Agenda. SAP Cash & Liquidity Management & Payment overview. Overview of SAP Cash Management. Overview of SAP Liquidity Planner

Transcription

1 Agenda SAP Cash & Liquidity Management & Payment overview Overview of SAP Cash Management Overview of SAP Liquidity Planner Overview of SAP In-House-Cash Overview of SAP BCM

2 Take-out from this meeting The goal is to provide end users with an understanding of how SAP can support an optimized Cash & Liquidity management solution by providing an overall-walk through of the processes and models typically implemented in each of these modules.

3 SAP Cash & Liquidity Management overview

4 Agenda SAP Cash & Liquidity Management overview Overview of SAP Cash Management Overview of SAP Liquidity Planner Overview of SAP In-House-Cash Overview of SAP BCM

5 SAP Cash Management: business processes Business processes covered in these modules: Cash position management Manual bank transfers Bank statement processing Short term liquidity overview Manual forecasting process Input for currency exposure reporting

6 The cash position report is based on bank balances from SAP FI, SAP Treasury and manual memos

7 An example of a cash position report is shown below and the groupings in the first two columns are freely definable

8 The report functionality allows drill down to a more detailed view of where the cash postions originate from

9 But SAP Cash Management does also provide an overview to base the medium term liquidity management decisions on

10 SAP CM data can also be extracted into SAP BW for more flexible and advanced reporting Non-SAP companies? SAP BW Extract of CM data Cash position report Liquidity forecast report SAP CM SAP FI GL Real and expected CFs from bank and bank clearing accounts Exp. CFs from SAP SD & MM Fin. CFs from SAP TM SAP SD & MM SAP AR & AP Expected CFs from SAP AR & AP SAP TM

11 With the new EHP5, the functionality in SAP CM will be greatly enhanced

12 The new layout can look like below

13 The old List report view in SAP CM

14 Agenda SAP Cash & Liquidity Management overview Overview of SAP Cash Management Overview of SAP Liquidity Planner Overview of SAP In-House-Cash Overview of SAP BCM

15 SAP Liquidity Planner: business processes Business processes covered in this module: Cash flow forecasting on short to long term basis Reporting of actual cash flows according to the direct method Cash flow forecasting performance measurement Calculation of currency exposures

16 For most companies the expected short term forecasts provided by the SAP CM module is however not enough The expected short term forecasts from the SAP CM module is basically only covering the forecast of the PL down to the gross margin and only for those invoices with long pmt terms. If a complete short term forecast is needed e.g. a rolling quarter forecast all the way down to the net result a model should instead be implemented in SAP Liquidity Planner.

17 With SAP Liquidity Planner (SAP LP) it is possible to enhance the short term forecasting model but also to extend it to a long term forecasting model Actual Calc.

18 The LP concept is a forecasting and follow up solution while the CM module is reporting of expected forecasts The SAP Liquidity Planner concept The main task of the Actual calculation module is to identify realised cash flows in the operative systems via the banks accounts The main task of BW is to extract data from the operative systems and BI applications and make them available for reporting The main task for IP / BPC is to provide a tool for all subsidiaries where cash flow forecasts can be entered, calculated, consolidated and sent back to BW for reporting purposes.

19 The Actual Calculation module is used for extracting actual CFs from SAP FI into the forecasting model SAP FI cash flow basis Bank statement FI postings Invoice postings Automatic update when bkk statements are available Automatic update upon posting to actual acc. in SAP FI SAP LI Initial assignment of default liquidity items (ingoing / outgoing / bank transfer) Run assignment program FI Run assignment program - Invoice SAP LI Storing of cash flows with real liquidity items Reports in SAP LI. Reports in BW Update SAP LI with postings on actual accounts 1) Initial assignment of default liq. items 2) Assign liq. items using assignment programs 3) Report Cash flows (and forecasts 4)

20 In order to follow up on the actual cash flows, standard reports are available in the SAP Actual calc. module SAP actual calculation standard reports

21 In order to get the forecasting and performance functionalities, SAP BPC/IP and BW must be set up BPC Usage of SAP CM/LP data in entry layouts Bex Analyzer Actual CF reports per liquidity item Actual vs. forecasted CF reports Flexible reports on SAP CM data Upload of forecasts to BW Upload of actual CFs from SAP LP SAP actual calculation SAP BW Extract of CM data Extract of CM data SAP CM Program to deduct liquidity items per actual CF from sublegders Actual CFs from bank accounts SAP FI GL SAP SD & MM SAP AR & AP

