AC215 - Cash Budget Management PDF

AC215 Cash Budget Management
AC215
R/3 System Release 46D 05.02.2001

AC215 Cash Budget Management
AC215
Cash Budget
Management
 SAP AG 1999
R/3
Release 4.6B
July 2000
5003 9284
Copyright
Copyright 2000 SAP AG. All rights reserved.

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be copied or reproduced in any form or by any means,
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consent of SAP AG. The information contained in this
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All rights reserved.
 SAP AG 1999
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Design: SAP Communications Media
Treasury
Level 2 Level 3
AC815 5 days
Loans Management for
Financial Services
AC816 3 days
AC030 3 days AC810 3 days Loans Management for
Corporates
Basic Functions in
Treasury Overview Treasury Management AC820 4 days
Securities Management
AC825 3 days
Money Market, Foreign
Exchange and Derivatives
AC830 3 days
Market Risk Management
AC805 3 days
AC010 5 days Cash Management
Financial Accounting
and Reporting AC215 1 day
Cash Budget
Management
 SAP AG 1999
Course Prerequisites
Course AC 215 presupposes a knowledge of accounting.
 SAP AG 1999
Target Group
Participants:
Project team
People involved in
organization
Decision makers
Duration: 1 day
 SAP AG 1999
Notes to the user

The training materials are not teach-yourself programs. They complement the course instructor's
explanations. On the sheets, there is space for you to write down additional information.
Introduction
Contents
Course outline
Course objectives
Course content
Overview diagram
Business scenario
Implementation guide (IMG)
 SAP AG 1999
Course Outline
This course will prepare you to:
Work with the Cash Budget Management

application component
 SAP AG 1999
Course Objectives
On completing the course, you will be able to:
Explain how Cash Budget Management functions

Make the settings needed to activate Cash Budget
Management
Maintain master data and transaction data
Enter financial budgets
Navigate in the information system reports
 SAP AG 1999
Course Content
Preface
Unit 1 Introduction Unit 5 Configuration and

Organization
Unit 2 Overview
Unit 6 Planning
Unit 3 Master Data
Unit 7 Bank Transfers
Unit 4 Update and Integration
Unit 8 Information System
Exercises
Solutions
 SAP AG 1999
Course Overview Diagram
Introduction START
Overview
Master Data
xxxxx
xx
Update and Integration
Configuration and Organization

Customizing
Plan 1998
Planning
Payment Transfers
Information System
 SAP AG 1999
Business Scenario - 1
Your business has implemented SAP R/3 FI and/or

MM and intends to implement Cash Budget
Management. You are a member of the
implementation team.
As a member of the project team, you must make
important decisions on how Cash Budget
Management is to be configured. You must also
decide which data transfer variant to use, in line
with the Cash Budget Management objectives.
 SAP AG 1999
Business Scenario - 2
The project team stipulates the expenditure and

revenue types and, with them, the degree of
detail used in Cash Budget Management.
You decide to prescribe plan values for the
individual commitment items and periods, so
that you can monitor your financial flows.
 SAP AG 1999
Overview
Contents
The Treasury Model
Differences between Cash Management and Cash
Budget Management
Business transactions in Cash Budget Management
Functions in Cash Budget Management
 SAP AG 1999
Overview: Unit Objectives
At the conclusion of this unit, you will be able to:
Explain the Treasury Model concept
Enumerate the differences between Cash Budget

Management, Cash Management, and Funds
Management
Explain how Cash Budget Management works
Enumerate the business transactions that can be

carried out
 SAP AG 1999
Introduction
Overview
Master Data
Planning
Payment Transfers
Information System
 SAP AG 1999
The Treasury Model
Cash
Concentration
Buy Sell
financial Payment Cash Payment financial
asset order order asset
Position
Forward Forward Option

Option exchange Forecast exchange Future
Future buying selling
(short term)
Purc. Vendor Pay- Forecast Pay- Invoice

order invoice ment ment
(medium term)
FI-
FI- Funds
FM TR
Financial Budgeting Liquidity
Management plan
 SAP AG 1999
Cash Budget Management, with its analysis of liqudity figures and plan figures, is closely linked
with Cash Management and Funds Management.
The task of Cash Budget Management (financial budgeting) is to:
- Identify impending funds shortages/surpluses promptly
- Control payment flows in light of the liquidity situation
Differences Between Cash Management and CBM
Cash Management Cash Budget Management

