Monday, October 23, 2017

12. Collections Management in SAP

What is Collection Management: 

Collections Management is an established expression for customer centric receivables management. 

Collection Management Supports:

  1. Evaluation, identification, stratification and prioritisation of accounts
    • From a risk management perspective
    • From a customer relationship perspective
  2. Proactive collection of receivables
    • Payment reminders
    • Promise to pay arrangements
    • Follow ups
  3. Process optimisation and automation for high volumes of open items

Collection Management - Important Business issue

  1. Increasingly bad payment behaviour
    • Increasing DSO (Days Sales Outstanding)
    • No reaction on automatic correspondence like dunning
    • Financial situation influences customer relationship
  2. Collections management is today mostly a time consuming, costly and cumbersome process
    • Select and prioritise customers to be collected
    • Search for Account information
    • High volumes

What are the business objectives

  1. Increase share of collected receivables
    1. Reduce DSO
    2. Avoid write offs
    3. Increase payment on time
  2. Decrease cost of cash collection
  3. Improve customer relationship managment


4. Banking


Wednesday, January 5, 2011

5. Cash Management



Content
2. Purpose.


Cash Management: Configuration Guide

1      Purpose

This configuration guide provides the information you need to set up the configuration of Cash Management.

2      Preparation

2.1 Prerequisites

General ledger component settings
Accounts Payable component Settings
Accounts Receivables component settings
Bank Accounting component Settings

3      Configuration

3.1   Basic Settings

3.1.1  Default Value Date

Use
In this step, you specify whether the system is to propose the current date as the default value date when you enter line items. You make this setting for the company codes in which you wish to implement Cash Management.
Prerequisites
The company codes have been created in which the functions for cash management and forecast are activated.
Procedure
1.     Access the activity using one of the following navigation options:
IMG Menu
Financial Supply Chain Management ® Cash and Liquidity Management ® Cash Management ® Basic Settings ® Define Value Date Default
Transaction Code
SPRO



2.     On the Change View “Company Code: Default Value Date”: Overview screen, make the following entries:
Field Name
Description
User Actions and Values
Comment
CoCd
Company Code
1000
Select this line
Propose Value Date

<space>

3.     Save your entries.
Result
The current date is not proposed as the default value date.

3.1.2  Define Source Symbols

Use
The source symbol groups the planning levels according to the sources that provide them with data.
Prerequisite
Source Symbols are already created with standard SAP ERP. The following list provides all source symbols which are reused in SAP Best Practices without any change.

Source  Cash Pos.       Description                                                     Short Text
BNK                 X         Bank Accounting                                              Bank acctg
MMF                            Materials Management                                     MM
PSK                              Sub ledger Accounting                                      Sub. Acctg
REM                             Real Estate Management                                  Real Estate
SDF                              Sales and Distribution                                      Sales

Procedure
1.     Access the activity using one of the following navigation options:
IMG Menu
Financial Supply Chain Management ® Cash and Liquidity Management ® Cash Management ® Basic Settings ® Define Source Symbols
Transaction Code
SPRO
2.     On the Change View “Source Symbols for Cash Management”: Overview screen, make the following entries:
Source Symbol
Allocation for Cash Position
Description
Short Text



No further entries required.
3.     Save your entries if additional source symbols are added.

3.1.3  Planning Groups

Use
In this step, you define planning groups for customers and vendors. A planning group represents particular characteristics, behaviors, or risks of a customer or vendor group. It enables you to break down incoming and outgoing payments according to the probability of the cash inflow or outflow, the amount, and the type of business relationship.
Prerequisites
You assign customers and vendors to a planning group by making an entry in the master record.
Procedure
1.     Access the activity using one of the following navigation options:
IMG Menu
Financial Supply Chain Management ® Cash and Liquidity Management ® Cash Management ® Master Data ® Subledger Accounts ® Define Planning Groups
Transaction Code
SPRO
2.     On the Change View “Planning Groups”: Overview screen, make the following entries:
Group
(Plan. grp)
Level
Screen Control (SCn)
DaCo
Short Text
Description
A1
F1
X

Domestic
Domestic payments (A/P)
A2
F1


Foreign
Foreign payments (A/P)
A3
F1


V-affil
Vendor-affiliated companies
A4
F1


Major ven
Major vendors
A5
F1


HR
Personnel costs
A6
F1


Taxes
Taxes
E1
F1


Receipts
Customer receipts (A/R)
E2
F1


Domestic
Domestic customers
E3
F1
X

Foreign
Foreign customers
E4
F1
X

C-affil
Customer-affiliated companies
E5
F1
X

High risk
High risk customer
E6
F1
X

Major
Major customers
E7
F1


Rent (A/R)
Rent received
E8
F1


Redemption
Loan redemption (A/R)
3.     Save your entries.



3.1.4  Planning Levels

Use
In this step, you specify the G/L-account and subledger-account relevant planning levels and assign the planning level to the cash position or liquidity forecast by using the source symbol.
Typical financial transactions in Cash Management are displayed using planning levels, which explain the opening and closing balances.
Cash Management can also be used in conjunction with preliminary logistical processes from Materials Management or Sales and Distribution. This enables the liquidity planning activities that affect liquidity to be displayed before the activity is posted with the vendor invoice to FI (when the purchase requisition or order is submitted, for example). For that, planning levels are to be defined separately for logistics area.
Prerequisite
Planning levels are already created with standard SAP ERP. The following list provides all planning levels which are reused in SAP Best Practices without any change.

