Cash management configue doc v1

SAP Cash Management
Configuration
SAP R/3 ENTERPRISE ECC6
Published by Team of SAP Consultants at
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Table of Contents
1 Cash Management (TR-CM)............................................................................... 3
1.1 Activation of Cash management in Co Code........................................ 5
2 Basic Settings......................................................................................................... 7
2.1 Define Value Date Default.......................................................................... 7
2.2 Define Source Symbols ............................................................................... 8
2.3 Master Data .................................................................................................... 9
2.4 Define Planning Level ................................................................................ 10
2.5 Define Planning Group.............................................................................. 12
3 Structuring............................................................................................................ 14
3.1 Define Cash Management Account Name........................................... 15
3.2 Groupings...................................................................................................... 16
3.3 Define Groupings and Maintain Headers ........................................... 17
3.4 Maintain Structure..................................................................................... 18
3.5 Define Distribution Function.................................................................. 20
4 Liquidity Forecast: Payment Date Determination/Assignments......... 22
4.1 Maintain Archive Retention Period........................................................ 24
4.2 Manual Planning......................................................................................... 25
4.2.1 Define Number Ranges...................................................................... 25
4.2.2 Define Planning Types....................................................................... 27
4.2.3 Define planning levels for Logistics............................................... 29
4.3 Maintain Blocked Levels........................................................................... 31
4.4 Special G/L Transaction Levels ............................................................. 33
4.5 Define Down Payment Request ( Customer / Vendors) ................. 34
4.6 Define Bills Of Exchange ( Customer / Vendors)............................. 36
4.7 Define Others ( Customer / Vendors)................................................. 38
4.8 Define levels in payment requests......................................................... 40
5 Bank Accounting................................................................................................. 42
6 Cash Concentration ........................................................................................... 43
6.1 Steps for Configuration............................................................................. 43
6.2 Define Intermediate Account, Clearing Accounts, and Amounts 45
6.3 Specify forms ................................................................................................ 48
6.4 Define Payment Methods for Payment Requests.............................. 49
7 Prepare Production Startup and Data Setup............................................. 50
8 Reorganize Cash Management ....................................................................... 53

1 Cash Management (TR-CM)
Cash Management is used to monitor payment flows and
safeguard liquidity, so that you can meet your payment
commitments
Integration
Cash Management is a subcomponent of Treasury. This
means it is closely linked with Treasury Management (TR-TM)
and Market Risk Management (MRM). Cash Management
offers the functions described above for liquidity analysis
purposes while MRM offers methods and processes for
assessing risks positions. Treasury Management contains the
actual financial translations and the portfolio analysis
functions.
Cash Management is integrated with many other SAP
application components. For example, the liquidity forecast
integrates cash in- and outflows from financial accounting,
purchasing, and procurement, with long-term liquidity
analysis.

Let us go through the Configuration settings for Cash
Management

1.1 Activation of Cash management in Co Code
First step in customizing is activation of cash management in
our Co code under Global parameters in IMG path
Menu Path : IMG-> Financial Accounting -> Financial
Accounting (New) -> Global Parameters for Company Code ->
Enter Global Parameters Transaction Code:
SPRO

2 Basic Settings
2.1 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.
Menu Path: Financial Supply Chain Management-> Cash
Management->Basic Settings->Define Value Date Default
Transaction Code: SPRO
On screen against the respective Company code Check box for
‘Propose Value date‘ column
As ashown in Screenbelow:

2.2 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:
• Bank accounting
• Subledger accounting
• Materials management
• Sales and distribution
Normally source symbols provided by the system can be used.
Management->Basic Settings->Define Source Symbols
System settings need not be changed.

2.3 Master Data
Before you can use Cash Management, you must prepare the
relevant G/L accounts and Sub ledger (Vendor and Customer)
accounts accordingly.
Various steps involved are:
• The necessary Cash / Bank accounts must be created in
your chart of accounts and in the company codes using
Cash Management.
• Ensure that a separate account group for your cash / bank
accounts, which is configured so that the key field Planning
Level under “Bank/financial details” is a required field. This
ensures that cash flows from all cash accounts are included
in Cash Management.
• Ensure that an appropriate field status group has already
been created for Cash / Bank accounts, where the ‘Value
date’ field under “Payment Transactions” is a required field.

