SAP Cash Management

SAP cash position report gives information on the current financial situation in your bank accounts and bank clearing accounts.

SAP cash position report displays the activity in your bank accounts. It is derived from the value date of all payments made within a short period of time. Data is supplied from three sources:

FI postings to the G/L accounts relevant to Cash Management
Memo records entered manually
Cash flows from transactions managed in the Treasury Management component

SAP Cash Management Configuration

Define Source Symbols in SAP Cash Management

Path: SPRO – FSCM – Cash & Liquidity management – Cash Management – Basic Settings – Define Source Symbols

In this step, you define source symbols and allocate them either to the liquidity forecast or to the cash position.

Cash Position: If selected the source symbol is allocated to the cash management position, otherwise it is allocated to the liquidity forecast.

Define Planning Level in SAP Cash Management

SPRO- FSCM – Cash and Liquidity – Cash Management – Master data – GL Accounts – Define Planning Level

In this step, you define a planning level for each cash account and allocate this planning level to the cash position by using the appropriate source symbol define earlier. Financial transactions in Cash report (FF7A) are displayed using planning levels in order to explain beginning and ending account balances.

In the standard R/3 System, levels starting with “F” or “B” are reserved for automatically updating data during posting.

‘F’: is allocated to Bank accounts, Customers and Vendors
‘B’: is allocated to Bank clearing accounts
CP/UP: These are manually entered payment advices

These are entered in GL accounts master data in FS00. Based on these levels we can know whether amount is Bank, Clearing or Payment advice in the cash flow report

SAP Recommendation

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

Source Symbol BNK, implies it will affect the Cash Flow Report

These Planning levels are assigned to Cash Position relevant GL accounts in FS00

Relevant to Cash Flow: If selected, can enter House Bank and Account ID in GL account

Define Planning Groups- AR/AP

Path: SPRO – FSCM – Cash and Liquidity Management – Cash management – Master Data – Sub ledger Accounts – Define Planning Groups

In the customer / vendor master record (Transaction code: XD02/XK02), we can allocate customer / vendor to a planning group. A planning group represents a set of customers / vendors with specific risk profile

We will use the SAP standard planning groups as below:

Vendors

Customers

Assign Planning Groups in Customer / Vendor Master Data as below:

Vendor Master : XK02

Customer Master: XD02

Structuring

Define Cash Management Account Name in sap

FSCM- Cash and Liquidity Management – Cash management – Structuring – Define cash Management Account name

Here you can replace G/L account number with a mnemonic account for each bank account and bank clearing account. This mnemonic name is used with all functions and reports in Cash position report (Transaction code: FF7A) instead of the account number.

CMF: If you select this field, the account specified is regarded as an internal, cash management and forecast account without a G/L master record.

Maintain Grouping for sap cash position report

FSCM- Cash and Liquidity Management – Cash management – Structuring – Grouping – Define Grouping and maintain Header.

In this step, you define the groupings, and stipulate the Main headings and the line headings that the system displays in the cash position (FF7A) or liquidity forecast report.

Groupings affect:

Cash Position and Liquidity forecast
Cash Concentration

Maintain Structure in SAP Cash Management

FSCM- Cash and Liquidity Management – Cash management – Structuring – Grouping – Maintain Structure

In each grouping you must configure one line of type ‘E’ and one line of type ‘G’

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 (E) and the lines for groups (G) in the display
The line type, whereby “E” stands for level and “G” for the account or planning group.

Field Selection: Here you have to enter the

Levels or
Accounts or
Planning groups

Which are to be included in the display or excluded from it. The entries can be masked from the right with ‘+’ to allow a generic entry.

It is important for the entry to match the level, account, in length. This means the entry for levels (F0, F1 etc.) must have two characters; that for accounts must usually have 10.

The following are examples of entries for levels:

•’F1′

•’F+’

•’+1′

•’++’

The following are examples of entries for bank accounts:

•’0000113100′ you must enter the leading zeros.

•’000011310+’

•’00001131++’

The company code and chart of account entries are optional. You can use them to restrict the data considered to one or more company codes.

SAP Cash Position report

Selection: Enter Bank Main accounts and Bank Clearing accounts

Maintain Structure for Liquidity Forecast

Here in the field Selection enter planning groups

Maintain Archive Retention Period

Specify how many months an archived Memo record stays in system, before it is deleted

Path: FSCM – CM – Structuring – Maintain Archive Retention Period

Memo records, which are no longer valid, can be stored in archiving categories. These records are then no longer included in Cash Management and Forecast.

Manual Planning

Memo Records

Memo records are our own records for future cash inflows. They are not backed by financial transactions and do not affect actual balances. They are helpful in displaying realistic cash forecast

Define Number Range for Memo Records in SAP Cash Management

Transaction code: OT20

Define Planning Type

Path: FSCM – Cash management – Structuring – Manual Planning – Define Planning Types

Define the planning types for manual planning. For each planning type, specify:

Planning level to which planning type is allocated
Archiving category in which memo record is stored after it becomes invalid
Whether Memo record auto expires

Activate Cash Management in SAP

Transaction Code: OBY6

Prepare Production Startup

Path: FSCM – Cash management – Tools – Prepare Production Startup

Tcode: FDFD

The program has six areas, which you can reach by means of the status buttons:

1. Activate company code

2. Cust/vend data

3. Data setup

4. Data reconciliation

5. Data correction

6. Check Customizing

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.

Cash Position report production start up- FDFD

Data Setup

Run this to update Cash management for customer / vendor invoices posted before cash management was activated for this company code

Data Reconciliation

Now GL account balance shown in cash position report (Transaction code: FF7A) should match with one shown in transaction code FBL3N / FS10N. If it doesn’t match run Data reconciliation to find the reason