Level    Source  Short Text                     Planning Level long text
AB                    BNK     Advice, c.                     Payment advice (confirmed)
AG                   PSK     Agcy bus.                     Agency business
AU                    BNK     Advice, uc                    Payment advice (unconfirmed)
B1                    BNK     Out. check                    Outgoing checks
B2                    BNK     Dom trans                     Outgoing transfer, domestic
B3                    BNK     For. trans                      Outgoing transfer, foreign
B4                    BNK     Bank coll.                      Bank collection
B5                    BNK     Int posts                       Other interim postings
B6                    BNK     Liability                         Own-accepted liabilities
B7                    BNK     Cl. bill                           Cl. acct for bill payment
B8                    BNK     Inc checks                     Incoming checks
B9                    BNK     Cash rec                       Customer cash receipt
CB                    BNK     Comm.paper     Commercial paper - bank
CL                    BNK     Concentrn                     Cash concentration
CP                    PSK     Comm.paper     Commmercial paper - subledger
DB                   BNK     TR Forex                       Bank foreign exchange
DE                   BNK     Loans                           Loan revenue
DI                     PSK     Planned                        General planning
DP                   PSK     TR Forex                       Subledger forex
F0                    BNK     FI Banks                       Posting to bank account
F1                    PSK     FI C/V                           Posting of purchasing & sales
FF                    PSK     FI DP req                      Down payment request
FK                    PSK     FI DP req                      Advance pymts (offsettg entry)
FR                    PSK     FRA                              FRA Personnel
FW                   PSK     FI bill                            FI bill of exchange
IB                     BNK     Int. Deriv                       Interest Derivatives Bank
IP                     PSK     Int. Deriv                       Interest Derivatives People
KB                    BNK     Dep.at not                    Deposit at notice
KP                    PSK     Dep.at not                    Deposits at notice - subledger
LB                    BNK     Loans                           Bank loans
LP                    PSK     Loans                           Personal loans
M1                    MMF     Purch.Req.                    Purchase requisition
M2                    MMF     Pur. Order                     Purchase order
M3                    MMF     SchedAgree      Scheduling agreement
ME                   BNK     Rents                            Rent received
MP                   PSK     Noted itms                    Planning - Noted items
OB                   BNK     TR Bk Crcy                    TR currency option, bank
OP                   PSK     TR SL Crcy                   TR currency option, subledger
RE                    PSK     RealEstate                    Real Estate
RL                    REM     Rent Res.                      Rent Result
RR                    REM     Rents rcvb                    Rents Receivable
S1                    SDF     Order                            Sales Orders
TA                    BNK     Investment                    Deposit/loan mgmt: invest
TB                    BNK     Deps/loans                   Time deposits: banks
TD                    BNK     F-T Dep.                       Fixed-term deposit management
TK                    BNK     Borrowing                     Deposit/loan mgmt: borrow
TP                    PSK     Deps/loans                   Time deposits: subledger
WB                   BNK     Securities                      Bank securities
WP                   BNK     Sec rev                         Security revenue
XA                    PSK     Block ID A                    Blocked for payment
XR                    PSK     Block ID R                    Invoice verification
XX                    PSK     Block ID X                    Block indicator X
ZB                    BNK     All fields                       All fields of bank records
ZP                    PSK     All fields                       All fields, subledger records
Procedure
1.     Access the activity using one of the following navigation options:
IMG Menu
Financial Supply Chain Management ® Cash and Liquidity Management ® Cash Management ® Master Data ® G/L Accounts ® Define Planning Levels
Transaction Code
SPRO
2.     On the Change View “Planning levels”: Overview screen, make the following entries:
Level
SC
(+/- Sign Control)
Source
Short Text
Planning Level Long Text
YP

BNK
Paym.Req.
Payment Request
3.     Save your entries.

3.2   Groupings for Cash Position and Liquidity Forecast

Use
The cash position gives you an overview of daily cash inflow and outflow. As the bank accounts are grouped according to their temporal proximity to the date of the cash flow, you can plan short-term liquidity.
You can use the liquidity forecast to identify the medium-term cash inflows and outflows generated by the posted debit-side and credit-side invoices.

In the next steps, you make settings that affect the way the cash position is displayed.
You define the groups and specify the main headings and line headings. You also define the grouping structures that group together particular bank and/or subledger accounts in the cash position or the liquidity forecast display.
 