2.4 Define Planning Level
Financial transactions can be broken down into levels that
explain the beginning and ending account balances. In the
standard system, a planning type is allocated to only one
planning level. You can, however, allocate a planning level to
several planning types.
To make analysis of the cash position and liquidity forecast
easier, the following conventions are laid down in the standard
delivery system.
Levels beginning with "F" or "B" are reserved for automatic
updating during posting; you enter them in the master record.
"F" levels are allocated to bank accounts, customers, and
vendors. "B" levels are allocated to bank clearing accounts.
Thus, when displaying the cash position, you can see because
of the level whether the items are postings in bank accounts or
bank clearing accounts, or whether they are payment advices
or planned items that are manually entered.
SAP recommends using the following levels:
• Level F0 for bank accounts
• Level F1 for customers and vendors
• Levels B1 to Bn for bank clearing accounts
• Level CP, for example, for confirmed payment advice
notes
• Level UP, for example, for unconfirmed payment advice
notes
• Level NI, for example, for noted items
We can define our own Planning levels if required.
Management-> Master Data -> G/L Accounts - > Define
Planning Levels

We are not defining anything here, but will use levels provided
by the system

2.5 Define Planning Group
In the master record, you can allocate customers and vendors
to a particular planning group for the liquidity forecast. The
planning group represents a particular set of Customers or
Vendors having similar characteristics, behaviors and risks.
This enables you to categorize incoming and outgoing
payments on the basis of the size of the amount, the type of
business relation, or the probability of the cash inflow or
outflow.
In addition, you allocate your planning groups to a planning
level.
Examples of typical planning Groups can be as under:
Planning group Description
I1 Direct debit, customers
I2 Other domestic customers
I3 Foreign customers
I4 Customers from affiliated companies
O1 Domestic vendors
O2 Foreign vendors
O3 Vendors from affiliated companies
To differentiate the customer groups from the vendor groups,
you should use a naming convention. In the above example,
all customer groups begin with "I" for incoming payment, and
all vendor groups begin with "O" for outgoing payment.
You define your own planning groups if necessary.
Management -> Master Data -> Sub-ledger Accounts - > Define
Planning Groups

3 Structuring
In the following steps you will make settings that you can use
to control the display for and the liquidity forecast according
to your requirements.
In addition, you will make preparations for manually entering
planning memo records.

3.1 Define Cash Management Account Name
In Cash Management, you can replace the G/L account
number with a mnemonic account name. This mnemonic
name is used with all functions and reports in Cash
Management instead of the account number.
The name is unique within a company code.
Management-> Structuring -> Define Cash Management
Account Name

3.2 Groupings
In the next steps you will make settings that affect the:
• Display for the cash position and liquidity forecast
• Cash concentration

3.3 Define Groupings and Maintain Headers
In this step you define the groupings, and stipulate the main
headings and the line headings that the system displays in the
cash management position or liquidity forecast.
Financial Supply Chain Management -> Cash Management -> Structuring->
Groupings``-> Define Groupings and Maintain Headers
Transaction: SPRO

3.4 Maintain Structure
In this step, you specify grouping structures. These
stuctures enable you to group together bank and subledger
accounts in the or the liquidity forecast.
• For the cash position and the liquidity forecast, you
specify:
• 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.
• For cash concentration, you specify
• The account in which clearing account balances are
summarized during cash concentration.
Recommendation
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 ++. Make sure you always enter
account numbers with leading zeros.
Example 1: Grouping for bank account activity
Grouping Type Selection Summ. term. Summ. acct
BANKS E ++ **
BANKS G 00001131++ CITI
BANKS G 0000113109 X
Example 2: Grouping for subledger account activity
Grouping Type Selection Summ. term
SUBLEDG E ++ **
SUBLEDG G 0000113109 Clearing
SUBLEDG G 0000113209 Clearing

SUBLEDG G E+ Expenses
SUBLEDG G R+ Revenues
Groupings-> Maintain Structure
Transaction: SPRO

3.5 Define Distribution Function
In this step, you can specify, in percentages, how much of an
amount planned within a certain period is to be listed in the
display for the cash position or liquidity forecast. Thus, you
include the uncertainty which cannot be excluded for some
items because of the expected date of payment.
Example:
In the cash position, you want to include and display an
unconfirmed payment advice according to this
distribution:
• 50% on the expected day
• 30% one day later
• 20% one day earlier
Define Distribution Function
Transaction: SPRO