Opening balance Opening balance
Revenues Revenues
Customer group X Sales revenues
Customer group Y Liquid. investmts
... Other
...
Expends Expends
Vendor group X Material
Vendor group Y Personnel
... Taxes
...
Closing balance Closing balance
 SAP AG 1999
Cash Management and Cash Budget Management consider different timeframes; while Cash
Management is concerned with short-term liquidity, Cash Budget Management looks at the medium
and long terms. This means that the two applications must classify revenues and expenditures
differently:; Cash Management classifies revenues and expenditures by vendor/customer group, in
order to assess the likelihood of payment flows being realized. Cash Budget Management classifies
revenues and expenditures by revenue and expenditure item, to enable you to plan future payment
flows.
Cash Budget Management and Funds Management
Cash Budget Management Funds Management

Opening balance Organization
Bank
Cash Revenues Expenditures
Sales revenues Material
Revenues Liquid. investmts Personnel
Other
Sales revenues
Liquid. investmts
Other
Expends
Material
Personnel
Taxes
Closing balance Responsibility areas

Bank
Cash
 SAP AG 1999
While Cash Budget Management is concerned with the liquidity of your business, Funds
Management covers the payment flows in the individual responsibility areas.
The task of Funds Management is to safeguard the plan estimated values for revenues and
expenditures in individual responsibility areas. The values are fixed in the budget plan.
Business Transactions in Cash Budget
Management
Expenditures
Purchase Down Bank

order payment clearing
Down pymt Invoice Outgoing

request receipt payment
Revenues
Down pymt Invoice Incoming

request issued payment
Down Bank
payment clearing
 SAP AG 1999
In addition to payment obligations based on payment transactions entered in the FI Financial

Accounting system, the Cash Budget Management system also reproduces payment obligations
entered in the feeder systems. These include purchase orders from Materials Management (MM).
This makes it possible to monitor and control payment flows well before they actually take place.
How Cash Budget Management Works
Vendor Expenditure
100 - 100
Commitment Item Op.balance Revenues Expenditures Clsg balance
2111 Sales revs
1111 Mat.issue 200- 100- 100-
Total 200- 100- 300-
 SAP AG 1999
Transactions posted in the feeder systems are recorded in Cash Budget Management as items
affecting liquidity. You can configure the display to meet your specific information
requirements.
You use Cash Budget Management reporting to do this.
Cross-Company Code Cash Budget Management
and Currencies
FM area
USD
Cash Budget Management
Company code 1000 Company code 2000

DEM GBP
Balance sheet P+L Balance sheet P+L
 SAP AG 1999
You combine a number of company codes in one financial management (FM) area, for the purpose
of carrying out cash budget management over several company codes at once.
The company codes can have different currencies. The FM area currency need not be the same as
any of these.
Overview: Unit Summary
Cash Budget Management is part of the Treasury

Model.
It functions as a medium-term liquidity forecast and
financial budgeting tool.
Transactions posted in the feeder systems are recorded
in Cash Budget Management as items affecting
liquidity.
The organizational unit in Cash Budget Management is
called the financial management area (FM area).
 SAP AG 1999
Master Data
Contents
Commitment item categories
Item categories and functional split
Financial transactions
Hierarchy maintenance
Commitment item and G/L account
Rules of thumb for assignment
 SAP AG 1999
Master Data: Unit Objectives
Maintain commitment items

Create commitment item hierarchies
Recognize the importance of item categories
and financial transactions
Assign commitment items to G/L accounts
Enumerate the rules of thumb for assignment
 SAP AG 1999
Introduction
Overview
Master Data
Planning
Payment Transfers
Information System
 SAP AG 1999
Commitment Item Categories
Optional:
Summarization Item
Summarization: 11
Financial trans: 30
Change history
Item category: 3
Required:
Account Asst Item
Change documents
Expenditures: 111
Financial trans:
trans: 30
Item category: 3 Long text
G/L acct / Raw mats:

Acct asst item
 SAP AG 1999
There are two types of commitment item:

