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Contents
Contents
Trends in Global Cash Management
The Cash Management Process
The Traditional Cash Management Process
Inbound Data
Cash Reporting
Intraday Bank Files
Cash Concentration and Funding of Disbursement Accounts
Investment and Debt Decisions
Currency Management
Derivative Transactions
Electronic Funds Transfers
End-of-Day Data
Month-End Data
The Cash Management Process with mySAP Financials
Inbound Data
Cash Reporting
Intraday Bank Files
Transaction Processing
Period-End Processing
Benefits of Cash Management in mySAP Financials
Key Features of Cash Management in mySAP Financials
Inbound Data
Bank Statements
Lockbox Statements
Data from Operational Systems
Planning Items
Analysis and Decision
Cash Position Tool
Liquidity Forecast Tool
Designing Your Reports
Comparison and Control Functions
Borrowing, Investing, and Hedging
Outbound Data
Payment Run Procedure
Vendor Payments
Cash Concentration and Bank Account Transfers
Repetitive Bank-Account Transfers
Free-Form Wire Payment
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You must look at all steps along the working-capital time line. To do this effectively, you must have a treasury system that is integrated with the enterprise
information system and gives you a complete picture of cash. You can make
superior financing decisions when you have at your disposal all the up-to-date
information about orders placed and entered, the status of shipments and
invoices, procurement expenses, and current credit and market information.
Internet-based technologies support these trends. The Internet is shaping the
practice of cash management more powerfully than any new development since
the advent of funds transfer by wire in the late 1970s. The Internet is a medium for quick and flexible communication with banks, other external treasury
partners, and especially if your company is multinational with subsidiaries
and affiliates. Using the Internet not only speeds your responses to unforeseen
developments, but also lets you use e-business solutions that give you a comprehensive view of the entire corporation. E-business solutions can now integrate cash flows of geographically distributed treasury systems with operational
systems such as sales and procurement systems. With integrated, up-to-date
information, you can perform cash management centrally, while still providing
local access and transaction handling.
Your business is constantly changing. Youre making decisions faster and sooner. Your treasury system can and should be in a position to help you drive the
business forward. The solution must have a business model that is flexible
enough to match your companys geographic scope and organizational structure, and it must meet your needs for automation and sophistication.
The solution that meets all these needs is Cash Management in mySAP
Financials.
other financial and operational data. This data includes an electronic statement from the banks of the previous days transactions for posting to the
general ledger.
The second step is to determine the cash position as well as the cash forecast
to ensure that liquidity and funding requirements are met. To do this, you
need the current days files from the bank, an estimate of the days receivables, plus the anticipated cash flows not already reflected in the system,
such as tax payments. This step is the starting point for investing, borrowing, foreign-exchange, and hedging transactions.
The third step is to transmit payment files to transfer the funds from accounts
payable that are required to invest, pay down debt, or fulfill vendor obligations. The results of these transfers must then be reflected in the cash management reports. You can perform outbound transmissions electronically or
in a manual, typically paper-based fashion.
Being able to incorporate bank data, transactional data, and all their resulting
flows with the companys business systems on a global basis is essential to the
success of your cash management system.
Cash Reporting
The cash worksheet is often a spreadsheet generated in Microsoft Excel or Lotus.
It allows you to manipulate the data and add additional flows, such as a projected tax payment, to the forecasted data. Once entered, the data becomes part
of the worksheet until you manually remove it. As more information becomes
available or the data changes, you must manually edit the report. You must constantly update the worksheet as transactions are initiated, funds transferred, and
deposits concentrated.
Currency Management
You must also manage individual currencies, following the same data-gathering and analysis procedures you used before, to set and manage the overall cash
position for each currency. Again, you must record and maintain in the worksheet the future cash flows and any resulting gains or losses.
Derivative Transactions
Managing currency and interest-rate risk exposure may result in executing
options, swaps, and other steps to offset and limit your risk and exposure. The
various potential financial results of derivative instruments must be reflected in
the cash position and forecast when applicable.
End-of-Day Data
You need to poll todays bank data at least once more to verify the transactions
that you initiated throughout the day and to view additional data such as lockbox deposits and incoming wires. You must then update the cash worksheet
with this new data and prepare to post the days transactions to the general
ledger.
