sap treasury suite overview -...

Agenda

• SAP Cash & Liquidity Management & Payment overview

• Overview of SAP Cash Management

• Overview of SAP Liquidity Planner

• Overview of SAP In-House-Cash

• Overview of SAP BCM

Take-out from this meeting

The goal is to provide end users with an understanding of

how SAP can support an optimized Cash & Liquidity

management solution by providing an overall-walk through

of the processes and models typically implemented in each

of these modules.

SAP Cash & Liquidity Management overview

Agenda

• SAP Cash & Liquidity Management overview





SAP Cash Management: business processes

Business processes covered in these modules:

• Cash position management

• Manual bank transfers

• Bank statement processing

• Short term liquidity overview

• “Manual forecasting process”

• Input for currency exposure reporting

The cash position report is based on bank balances from SAP FI, SAP Treasury and manual memos

An example of a cash position report is shown below and the groupings in the first two columns are freely definable

The report functionality allows drill down to a more detailed view of where the cash postions originate from

But SAP Cash Management does also provide an overview to base the medium term liquidity management decisions on

SAP CM SAP CM

SAP SD & MM

SAP FI GL

SAP AR & AP

Exp. CFs from SAP SD & MM

Expected CFs from SAP AR & AP

Real and expected CFs from bank and bank clearing accounts

SAP TM

Fin. CFs from SAP TM

SAP CM data can also be extracted into SAP BW for more flexible and advanced reporting

Cash position report

Liquidity forecast report

Extract of CM data

SAP BW Non-SAP

companies?

With the new EHP5, the functionality in SAP CM will be greatly enhanced

The new layout can look like below

The old List report view in SAP CM

Agenda






SAP Liquidity Planner: business processes

Business processes covered in this module:

• Cash flow forecasting on short to long term basis

• Reporting of actual cash flows according to the direct

method

• Cash flow forecasting performance measurement

• Calculation of currency exposures

For most companies the expected short term forecasts provided by the SAP CM module is however not enough…

• The expected short term forecasts from the SAP CM

module is basically only covering the forecast of the PL

down to the gross margin – and only for those invoices

with long pmt terms.

• If a complete short term forecast is needed e.g. a rolling

quarter forecast all the way down to the net result – a

model should instead be implemented in SAP Liquidity

Planner.

With SAP Liquidity Planner (SAP LP) it is possible to enhance the short term forecasting model but also to extend it to a long term forecasting model

Actual Calc.

The LP concept is a forecasting and follow up solution while the CM module is reporting of expected forecasts

The SAP Liquidity Planner concept

• The main task of the Actual calculation module is to identify realised cash flows in the operative systems via the banks accounts

• The main task of BW is to extract data from the operative systems and BI applications and make them available for reporting

• The main task for IP / BPC is to provide a tool for all subsidiaries where cash flow forecasts can be entered, calculated, consolidated and sent back to BW for reporting purposes.

Bank

statement

FI postings

Invoice postings

Storing of cash flows with real liquidity

items

Initial assignment of default liquidity

items

(ingoing /

outgoing /

bank transfer)

Update SAP LI with postings on actual accounts

1)

Assign liq. items using assignment programs

3)

Initial assignment of

default liq. items 2)

Run assignment

program – FI

Run assignment program -

Invoice

Automatic update upon posting to

actual acc. in SAP FI

Reports in BW

SAP LI SAP FI – cash flow basis

Reports in SAP LI.

SAP LI

Report Cash flows (and forecasts

4)

The Actual Calculation module is used for extracting actual CFs from SAP FI into the forecasting model

Automatic update when

bkk statements

are available

In order to follow up on the actual cash flows, standard reports are available in the SAP Actual calc. module

SAP actual calculation standard reports

In order to get the forecasting and performance functionalities, SAP BPC/IP and BW must be set up

Upload of actual CFs from SAP LP

SAP actual calculation

SAP SD & MM

SAP FI GL

SAP AR & AP

SAP BW

BPC

Actual CF reports per liquidity item

Actual vs. forecasted CF reports

Flexible reports on SAP CM data

Actual CFs from bank accounts

Program to deduct liquidity items per actual CF from sublegders

Upload of forecasts to BW

Bex Analyzer

Usage of SAP CM/LP data in entry layouts

Extract of CM data

SAP CM SAP CM Extract of CM data

The SAP BW and BPC reporting platform enables integration of CF forecasts and actuals into the same reporting model