Summarization items, which enable you to display cash budget management data
hierarchically
Account assignment items, where you can carry out planning and make postings
Before you can use Cash Budget Management, you must create commitment items (account
assignment items). You can integrate them into a summarization hierarchy, by entering the
higher level summarization item in each commitment item when you create it.
Account assignment items must have the same financial transactions and item categories as the
summarization items above them.
Item Categories and Functional Split
Opening balance
Bank
Cash
Revenues
Item Category Sales revenues
Liquid. investmts
1 Balance Other
2 Revenue Expenditures
3 Expenditure Material
Personnel
Taxes
Closing balance
Bank
Cash
 SAP AG 1999
The item category regulates integration by balance, revenues, or expenditures, thereby fixing
the functional split in Cash Budget Management.
Financial Transactions
30 Expenditure/revenue
40 Goods receipt/goods issue
50 Free
60 Payables/receivables
70 Free
80 Bank clearing
90 Payments
 SAP AG 1999
The financial transactions are prescribed: you cannot change them. The exceptions are financial
transactions 50 and 70. You can use these to create a differentiated payables/receivables display.
You can enter descriptions for the correspondiing value types, 53 for financial transaction 50 and 56
for financial transaction 70.
Hierarchy Maintenance Using SAP Network
Graphic
Display area
Revenues Raw materials Irrelevant
Raw materials Aux.mats

Aux.mats Op.supplies
Node area Navigation area
Commt Item Summarization
 SAP AG 1999
You can use the SAP Network Graphic to create commitment items in the hierarchy.
There are three working areas in the graphic:
The "Display area" shows the hierarchy in a graphical representation.
The "Node area" is where you determine whether you are processing a commitment item or a
summarization item.
You use the "Navigation area" to define the view in the display area.
Setting Up And Maintaining Commitment Item
Hierarchies
Display in hierarchy form

Summarization
Expenditures item
Summarization
Domestic Foreign
item
Acct asst
Expends 1 Expends 2 Expends 3 Expends 4 (commitment)
item
G/L account 1 G/L account 2 G/L account 3 G/L account 4
 SAP AG 1999
In the network graphic, you can maintain separate hierarchy trees for an FM area.
The relationships you define here also determine the relationships between objects in reporting.
The principle of immediate effect integration of the financial transaction and commitment item
category applies in every hierarchy. You determine how many levels the hierarchy has.
You enter the commitment item - G/L account assignment in the company code section of the
G/L account.
Commitment Items and G/L Accounts
Financial Accounting Cash Budget Management

G/L account masters:
FM area: 1000
Revenues Commitment item: Revenues
Company code: 1000
Commitment item: Revenues
...
...
Raw mats
Raw materials
Company code: 1000
Commitment item: Raw mats
...
 SAP AG 1999
You define the commitment item in the company code part of the G/L account.
The commitment item field does not appear in the G/L account master unless you have assigned
the company code to the FM area and the field selection permits it.
When you post to this account, the system copies the commitment item to the document line,
where you can change it if necessary.
Rules of Thumb for Assigning Financial
Transactions - 1
Transaction
90 Define in bank accounts
80 In bank clearing accounts
70 50 For more complex postings, such as in

payroll
 SAP AG 1999
Rules of Thumb for Assigning Financial
Transactions - 2
Transaction
Payables/receivables: Define in
60 vendor/customer reconciliation accounts
Define in the GR/IR accounts

40
All expenditure/revenue accounts, asset

30
accounts, inventory accounts in materials
management, reconciliation accounts for
down payments
 SAP AG 1999
Commitment Item Assignment Report Program
Commitment Item Assignment to G/L

G/L account Accounts
Company code
G/L acct with commitment item

G/L acct w/o commitment item
Commitment item
FM area
Commitment item w/o G/L acct
 SAP AG 1999
The assignment report program for G/L account supplies information on what assignments exist, or
are missing, between commitment items and G/L accounts.
Master Data: Unit Summary
Summarization items offer a hierarchical

representation of the data in Cash Budget
Management. You must use
account assignment items for postings and planning.
Item categories determine the functional
split in Cash Budget Management.
You can create and change commitment items either
individually or in hierarchy maintenance.
Commitment items form the link between
Financial Accounting and Cash Budget Management.
 SAP AG 1999
Master Data: Exercises
Unit: Master Data

Topic: Commitment Items
At the conclusion of these exercises, you will be able to:

• Create commitment items
• Move commitment items
• Assign commitment items to G/L accounts
The project team stipulates the expenditure/revenue types and,

hence, the degree of detail in Cash Budget Management.
1-1 In FM area FA##, create commitment item 1126## "Expenditure on Personnel

Training". Ensure that it is possible to post to this commitment item and enter a plan for
it.
1-2 Create a summarization item.