The bank account groupings contain the G/L account numbers of the bank accounts. These settings are dependent on the company’s house banks and must therefore be adjusted to suit the company.
The following groupings are defined:
Total Display
The YTOTAL grouping includes ALL G/L- and vendor/customer accounts.
Customer/Vendor and Clearing Accounts
The YCUST-VEND grouping includes all customer and vendor accounts. This grouping provides an overview of all incoming and outgoing payments.
In addition to the subledger accounts, the following bank subaccounts are included in the analysis:
  • Bill of Exchange Contingent Liabilities (WECHSELDIS)
·         Customer Incoming Payments (VKGELDEING)
The YCUST-VEND grouping selects all levels except the level FK - Advance Payments (Offsetting Entry).
Bank Accounts
The YBANKS-STAT grouping includes all the house banks’ main bank accounts (local currency and foreign currency). This grouping provides an overview of the actual bank account balances.
Bank subaccounts are not considered in the grouping.
Available Bank Accounts
The YBANKS grouping displays the house bank accounts. It provides an overview of the bank account balances, in which all the accounts for one bank are grouped together under one summarization term. So this grouping includes all relevant accounts for identifying the cash positions.
Main and subaccounts are considered. The following accounts are not considered:
Ø  ++++07       Bill of Exchange Contingent Liabilities
Ø  ++++09       Customer Incoming Payments
Ø  ++++13       Fixed Term Deposits
 
A customer pays a sum of 10,000.00 EUR. The incoming payment is posted in the bank statement as follows: 10,000 from bank account to “Customer Incoming Payments” subaccount. If you then summarize the balances from the bank account and bank subaccount, the incoming payment is not displayed in the status analysis.
Groupings per house bank
There is an individual grouping for each house bank, which provides an overview of the balances of all the bank accounts that are kept for the particular house bank. Accounts do not have to be summarized per bank in this case, which means that the system generates a row for each account in the status analysis.
The following groupings are set up:
1.     YBANK-DB
2.     YBANK-DR
Grouping for Cash Concentration
A separate YCASHCONC grouping for cash concentration comprises all the main bank accounts that are managed in a local currency and that are to be included in the cash concentration process. In addition to the bank accounts, the bank subaccounts managed as treasury clearing accounts are also relevant for cash concentration. The bank subaccount balances are cumulated with the bank account balances in cash concentration.
Cash concentration does not take place between bank accounts with different currencies.
The following levels are selected during the cash concentration process:
·         Confirmed payment advices (AB)
·         Payment advices that are created when the concentration proposal is created (CL)
·         Interim postings; in particular interim postings to the TR clearing account that are generated in cash concentration (B5)
·         Postings to bank accounts as well as incoming and outgoing payments to subledger accounts (F+)
Prerequisites
The chart of accounts YIKR has been set up with the relevant bank and bank subaccounts. Other prerequisites are listed for the individual activities.

3.2.1  Define Cash Management Account Name

Use
In this step, you assign a mnemonic name as the cash management account name to each bank account and bank clearing account. 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.
Prerequisites
Make sure that the bank accounts are defined in the chart of accounts and the company code. In the case of a genuine bank account, you have to define a bank ID and an account ID, as well as have defined the external bank account number.
Procedure
1.     Access the activity using the following navigation option:
IMG Menu
Financial Supply Chain Management ® Cash and Liquidity Management ® Cash Management ® Structuring ® Define Cash Management Account Name
Transaction Code
SPRO
2.     In the Determine Work Area: Entry dialog box, enter Company Code 1000 and choose Continue (Enter).
3.     On the Change View “Cash Management: Account Names”: Overview screen, choose New Entries.
4.     On the New Entries: Overview of Added Entries” screen, make the following entries:
CM Acct
G/L Acct
Bank Account
CMF
Description
DB-EUR-BNK
280000
1133698

DEUBA EUR account
DB-EUR-CHI
280008


DEUBA incoming checks
DB-EUR-CHO
280001


DEUBA outgoing checks
DB-EUR-DEB
280004


DEUBA bank collection
DB-EUR-DIS
280007


DEUBA BoE contingent liability
DB-EUR-INC
280009


DEUBA cust. incoming payment
DB-EUR-OTH
280005


DEUBA other interim posting
DB-EUR-PRM
280006


DEUBA promissory BoE liability
DB-EUR-TRD
280002


DEUBA bank transfer domestic
DB-EUR-TRF
280003


DEUBA bank transfer foreign
DB-USD-BNK
280050
5689500

DEUBA USD account
DB-USD-CHI
280058


DEUBA incoming checks
DB-USD-CHO
280051


DEUBA outgoing checks
DB-USD-DEB
280054


DEUBA bank collection
DB-USD-DIS
280057


DEUBA BoE contingent liability
DB-USD-INC
280059


DEUBA cust. incoming payment
DB-USD-OTH
280055


DEUBA other interim posting
DB-USD-PRM
280056


DEUBA promissory BoE liability
DB-USD-TRD
280052


DEUBA bank transfer domestic
DB-USD-TRF
280053


DEUBA bank transfer foreign
DR-EUR-BNK
281000
2580061

DREBA EUR account
DR-EUR-CHI
281008


DREBA incoming checks
DR-EUR-CHO
281001


DREBA outgoing checks
DR-EUR-DEB
281004


DREBA bank collection
DR-EUR-DIS
281007


DREBA BoE contingent liability
DR-EUR-INC
281009


DREBA cust. incoming payment
DR-EUR-OTH
281005


DREBA other interim posting
DR-EUR-PRM
281006


DREBA promissory BoE liability
DR-EUR-TRD
281002


DREBA bank transfer domestic
DR-EUR-TRF
281003


DREBA bank transfer foreign
5.     Save your entries.