Month-End Data
All the cash management transactions must be managed to allow for the appropriate accounting treatment for each period, including cash accounting, foreign-currency gains and losses, and interest accruals and deferrals. You must
also reconcile bank statements and accounts payable and accounts receivable
subledgers, and post the required general ledger transactions.
10
Cash Reporting
Real-time reporting within mySAP Financials allows you to view a reconciled
report on the current cash position at any time. From the report, you can easily research additional data on any suspect balance by drilling down on the
balance in question. This allows you to determine the account affected and the
reason for the transaction in question. The cash-position report automatically
and immediately reflects new transactions. The drill-down functions let you
analyze multiple currencies or balances across companies.
Transaction Processing
Throughout the day, as you make decisions to concentrate balances, fund currencies, and execute investment or hedging transactions, the system automatically creates the corresponding cash flows, constantly updating the cash reports.
It also creates payment files and transfers them to the banks electronically.
In addition, you can post cash transactions to the general ledger as cash-intransit, providing a foundation for reconciliation with the next mornings bank
statement.
Period-End Processing
Because the system posts all the transactions as soon as they occur, you need
not create any adjusting entries. The system automatically posts accruals and
deferrals and performs all calculations required to determine gains, losses, revenue, and expenses. Results are automatically posted, making the period-end
closing swift and simple.
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12
Cash
management
decision
Market information
Cash Position
Bank accounts
in currency:
Account 1
:
Account n
Total
Payment
transactions
in transit:
incoming
outgoing
Trading
Liquidity Forecast
Financial
Investments
and
borrowings
Subledgers
A/R
A/P
Purchase orders
Orders
13
Inbound Data
The three main sources of cash-relevant data are bank statements, operational
systems, and planning items.
Bank Statements
mySAP Financials supports more than 27 standard formats for bank communication that are used worldwide. This capability provides the foundation for your
global cash management system. Authorized individuals can access the bank
transaction status or current balances 24 hours a day worldwide.
14
Electronic
bank statement
Swift MT940
EU
MultiCash
EU
Lockbox
USA
BACS
UK
ETEBAC
F
CODA
BE
FIDES
CH
CSB43
E
ZENGINKYO
JP
IDOC
SAP
Interface
.
.
Bank
postings
Bank
Data
Buffer
Area-specific
processing
03/15
100
25
Subledger
accounts
(A/P, A/R)
Manual bank
statement
Electronic bank statements attach transaction codes to each item. These codes
tell mySAP Financials what kind of transaction the particular bank-statement
item represents. To specify how each business transaction from the electronic
account statement has to be posted, you can define posting specifications for
each transaction code within the system. A posting specification can determine
a general ledger account posting and a subledger account posting known as
area-one and area-two posting, respectively. You can set the posting specifications to select one or both of these postings.
To process bank-statement items correctly, the system needs to identify the corresponding internal open items. To achieve this, the system uses standard algorithms to interpret and search for recognized values in the transaction field of
the electronic bank statement. For example, the system contains algorithms for
check-number search and document-number search, based on the details of
transaction data. If an algorithm is defined to interpret the activity of the electronic bank statement, the system examines data within the transaction line to
determine whether it represents, for example, a known document number, reference document number, or check number. If the number is valid and correct,
the system finds and clears the corresponding item or items within the system.
The interpretation algorithm automatically finds incoming and outgoing payments based on information supplied by customers and the bank within the
bank statement. If the standard algorithms supplied by SAP do not meet all your
requirements for clearing, you can define your own functional algorithms.
15
Two options are available for post-processing electronic bank statements. One
option is to post immediately; the other is to generate batch input. If you choose
to post immediately, you can use the post-processing transaction to modify and
post line items that the system was unable to post automatically for example,
if no matching open item could be found in the system.
For batch input processing, the batch sessions are processed in the background,
and the results are recorded in a processing log. Uncompleted transactions
remain in the sessions as defective records. You then post-process these unsettled transactions online. You can delete or edit defective data to assist in the
clearing process. Post-processing is complete when no defective transactions
remain to be processed.
The two-step integrated process described above allows all areas of your organization to use the same data and reduce transaction-reporting costs charged by
the bank. For example, accounts receivable can review payments received from
customers, accounts payable can review checks that were cashed by vendors,
and cash managers can review all wires and transfers. Everyone can focus daily
on items with problems or discrepancies. Daily automated processing also
results in stronger operational control, because you can identify unexpected
transactions and resolve errors immediately, rather than waiting until the end
of the month when a paper-based bank statement arrives.
