Cash Management Configuration

© 2009 sapficoconsultant.com All rights reserved. No part of this material should be reproduced or transmitted in any form, or by any means, electronic or mechanical including photocopying, recording or by any information storage retrieval system without permission in writing from www.sapficoconsultant.com

“SAP” is a trademark of SAP AG, Neurottstrasse 16, 69190 Walldorf, Germany. SAP AG is not the publisher of this material and is not responsible for it under any aspect. Warning and Disclaimer This product is sold as is, without warranty of any kind, either express or implied. While every precaution has been taken in the preparation of this material, www.sapficoconsultant.com assumes no responsibility for errors or omissions. Neither is any liability assumed for damages resulting from the use of the information or instructions contained herein. It is further stated that the publisher is not responsible for any damage or loss to your data or your equipment that results directly or indirectly from your use of this product.

www.sapficoconsultant.com

Page 2 of 58

TABLE OF CONTENTS INTRODUCTION.........................................................................................................4 1. Basic Settings ...............................................................................................5 1.1 Define Value Date Default ..........................................................................5 1.2 Define Source Symbols ...............................................................................5 2. Master Data ...................................................................................................7 2.1 Define Planning Levels................................................................................7 2.2 Define Planning Groups ..............................................................................8 3. Structuring .................................................................................................. 10 3.1 Define Cash Management Account Name............................................ 10 3.2 Define Groupings and Maintain Headers .............................................. 13 3.3 Maintain Grouping structure .................................................................... 15 3.4 Define Number range for Manual Planning (OT20)............................. 18 3.5 Define Planning types for Manual Planning .......................................... 21 3.6 Define planning levels for Logistics ........................................................ 28 3.7 Maintain Special GL transaction level for Customer down payment request........................................................................................................ 30 3.8 Maintain Special GL transaction level for Vendor Down Payment request........................................................................................................ 32 4. ACTIVATE CASH MANAGEMENT ........................................................ 35 4.1 Prepare Production Startup and Data Setup ........................................ 35 4.2 Update bank master data with cash management levels ................... 48


Page 3 of 58

INTRODUCTION SAP Cash Management‘s objective are as follows:ü To ensure an optimum amount of liquidity to meet required payments as they become due. ü Monitor Cash inflows and outflows. The Cash Management component reproduces the activity in bank accounts in the report Cash position, while activity in subledger account is reproduced in the report Liquidity Forecast. Thus Cash position and Liquidity Forecast are the 2 important reports in Cash management. What is Cash position and how is data updated in it? A cash position report gives the bank balance over a few days in your bank accounts . Cash position captures it data from the bank accounts. Cash management planning level is updated in the Bank GL account master. In configuration we define the set up of cash position by using groupings. The grouping determines which levels and accounts should be displayed in the cash position. The data in cash position is updated based on value dates entered while posting entries in the bank clearing accounts.

What is Liquidity Forecast and how is data updated in it? The Liquidity Forecast reproduces the liquidity trend in the subledger accounts i.e. Customers and Vendors. The Liquidity Forecast is more useful then the Cash position report, since we actually can project our liquidity trend over the next few weeks or next few months. The data in liquidity forecast is captured from the following source:1) Purchase requisition 2) Purchase orders 3) Scheduling agreement 4) Sales orders 5) Vendor invoices 6) Customer invoices In the Vendor and Customer master, payment terms are updated. This payment term is defaulted in the transaction data. The due date for the transaction data is calculated from the payment terms. The data is immediately updated in the liquidity forecast on posting the transaction data.


Page 4 of 58

1. Basic Settings 1.1 Define Value Date Default For configuration we use the following path on the SAP application screen:SAP Menu à Tools à Customizing à IMG à SPRO – Edit Project à

SAP Customizing Implementation Guideà Financial Supply Chain Management à Cash and Liquidity Managementà Cash Management à Basic Settings à Define Value Date Default Here you specify whether the current date is the default value for the value date when line items are entered. You make this specification for the company codes in which you implement Cash Management.

1.2 Define Source Symbols SAP Customizing Implementation Guideà Financial Supply Chain Management à Cash and Liquidity Managementà Cash Management à Basic Settings à Define Source Symbols

In this step you define source symbols and allocate them either to the liquidity forecast or to the cash position. The source symbol divides the planning levels according to the sources that supply them with data, for example:


Page 5 of 58

•

Bank accounting

•

Subledger accounting

•

Materials management

•

Sales and distribution

We will use the SAP standard source symbols which are shown below. Please note the source BNK (BNK) and IHC (In -House Cash) only is ticked for the cash position. No data will be posted to cash position from Materials Management, Sales and Distribution and Subledger accounting.