1-2-1 The "Expenditures" summarization item should include suitable output control
for financial transaction.
1-2-2 Assign account assignment items 1111, 1112, 1113, and 1126## to the
"Expenditures" summarization item.
1-3 Assign your commitment item 1126## to G/L account 449000.

Master Data: Solutions
Unit: Master Data

Topic: Commitment Items
1-1 Accounting -> Treasury –> Cash Budget Management -> Master Data -> Commitment
Item – Account Assignment -> Create
Field Name or Data Type Values

FM area FA##
Commitment item 1126##
Description Expenditures: Personnel
training
Financial transaction 30
Item category 3
1-2
1-2.1 Accounting -> Treasury –> Cash Budget Management -> Master Data ->
Commitment Item –> Summarization -> Create

FM area FA##
Commitment item Expends
Description Expends
Financial transaction 30
Item category 3
1-2.2 Accounting -> Treasury –> Cash Budget Management -> Master Data
Hierarchy -> Change
Choose subtrees:
1111, 1112,1113, 1126##, Expenditures
Select "Expenditures" => Edit -> Connect 1111, 1112, 1113, 1126##
1-3 Accounting -> Financial Accounting -> General Ledger -> Master Data -> Individual
Processing -> In Company Code
Company code AC##
G/L account 449000
Create/Bank/Interest
Contents
Value types and financial transactions
Update chain
Update from Financial Accounting to Cash Budget
Management (integration)
Carrying balances forward
 SAP AG 1999
Unit Objectives
Describe the technical link between Cash Budget

Management, FI, and MM
Explain how business processes from FI and/or MM
are depicted in Cash Budget Management reporting
 SAP AG 1999
Introduction
Overview
Master Data
xxxxxxx
Planning
Payment Transfers
Information System
 SAP AG 1999
Value Types and Financial Transactions
Vendor Expenditure
100 - 100
Value type:
Invoice
Commitment Commitment
item item
Financial Financial
transaction: transaction:
60 > 30
Invoice Expenditure
 SAP AG 1999
One control parameter in the commitment item is the financial transaction.

Each posting made in FI addresses two general ledger accounts, meaning that it also addresses
two commitment items.
The higher financial transaction referencing the value types decides how the posting is reported.
Update Chain
Bank Accounts
Bank Expenditure
clearing payable
100
3 100 100 2 100 100
1 100
Financial trans Financial trans Chain Val.type
1 Invoice 60 30 60 30 54
2 Outgoing check 80 60 80 30 55
3 Bank posting 90 80 90 30 57
 SAP AG 1999
The value type determines how business transactions are displayed in reports.
Where technical document chains are created (in the above example with financial transaction
30), the line item is included too, from the invoice through to the payment.
The value categories most important for Cash Budget Management are:
51 Purchase order
54 Invoice
55 Bank clearing
57 Payment
Integration Betwen Financial Accounting and Cash
Budget Management
Financial Accounting Cash Budget Management
Database server
FM area = active
G/L account
Customers
Index Docs FMEP FMSU
Vendors
 SAP AG 1999
Where an FM area is activated, each accounting document leads to the following updates in
Cash Budget Management:
- Line item file ( FMEP )
- In totals : revenues/expenditures ( FMSU )
-
See the structure of the files in the repository.
If Cash Budget Management is not yet active, but the company code is already assigned to the
FM area and the commitment items are defined in the G/L account or you enter them when you
make a posting, the commitment item is included with the document and can be copied to Cash
Budget Management later.
Carrying Balances Forward
Fiscal year 2000 Period 12 Fiscal year 2001 Period 12
Key Figure Actual data Key Figure Actual data
Opening balance 250,000 Opening balance 330,000
Revenues 150,000 Revenues

Expenditures 70,000 Expenditures
Closing balance 330,000 Closing balance
Carry balance
forward
 SAP AG 1999
The function for stipulating a fiscal year interval has been removed from the system for Release 4.6.
It is not possible to update all balance periods online. The closing balance must be carried forward at
the year end.
Activating Cash Budget Management
Accounting document
Company code XYZ
activated
Yes No
Update to Cash Budget No update to Cash

Management Budget Management
 SAP AG 1999
If you already have Financial Accounting (FI) when you activate Cash Budget Management,
you can transfer the postings made up to then to Cash Budget Management collectively.
Update and Integration Unit Summary
Financial transactions determine the value

type for the update.
Data is recorded in Cash Budget Management in
line items and totals records.
The closing balance for the last period in the
year must be carried forward to the next fiscal year.
 SAP AG 1999
Update and Integration: Exercises
Unit: Update and Integration

