Cash management is a sub-module of Treasury that may be utilized as a planning tool for cash control and for reliable, up-to-date liquidity analysis of the company. Planning levels explain the origin of the data in Cash management, reflect typical financial transactions (e.g., F0-posting to a bank account in FI, AP-payment advice) and thus enable users to better estimate its reliability
Benefits of Cash Management
- Data Integration within Operating Systems and Modules like Financials, Logistics, and Treasury Treasury.
- Supports Electronic Banking Functions for Online transactions as well as Online bank reconciliation.
- Cash Position : Daily bank account Balances by Value Date
- Monitoring Value Dates, Cheques Issued,Cheques Deposited Stale Cheques etc.
Cash Forecast: Expected future movements of funds Inflow and Outflows on account of payments/collections made.
Liquidity Forecast: Expected future Inflows / Outflows from customers and vendors, planned data.
Cash Concentration: Concentrated Bank Accounts
Reports related to Cash Mangement
- Account wise movement in a bank account can be traced
- Cheques issued and collected can be traced
- Cash position report gives the bank account movement to a specific period
- Liquidity forecast report gives better visibility of cash liquidity
Difference between Cash Position and Liquidity Forecast
Cash position reproduces the activity in bank accounts, forecasts daily liquidity or cash position in 0-5 days time frame. It receives data on bank accounts and clearing accounts.
â€¢ Payments from a bank statement and payments from a payment program (FI)
â€¢ Loans, transfers, and deposits from TM
â€¢ Manually planned items from CM
Liquidity forecast reproduces the activity in sub-ledger accounts, projecting cash inflows and outflows in 1-24 weeks time frame. It receives data from AR, AP, FI, MM, SD, TM.
â€¢ Invoices from FI or MM and SD (including parked documents),
â€¢ Securities related receivables and payables from TM,
â€¢ Down payment requests from FI,
â€¢ Manually planned items from CM, etc.
SAP Transactions related to Cash Management
- FF73 â€“ Cash concentration
- FF7A â€“ Cash position
- FF7A – Cash position