cash and liquidity management

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Cash and Liquidity ManagementScenario Overview

Processing Payables and Payments

Managing Petty Cash

Processing Receivables and Payments

Dunning Managing Cash

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Accounts Payable Accountant

Scenario Description

The following business roles are involved in this scenario:

Accounts Receivable Accountant

The Cash and Liquidity Management business scenario enables financial professionals at midsize companies to quickly and efficiently meet cash flow deadlines and achieve better transparency in managing the company's liquidity position. It comprises cash flow information from payables and receivables and tax, as well as payment and liquidity management, and streamlines your daily cash management cycle by automatically collecting and aggregating this information. This scenario covers the cash flow management cycle from the actual liquidity snapshot to forecasting, and analyzes steps through to optimized cash flow from money transfers or other cash flow impacting strategies.

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Procure-to-Pay Scenarios(Stock/Non-Stock/Services)Expense and Reimbursement Management

Financial Closing

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Field Service and Repair

Order-to-Cash Scenarios (Sell-from-Stock/Standardized Services/Project-Based Services)

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Cash and Liquidity ManagementScenario Overview

Open Legend

Accounts Payable Accountant

Scenario Description

The following business roles are involved in this scenario:

Accounts Receivable Accountant

The Cash and Liquidity Management business scenario enables financial professionals at midsize companies to quickly and efficiently meet cash flow deadlines and achieve better transparency in managing the company's liquidity position. It comprises cash flow information from payables and receivables and tax, as well as payment and liquidity management, and streamlines your daily cash management cycle by automatically collecting and aggregating this information. This scenario covers the cash flow management cycle from the actual liquidity snapshot to forecasting, and analyzes steps through to optimized cash flow from money transfers or other cash flow impacting strategies.


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<Role Name><Role Name> <Role Name>

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Process mainly driven by the user

Process mainly driven by the system

Manual process not supported by the system

Process that communicates with third-party software (mouse-over for details)

Process with relevance to Financials

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Managing Petty Cash



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Procure-to-Pay Scenarios(Stock/Non-Stock/Services)Expense and Reimbursement Management

Financial Closing

Customer Returns


Order-to-Cash Scenarios (Sell-from-Stock/Standardized Services/Project-Based Services)

Customer Returns

Scenario/Processes

Business Value

Scenario Flow

Further Information


Cash and Liquidity ManagementProcess Details: Processing Payables and Payments

Center chevron for main processes



Process a bank statement

Allocate a payment

Clear a payment

Click here to display process variants

X

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Process DescriptionThe Processing Payables and Payments business process enables the processing of outgoing payments initiated either internally by your company or externally by your suppliers.

Payments can be made manually or automatically via a payment run in which the system proposes the open items for payment. You then release the payments and the system posts them to accounting. You create the payment medium, either manually or as part of an automatic run. The standard work center provides checks, outgoing bank transfers, credit memos, as well as other country-specific payment methods. Once the payments have been debited from the bank account, the bank statement is entered in the system, in which it is uploaded electronically or entered manually, before being confirmed. If payments are initiated externally, the bank statement provides the notification that a payment has been made. The payments are matched in the system to the open invoices before being cleared.

Managing Petty Cash



Performed byAccounts Payable Accountant

In the Work CentersPayablesPayment ManagementLiquidity Management

Further Information

See alsoPayment Allocation Quick GuideAllocate a Payment Manually

http://help.sap.com/saphelp_byd1508/en/ktp/Software-Components/01200615320100003379/WEKTRA_for_Work_Centers/FIN/WoCV/PayAlloc/VQG_PayM_View_PaymentAllocation.html


http://help.sap.com/saphelp_byd1508/en/ktp/Software-Components/01200615320100003379/WEKTRA_for_Work_Centers/FIN/WoCV/PayAlloc/HTO_OIF_PerfManualPayAllo.html


Cash and Liquidity ManagementProcess Details: Processing Payables and Payments


Processing Payments Automatically Processing Payments Manually with Bills of Exchange Processing Payments Manually with Open Item Clearing Processing Payments with Petty Cash

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Further Information

The Processing Payables and Payments business process enables the processing of outgoing payments initiated either internally by your company or externally by your suppliers.

Payments can be made manually or automatically via a payment run in which the system proposes the open items for payment. You then release the payments and the system posts them to accounting. You create the payment medium, either manually or as part of an automatic run. The standard work center provides checks, outgoing bank transfers, credit memos, as well as other country-specific payment methods. Once the payments have been debited from the bank account, the bank statement is entered in the system, in which it is uploaded electronically or entered manually, before being confirmed. If payments are initiated externally, the bank statement provides the notification that a payment has been made. The payments are matched in the system to the open invoices before being cleared.