Topic: Integration with Financial Accounting

Assign financial accounting documents with commitment items
The project team defines the integration between Financial

Accounting and Cash Budget Management.
1-1 Post a vendor invoice:

Company code AC##
Vendor T-f15A00
Invoice date Today's date
Amount 5000 UNI
Control indicator V0
G/L account 449000
Cost center T-F15A##
1-2 Display the document in financial accounting? Which commitment item appears as the
account assignment in the expenditure line?
Update and Integration: Solutions
Unit: Update and Integration

Topic: Integration with Financial Accounting
1-1 Accounting -> Financial Accounting -> Accounts Payable -> Document Entry ->
Invoice
Company code AC##
Vendor T-f15A00
Invoice date Today's date
Amount 5000 UNI

Control indicator V0
G/L account 449000
Cost center T-F15A##
1-2 Accounting – Financial Accounting – Accounts Payable – Document – Display

=> Double-click the expenditure line => "More" pushbutton
Contents
The organizational factor: FM area
Update control
Planning layout and plan version
The steps involved in implementing Cash
Budget Management
Different procedures for going live
Taking over cash holdings
 SAP AG 1999
Configuration and Organization:
Unit Objectives

Carry out the configuration work needed to activate
Cash Budget Management in the system
Enumerate the individual data transfer variants
Explain how going live works
 SAP AG 1999
Introduction
Overview
Master Data

Customizing
Planning
Payment Transfers
Information System
 SAP AG 1999
Maintaining FM Areas
Reports:
Val. factors
Periods
Currencies
Currency: USD
FM area Fiscal year variant:

A7
Company code 1000 Company code 2000 Company code 3000

DEM GBP USD
 SAP AG 1999
The following are assigned to the FM area:

Plan profile
Report currency
Fiscal year variant (period apportionment)
You can combine as many company codes as you want in one FM area. Each of the company
codes can have a different currency and fiscal year variant.
Defining Fiscal Year Variants
FMA Fiscal Year Variant
FA01 K4 Calendar year, 4 special periods
FA02 K3
Split over time
January February March

Opening balance 1000 1500
Revenues
Expenditures 1000 500
Closing balance 1000 1500
 SAP AG 1999
By assigning the fiscal year variant, you are stipulatíng how Cash Budget Management is to be
split over time.
You can plan and display the payment flows and cash holdings for any period(s) you wish. The
period split for each FM area is per the fiscal year variant.
Update Control
No purchase orders
No parked documents
FM area ledger only
Bank lines as of posting date
Expenditure/revenue summarization
Clearing in batch RFFMRP18
 SAP AG 1999
No purchase orders: The system does not record a purchase order commitment.
No parked documents: The system does not record a commitment for parked documents.
FM area ledger only: Normally, Cash Budget Management records data in the local currencies of
all the company codes and FM areas concerned. If you activate this switch, data is recorded in the
FM area currency only, thereby ensuring that line items are not duplicated.
Bank lines as of posting date: In Cash Budget Management, payment and bank clearing are
recorded as of the value date. Set this switch to have this done as of the posting date instead.
Expenditure/revenue summarization: This switch affects the number of "technical update chains"
in Cash Budget Management. The number of line items is reduced because the system disregards
additional information, such as accounts.
Clearing in batch: Cash Budget Management data is recorded as part of the process of updating FI
documents. Evaluating the clearing information can take a long time. If you choose clearing in batch,
the time-consuming steps are postponed. The payment is first displayed in a clearing item and the
payment commitment remains in place.
Planning Layout
1 SAPTRCB FM area currency

2 SAPTRCB Fixed transaction currency
3 SAPTRCB Flexible transaction currency
Commt item Value/TCrcy Amt FMA Crcy ...
Assign planner profile
 SAP AG 1999
Three standard layouts are available for planning. They are linked with planner profiles.
You can define your own planning layouts and assign them to the planner profiles.
Defining Plan Versions
Plan values
Version 2
Version 1 Plan values
Version 0
Plan values
Revenues 1,000,000
Expenditure 500,000
.
.
.
 SAP AG 1999
You can create various plan version IDs.