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You can set the cash-position report to present intraday data with the transactions that the bank file indicates will clear today, rather than the clearingaccount information used in the days earlier report. For example, you could use
first and second presentment of check totals rather than the total, or percentage of the total, of outstanding checks as the basis for funding a controlled
disbursement account.
Lockbox Statements
A lockbox procedure accelerates payment receipt and check processing and is
normally offered as a service by banks. A lockbox account is a payment-collection account that you set up with your banks. You can tell your customers to
send payments directly to your lockbox account at a particular bank to accelerate the receipt of funds. The bank collects the payments as well as the remittance information or payment advices. It also collects and enters data from
check payments sent by customers and notifies you of the information via file
transfer. Once a day or several times a day, the bank can send you relevant
information about the checks received.
mySAP Financials stores the payment and remittance information in the form
of a payment advice, which is used to clear subledger open items. The lockbox
processing continues by generating automatic postings to both the bank-clearing (general ledger) and accounts receivable (subledger) accounts based on the
advice data. After the lockbox automatic processing program has run, you must
use the post-processing function to correct any checks that cannot be applied
automatically. Your post-processing activities might include applying payments
received, clearing open customer items, or resolving unapplied funds.
The last reconciliation step is to clear the bank-clearing accounts with the endof-day bank account statements. Cash Management in mySAP Financials automatically processes the end-of-day account statements and creates postings of
the lockbox deposits on the bank accounts (general ledger). Offset postings are
then created on the bank-clearing accounts (general ledger).
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As the transaction progresses from a requisition to a purchase order, the purchasing system assigns a specific vendor and delivery date. mySAP Financials
then updates the reports with vendor-specific information, such as the vendors
default invoice terms and a more accurate disbursement date.
Once the transaction is invoiced, the cash management functions make the specific terms and amount payable available for your reports. Finally, when the
invoice is paid using a payment run in accounts payable, the cash management
functions use the date of the check along with historical data on the specific
vendors average check-cashing time to present the expected disbursement on
the cash-position report. Once the check is charged to a specific bank account,
you import from the bank the same-day balance, which updates the cash position with a memo record. On the next day, when you upload the prior-day bank
statement, the bank posting replaces the memo record.
Purchasing
Accounts
payable
Purchase
order
Goods
receipt
Cash
Management
Liquidity
forecast
Invoice
Outgoing
payment
Account
statement
Cash
position
payment according
to arranged/forecast
date
value date based
on bank statement
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The process flow for incoming payments is similar. Here the SAP system projects a receipt, taking discounts into consideration, as well as the delivery date
for the sales order, the customer-payment terms, and the customers historical
payment behavior.
Planning Items
Planning items generally reflect expected cash inflows and outflows that are not
caused by actual postings. Planning items can be generated by intraday bank
statements as well as by data imported from operational systems. You can manually enter any cash-relevant transactions that are not covered by these sources.
You can import planning data from subsidiaries using an upload program to
import a spreadsheet, or you can enter them manually. You can give each planning item a maturity date, which the system uses for automatic archiving once
the date has passed. Planning-item journals give you an overview of planning
items. You can limit the overview to specific items using selection criteria such
as planning type, value date, and currency.
The cash management functions can reconcile planned items with actual bank
postings. The system selects items that have a specific planning date and compares them with the actual bank postings on a specific account or in a specific
bank statement. Criteria for matching the items to the postings include the company code, bank account, currency, amount, and value date. The system can
generate a list of potential matches for you to manually select and archive the
matching planned items. Alternatively, the system can perform the archiving
automatically, generating an archiving protocol. For automated processing, you
can define tolerance intervals for the amount. Non-matching items are summarized in an exception list for manual post-processing.
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The Liquidity Forecast has a midterm focus. It is fed with more uncertain and
less exact information from sales and procurement, accounts payable, and
accounts receivable, as well as with midterm financial transactions and unconfirmed planning items.