Process Description

Center chevron for main processes



Allocate a payment

Clear a payment

Click here to hide process variants

i i i

Managing Petty Cash




In the Work CentersPayablesPayment ManagementLiquidity Management


Further Information

X





Cash and Liquidity ManagementProcess Details: Managing Petty Cash

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Managing Petty Cash

X

Create a cash receipt or disbursement

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Process DescriptionThe Managing Petty Cash business process enables your company to enter all incoming and outgoing cash payments in the system. The petty cash fund always needs to contain sufficient cash for outgoing cash payments to be made. For this reason, it is possible to transfer cash between petty cash funds or between bank accounts and petty cash.





In the Work CentersPayment Management

Further Information






Cash and Liquidity ManagementProcess Details: Processing Receivables and Payments

Scenario Explorer



Enter a remittance advice


Allocate a payment

Clear a payment

Click here to display process variants

X

Further InformationPerformed byAccount Receivables Accountant

In the Work CentersReceivablesPayment ManagementLiquidity Management

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See alsoPayment Allocation and Clearing

Process DescriptionThe Processing Receivables and Payments business process enables the processing of incoming payments, initiated either internally by your company or externally by your customers. The process uses country-specific payment methods.

Payments can be made manually, or automatically via a payment run in which the system proposes open items for payment. You then release the payments and the system posts them to accounting. You create the payment medium, either manually or as part of an automatic run, using files for direct debit or credit card payments. It is also possible to upload credit card statements to pre-confirm payments. When the payments are credited to the company's bank account, the bank statement is entered in the system, either uploaded electronically or entered manually, before being confirmed. If payments are initiated externally by the customer, the bank statement provides notification of payment. The payments are matched in the system to the open invoices before being cleared.

Scenario/Processes

Business Value

Scenario Flow

Further Information


Managing Petty Cash Dunning Managing

Cash

http://help.sap.com/saphelp_byd1508/en/ktp/Software-Components/01200615320100003379/WEKTRA_for_Work_Centers/FIN/Ess/ESS_X/ESS_Con_PayAllocClear.html




Cash and Liquidity ManagementProcess Details: Processing Receivables and Payments

Scenario Explorer


The Processing Receivables and Payments business process enables the processing of incoming payments, initiated either internally by your company or externally by your customers. The process uses country-specific payment methods.

Payments can be made manually, or automatically via a payment run in which the system proposes open items for payment. You then release the payments and the system posts them to accounting. You create the payment medium, either manually or as part of an automatic run, using files for direct debit or credit card payments. It is also possible to upload credit card statements to pre-confirm payments. When the payments are credited to the company's bank account, the bank statement is entered in the system, either uploaded electronically or entered manually, before being confirmed. If payments are initiated externally by the customer, the bank statement provides notification of payment. The payments are matched in the system to the open invoices before being cleared.

Further Information

See alsoQuick Guide for Payment AllocationInternally Initiated Manual Outgoing Payments

Process Description

Processing Externally-Initiated Payments by Incoming Check Processing Externally-Initiated Payments by Incoming Check with Lockbox Processing Externally-Initiated Payments by Multiple Incoming Checks Processing Incoming Payments by Bill of Exchange Processing Incoming Payments with Petty Cash Processing Internally-Initiated Payments by Credit Card Processing Internally-Initiated Payments by Direct Debit

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Scenario/Processes

Business Value

Scenario Flow

Further Information


Enter a remittance advice


Allocate a payment

Clear a payment

Click here to hide process variants

i i i i


Managing Petty Cash Dunning Managing

Cash

Performed byAccount Receivables Accountant


X




http://help.sap.com/saphelp_byd1508/en/ktp/Software-Components/01200615320100003379/WEKTRA_for_Work_Centers/FIN/Ess/ESS_PaR/ESS_PRO_ManOutPaySelf.html




Dunning

Cash and Liquidity ManagementProcess Details: Dunning

Scenario Explorer

Create a dunning proposal

Process a dunning proposal

Release a dunning proposal

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Process DescriptionThe Dunning business process covers the automatic creation of dunning proposals. Your company can edit and release dunning proposals to send payment reminders or dunning notices to customers for overdue payments.

See alsoCreate a Dunning RunQuick Guide for Dunning Runs

Scenario/Processes

Business Value

Scenario Flow

Further Information


Managing Petty Cash


Managing Cash

Further InformationPerformed byAccount Receivables Accountant


http://help.sap.com/saphelp_byd1508/en/ktp/Software-Components/01200615320100003379/WEKTRA_for_Work_Centers/FIN/WoCV/DunRun/HTO_QAF_DunningRuns.html



http://help.sap.com/saphelp_byd1508/en/ktp/Software-Components/01200615320100003379/WEKTRA_for_Work_Centers/FIN/WoCV/DunRun/VQG_AR_View_DunningRuns.html




Managing Cash

Cash and Liquidity ManagementProcess Details: Managing Cash

Scenario Explorer

Show and analyze cash position

Create a liquidity status

Create planned items

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Create a cash transfer


Allocate a payment

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In the Work CentersLiquidity Management Payment Management

Process DescriptionThe Managing Cash business process allows you to view the status of all payment processes in order to analyze your company's cash balances and determine the cash position in real time. This business process prepares information and creates planned items that are processed as liquidity forecast according to their expected value date. If necessary, your company can transfer funds between bank accounts. It is also possible to transfer funds between bank accounts of different companies in your group.