3.2.2  Define Groupings and Maintain Headers 

Use
In the next steps, you make settings that affect the way the cash position is displayed.
Procedure
1.     Access the activity using the following navigation option:
IMG Menu
Financial Supply Chain Management ® Cash and Liquidity Management ® Cash Management ® Structuring ® Groupings ® Define Groupings and Maintain Headers
Transaction Code
SPRO
2.     On the Change View “Cash Management: Groupings and Their Headers”: Overview screen, choose New Entries.
3.     On the New Entries: Overview of Added Entries” screen, make the following entries:
Field Name
Description
User Actions and Values
Comment
Grouping

YTOTAL

Heading

Total Display - bank accounts and subledger accounts

Line Heading

Total


Field Name
Description
User Actions and Values
Comment
Grouping

YCUST-VEND

Heading

Customers/Vendors and clearing accounts

Line Heading

Subledger Accts


Field Name
Description
User Actions and Values
Comment
Grouping

YBANKS

Heading

Bank Accounts - including bank cl. accounts

Line Heading

Bank Accounts


Field Name
Description
User Actions and Values
Comment
Grouping

YBANKS-ST

Heading

Status of all available bank accounts

Line Heading

Bank Accounts


Field Name
Description
User Actions and Values
Comment
Grouping

YBANK-DB

Heading

Bank Accounts – Deutsche Bank

Line Heading

Deutsche Bank


Field Name
Description
User Actions and Values
Comment
Grouping

YBANK-DR

Heading

Bank Accounts - Dresdner Bank

Line Heading

Dresdner Bank


Field Name
Description
User Actions and Values
Comment
Grouping

YCASHCONC

Heading

Cash Concentration

Line Heading

Cash Concentrtn


Field Name
Description
User Actions and Values
Comment
Grouping

YALL

Heading

Total Display - subledger accounts

Line Heading

Subledger Accts

4.     Save your entries.

3.2.3  Maintain Structure

Procedure
1.     Access the activity using one of the following navigation options:
IMG Menu
Financial Supply Chain Management ® Cash and Liquidity Management ® Cash Management ® Structuring ® Groupings ® Maintain Structure
Transaction Code
SPRO
2.     On the Change View “Cash Management: Grouping Structure”: Overview screen, choose New Entries (F5).
3.     On the New Entries: Overview of Added Entries” screen, make the following entries:
Grouping
T
Selection
CoCd
ChAc
Exclude
Sum. Term
Summ. Acct
SCOCD
YTOTAL
E
++



**


YTOTAL
G
++



PERSONS


YTOTAL
G
++++++++++



BANKS



Grouping
Ty.
Selection
CoCd
ChAc
Exclude
Sum. term
Summ. Acct
SCOCD
YCUST-VEND
E
++