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For example, the cash-position report may identify that a total is less than
expected. You can start with that total and use the drill-down capabilities to
identify the source of the discrepancy to be, for example, a controlled disbursement account. By drilling down further on the balance, you might determine
that an unexpected check-payment program run caused the discrepancy. By
drilling down on the position entry, you can view the payment document in the
general ledger (bank accounts) and easily identify the payment recipients and
the amount of the check run.
Grouping
Level:
BANKA
F0Subledger
B2Incoming checks
B1Outgoing checks
Banks
09/01
09/02
09/03
BANKA
BANKB
:
90
40-
130
20-
60
30-
80
60
10-
20
60
20-
Accounts:
Subledger
Account 1
Account 2
Account 3
30
70
20-
102050
amount
20,000
22
Bank collection
(E1)
(E2)
Groups:
Payer of net
amount (E3)
France (E4)
(E5)
F1 =
Posting/Sales
FW =
Bill of exchange
Levels:
Balances specified according to level
XA =
Blocking reason A
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The liquidity forecast report has the same drill-down capabilities as the cashposition report. You can drill down from a specific balance by level or group,
across companies or currencies. The deepest level of detail is single documents
in such areas as accounts payable, accounts receivable, and materials management.
With the help of Cash Position and Liquidity Forecast, you can automatically
and immediately capture and take into consideration all the transactions taking
place along your companys value chain.
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Reporting structures
Currency
Planning date
MM
Planning level x Company code
Planning group
Business area
x Planning date x Currency
Bank account
SD
A/P, A/R
G/L
TR
Com
pany
code
Com
pany
code
Planning date
Com
pany
code
Currency
Planning date
Com
pany
code
Drill Down
Planning date
Currency
Currency
Planning date
Drill Down
Currency
Com
pany
code
25
In addition to navigating through report data by swapping around characteristics, you can use the drill-down reporting tool to perform numerous classification and sorting functions. For each column, you can select a certain number
of maximum or minimum values, expressed as percentage values or absolute
values; the remaining items are then displayed as a total. You can also display
subtotals and totals, sort data in ascending or descending order, and specify
conditions that have to be fulfilled for an item of data to be listed individually,
which ensures that certain items are displayed only in summarized form.
By defining exceptions, you can highlight in various colors the characteristic
values that are unusually high or low. You can define exceptions for both
absolute values (such as the nominal value) and relative values (such as percentage variances).
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Transaction Manager
Money
Market
Securities
Debt
Foreign
Exchange
Derivatives
Analyzer
Cash Management
Cash
Position
Liquidity
Forecast
Credit Risk
Analyzer
Market Risk
Analyzer
Portfolio
Analyzer
27
For example, based on the cash position and liquidity forecast reports, you may
discover a liquidity deficit that needs to be funded for 30 days. Within the
Transaction Manager, you have predefined the instruments that your company
uses for debt management. You select a suitable instrument and business partner for the transaction and enter the amount, interest rate, and the 30-day duration. When you store the transaction, its cash flows are immediately reflected
in the cash-position and liquidity forecast reports. The amounts shown are
todays borrowing amount, the principle repayment, interest paid, and any other
associated costs that you incur in 30 days.
Outbound Data
Payment Run Procedure
Payment runs identify all payments due and prepare them for execution. You
can schedule payment runs to execute automatically or on an as-needed basis.
Payment runs result in document postings to the bank subledger accounts. In
addition, payment runs generate the request to your bank partner to disburse a
payment. You can define parameters for the payment program to specify the
scope of the payment run. Company codes, account types, paying bank, the
desired posting date, the possible payment methods, the date of the next payment run, and the form of data carrier are some of the specifications you can
use to define a payment run.
Before starting the actual run, you can execute a proposal run. The proposal run
gives you the opportunity to review and edit the targeted payments prior to
their execution and posting. When creating the payment proposal, the system
first checks the results, then writes the proposal log and records any exceptions.
It then generates the proposal list, which you can display or print for review and
editing. Once you have made any modifications and accepted the proposal, the
payment run is scheduled for execution.
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Master
record
Payment
control
Current
parameters
Payment
requests
Documents
Proposal run
Proposal data set
Edit proposal
Payment run
Print data set
Print program
Check
Bank
transfer
Payment
advice
Payment
summary
IDOC
For all necessary postings, data carriers are created to initiate the payments.