Page 6 of 58

2. Master Data 2.1 Define Planning Levels SAP Customizing Implementation Guideà Financial Supply Chain Management à Cash and Liquidity Management à Cash Management à Master Dataà G/L Accounts à Define Planning Levels

Here you specify a planning level for each cash account and allocate this planning level to the cash position by using the appropriate source symbol. Financial transactions in Cash Management are displayed using planning levels in order to explain beginning and ending account balances.

We will create separate planning levels for each of the following:Bank clearing accounts Purchase order Sales order Customers and Vendors

Click on


Page 7 of 58

Update the following:-

Click on

2.2 Define Planning Groups SAP Customizing Implementation Guideà Financial Supply Chain Management à Cash and Liquidity Managem entà Cash Management à Master Dataà Subledger Accounts à Define Planning Groups

Here you define the planning groups for customers and vendors. A planning group represents particular characteristics, behaviors or risks of the customer or vendor group for e .g. Domestic vendor, Import vendor and affiliate vendor.


Page 8 of 58

The planning group is then assigned to customers and vendors by making an entry in the master record. Click on Update the following:-

Click on


Page 9 of 58

3. Structuring 3.1 Define Cash Management Account Name SAP Customizing Implementation Guideà Financial Supply Chain Management à Cash and Liquidity Managementà Cash Management à Structuringà Define Cash Management Account Name

Here you assign a name as the cash management account name to each bank account and bank clearing account. This name is used with all functions and reports in Cash Management instead of the account number. In some instances it is useful to set up a cash management account without a master record. You must indicate these ac counts as internal, cash management accounts by selecting the "CM" field. Thus, you can set up onetime transactions, such as fixed term deposits, with banks in Cash Management, without having to create a G/L account master record for them.


Click


Page 10 of 58

Click on


Page 11 of 58


Click You

get

Click

a

message

.

to continue.

Click on


Page 12 of 58

3.2 Define Groupings and Maintain Headers SAP Customizing Implementation Guideà Financial Supply Chain Management à Cash and Liquidity Managementà Cash Management à Structuringà Groupings à Define Groupings and Maintain Headers Here we define the grouping whic h will be used to select in the report Liquidity forecast report or cash management forecast.

Click on


Page 13 of 58


Click on


Page 14 of 58

3.3 Maintain Grouping structure SAP Customizing Implementation Guideà Financial Supply Chain Management à Cash and Liquidity Managementà Cash Management à Structuringà Groupings à Maintain Structure The Grouping structure enables you to group together bank and subledger accounts in the cash position or the liquidity forecast. For the cash position and the liquidity forecast, you specify: ü ü ü

The accounts you want to see in the grouping and those you want to exclude The summarization term under which you want to group together the lines for levels and the lines for groups in the display The line type, whereby "E" stands for level and "G" for the account or planning group.

If you want the display to be as detailed as possible, SAP recommends selecting all levels for each grouping. To do this, mask your entry with ++.

Click on


Take a drop down in the field Ty.


Page 15 of 58

Select E for levels (Customers and Vendors)

Update th e following:-

Thereafter we will maintain structure for the Banks


Page 16 of 58

Thereafter update the following:-

Click on


Page 17 of 58

3.4 Define Number range for Manual Planning (OT20) SAP Customizing Implementation Guideà Financial Supply Chain Management à Cash and Liquidity Managementà Cash Management à Structuringà Manual Planning à Define Number Ranges Here we create number ranges for manual planning i.e. for entering memo records.

Click on Update the following:-


Page 18 of 58

Click

Click


Page 19 of 58

Click


Page 20 of 58

The number range is copied with the number range key 01.

3.5 Define Planning types for Manual Planning SAP Customizing Implementation Guideà Financial Supply Chain Management à Cash and Liquidity Managementà Cash Management à Structuringà Manual Planning à Define Planning Types

Here you define the respective planning types for manual planning. Using the planning type, you control the manual entry of planned memo records. For each planning type, you specify •

the level to which the planning type is allocated

•

the archiving category in which a memo record is stored after it becomes invalid


Page 21 of 58

•

whether memo records expire automatically

•

the number range to which the planning type is allocated

•

which fields are displayed for the respective planning type, and whether an entry is required or optional in the fields.