**


YCUST-VEND
E
FK


X
         


YCUST-VEND
G
0000280007

YIKR

WECHSELDIS


YCUST-VEND
G
0000280009

YIKR

VKGELDEING


YCUST-VEND
G
0000280057

YIKR

WECHSELDIS


YCUST-VEND
G
0000280059

YIKR

VKGELDEING


YCUST-VEND
G
0000281007

YIKR

WECHSELDIS


YCUST-VEND
G
0000281009

YIKR

VKGELDEING


YCUST-VEND
G
A+



AUSGABEN


YCUST-VEND
G
E+



EINNAHMEN



Grouping
T
Selection
CoCd
ChAc
Exclude
Sum. Term
Summ. Acct
SCOCD
YBANKS
E
++



**


YBANKS
G
0000280000

YIKR

DEUBA


YBANKS
G
0000280001

YIKR

DEUBA


YBANKS
G
0000280002

YIKR

DEUBA


YBANKS
G
0000280003

YIKR

DEUBA


YBANKS
G
0000280004

YIKR

DEUBA


YBANKS
G
0000280005

YIKR

DEUBA


YBANKS
G
0000280006

YIKR

DEUBA


YBANKS
G
0000280007

YIKR

DEUBA


YBANKS
G
0000280008

YIKR

DEUBA


YBANKS
G
0000280009

YIKR

DEUBA


YBANKS
G
0000280010

YIKR

DEUBA


YBANKS
G
0000280011

YIKR

DEUBA


YBANKS
G
0000280012

YIKR

DEUBA


YBANKS
G
0000280013

YIKR

DEUBA


YBANKS
G
0000280014

YIKR

DEUBA


YBANKS
G
0000280015

YIKR

DEUBA


YBANKS
G
0000280050

YIKR

DEUBA


YBANKS
G
0000280051

YIKR

DEUBA


YBANKS
G
0000280052

YIKR

DEUBA


YBANKS
G
0000280053

YIKR

DEUBA


YBANKS
G
0000280054

YIKR

DEUBA


YBANKS
G
0000280055

YIKR

DEUBA


YBANKS
G
0000280056

YIKR

DEUBA


YBANKS
G
0000280057

YIKR

DEUBA


YBANKS
G
0000280058

YIKR

DEUBA


YBANKS
G
0000280059

YIKR

DEUBA


YBANKS
G
0000281000

YIKR

DREBA


YBANKS
G
0000281001

YIKR

DREBA


YBANKS
G
0000281002

YIKR

DREBA


YBANKS
G
0000281003

YIKR

DREBA


YBANKS
G
0000281004

YIKR

DREBA


YBANKS
G
0000281005

YIKR

DREBA


YBANKS
G
0000281006

YIKR

DREBA


YBANKS
G
0000281007

YIKR

DREBA


YBANKS
G
0000281008

YIKR

DREBA


YBANKS
G
0000281009

YIKR

DREBA


YBANKS
G
0000281010

YIKR

DREBA


YBANKS
G
0000281011

YIKR

DREBA


YBANKS
G
0000281012

YIKR

DREBA


YBANKS
G
0000281013

YIKR

DREBA


YBANKS
G
0000281014

YIKR

DREBA


YBANKS
G
0000281015

YIKR

DREBA



Grouping
T
Selection
CoCd
ChAc
Exclude
Sum. Term
Summ. Acct
SCOCD
YBANKS-ST
E
++



**


YBANKS-ST
G
0000280000

YIKR

DEUBA


YBANKS-ST
G
0000280050

YIKR

DEUBA


YBANKS-ST
G
0000281000

YIKR

DREBA



Grouping
T
Selection
CoCd
ChAc
Exclude
Sum. Term
Summ. Acct
SCOCD
YBANK-DB
E
++



**


YBANK-DB
G
00002800++

YIKR




YBANK-DB
G
0000280007

YIKR
X



YBANK-DB
G
0000280009

YIKR
X



YBANK-DB
G
0000280013

YIKR
X



YBANK-DB
G
0000280057

YIKR
X



YBANK-DB
G
0000280059

YIKR
X




Grouping
T
Selection
CoCd
ChAc
Exclude
Sum. Term
Summ. Acct
SCOCD
YBANK-DR
E
++



**


YBANK-DR
G
00002810++

YIKR




YBANK-DR
G
0000281007

YIKR
X



YBANK-DR
G
0000281009

YIKR
X



YBANK-DR
G
0000281013

YIKR
X




Grouping
T
Selection
CoCd
ChAc
Sum. Term
Summ. Acct
SCOCD
YCASHCONC
E
AB


**


YCASHCONC
E
B+


**


YCASHCONC
E
CL


**


YCASHCONC
E
F+


**


YCASHCONC
G
0000280000

YIKR
DEUBA


YCASHCONC
G
0000280001

YIKR
DEUBA
0000280000

YCASHCONC
G
0000280002

YIKR
DEUBA
0000280000

YCASHCONC
G
0000280003

YIKR
DEUBA
0000280000

YCASHCONC
G
0000280004

YIKR
DEUBA
0000280000

YCASHCONC
G
0000280005

YIKR
DEUBA
0000280000

YCASHCONC
G
0000280007

YIKR
DEUBA
0000280000

YCASHCONC
G
0000280008

YIKR
DEUBA
0000280000

YCASHCONC
G
0000281000

YIKR
DREBA


YCASHCONC
G
0000281001

YIKR
DREBA
0000281000

YCASHCONC
G
0000281002

YIKR
DREBA
0000281000

YCASHCONC
G
0000281003

YIKR
DREBA
0000281000

YCASHCONC
G
0000281004

YIKR
DREBA
0000281000

YCASHCONC
G
0000281005

YIKR
DREBA
0000281000

YCASHCONC
G
0000281007

YIKR
DREBA
0000281000

YCASHCONC
G
0000281008

YIKR
DREBA
0000281000


Grouping
T
Selection
CoCd
ChAc
Exclude
Sum. Term
Summ. Acct
SCOCD
YALL
E
++



**


YALL
G
A1



Domestic


YALL
G
A2



Foreign


YALL
G
A3



V-affil


YALL
G
A4



Major ven


YALL
G
A5



HR


YALL
G
A6



Taxes


YALL
G
E1



Receipts


YALL
G
E2



Domestic


YALL
G
E3



Foreign


YALL
G
E4



C-affil


YALL
G
E5



High risk


YALL
G
E6



Major


YALL
G
E7



Rent (A/R)


YALL
G
E8



Redemption


4.     Save your entries.

3.2.4  Define Levels in Payment Requests

Use
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.
Procedure
1.     Access the activity using one of the following navigation options:
IMG Menu
Financial Supply Chain Management ® Cash and Liquidity Management ® Cash Management ® Structuring ® Define Levels in payment requests
Transaction Code
spro
2.     On the Change View “Payment Requests Levels”: Overview screen, choose New Entries (F5).
3.     On the New Entries: Overview of Added Entries” screen, make the following entry:
Level
Cty
PM
PR Level
F0


YP
4.     Save your entry.

3.3   Manual Planning

Use
Manual planning involves manually creating payment advices or planned items. Different planning types are defined in order to make a distinction between payment advices and planned items. A separate number range is also required.
Prerequisites
Other prerequisites are listed for the individual activities.