These data carriers can take on various forms and are transferred to the corresponding bank or other business partners in different ways. Electronic payment
message transfers are the most common way. They result in a much quicker and
more efficient payment process with the banking partner. Valid payment methods and message formats include check payments, automated clearing house
(ACH) payments, and Society for Worldwide Interbank Financial Telecommunications (SWIFT) messages.
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Vendor Payments
Most companies accounts payable departments set up payment run schedules
as part of the business process. Whether your vendors, customers, or employees
are paid once a day, once a week, or twice a month, the SAP systems payment
program offers a comprehensive payment feature that allows a single payment
run to use various payment methods such as checks, bank transfers, ACH payments, and payments by Fed Wire. You specify the payment method for each
vendor in the vendors master record. For example, if you select check as the
payment method of choice in a particular vendors master record, the vendor
will always be paid by check. To make an exception, you can specify the payment method when posting the invoice to the vendors accounts payable. For
example, to pay a particular vendor by wire for one time only, you can set the
posted invoice documents payment method to transfer, and the vendor will be
paid by wire for this particular invoice.
When accounts payable runs the payment program to pay the vendors, a payment proposal is generated first. You can review the proposal, then complete or
correct it and regenerate it afterward. Once the proposal is correct, it simply
executes. Postings are then made in the banks general ledger clearing account
for outgoing payments and to the accounts payable subledger to clear the open
items and reflect the cash disbursements. When the checks or electronic funds
transfers are cleared with the banks, the end-of-day bank account statement
processing will clear the corresponding bank-clearing account with a posting to
the bank account (general ledger).
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resulting from the cash concentration activity. The system then generates the
payment request and executes the payment run to post the transactions to the
bank general ledger accounts. The system sends the outcome of the payment
run (transfers of funds from the cash concentration account) to the banks in the
form of electronic payment orders.
A bank might handle the concentration service by a sweep account that automatically moves funds from one account to another as a zero-balance accounting service. In the case of a sweep account, only those funds required to cover
the sweep need to be monitored. The system performs the same calculations as
the bank for moving the funds and updates the cash-position report appropriately. No payment order is generated or sent to banks in this case.
Status
before concentration
Bank1
1200
after concentration
5
Bank2
100
Bank3
400
1337
Bank4
-350
1350
1350
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To handle repetitive transfers, you and your banking partner define a repetitivetransfer transaction number that is associated with the fund movement between
two specific bank accounts. The banks system maintains the number and the
characteristics of the repetitive funds transfer. You also enter the information in
the SAP system so that it can be included in electronic payment messages.
Because the accounts involved and the direction of the flow of funds are fixed,
a lower level of authorization is needed to initiate a repetitive transaction than
to initiate a freely defined transaction. This way, you can give users with lower
authorization the opportunity to generate fund transfers in appropriate circumstances.
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MultiCash Formats
Files in MultiCash formats are created from bank statement data received from
the banks (usually in SWIFT MT940) using bank-communication software.
MultiCash is a standard mainly used in German-speaking countries. It can be
easily run using a spreadsheet program or a word processing program. It creates two files in formats AUSZUG.TXT and UMSATZ.TXT. The AUSZUG.TXT
file contains the header information for the account statements, and the
UMSATZ.TXT file contains the item information. This method allows you to
import data from several bank statements at the same time, including those
from different banks.
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SWIFT MT940
Many banks provide bank statements in the international SWIFT MT940 format
(with or without structured field 86).
SAP offers the SAP Software Partner Program, in which banks and bank-communication software providers are certified to deliver files to SAP systems in
SWIFT MT940 format.
Examples of other country-specific bank formats supported by SAP include
DTAUS (Germany), ETEBAC (France), CSB43 (Spain), Cobranca (Brazil), and
TITO (Finland).
Electronic Payment
SAP supports and generates various message formats for transmitting payment
files. Printed checks and payment by ACH or SWIFT messages are a few examples. A payment run may automatically trigger the electronic delivery of payment messages to your bank partner, resulting in a much quicker and more efficient payment process with the banking partner. SAPs intermediate document
(Idoc) interface is one way to establish such electronic payment processes.
For each payment method, you can select one payment medium generation program. These data media exchange (DME) programs process the data for payment
delivery resulting in, for example, printed payment forms (checks), payment
files (in ACH, SWIFT, or Fed Wire formats), or Idocs for EDI delivery. In the payment parameters, you can specify the payment medium generation program for
each payment method.