- In the actual planning, you always store the plan values under a plan version.
Implementing Cash Budget Management - 1

Not active Active
Incoming invoices: 100 Outgoing payment: 100

and clearing
Commitment item
Report
of
G/L account line Commitment item Expenditures
?
Material
Personnel
Taxes
 SAP AG 1999
Cash Budget Management was not yet active when you received the invoice, so the data was
not recorded in there.
When you pay, Cash Budget Management is active.
To update the "Material" expenditure item under the "Payments" factor in the report, the system
tries to determine the "Material" commitment item from the line item (FMEP) in the invoice.
As this is not possible (because there is no Cash Budget Management item), you must enter
commitment items for:
unassigned revenues/expenditures.
Implementing Cash Budget Management - 2

Unassigned revenues: Transaction : 30
Item category : 2 (revenue item)
Unassigned expenditures: Transaction : 30
Item category : 3 (Expenditure item)

Not active Active
Incoming invoice: 100 Outgoing payment: 100
and clearing
Report: Commitment item Expenditures

Unassigned expenditures 100
Material
Personnel
Taxes
Document line
 SAP AG 1999
You cannot activate the FM area until you have defined the following commitment items:
Unassigned revenues (transaction 30, item category 2)
Unassigned expenditures (transaction 30, item category 3)
When you post payments which clear invoices posted before the FM area was activated, the
payments are displayed under these commitment items.
Checking Company Codes
Fiscal year variant: A7 Currency: USD
Unassigned revenues
FM area Unassigned expenditures
Assignment
Company code 1000 Company code 2000 ...
Check
 SAP AG 1999
There is a checking facility which you can use before the production startup.
The system checks the company code to ensure that all the parameters required for Cash Budget
Management to run smoothly have been maintained.
If the parameters are incomplete, the system generates an error log.
Production Startup / Reorganization
Transaction Data:
Actual / Plan
Totals + line items
Delete Purchase orders Invoices Funds reservation Payment transfer
Master data in the test phase

Commitment item
Remove from G/L account(whole company code)Delete(whole FM area)
 SAP AG 1999
The following apply to all activities:

Back up your data first.
The FM area must be deactivated before you run the program.
Transaction data is deleted first, then master data.
At present, you cannot delete master data selectively, but must do so for the whole company
code/FM area.
Before you can delete the commitment items from the FM area, you must remove them from
the company code in all the G/L accounts.
Caution: Commitment items are also used in Funds Management and Project Cash
Management.
Data Transfer / Different Characteristic
Characteristic: Minimum Maximum

- +
Mean
Performance: Maximum Minimum
+ -
Transfer Financial accounting:
cash holdings Take over some or Take over
data all data
Take over data
from Materials Take over
Management (purc.orders) all data
Funds reservations
Payment transfers
Prod.startup only Production startup + reconstruction
 SAP AG 1999
The diagram shows not only the data transfer made on production startup, but also Cash Budget
Management reconstruction in a system which is already active.
You must carry out the activities in background processing and must deactivate the FM area
first. You must also ensure that no other activities can be carried out in the system while the
program is running.
Taking Over Cash Holdings/Production Startup
Current year 01.07. July 1 in current year
t
Financial Accounting Cash Budget Management active
Commitment item: Transfer
Bank Financial trans: 30
100 200 Long text 2

400
Report:
Cash Val.type Opening Revenues Expend Clsg
balance balance
500
Payments 800 800
Commitment item
transfer 800
 SAP AG 1999
Before you can transfer the cash holdings (cash/bank postings, (item category 1)) posted in
Financial Accounting to Cash Budget Management, you must define a commitment item for
them to flow into:
Financial transaction: 30 Post revenue, expense...
Item category: 2 (Revenues)
The transfer is a one-time process for each company code, as part of configuration.
The values taken over are stored as from the first period of the specified year.
The FM area must be deactivated before you make the transfer.
Taking Over/Reconstructing Data from Materials
Management
Creating Line Items

•PO no.: 14000003 G/L acct: Expenditure
Raw materials
Commitment item
Program run:
Funds line item
 SAP AG 1999
Production Startup
The program reads the commitment item from the G/L account specified in the purchase order
and generates the appropriate line item.
Important:
- Always back up your data.
- Do not enter any documents while the reconstruction is running. The periods must be closed.
- Run the reconstruction in batch.
- Run program RFFMS180 first. This enters commitment items in unassigned MM documents.
Taking Over/Reconstructing Some Data from
Cash Budget Mgt
Not active Active / Reconstruct
Posting periods 1 2 3 4 5 6 7
First run From month: 1

To month: 3
Determine
cash holdings: X Set only in first run
Second run From month: 4

