The Cash Management sub module takes care of the following by integrating bank-related accounting with the respective sub ledger accounting:
- Check Deposit
- Cash Position
- Cash Concentration
- Bank Statement
- Liquidity Forecast
- Cash Concentration
- Money Market
The Cash Management Position helps to reproduce the activities of bank accounts. With input controls for preventing data duplication, parallel management of foreign currencies, and with the required documentation for revision of all planning activities, you will be able to view up-to-date activities in bank accounts and forecast cash position or daily liquidity. The cash management position is set up using groupings, which determine the levels and accounts to be displayed.
The data required for this activity is supplied from
(a) FI postings in cash management relevant GL accounts,
(b) payment advices entered manually, and
(c) cash-flow transactions transferred from the Treasury
Management module.
The data can be displayed using any of the following formats:
Aggregated, either as account balance (K) or as individual
values of inflow/outf low(D)
For any data in the past, present, or future
In increments (days, weeks, etc.)
Explain Groupings and Levels?
Groupings determine how to summarize the data, with various groups and levels defined. A Group adds up various bank accounts and contains a number of levels. A Level, thus, denotes the sources of data or account transactions. Below the levels are the line items, which are displayed using a list display.
Explain Liquidity Forecast?
The Liquidity Forecast helps to reproduce the activities in sub ledger accounts by
(a) linking to all the system resident data such as customer
open items in a customer account,
(b) receipts and disbursements form FI/SD/MM, and (c)
maintaining items such as reversal, document change, open item clearing,
etc., automatically.
The liquidity forecast helps to identify the liquidity trends in the sub ledger accounts based on the information on expected payment flows. The incoming and outgoing payments per open item, from FI-AR and FI-AP, form the basis of the liquidity forecast. You will be able to branch to FI-AR or AP information systems from the liquidity forecast.
How do you set up Cash Management in SAP?
Under customizing, you need to define the Cash Management
Groups and assign these
groups to planning levels. In customer/vendor master
records, you need to enter the cash management groups to enable the system
to transfer data between customer/vendor accounts and the liquidity forecast.
The cash management groups help to differentiate customers/vendors based
on certain characteristics such as behavior (whether the customer takes
a cash discount), risk (credit rating), etc.
Explain Bank Statement in Cash Management?
Bank Statement (manual or electronic) functionality runs on the same principle as Check Deposit Processing. Note that it is not necessary for Cash Management to be active for bank statement processing. During processing, customer payments (except checks) are first posted to the bank clearing account; then customer open items are cleared when balancing the bank clearing account. Similarly, vendor payments are posted to a bank clearing account for outgoing payments where the balancing is done from the entries made from the payment program. Other payments such as bank charges, bank interest, etc., are posted to the respective GL accounts, and they will not go through the bank clearing accounts. In the case of unidentified payment transactions, you will post them first to the bank clearing accounts and then clear them when you have the appropriate information.
What are the Configurations for Bank Statement Processing?
Before you make use of the Bank Statement Processing functionality in SAP, you need to have the following defined or configured in your system:
Start Variant
Search ID
Processing Type
Internal Bank Determination
Differentiate Manual Check Deposit from Electronic Check Deposit?
The Manual Check Deposit function enables you to enter all checks received by posting the entries in two steps: in GL and in sub ledger accounts. It also helps to clear customer invoices. You may also make use of additional functions for additional processing of checks thus entered.
The Electronic Check Deposit, in contrast to the manual check deposit function, enables you to process data even from an external data entry system provided the data is delivered in the SAP defined format. You will be able to enter check deposit details electronically so that you may complete and post individual data later with manual check deposit processing.