3.3.1          Define Number Ranges: Cash Management (Payment Advices)

Use
A separate number range is required for posting plan line items.
Prerequisites
The company code has to be created.
Procedure
1.     Access the activity using one of the following navigation options:
IMG Menu
Financial Supply Chain Management ® Cash and Liquidity Management ® Cash Management ® Structuring ® Manual Planning ® Define Number Ranges
Transaction Code
OT20
2.     On the Cash Management and Forecast Number Ranges screen enter 1000 in the Company Code field.
3.     Choose Change Intervals.
4.     On the Maintain Number Range Intervals screen choose Insert interval.
5.     In the Insert Interval dialog box make the following entries:
Field Name
Short Text
User Actions and Values
Comment
No
Number range number
01

From number
Number Range Number
0900000000

To number

0999999999

Ext.
Internal (‘ ’) or External (‘X’) Number Range Flag
<space>

6.     Choose Insert (Enter).
7.     Choose Save.
8.     Confirm the dialogue box Transport number range intervals with Continue (Enter).

3.3.2  Planning Types

Use
Different planning types are used to make a distinction between payment advices and planned items.
Prerequisites
The number range and the planning level are defined.
Planning types are already created with standard SAP ERP. The following list provides all planning types which are reused in SAP Best Practices without any change.
Plg.Type           Plg.level           Archcat.            Auto expir.        Number mg                   Planning Type Text
AB                                AB                                A                                                                      01                                             Confirmed advices
AU                                AU                                A                                                                      01                                             Unconfirmed advices
CL                                CL                                A                                              X                      01                                             Cash concentration
DE                               DE                               A                                                                      01                                             Loan revenue
DI                                 DI                                 A                                                                      01                                             General planning
ME                               ME                               A                                                                      01                                             Rent received
MP                               MP                               A                                                                      01                                             Noted items
TA                                TA                                A                                                                      01                                             Funds deposited
TD                                TD                                A                                                                      01                                             Fixed-term deposits
TK                                TK                                A                                                                      01                                             Funds borrowed
WP                               WP                               A                                                                      01                                             Security revenue
ZB                                ZB                                A                                                                      01                                             All bank fields
ZP                                ZP                                A                                                                      01                                             All subledger fields

Procedure
1.     Access the activity using one of the following navigation options:
IMG Menu
Financial Supply Chain Management ® Cash and Liquidity Management ® Cash Management ® Structuring ® Manual Planning ® Define Planning Types
Transaction Code
SPRO
2.     On the Change View “Planning Types”: Overview screen, make the following entries:
Plg Type
Plg level
Arch.cat.
Auto Expir
Number Rng
Planning Type Text





No further entries required
3.     Save your entries if additional planning types are added.

3.4   Production Startup

Use
Most of the Cash Management settings apply to all company codes. In practice, however, it may often be the case that Cash Management is only to be used for certain company codes. To run Cash Management with a minimum of resources and to prevent legacy data when Cash Management is later used, you can activate Cash Management for specific company codes.
Prerequisites
Cash Management must have been configured accordingly.



3.4.1  Prepare Production Startup and Data Setup

Use
This function enables you to post transactions to Cash Management once you have completed the configuration process.
Procedure
1.     Access the activity using one of the following navigation options:
IMG Menu
Financial Accounting (New) ® Financial Accounting Global Settings (New) ® Global Parameters for Company Code ® Enter Global Parameters
Transaction Code
SPRO
2.     On the Change View “Company Code Global Data”: Overview screen, select company code 1000 and choose Details (F2).
3.     On the Change View “Company Code Global Data”: Details screen, make the following entries:
Field Name
Description
User Actions and Values
Comment
Cash Management Activated

X

4.     Save your entries.
Result
Cash Management is activated when you carry out this step. Cash Management-relevant data is now updated when any transactions are carried out and is available for evaluation.

3.5   Cash Concentration

Use
You can use cash concentration to clear liquidity gaps or deficits that arise in day-to-day payments as a result of incoming payments from customers or outgoing payments to vendors across different house banks. This ensures that each house bank account has enough liquidity each day and that any liquidity gaps are collected at a house bank, which enables you to optimize the use of liquidity.
In the following steps, you make the cash concentration settings.
Prerequisites
The basic settings and the cash position or liquidity forecast settings have been made.



3.5.1          Define Intermediate Account, Clearing Accounts, and Amounts

Use
In this step, you specify for each bank account the conditions that have to be met when you carry out the cash concentration process.
Prerequisites
Other prerequisites are listed for the individual steps
Procedure
1.     Access the activity using one of the following navigation options:
IMG Menu
Financial Supply Chain Management ® Cash and Liquidity Management ® Cash Management ® Business Transactions ® Cash Concentration ® Define Intermediate Account, Clearing Accounts, and Amounts
Transaction Code
SPRO
2.     On the Change View “Concentration: Interim Account and Amount Stipulations” screen, make the following entries and save:
Field Name
Description
User Actions and Values
Comment
Company Code

1000

Account
Account
280000

Company Code
Intermediate account: Company Code
<space>
The company code of the bank account
Account
Intermediate account: account
<space>