After the payment run is completed, you can follow the results in the payment
log. You can review the output of the payment run in the appropriate output
spool (for payment advice) and DME administration (for file-based output such
as ACH and SWIFT messages). You can also review Idoc-based output, such as
the status of the electronic delivery of payment messages, in the outbound Idoc
processing areas.
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Internet Banking
The Internet is a cost-efficient medium for communicating financial data in real
time. The most common way to transmit data files over the Internet is to convert them into a human-legible XML document and pass the XML message over
the Internet.
Currently, no global standards are available for direct bank communication over
the Internet. One financial XML standard, Interactive Financial Exchange (IFX),
is a promising Internet message standard that is available now to support corporate banking requirements. IFX will be extended to support corporate Internet
banking.
SAP is developing the framework to support Internet banking using IFX. SAP
will support the IFX standard for incoming bank account statement messages
and outgoing payment messages for multiple payment methods such as ACH
messages, wires, and checks.
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Complementary Software
SAP certifies complementary software partners that can provide bank-communication utility software to customers who would like to receive, send, and
translate banking data.
The SAP Software Partner Program includes a technical certification verifying
the successful communication between the SAP system and the complementary
software package. Please visit the SAP Service Marketplace (www.sap.com/services) to find out which vendor products are certified. (On the SAP Service
Marketplace, choose Partners, then Software Partners, then Software Partner
Directory, then search by software category for Financial EDI.)
36
SAP is currently participating in a banking initiative to define a standard format that all SAP systems can accept from any bank. When the development of
this Internet standard format is complete, you will have a choice of four ways
to transfer banking data with the SAP system. The four ways are shown and
numbered in the accompanying figure as follows:
1. Proprietary bank-communication software
2. Bank-connector workstation for format translation and file transfer
3. Direct point-to-point connection to a bank-data consolidator
4. Direct point-to-point connection using an Internet standard format
Bank
Software
Bank 1
Bank 1
Bank
Connector
Bank 2
Workstation
Bank
Connector
R/3
Business
Connector
Bank 2
Internet
37
Bank-Connector Workstation
Another choice is to communicate with your banks using a bank-connector
workstation to translate data in IDoc format (SAPs EDI standard) to the formats
required by your external banks, and vice versa. Your company implements and
maintains the bank-connector workstation, which interfaces with your SAP system. This single-platform solution, also known as an EDI subsystem, ensures
that your electronic banking processes are integrated and your data communication is secure.
The bank-connector workstation system receives bank data, maps it to IDoc format, and feeds the data automatically into the SAP system. For outbound communication, the workstation imports payment files from the SAP system in IDoc
format, maps them into the target bank format, and electronically remits these
payment files to the banks.
For each bank, you set up a dial-up connection between your SAP system and
the bank-connector system. You can use the bank-connector workstation for
file-based data exchange.
Bank-Data Consolidator
Research is under way into using third-party banking providers to consolidate
banking data from any participating bank in the banks existing formats. The
banking data will be converted to the new format being developed for cash
management banks. You will be able to accept data directly from some banks
and through a consolidator for others, without needing a separate translation
process. Consolidation will be independent of data communication and security and can be arranged between you and your banks to meet your requirements.
38
In this scenario, the bank-data consolidator will collect the bank statements and
convert the data to an SAP standard format so that your SAP system can
process it. The SAP format could be IDoc, BAI, or the future Internet standard.
You will subscribe to the services of the bank consolidator service provider. The
bank-data consolidator will collect all bank statements from multiple banks in
multiple formats, map them to the SAP standard format, and store them in a
database. You will retrieve all account statements from a single source. A direct
interface between the bank systems and your SAP system will not be necessary.
You will only need a single dial-up from your system to the bank-data consolidator to access all bank account information.
A major benefit is that smaller local banks will be able to send their account
statements to the bank-data consolidator without having to implement the SAP
standard. Also, you will be able to send payment files to your banks even if you
and the banks are not prepared to interface directly.
39
40
-3 B
5B
2B
JPY
10 B
20 B
-15 B
25 B
-23 B
17 B
EUR
-10 M
10 M
25 M
-10 M
20 M
35 M
AUD
-15 M
12 M
10 M
7M
Cash Position
Corp.