To month: 6
Determine
cash holdings: _ Do not set in subsequent runs
 SAP AG 1999
Production Startup
-This procedure offers a step-by step method of setting up Cash Budget Management.
-In the process, the commitment items of the G/L accounts addressed in the posting lines
are determined.
-In using this procedure, you are opting not to take over all the commitments, but only
those from certain periods and cash holdings.
Data Reconstruction
-Deleting old transaction data
Before running the partial reconstruction for the first time, you must delete the old actual
data (line items).
Taking Over/Reconstructing All Data from
Cash Budget Mgt

Not active Active
Posting periods 1 2 3 4 5 6 7
FM area: FA00
Fiscal year: YYYY
Onetime run
To period: 06
 SAP AG 1999
The objectives of this procedure are the same as for the partial reconstruction.
- All the documents, up to the limit you specify, are taken over at one go.
- System performance might be a problem.
You can take over the materials data and the financial accounting data in one run. However, this
is not recommended for performance reasons.
Reconstructing Data from Funds Reservations and
Payment Transfers
Funds reservation/payment transfer
Reconstruct line items
 SAP AG 1999
If line items from the test phase were deleted during preparation for the production startup
(delete actual data)
or
if the values were changed in the FM documents, the relevant FM line items must be
reconstructed.
FM area
1000
Company code Company code Company code

1000 2000 3000
Activate Activate Activate

on April 15, 2000 on July 15, 2000 on December 15, 2000
 SAP AG 1999
You have the option of activating Cash Budget Management for individual company codes.
- Each company code must satisfy the following criteria before you can activate it:
The company code must be assigned to an FM area.
A fiscal year variant, currency key, and plan profile must be assigned to the FM area.
You have assigned a commitment item for unassigned revenues, and another for unassigned
expenditures, to the FM area.
- If any of these criteria is not met, you cannot activate the FM area. Read the error log to find out
what you must do if this happens.
Configuration and Organization: Unit Summary
As well as the corporate structure settings, you

must also enter the basic Cash Budget
Management settings, and settings to control
planning, postings, and integration.
When reorganizing Cash Budget Management, you
can delete master data and transaction data separately.
Various options are available for the internal
data transfer.
 SAP AG 1999
Configuration and Organization: Exercises
Unit: Configuration and Organization

- Make the basic Cash Budget Management settings
- Post documents in Cash Budget Management
The project team decides how the organizational structure will

look and on the basic settings in Cash Budget Management. The
aim is to activate Cash Budget Management.
1-1 Check the following basic settings:
1-1.1 Definition of FM area FA##
1-1.2 Assignment of company code AC##
1-1.3 Assignment of commitment items for unassigned revenues and expenditures
1-2 Define fiscal year variant for K4 for FM area FA##.
1-3 Post a vendor invoice.
1-4 Activate Cash Budget Management.
1-5 Display the commitment/actual line items in the Cash Budget Management information
system.
Configuration and Organization: Solutions
Unit: Configuration and Organization
1-1 Tools –> Accelerated ASAP –> Customizing –> Edit Project –> SAP Reference IMG:
-Enterprise Structure –> Definition –> Financial Accounting –> Maintain Financial
Management Area
- Enterprise Structure –> Assignment -> Financial Accounting –> Assign Company
Code to Financial Management Area
-Treasury –> Cash Budget Management and Financial Budgeting –> Integration –>
Define Commitment Item for Unassigned Revenues/Expenditures
- Treasury –> Cash Budget Management-> Basic Settings –> Fiscal Year Variant –>
Assign Fiscal Year Variant to FM Area
1-3 Tools –> Accelerated ASAP –> Customizing –> Edit Project –> SAP Reference IMG
- Treasury –> Cash Budget Management -> Integration –> R/3 Internal Data Transfer –
> FI Documents –> Take Over Part of Data
=> System –> Services –> Reporting

=> Goto –> Variants –> Create Variant "Group##"

FM area FA##
From Today's date
To Today's date
Determine Cash Holdings X
Clearing item 2411
=> Save variant
=> Execute program with variant
- Treasury –> Cash Budget Management-> Integration- Activate Cash Budget

Management
1-5 Accounting -> Treasury -> Cash Budget Management -> Information System ->
Report Selection -> Line Items -> Commitment/Actual Line Items
Planning
Contents
Annual/period planning
Planning layouts
 SAP AG 1999
Planning: Unit Objectives
Enter plan data in the system