Planned Balance

1000

Deficit Tolerance



Planning Minimum

1000

Minimum Amount

1000

Minimum Balance

1000

Excess Tolerance

1000


Field Name
Description
User Actions and Values
Comment
Company Code

1000

Account
Account
281000

Company Code
Intermediate account: Company Code
<space>
The company code of the bank account
Account
Intermediate account: account
<space>

Planned Balance

1000

Deficit Tolerance



Planning Minimum

1000

Minimum Amount



Minimum Balance

1000

Excess Tolerance

1000


3.5.2  Define Payment Methods for Payment Requests

Use
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.
This customizing is relevant if several payment methods will be used because of one cash concentration run. This will be necessary in case of cross country transfers.
Since the current scenario is focusing on domestic transfers (payment method U will only be used) this is not relevant and won’t be set up.
Procedure
1.     Access the activity using one of the following navigation options:
IMG Menu
Financial Supply Chain Management ® Cash and Liquidity Management ® Cash Management ® Business Transactions ® Cash Concentration ® Define Payment Methods for Payment Requests
Transaction Code
SPRO
2.     On the Change View “Cash Transfer: Payment Method Determination Payment Reque” screen, choose New Entries (F5).
3.     On the New Entries: Overview of Added Entries screen, make the following entries:
Pay. BA
House Bk
Acct. ID
Rec. BA
House Bk
Currency
IP
Pmt Method
1000
DB
GIRO




U
1000
DRE
GIRO




U
4.     Save your entries.

3.6   Payment Run

3.6.1          Define Clearing Accounts for Receiving Bank for Account Transfer

Use
In this activity you define the offsetting accounts for the receiving bank accounts for bank account transfers (payments between house bank accounts) which should be posted to when payment is made.
The entries are necessary when payment requests are created for cash management payment advice notes that result from cash concentration, for example. The offsetting accounts for the paying house bank are determined by the payment program specifications and the payment methods used. The offsetting accounts for the receiving house bank cannot be determined from these specifications, however, but can be defined in this section.
Prerequisites
The Customizing for the payment run F110 delivered by building block 102 has to be uploaded.
Procedure
1.     Access the activity using one of the following navigation options:
IMG Menu
Financial Accounting (New)  ® Bank Accounting ® Business Transactions ® Payment Transactions ® Payment Request ® Define Clearing Accts for Receiving Bank for Acct. Transfer 
Transaction Code
SPRO
2.     On the Change View “Acct Transfer: Determine Receiving Bank's Clearing Account" screen, choose New Entries (F5).
3.     On the New Entries: Overview of Added Entries screen, make the following entries:
CoCd
House bk
Country
Pmt Method
Currency
Account ID
Clrg acct
1000
DB
DE
U
EUR
GIRO
280005
1000
DRE
DE
U
EUR
GIRO
281005
4.     Save your entries.

3.6.2  Define Global Settings

Use
In this activity you define the account types for which payments should be made for the payment program for payment requests.
You can configure the payment program to settle payment requests for customers, vendors and bank accounts (G/L accounts).
You also specify whether the payment data should be distributed to other systems using ALE. It only makes sense to do so if the general ledger accounting is in a central system and if the payment transactions are to be carried out in the central system.
Due to the problem documented in note 507601, the default settings will be enlarged with the interval for customers and vendors.
Procedure
1.     Access the activity using one of the following navigation options:
IMG Menu
Financial Accounting (New) ® Bank Accounting ® Business Transactions ® Payment Transactions ® Payment Handling ® Define Global Settings
Transaction Code
SPRO



2.     On the Change View “Global Settings: Payment Program for Payment Requests": D  screen, make the following entries:
Field Name
Description
User Actions and Values
Comment
Origin


Indicator: Selection by Origin Indicator
Vendor accounts


Indicator: Selection by Vendor Account
Customer accounts

X
Indicator: Selection by Customer Account
G/L accounts

X
Indicator: Selection by G/L Account
Created on


Indicator: Selection by Date of Entry
ALE active


ALE Distribution Active
3.     Save your entries.

3.6.3  Enter Origin Indicators

Use
In this activity, you enter the settings for the origin indicator. In doing so, you specify (per origin), for payment transactions based on payment requests, whether:
·         The payment program should check available amounts
·         The account determination of the application is used, or that of the payment program
·         Existing attributes of an origin are to be used for combining payment requests from different origins
 This table is cross client. Be cautious with changes. The following settings are delivered by standard SAP ERP. SAP Best Practices does not change these settings. Please check the entries for completeness.


Prerequisites
The origins, from which payment requests can be combined, have to be assigned to each other. You do this in Customizing for Bank Accounting in the activity Assign Origin to Combination of Payments.
Procedure
1.     Access the activity using one of the following navigation options:
IMG Menu
Financial Accounting (New) ® Bank Accounting ® Business Transactions ® Payment Transactions ® Payment Handling ® Enter Origin Indicators
Transaction Code
SPRO
2.     On the Change View: “Origin settings”: Overview screen, make the following entries:
Field Name
Description
User Actions and Values
Comment
Origin

TR-CM-BT
Origin indicator
Available amts

X
Available amounts not active
Account determ.

X
Use account from application
Grouping



No exchange rate differences


Do not post any exchange rate differences
3.     Save your entries.