22 The SAP BW and BPC reporting platform enables integration of CF forecasts and actuals into the same reporting model

23 The forecasting model(s) can be build in different ways 1. Rely on expected cash flows from the ERP system(s) 2. Ask end users to manually enter their expectations 3. Use historic data to predict the future 4. A combination of the three above Decision affects the system design and the dependency to other processes

24 SAP has built a starter kit for the SAP LP solution to enable faster implementation of a long term forecasting solution based on short term forecasting data Transaction Data Forecast Data System Independe nt Inputs Analyze/ Remediate/ Aggregate Define and Maintain Calculation Rules Calculate Cash Flows Report PO/AP SO/AR Financials Define calculation rules Calculate cash flow SAP BusinessObjects Planning and Consolidation Excel interface CAPEX Sales Data analysis of latest liquidity information Maintain calculation rules Run currency translation HR Aggregation in SAP NetWeaver BW Upload currency rates for future time frame Define calculation rules SAP BusinessObjects Xcelsius Enterprise dashboards embedded in SAP BusinessObjects Planning and Consolidation

25 Agenda SAP Cash & Liquidity Management overview Overview of SAP Cash Management Overview of SAP Liquidity Planner Overview of SAP In-House-Cash Overview of SAP BCM

26 SAP In-House-Cash: processes Business processes covered in this module: Internal payments Central external payments Central in-coming payments Cross bank payments Local payments

27 SAP AG All rights reserved. / Page The SAP IHC solution is optimizing both internal and external payments via centralization Head office (Europe) Internal Bank Internal Bank Subsidiary Subsidiary USA Asia Region 2 Subsidiary Subsidiary Subsidiary Subsidiary Region 1

28 SAP AG All rights reserved. / Page The payment process for internal payments is now becoming a settlement instead of a physical payment Example: Subsidiary 1 makes a payment to Subsidiary 2 Corporate Group Head Office Subsidiary 3 Subsidiary 2 Subsidiary 1 Pmnt Program OP 2b 2a 1 In-House Cash Center Account management Financial Accounting Payment Bank Statement

29 SAP AG All rights reserved. / Page External payments are centralized in the IHB and paid out of the Group Treasury disbursement accounts Example: Subsidiary 1 makes a payment to an external partner Corporate Group Head Office Subsidiary 3 Subsidiary 2 Subsidiary 1 Pmnt Program OP 2 1 In-House Cash Center Account management 3 Financial Accounting 4 5 External business partner 7 Partner bank 6 Head office house bank Payment Bank Statement

30 SAP AG All rights reserved. / Page It is also possible to make local payments out of the IHB and hence make use of local subsidiary bank accounts Example: A Subsidiary in Germany makes a payment to an external partner in UK Headquarter IHC Subsidiary Germany Pmnt Program OP 4 1 In-House Bank Germany Account management 2 Subsidiary UK Financial Accounting 3 5 External business partner UK 7 Partner bank 6 House of bank Subsidiary UK Payment Bank Statement

31 The IHC module provides a lot of functionality but does also require some master data setup FI GL Headquarter IHC Pmnt clearing Bank statements Limits Subsidiary Subsidiary (1) 200 IHC Receiv. (2) 540 IHC Payab. (2) 540 (1) 200 Business partner Conditions Account A G/L Transfer Blocks No Post.dte Val.dte Curr. Amnt SAP AG All rights reserved. / Page EUR C Currency conversion Reporting EUR 9.58 D Turnovers

32 Agenda SAP Cash & Liquidity Management overview Overview of SAP Cash Management Overview of SAP Liquidity Planner Overview of SAP In-House-Cash Overview of SAP BCM

33 SAP Bank Communication Management: business processes Business processes covered in this module: Collect and batch commercial and financial payments Approve, Resubmit and Reject payments in a secure environment Monitor payment status Monitor bank statements

34 SAP Bank communication manager (BCM) optimizes the payment approval, monitoring and communication process

35 A BCM solution can be setup with and without a payment factory (internal bank)

36 The BCM module use SWIFT connectivity and an example of a process Flow within the SAP BCM is shown below SAP ERP SAP Bank Communication Management SAP NetWeaver Process Integration Execute Payment Program Create Batch Routing Create Payment Order Payment Approval Work List Security (Approval workflow, Authorization, Digital signature) Mapping Security Encryption Digital Signature SWIFTNet Import Bank Statement Post/Processing and Clearing Receive Status Messages Bank Statement SAP Integration Package for SWIFT Resource Adapter SWIFT Alliance Access / Gateway SAP AG All rights reserved. / Page 36

37 Lone Kejser Manager, First Treasury QUESTIONS