Cash and Liquidity Management in SAP S/4 Hana FSCM

SAP FI Cash Management is a sub-component of Financial Supply Chain Management. It can be integrated with a range of other SAP components. Example − The liquidity forecast – in a medium- to long-term liquidity trend – integrates expected incoming and outgoing payments in financial accounting, purchase, and sales.

There are 3 major functional areas of SAP Cash Management— Bank Relationship Management, Cash Operations, and Liquidity Management.

SAP Cash Management consists of three components, namely “Bank Account Management” (BAM), “Cash Operations” and “Liquidity Management”

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