4 Liquidity Forecast: Payment Date
Determination/Assignments
In the liquidity forecast you can assign the planning amounts
to the expected payment dates for planning groups and levels.
The payment dates can be determined regularly or explicitly
set when starting the liquidity forecast.
In the liquidity forecast you can no longer display the amounts
on the planning date but are displayed on the corresponding
payment date.
Financial Supply Chain Management -> Cash Management ->
Structuring-> Liquidity Forecast: Payment Date
Determination/Assignments
Transaction: SPRO

4.1 Maintain Archive Retention Period
In this step you specify for each archiving category how many
months an archived memo record is to remain in the system
before it can be deleted in a reorganization run.
You can create your own archiving categories.
Structuring-> Maintain Archive Retention Period
Transaction: SPRO

4.2 Manual Planning
Cash Management, reports like Cash Position or Liquidity
forecast allows you to create your own record for future cash
inflows or outflows which are known as Memo records.
These Memo records are not backed by financial transactions
and do not affect actual account balances but are helpful in
displaying realistic Cash Flow position / forecast as they are
entered for probable cash flows
In the following steps you will make preparations for manually
entering planning memo records.
For manual planning, you must
• create a separate number range, and
• Create planning types.
4.2.1 Define Number Ranges
In the “Number ranges” step, you specify one or more
number ranges for manual planning. The system allocates
a number from the appropriate interval to each memo record
entered manually.
Structuring-> Manual Planning-> Define Number Ranges
Transaction: OT20

4.2.2Define Planning Types
In this step 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
• 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.
In addition, you specify a mnemonic name that is also
displayed when memo records are created.
Structuring-> Manual Planning-> Define Planning Types
Transaction: SPRO

4.2.3Define 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.
This allocation is necessary since the system cannot
determine the planning level by using the master record fields,
as it does to access data from Financial Accounting (FI).
In FI, the planning level for G/L accounts is specified in the
master record. The specification for subledger accounts is
made using the planning group with which the level for FI
postings can be determined.
However, a business transaction in Logistics is represented
by an internal ID:
• 1 = purchase requisition
• 2 = purchase order
• 3 = scheduling agreement
• 101 = order
You must assign these transactions to a planning level so
that you can distinguish them in Cash Management.
Structuring-> Define planning levels for Logistics
Transaction: SPRO

4.3 Maintain Blocked Levels
In this step, you can allocate blocked levels for the levels of
the liquidity forecast. When you post with a payment
blocking indicator, the system then takes the blocked level
instead of the standard level of the corresponding planning
group.
Example:
For level F1, you specify that when you post with payment
blocking indicator A, level XA should be displayed
instead.
When displaying the liquidity forecast, you can then see
because of the blocked level that the displayed amounts
are postings with payment blocking indicators.
Structuring-> Maintain Blocked Levels
Transaction: SPRO

4.4 Special G/L Transaction Levels
In the following steps, you assign to special G/L transactions a
planning level under which you want to see the cash flows in
the liquidity forecast.
Various Special G/L transactions can be selected like Down
payment Requests, Bills of exchange, Security Deposits or
others which can affect Cash flows

4.5 Define Down Payment Request ( Customer / Vendors)
In this step you can freely choose the planning levels for the
down payment requests you want to use for controlling in
Cash Management. In doing this, you must, however, take
note of specific naming conventions.
Use levels beginning with F, since these are FI
postings. The special G/L indicator is useful for the
second letter, for example, FF for down payment
request.
Structuring-> Special G/L Transaction Levels-> Customer->
Define Down Payment Request
Transaction: OBXR

Structuring-> Special G/L Transaction Levels-> Vendor->
Define Down Payment Request
Transaction: OBYR

4.6 Define Bills Of Exchange ( Customer / Vendors)
Similar to defining Down payment request
Define Bill of Exchange
Transaction: OBYN
Define Bill of Exchange
Transaction: OBYM

4.7 Define Others ( Customer / Vendors)
Similar to Down Payment request or Bills Of Exchanges
Define Other
Transaction: OBXY
Define Other
Transaction: OBXT

4.8 Define levels in payment requests
In this step you define separate Cash Management planning
levels for payment requests.
If the Cash Management update writes the flows to a bank
account, you must define a separate planning level for
payment requests. Otherwise, the payment requests are
displayed at the same level as the bank statement postings
when you call up the cash position.
This setting is optional if the Cash Management update writes
the flows to a bank clearing account.
Structuring-> Define levels in payment requests
Transaction: SPRO

