SAP Cash Management is a key subcomponent of SAP Financial Supply Chain Management (FSCM). It enables organisations to monitor payment flows and safeguard liquidity, in order to meet payment commitments.

Cash Management includes the following functionality:
Incomings

• Supports electronic and manual bank statement reconciliation, various electronic bank statement formats; and optimises data processing procedures e.g. importing, processing, and posting.
• Manages payments of cashed cheques and returned bills of exchange.
• Processes lockbox services (offered by banks in the United States). A lockbox handles the receipt and processing of incoming cheque payments. When payments are received, the bank creates a data file from the payment advice data and the customer payment amounts.
• Illustrate how electronic and manual cheque deposits are processed.
• Short term financing through bills of exchange. A customer pays an invoice using a bill of exchange transaction and is able to extend their payment period (for example, by three months). This bill of exchange can then be discounted (transferred to another party).
• Process memos records by explaining how to create and edit payment advices and how to display a list of all payment advices entered, changed, archived, or reactivated on a particular day.

Checks
The functionality compares payment advices, calculates interest deals with the functions for returned vendor cheques and checking incoming payment documents.

Financial Planning
In cash concentration, balances from various bank accounts are concentrated to one target account. The system generates a proposal for concentrating cash based on a grouping and prints the outcome of the cash concentration in the form of payment orders to banks. It also creates payment advices.

Tools
Data distribution to cash management systems is handled by specific functionality within the system.

Information System
The information system provides liquidity forecast & cash-flow forecasting. You can use this to obtain information about customer and vendor cash flows. The structure of the cash position and business transactions that affect the cash position are also described here. SAP Cash Management uses the cash position to reflect movements in bank accounts, while movements in the subledger accounts are represented using the liquidity forecast.

Approach
Stage 1 – Requirements Development
We will work closely with key decision makers in your organisation to determine requirements and then prepare a fully costed estimate.

Stage 2 – Configuration & Development
Our developers will apply changes and unit test within your development systems. The development is then applied to your quality assurance systems.

Stage 3 – Testing
Your organisation will be heavily involved in testing the development to ensure that the changes have the desired effect. We will support you through this phase.

Stage 4 – Data Management
As a minimum requirement HR mini master records will need to be developed. We will support you through this phase.

Stage 5 – Go-Live
Changes will be applied to your organisation’s production system in line with the agreement and expectations.

Key benefits

• Cost - Processing is more efficient reducing internal costs. Cash visibility provides greater control reducing borrowing and transaction costs.
• Time - Efficient communication with banks improves processing time. Realtime data provides immediate cash position at any time.
• Data Accuracy - Efficient data capture and validation streamlines information for better decisions and improved liqudity management.
• Control - Integrated cash flow information improves financial and mangerial reporting, supporting centralised and decentralised treasure information.