram (2)
SAP AG 1999
You now want to reproduce a house bank - that is,
a bank where you hold customer/vendor accounts
and from which you want to call up bank statement
information - in your SAP Cash Management
installation. You may already have created the bank
when you implemented SAP FI Financial
Accounting.
You must also create the relevant G/L accounts in
the system and configure them according to
defined criteria.
To reproduce these accounts in the cash position,
give them a suitable description and assign them
to a grouping term which is responsible for setting
up the cash position.
Cash Position Customizing: Business Scenario
You are a member of a project team whose task is to supply the decision makers in your company with information on movements in company liquidity.
SAP AG 1999
G/L account
G/L account 113100113100
Short text .
Short text .. .. . CITICITI :
:
Acct group .
Acct group .. . . . CASHCASH
Customizing
Customizing
ChAc ActGChAc ActG from to Descriptionfrom to Description INT CASH .
INT CASH .. .. . . . . . . . Liquid funds accountsLiquid funds accounts :
:
Reqd
Reqd Opt.Opt. : : Cash Cashmgtmgt XX : : CASH CASH : : 113100 113100 . . .. . . 113200 113200 . . .. . .
Financial specifications
Financial specifications
Edit
Edit
Menu
Menu
Edit
Edit
Use
Use
Field status
Field status
G/L Accounts: Account Groups
Every G/L account is assigned to an account group. This determines the setup for the second master record screen. You format it using the field status. Each account group within a chart of accounts can have a different field status.
SAP AG 1999
Documents: Field Status and Value Date
FStV Field Status Group
0001 G005 Bank
:
Payment trans Req. Opt.
Value date XX
:
CC . . Default Value Date
AC00 XX
:
:
Company code value date
Edit field
Edit field
status
status
The field status group is responsible for the document format if you are posting to a particular account. For this reason, you must define the appropriate field status group for the bank account.
To manage bank postings by value date, you must enter the value date in all postings to the bank account. To this end, you can configure the relevant field status group in such a way that the "Value date" field is a required entry.
You can have the system automatically propose the current date as the value date. This makes things easier in training courses and system demonstrations, but not in commercial use because errors occur frequently.
SAP AG 1999
Bank Account: Configuration
Acct no. : 113700 CC : AC00 Template: 113100 : : Open item mgmt ( ) Line item display : X Sort key : 027
:
Planning level : F0 House bank : WABA Bank acct : Current :
The configuration of bank accounts determines how account transactions are allocated in the cash position:
- Open item managagement in subaccounts
- Line item display in bank accounts and subaccounts - Sort key 005 (local currency amount) or 027 (value date),
- The planning level is copied to the documentation, is an assignment characteristic, and qualifies the account movement.
In Cash Management, correspondence with banks is triggered by means of the house bank and account ID (cash concentration).
SAP AG 1999
Company code
Company code
AC00
AC00
House BanksHouse bank Ctry Bank keys HOBA 1 US 500 200 10 HOBA 2 US 600 300 10
. . . .
Bank data
House bank data Bank 1
Bank country DE Bank key 600 300 10 Address ______________ Institution ___ Region ___ Street ___ Town ___ Control data ______________ Swift code ___ Bank group ___
Post off. bank branch ___ Bank number 600 300 10
House Banks - Correspondence Banks
House banks for each company code are stored under a freely definable ID (maximum five characters).
SAP AG 1999
Company Code AC00
Company Code AC00 Bank Accounts
House bank Acct-ID Text... Citi 1 Check Check acct Citi 1 USD USD acct Citi 2 GIRO Current acct ... ... ...
G/L account
Current account Citi 2 Company code AC00
House bank CITI 2 Bank acct key CURR
Bank Account Data
Bank account 12345678 Currency UNI Control key G/L account 113200 ... Bank Directory House bank data Bank country Bank key Address ... Control ...
Bank Accounts
Bank AccountsHouse bank Acct-ID Text... Citi 1 Check Check acct Citi 1 USD USD acct Citi 2 GIRO Current acct ... ... ...
The company code bank accounts are stored under an account ID for the house banks that you define. You enter the external account number and its currency with the bank, along with the relevant G/L account number, thereby ensuring that postings go to the right accounts.
A G/L master record is created for each bank account.
In the G/L account master record, you can enter the house bank key and the account ID, so as to have access from the general ledger to the address data store for the house bank. This is necessary for bank correspondence, for example during cash concentration: the system uses the bank ID and account ID to obtain the address information from the bank directory.
If you maintain foreign exchange accounts, the currency key in the G/L master record must be the same as the currency in the foreign currency account.
SAP AG 1999
Level . . . Source Short text Long text _______________________________________________________
CA BNK Advice Advice (confirmed)
UA BNK Advice Advice(unconfrmd)
B1 BNK OCheck Outgoing check
DI PSK Planning General planning
F0 BNK Fi-Banks Bank acct posting
:
Source Description Cash position _________________________________________________
BNK Bank accounting X PSK Subledger accounting
:
Planning Levels
You define a planning level in the G/L account master record, so that postings to this account can be seen in the cash position.
Planning levels provide information on the type of account transaction and the reason for the transaction. They are freely definable.
The Source indicator checks verifies that the data for the specified level is permitted in the cash position. The BNK source symbol is so define that all planning levels assigned to it are displayed in the cash position and not the liquidity forecast.
You can define new planning levels by selecting and copying the standard entries or by entering a completely new level.
SAP AG 1999
Bk no. CM act name Bank account External acct no. . . . _________________________________________________________
AC01 CICURR 113100 110113100 . . . :
Cash Position/Account
Acct CC 08/01/YY 08/02/YY . . .
_________________________________________________________
AC01 CICURR 11 11 . . .
:
Cash Management Account Name
In Cash Management, the cash management account name is a mnemonic name that replaces the account number.
The system uses the cash management account name in all transactions and reports (for example, the cash position) instead of the account number.
The account name is unique in each company code. Within Cash Management, it enables you to differentiate the same account numbers in different company codes.
It is a good idea to use cash management account names when you are planning across several company codes. You must use them when working with manual memo recordes or with cash concentration.
SAP AG 1999
Grouping: Setup
Grouping Type Selection CoCode Chart SummztnTerm _______________________________________________________________
Bank-Act L ++ **
Bank-Act G 0000113+00 CITIBANK :
Grouping Header Additional header
_______________________________________________________________ Bank-Act Bank acct history Bank accounts
:
Groupings are used to combine accounts and assign summarization terms to them. Their balances can be displayed per account or as an aggregate. You can restrict the display to particular company codes and charts of accounts.
Grouping terms are freely definable. This means you can tailor the cash position display to your own individual requirements. The levels selected appear in the display.
The type shows whether levels (L) or groups (G) are displayed. In each grouping, you must configure at least one line of type L and one of type G.
The selection determines which levels (2 digits) or groups (10 digits) are combined. You can configure maskings or partial maskings for individual values. Groups must be ten characters long and, if necessary, entered with leading zeros.
The summarization term determines whether the individual value or the cumulative value is displayed.
SAP AG 1999 L = levels (2 characters) L = levels (2 characters) G = Group (10 characters) G = Group (10 characters)
Grouping Type
Grouping Type
Selection
Selection
Summarization term
Summarization term
Banks L Banks G Banks G Level L All levels Summarization term
´**´ =No specific identification, but summarized
Usual CITIBANK ++++++++++
00001131++
Groups: first identified, then grouped without identification Specific identification summarized Immediate, itemized listing, not summarized
Grouping: Functions
You use grouping terms to combine accounts and display them cumulatively, or as individual values.
SAP AG 1999