5 Bank Accounting
All banking-related accounting activities in Customizing for
‘Financial Accounting’. are explained in the corresponding
IMG.
Following are the different activities
• check deposit bill of exchange presentation
• returned bills of exchange payable manual bank
statement
• electronic bank statement
• lockbox
• preparing POR procedure (Payment order with ref. no.)
• account balance interest calculation

6 Cash Concentration
In cash concentration, balances from a number of accounts
are concentrated in one target account, leaving only a
minimum balance you have specified in the source account(s).
After comparing the bank accounts and establishing
conditions for financial planning, you can carry out your cash
planning. Where there are excessive cash balances, you can
invest these in overnight or time deposits.
All accounts you plan to concentrate are linked together in a
grouping structure. You can define various groupings for
different cash concentrating procedures accordingly.
The system generates a proposal for concentrating cash based
on your grouping. This proposal contains the ending balance
for the day and the cash planning results, that is, the expected
account transfers. You can correct the proposal at any stage.
The system prints the outcome of the cash concentration in
the form of payment orders to banks. It also creates the
payment advices needed for determining the new bank
account balances.
6.1 Steps for Configuration
In the following steps you make the settings that affect cash
concentration. These include
• specifying
• a planning balance
• tolerance shortage/excess (related to the planning
balance)
• a minimum balance (credit limit or base amount)

• a planning minimum
• an intermediate account
• minimum amount for payment advice creation
• clearing accounts
• Specifying a form for printing the payment orders.
• specifying a payment methods for creating payment
requests for account transfers

6.2 Define Intermediate Account, Clearing Accounts, and
Amounts
In this step, you make the following settings for each bank
account in regard to
cash concentration :
• Maintain the planned balance
• Specify the planning minimum
• Specify the minimum advice amount
• Define the intermediate account (if you want to
concentrate cash using an intermediate account)
• Define clearing accounts for the update
Business Transactions-> Cash Concentration-> Define
Intermediate Account, Clearing Accounts, and Amounts
Transaction: SPRO

6.3 Specify forms
In this step, you specify the forms needed for
correspondence.
1. Define the forms for each company code.
2. Allocate them to the appropriate program.
Business Transactions-> Cash Concentration-> Specify forms
Transaction: SPRO

6.4 Define Payment Methods for Payment Requests
Here you can specify the payment methods for creating
payment requests. The currency field is optional.
If no currency is entered, the entry is valid for all currencies.
Business Transactions-> Cash Concentration-> Define
Payment Methods for Payment Requests
Transaction: SPRO

7 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.
The program has six areas, which you can reach by means of
the status buttons:
• Activate company code
• Cust/vend data
• Data setup
• Data reconciliation
• Data correction
• Check Customizing
Tools -> Prepare Production Startup and Data Setup
Transaction: FDFD

• Activate company code
When a company code is activated for CM&F, the first effect
is that CM &F data can be updated when CM&F-relevant
funds movements or planning takes place. To update from the
logistical applications MM and SD, there are further indicators
which must be set if data is to get from logistics into cash
management.
During activation, all the necessary table settings are
checked and, made, if necessary.
• Cust /Vend Data
You can use this function to enter planning groups in vendor
and customer master records. Planning groups must be in
place for open items to be updated in CM&F

• Data Setup
Under data setup, you can copy the existing documents, open
items, planning records, and account balances into CM&F.
Here, you can stipulate whether the data setup is to cover
the data from the logistical modules SD and MM, along with
agency deals or data from Treasury Management.
• Date Reconciliation
A report is available with which you can schedule data
reconciliation as a batch job.
report documentation .
• Data Correction
If an inconsistency should occur between the data in CM&F
and the actual data, this option allows you to circumvent the
need for a complete data reconstruction. Depending on the
origin of the inconsistency, the reconstruction can be limited
to particular areas.
• Check Customizing
This function allows you to check the Customizing of the
CM&F.
It is, for example, checked if a level is used in several
applications or if a planning group is used in customer master
records as well as vendor master records. (Both are not
allowed and will produce errors.)

8 Reorganize Cash Management
In this step, you reorganize the tables in Cash Management.
Due to storage reasons and for improving access time,
reorganization must be carried out regularly so that
• all expired memo records and summary records are
deleted, and
• All summary records can be stored in condensed form.

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