Performed byAccounts Payable/Accounts Receivable Accountant

X

See alsoMonitoring Payment Allocation ProcessingPayment Monitor Quick Guide

Scenario/Processes

Business Value

Scenario Flow

Further Information


Managing Petty Cash


Dunning

Further Information

http://help.sap.com/saphelp_byd1508/en/ktp/Software-Components/01200615320100003379/WEKTRA_for_Work_Centers/FIN/Ess/ESS_CaL/ESS_CON_CLM_DispPayments.html



http://help.sap.com/saphelp_byd1508/en/ktp/Software-Components/01200615320100003379/WEKTRA_for_Work_Centers/FIN/WoCV/PayMon2/VQG_CaL_View_PaymentMonitor.html




Liquidity Management provides the analytical framework for efficient financial value chain management including tools for bank balance reporting, liquidity monitoring, and optimizing liquidity positions.

Cash managers can easily determine, initiate, and execute required funds transfers to manage liquidity positions in terms of investing excess cash or funding liquidity shortages.

Automated processes for collecting information about account balances and transactions from banks, as well as internal information on collections, disbursements, and other financial activities are spread across different business units within the company.

Built-in analytics and reporting ensure a seamless consolidation of the liquidity information into today’s cash position as well as various forecast worksheets. Analytical tools support a comprehensive liquidity analysis, projecting cash shortages or surpluses for a variety of reporting criteria and timelines.

Collect

Collect bank balances Transaction details

Retrieve collections

Cash and Liquidity Management Business Value

Scenario Explorer

Business Value

Scenario/Processes

Retrieve disbursements

Manage

Transfer funds

Invest / borrow money

Optimize cash flow time lines

Consolidate

Set cash position

Set liquidityforecasts

Analyze

Analyze today’s cash balance

Analyze future cash balance

OverviewFor financial professionals at midsize companies who want to quickly and efficiently meet cash flow deadlines and achieve better transparency to manage the company’s liquidity position, this scenario streamlines the daily cash management cycle.

You can collect and aggregate liquidity information efficiently in a fast, streamlined, and automated fashion.

SAP Business ByDesign helps efficiently manage Liquidity Management: from the actual liquidity snapshot, forecasting, and analyzing steps through to optimized cash flow from money transfers or other cash flow-impacting strategies.

Scenario Flow

Further Information

Key Benefits


Cash and Liquidity ManagementScenario Flow for Variant: Processing Payables and Payments

Variants of the Scenario:



Scenario Explorer

Scenario/Processes

Scenario Flow

Petty Cash

• Automatic Payments• Manual Payment with Open Item

Clearing• Payment by Petty Cash• ….


Expense and Reimbursement Management

Procure-to-Pay Scenarios(Stock/Non-Stock/Services)

Financial Closing

Order-to-Cash (Drop Shipment)

Customer Returns

Managing Cash

PaymentManagemen

tPayables

Payment Managemen

tCash

and Liquidity

Scenario Flow

Business Value

Further Information

Legend & Variants

Work center in which process is performed

Business document flow

Process related to Financials

Related scenarios


• Process variant1

• Process variant 2

Work Center


Cash and Liquidity Management Scenario Flow for Variant: Processing Receivables and Payments

Legend & Variants

Work center in which process is performed

Business document flow

Process related to Financials

Related scenarios

Variants of the Scenario:


• Process variant1

• Process variant 2

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Work Center

• Internally initiated by direct debit • Externally initiated payment by incoming check • Externally initiated payment by incoming bank

transfer• Internally initiated by direct debit • Account maintenance - Standard variant


Order-to-Cash Scenarios (Sell-from-Stock/Standardized Services/ Project-Based Services/Drop Shipment)

Customer Returns

Managing CashProcessing Receivables and Payments

Dunning Petty Cash

PaymentManagemen

t

PaymentManagemen

tReceivables ReceivablesCash

and Liquidity

Processing Payables and Payments Processing Receivables and

Payments

Scenario/Processes

Scenario FlowScenario Flow

Business Value

Further Information


Further Information

Cash and Liquidity ManagementFurther Information

Scenario Explorer

Scenario Flow

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cash and liquidity management

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