3.6.4  Define Account Determination

Use
In this activity you can define the bank sub-accounts to be posted to in the general ledger for payment transactions with bank accounts. The accounts are specified by house bank account, payment method and currency. If a currency is not specified, the account applies to all currencies.
This account determination is only used when payment transactions are made between bank accounts. If the bank sub-account is directly specified in the payment request, this entry overrides the account determination.
Because the bank sub-account is always specified for transactions in Treasury Management, this table must be maintained mainly for the use of cash management and forecast (bank account transfers, cash concentration).
Prerequisites
The bank sub-accounts must be created for the company code and be fully maintained.
Tables T042I (configuration of F110 payment programs) and T042Y (configuration of F111 payment programs) must be consistent. The consistency of the entire table is checked; not only at company-code level. See SAP Note 481197.
Procedure
1.     Access the activity using one of the following navigation options:
IMG Menu
Financial Accounting (New) ® Bank Accounting ® Business Transactions ® Payment Transactions ® Payment Handling ® Bank clearing Account Determination ® Define Account Determination
Transaction Code
SPRO
2.     In the Determine Work Area: Entry dialog box, enter 1000 as the Paying company code and choose Continue (Enter).
3.     On the Change View “Account determination for G/L Account Payments”: Overview screen, select New Entries (F5).
4.     On the New Entries: Overview of Added Entries screen, make the following entries, and then choose Save.
House Bk
PM
Crcy
Acct ID
Bank Subacct
DB
U

GIRO
280002
DRE
U

GIRO
281002

3.7   Creating/Changing Master Data


3.7.1  Master Data: Planning Levels in G/L Accounts

Use
Only the G/L accounts are used in the Cash Management building block. The planning level is to be assigned to the bank master data accounts.
 
This step is added to complete the documentation of settings required for cash management. The assignments have already been carried out in the External Financial Accounting (102) building block. If building block 102 is already activated in your client, you do not need to execute the following steps.
Procedure
1.     Access the activity using one of the following navigation options:
SAP Menu
Accounting ® Financial Accounting ® General Ledger ® Master Records ® G/L Accounts ® Individual Processing ® Centrally
Transaction Code
FS00
2.     On the Edit G/L Account Centrally screen, enter G/L Account (see table below) and company code 1000.
3.     Choose Change.
4.     On the Create/Bank/Interest tab page, add the planning level to the following accounts:
G/L Account No.
Name of Account
Planning Level
280000
Deutsche Bank (Domestic)
F0
280001
Deutsche Bank (Checks Payable)
B1
280002
Deutsche Bank (Bank Transfer Domestic)
B2
280003
Deutsche Bank (Bank Transfer Foreign)
B3
280004
Deutsche Bank (Autom. Debit)
B4
280005
Deutsche Bank (Other Interim Postings)
B5
280006
Deutsche Bank (Promiss BoE Liabil.)
B6
280007
Deutsche Bank (BoE Contingent Liabil.)
B7
280008
Deutsche Bank (Checks Received)
B8
280009
Deutsche Bank (Cust. Incoming Paymnt)
B9
280011
Deutsche Bank (Current BoE Payable)
B7
280012
Deutsche Bank (BoE Collection)
B7
280013
Deutsche Bank (Fixed-Term Deposits)
B9
280014
Deutsche Bank (Cash Disbursement)
B5
280015
Deutsche Bank (Cash Receipt)
B5
280050
Deutsche Bank - USD Account
F0
280051
Deutsche Bank - USD (Checks Payable)
B1
280052
Deutsche Bank - USD (Bank Transfer Domestic)
B2
280053
Deutsche Bank - USD (Bank Transfer Foreign)
B3
280054
Deutsche Bank - USD (Autom. Debit)
B4
280055
Deutsche Bank - USD (Other Interim Postings)
B5
280056
Deutsche Bank - USD (Promiss. BoE Liabil.)
B6
280057
Deutsche Bank - USD (BoE Contingent Liabil.)
B7
280058
Deutsche Bank - USD (Checks Received)
B8
280059
Deutsche Bank - USD (Cust. Incoming Paymnt)
B9
281000
Dresdner Bank (Domestic)
F0
281001
Dresdner Bank (Checks Payable)
B1
281002
Dresdner Bank (Bank Transfer Domestic)
B2
281003
Dresdner Bank (Bank Transfer Foreign)
B3
281004
Dresdner Bank (Autom. Debit)
B4
281005
Dresdner Bank (Other Interim Postings)
B5
281006
Dresdner Bank (Promiss. BoE Liabil.)
B6
281007
Dresdner Bank (BoE Contingent Liabil.)
B7
281008
Dresdner Bank (Checks Received)
B8
281009
Dresdner Bank (Cust. Incoming Paymnt)
B9
281011
Dresdner Bank (Current BoE Payable)
B7
281012
Dresdner Bank (BoE Collection)
B7
281013
Dresdner Bank (Fixed-Term Deposits)
B9
281014
Dresdner Bank (Cash Disbursement)
B5
281015
Dresdner Bank (Cash Receipt)
B5
288000
Cash Account
F0
289100
Cash Freight
F0