Before you create a planning type you need to create a relevant planning level also. Create a planning level (Z5 - Short term loan taken) in step 2.1 as follows:-

Thereafter proceed to create the planning type:Click on



Page 22 of 58

Click on

Click Select Z5


Page 23 of 58

Double click

Double click


Page 24 of 58


Page 25 of 58


Click


Page 26 of 58


Page 27 of 58


Click on

3.6 Define planning levels for Logistics SAP Customizing Implementation Guideà Financial Supply Chain Management à Cash and Liquidity Managementà Cash Management à Structuringà Define planning levels for Logistics In this step, you allocate the transactions from Materials Management (MM) and Sales and Distribution (SD) to the planning levels you have defined for updating this data.


Page 28 of 58

A business transaction in Logistics is represented by an internal ID: 1 = purchase requisition 2 = purchase order 3 = scheduling agreement 101 = Sales order You must assign these transactions to a planning level so that you can distinguish them in Cash Management.

Since we have defined another planning level for Purchase order (M9) and Sales order (S9), replace M2 (for 2) with M9 and Replace S1 (101) wit h S9

Click on


Page 29 of 58

3.7 Maintain Special GL transaction level for Customer down payment request SAP Customizing Implementation Guideà Financial Supply Chain Management à Cash and Liquidity Managementà Cash Management à Structuringà Special G/L Transaction Levels à Customer à Define Down Payment Request

Here you assign to special G/L transactions a planning level under which you want to see the cash flows in the liquidity forecast. Use SAP standard FF for down payment request. F being for FI postings and the second letter F (special GL indicator F) Thus Customer down payment request will be seen under planning level FF separately instead of VC planning level. Double click Update the following:-


Page 30 of 58

Update the planning level FF (Down payment request). FF is SAP standard planning level for down payment request.


Page 31 of 58

Click on

3.8 Maintain Special GL transaction level for Vendor Down Payment request SAP Customizing Implementation Guideà Financial Supply Chain Management à Cash and Liquidity Managementà Cash Management à Structuringà Special G/L Transaction Levels à Vendorà Define Down Payment Request

Here you assign to special G/L transactions a planning level under which you want to see the cash flows in the liquidity forecast. Use SAP standard FF for down payment request. F being for FI postings and the second letter F (special GL indicator F) Thus Vendor down payment request will be seen under planning level FF separately instead of VC planning level.


Page 32 of 58

Double click


Page 33 of 58

Update the planning level FF

Click on


Page 34 of 58

4. ACTIVATE CASH MANAGEMENT 4.1 Prepare Production Startup and Data Setup SAP Customizing Implementation Guide à Financial Supply Chain Management à Cash and Liquidity Managementà Cash Management à Tools à Prepare Production Startup and Data Setup

This menu supports you when you are implementing the cash management and forecast (CM&F). You can activate company codes for the CM&F update: table settings are checked in the process. The management groups needed for the CM&F update can be entered in the customer and vendor master records, and partial or total reconstruction of the totals records is now much easier.


Click


Page 35 of 58


Click


Page 36 of 58

Click

Click


Page 37 of 58

Click


Page 38 of 58



Page 39 of 58

Click


Page 40 of 58

Click

Click


Page 41 of 58

Click The Customer master data is updated with the cash management group.

Now select Vendors and Update the following:-


Page 42 of 58

Click

Click

Click


Page 43 of 58

Click


Page 44 of 58

Now let us check the customer master data, whether they have been updated with the cash management group. Use transaction code FD02 Update the following:-

Click

You see above that the cash mgmt group field has been updated with C1 – Domestic customers. Let us now check the Vendor master data:Update the following:-


Page 45 of 58

Click


Page 46 of 58

The Cash mgmnt group has been updated with V1 – Domestic Vendor


Page 47 of 58

4.2 Update bank master data with cash management levels Use transaction code FS00 Update the following:-

Click on

Click


Page 48 of 58

Update the Planning level:Take a drop down in the field Planning level


Page 49 of 58

Click on Similarly edit the next account


Page 50 of 58

Click

Update planning level Z1


Page 51 of 58

Click on

Update the next GL account


Page 52 of 58



Page 53 of 58

Click on

Update the next account


Page 54 of 58



Page 55 of 58

Click on Update the next GL account


Page 56 of 58


Page 57 of 58

Click on Congratulations, you have now implemented the Cash management module. Start postin g AR, AP data, MM data (purchase orders) and SD data (Sales order) and see the results in the report Liquidity Forecast. For results in the Cash position, post data in the bank accounts.


Page 58 of 58

Cash Management Configuration

Recommend Documents