Headquarter,
US
CM
ALE
Cash Position
01-03
25 M
23 M
32 M
USD
-15 M -12 M
-10 M
JPY
-15 B
-25 B
-15 B
Europe
CM
ALE
ALE
Mexico
01-01 01-02
EUR
AL
CM
01-01 01-02
CM
Japan
CM
Australia
01-03
MXN
-3 B
6B
1B
USD
40 M
40 M
30 M
EUR
-10 B
-12 B
-12 B
JPY
10 B
-15 B
-25 B
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Liquidity Planner
The Liquidity Planner streamlines your work in entering, aggregating, and analyzing expected cash flows for medium- and long-term planning throughout
your enterprise. You can administer templates from a single location to facilitate capturing both centralized and decentralized data as well as the corresponding historical data.
Both the planning information and historical values from the operational system are immediately available to decision makers at various levels within your
organization. A summary view helps you analyze cash flows across all your
planning units. You can also access extracts of the summary view by organizational group, region, currency, or country, for example.
You can display aggregated data displayed in the currency of origin or in another currency, such as a local currency or the group currency. You can use the data
to optimize planning activities, such as interest rate and currency management,
and respond to changes on a timely basis.
For variation analysis, you can choose the same structure for evaluating both
historical and planning data. System support at all levels gives you greater flexibility in the liquidity planning process and better communication within the
enterprise.
Liquidity Planner allows you to significantly extend your planning horizon. In
addition to cash management for short-term liquidity analysis, the Liquidity
Planner provides a centralized system to identify medium- and long-term
liquidity and foreign-exchange risks.
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In-House Cash
By managing your internal and external group payments, the In-House Cash
function of mySAP Financials Corporate Finance Management can reduce your
costs of processing intragroup and external transactions. You need fewer external bank accounts and make fewer international payments. You can gain considerable savings from optimizing your use of cash reserves. The features of InHouse Cash give you greater control over payment transactions on both a
regional and global level, support corporate group structures, and accommodate
changes in those structures due to mergers, spin-offs, or reorganizations.
In-House Cash enables you to set up an in-house bank, allowing you to centrally manage subsidiary accounts in any currency. For subsidiaries, In-House
Cash automates intragroup payment transactions (internal payments); payments
made by group companies to external partners (central payments); and incoming payments for subsidiaries from external partners that are initially credited
to the head office's house bank accounts (central incoming payments). In-House
Cash also helps you calculate and debit interest and other charges, grant current account overdrafts, control limits, and generate bank statements for affiliated firms.
If yours is a large, multinational corporation, In-House Cash is an obvious
extension of your cash management capabilities, supplementing your centralized cash management with in-house banking.
Transaction Manager
A core task in many finance departments is concluding financial transactions.
Your finance department may focus primarily on providing an internal service
for subsidiaries, or it may participate actively in financial markets for investment, funding, and hedging purposes.
The Transaction Manager gives you the tools to process these transactions at all
stages, from deal capture through transferring the relevant data to financial
accounting. The Transaction Manager supports the requirements of both traditional treasury departments, which tend to focus more strongly on trading, and
asset management departments. The advantage of this approach is that you can
use a single platform to process all types of transactions from short-term
financing to strategic, long-term investments, as well as currency or interest
rate hedging.
The Transaction Manager is tightly integrated with Cash Management in
mySAP Financials. All treasury transactions are automatically reflected in the
cash position or liquidity forecast.
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Portfolio Analyzer
The funds available for investment are often limited, and you have numerous
investment options to choose from. A crucial question to answer during investment planning is how well your investments have performed.
The Portfolio Analyzer gives you the answers. It measures your exact return on
investments, compares the results with prescribed targets, and breaks down the
overall performance into its component parts by attributing the individual portfolio positions to the total result. The basis for these evaluations is the portfolio structure, which lets you organize your investments into different categories.
You can evaluate portfolios at different levels in the portfolio hierarchy, or evaluate a single asset category across several portfolios.
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exchange rates, interest rates, indexes, and security prices, from data-feed
providers such as Reuters and Bridge.
Global Solution
mySAP Financials is a global solution that supports multiple currencies and is
translated into multiple languages. It can operate in a network of multiple
instances, providing enterprisewide information on liquidity and currency risk
position
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