Cash Position & Liquidity Forecasting

04/06/15

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SAP Cash Management

Problems and Objectives
Business Objectives

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

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

Conclusion

All necessary information must be

accessible in the cash management system.

SAP AG

04/06/15

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Business View Cash Management

Purchasing

Cash Management

Business Benefits

Sales

Improve cash forecasting

Purchase Order

Sales
SalesOrder
Order
Invoice

Invoice
Invoice

Reduce dispute costs

Streamline payment process

Liquidity Analysis

Payment

Manage credit exposure by credit partner

Payment
Payment

Reduce time and cost to review and pay

invoices
Improve account & invoice reconciliation

Account
Statement

Cash Position

Control the timing of payments and

management of outbound cash flow
Take advantage of discount terms

Cash
Concentration

04/06/15

Tight integration between A/P, A/R, G/L, MM,

SD

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Functions
SAP Cash Management reflects all cash-related
transactions entered in SAP, such as purchase order, sales
order, accounts payable, accounts receivable, and bank
accounts.

Cash position proof of position report. Shows bank

accounts and expected incoming and outgoing cash. It
presents a short-term cash position view of up to one
week.

Liquidity forecast cash forecast report. Interface

with other SAP components, such as SD and MM, to show
expected future cash flow. It presents a mid-term liquidity
view for up to 24 weeks.
04/06/15

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Cash Management

04/06/15

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SAP Cash Management - Reporting

Market information

Trading

Liquidity
Management

Cash Position

Bank accounts
Balances

Cash
in transit

Liquidity Forecast

Investments,
Debt and
Hedging

Operations

Managing external cash balances and obligations

Multi-Bank simplification and standardization
Drill down functionality
04/06/15

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Cash Management
Tools

Instrument

Data

Time Frame

- bank accounts
- bank clearing accts
- payment advices

0 to 5 days

1. Cash management
position
- by value date

2. Liquidity forecast

- projecting cash
inflows/outflows
- taxes

accounts receivable
accounts payable
FI, MM, SD
planned items

1 to 24 weeks

SAP AG

04/06/15

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Cash Management
Features
Cash Management Position
Bank balances by value date
Parallel management of foreign currencies
Automatic revaluations
Cash position covering the next few days
Automatic payment using expected value days
Control over cashed checks
Liabilities for down payments

Individual planning
SAP AG

04/06/15

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Liquidity Forecast
Features
Liquidity Forecast
Projecting receipts and disbursements from FI, SD, MM, and
TM
Individual planning and planned items
Automatic maintenance (reversal, document change)
Customer payment behavior included in the forecast
Grouping by planning groups
Additional information (blocked items, special G/L
transactions)
Currency exposure taken into account
Variable breakdown of planned items (days, weeks, months)

SAP AG

04/06/15

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Cash Management
Overview of the Functionality
Cash Position

Liquidity Forecast

Up-to-date bank account

presentation as well as by
value date

Link to all system resident data

(for example, open items)

Forecasting daily liquidity

Projecting receipts and

disbursements over a time frame

Input facilities prevent data

duplication

Facilities for optimizing investing

and borrowing cash

Documentation and revision

capabilities for all planning
transactions

Ensuring company liquidity

SAP AG

04/06/15

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Groups and Levels

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Example Cash Position

Summary

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report level

12

Example Cash Position (cont.)

Drilldown to cash
management accounts

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Example Cash Position (cont.)

Drilldown

to
cash flow sources

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Steps
1.
2.
3.
4.

5.
6.
7.
8.
9.
10.
11.
12.

Define Value Date Default

Define Source Symbols ( Check only)
Define Account Groups ( Check field status group of Cash
accounts for Planning Level ) OT37
Define Planning Groups ( Z1, Z2 Domestic payments,
Foreign payments ; X1,X2 Domestic Customers, Foreign
Customers)
Define Planning Levels
Define Cash Management Account Name
Define Groupings and Maintain Headers
Maintain Structure
Activate Cash Management (in Enter Global Parameters)
Define Planning Levels for Logistics ( Check only)
Prepare Production Start up - FDFD
Define Number Ranges for Manual Planning OT20
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04/06/15

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Thank You

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