The forecasting model(s) can be build in different ways

1. Rely on expected cash flows from the ERP system(s)

2. Ask end users to manually enter their expectations

3. Use historic data to predict the future

4. A combination of the three above

Decision affects the system design and the dependency to

other processes

SAP has built a starter kit for the SAP LP solution to enable faster implementation of a long term forecasting solution based on short term forecasting data

System Independent Inputs

CAPEX

Sales

HR

PO/AP

SO/AR

Financials

Tran

sacti

on

Data

Forecast

Data

Aggregation in SAP NetWeaver

BW

Analyze/ Remediate/ Aggregate

Data analysis of latest liquidity information

Define calculation

rules

Maintain calculation

rules

Define and Maintain

Calculation Rules

Upload currency rates for future

time frame

Calculate Cash Flows

Calculate cash flow

Run currency translation

Define calculation rules

Report

SAP BusinessObjects Planning and

Consolidation Excel interface

SAP® BusinessObjects

Xcelsius Enterprise dashboards

embedded in SAP BusinessObjects

Planning and Consolidation

Agenda






SAP In-House-Cash: processes


• Internal payments

• Central external payments

• Central in-coming payments

• Cross bank payments

• Local payments

© SAP AG 2009. All rights reserved. / Page

27

The SAP IHC solution is optimizing both internal and external payments via centralization

Internal Bank

Internal

Bank

Region 1

Region 2

Subsidiary

Subsidiary

Subsidiary

USA

Subsidiary

Subsidiary

Asia

Subsidiary

Head office (Europe)


28

Corporate Group

The payment process for internal payments is now becoming a settlement instead of a physical payment

Example: “Subsidiary 1 makes a payment to Subsidiary 2”

Subsidiary 2

Subsidiary 1

Subsidiary 3

1 Pmnt Program OP

2a

2b

Payment Bank Statement

Head Office

In-House Cash Center

Account management

Financial Accounting


29

Corporate Group

External payments are centralized in the IHB and paid out of the Group Treasury disbursement accounts

Example: “Subsidiary 1 makes a payment to an external

partner”

Subsidiary 2

Subsidiary 1

Subsidiary 3

1 Pmnt Program OP

2


Head office house bank

6 7

Partner bank

External business partner

Head Office

In-House Cash Center

Account management

Financial Accounting 3

4 5


30

It is also possible to make “local” payments out of the IHB and hence make use of local subsidiary bank accounts

Example: “A Subsidiary in Germany makes a payment to an

external partner in UK”

Subsidiary Germany

Pmnt Program OP


6 7

3 5

Partner bank External business

partner UK

In-House

Bank Germany

1

4

2

Headquarter

IHC

House bank

Subsidiary UK

of Subsidiary UK

Financial Accounting

Account management


31

The IHC module provides a lot of functionality but does also require some master data setup

Account A

+ 100

- 120

..

..

Limits

G/L Transfer

Subsidiary 1

- 20

+ 50

..

..

Subsidiary 2

+ 100

- 50

..

..

Headquarter IHC

IHC Receiv. IHC Payab.

Pmnt clearing

(1) 200

FI – GL

(2) 540

(2) 540 (1) 200

Blocks

Reporting

Currency conversion

Business partner

Conditions

Turnovers

No Post.dte Curr. Amnt Val.dte

1 30.12.00 31.12.00 EUR 100.00 C

2 31.12.00 31.12.00 EUR 9.58 D

Bank statements

Agenda






SAP Bank Communication Management: business processes


• Collect and batch commercial and financial payments

• Approve, Resubmit and Reject payments in a secure

environment

• Monitor payment status

• Monitor bank statements

SAP Bank communication manager (BCM) optimizes the payment approval, monitoring and communication process

A BCM solution can be setup with and without a payment factory (internal bank)

The BCM module use SWIFT connectivity and an example of a process Flow within the SAP BCM is shown below

© SAP AG 2009. All rights reserved. /

Execute Payment Program

Create Payment Order

Import Bank Statement

Post/Processing and Clearing

SAP Integration Package for SWIFT

SWIFT

Alliance

Access /

Gateway

SAP NetWeaver Process Integration

SAP Bank Communication Management

SAP ERP

Create Batch

Payment Approval Work List

Receive Status Messages

Bank Statement

Routing

Mapping

Security Encryption Digital Signature

Resource Adapter

SWIFTNet

Security

(Approval workflow, Authorization, Digital signature)

QUESTIONS

Lone Kejser Manager, First Treasury +45 61 55 66 95 [email protected]

mailto:[email protected]



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