Use planning layouts
 SAP AG 1999
Introduction
Overview
Master Data

Plan 1998
Planning
Payment Transfers
Information System
 SAP AG 1999
Annual/Period Planning
Version 1
Commt item Currency Amount in FM area currency
1111 Expends 1 120,000

1122 Expends 2 130,000
1134 Expends 3 100,000
1135 Expends 4 132,000
January 10,000
February 10,000
...
 SAP AG 1999
You can only enter planning in account assignment items with financial transaction 30.
You can branch from annual planning to period planning.
Planning Layout
Commt item Currency Amount in FM area currency
1111 Expends 1 UNI 120,000

1122 Expends 2 UNI 130,000
1134 Expends 3 UNI 100,000
Commt itemExpends 4 Currency Amount 132.000 Amount in
1135
in transaction crcy FM area crcy
1111 Expends 1 USD 120,000 240,000

1122 Expends 2 USD 130,000 260,000
1134 Expends 3 USD 100,000 200,000
1135 Expends 4 USD 132,000 264,000
 SAP AG 1999
You can use different layouts for your planning work. Three standard layouts are available. You can
define additional layouts yourself.
When carrying out planning, you can choose between "Free" and "Form-based" as the method of
input. If you choose free input, the system displays only the commitment items for which there is
already plan data in the database. In form-based input, all the commitment items are shown.
Planning: Unit Summary
You can create different financial budget versions.

You can only plan in account assignment versions
with financial transaction 30.
You can branch from annual
planning to period planning.
Three standard layouts areavailable for planning.
 SAP AG 1999
Planning: Exercises
Unit: Planning

- Enter plan values
- View plan values in different planning layouts
You will plan cash flows, thereby making it possible to produce a

target/actual analysis based on expenditures and revenues.
1-1 Plan annual values for the fiscal year 200J for commitment items 1126## and 1111.
Use the form-based view.
1-2 Display the planning in planning layout "2SAPTRCB" (transaction currency).
1-3 In the Cash Budget Management information system, go to the index "Plan-period
comparison" and choose the "Plan/Actual/Commitment" report. Display your plan
values in it.
Planning: Solutions
Unit: Planning
Topic: Planning in Commitment Items
1-1 Accounting -> Treasury -> Cash Budget Management -> Financial Budgeting ->
Change
Layout 1SAPTRCBAC
Version 1
Period 1
Period Current period
Fiscal year 200J
Commitment item 1111
1-2 Accounting -> Treasury -> Cash Budget Management -> Financial Budgeting -
Change
=> Goto -> Next Layout
Plan/Period Comparison -> Plan/Actual/Commitment Report
Payment Transfers
Contents
Payment transfers as a correction instrument
Enhanced payment transfers
 SAP AG 1999
Payment Transfers: Unit Objectives
Create document types

Explain how payment transfers work
Carry out payment transfers
 SAP AG 1999
Introduction
Overview
Master Data
Planning
Payment Transfers
Information System
 SAP AG 1999
Document Types for Payment Transfers
FI-
FI-FM
Document category 002
Funds transfer
Doc.type FI-FM earmarked funds
Doc.type
Number range 02
 SAP AG 1999
Payment transfers are controlled using document types. You maintain these in Funds Management
customizing:
SAP Reference IMG:

Financial Accounting - Funds Management -Postings - Define Document Types
Payment Transfers as a Correction Instrument
Correction within Cash Budget Management

Invoice receipt Incorrect
Doc.type 100 ... Commitment item 1 ...
Cash Budget Management Correction

Payment transfer
Doc.type 50 ... Commitment item 2 ...
Reporting after the payment transfer
Commt item Op.balance Revenues Expends Clsg balance
1111 50
112600 50-
Total 0
 SAP AG 1999
You can use the payment transfer as a correction tool within Cash Budget Management.
Input follows the sender (incorrect commitment item) receiver (correct commitment item)
principle.
The transaction is displayed in reporting under "Payments".

Enhanced Payment Transfers
Doc.type Clearing items

Revenue commt Expenditure
item commt item
Clearing between revenues and expenditures
+ - Amount Commitment
. item
.
.
.
 SAP AG 1999
You use the enhanced payment transfers to make transfers between revenues and expenditures.
Before you can do this, you must define clearing items per document type for the revenue side
and the expenditure side.
You do this in Funds Management customizing.
Payment Transfers: Unit Summary
Payment transfers act as correction tools,

following the sender-receiver principle.
Payment transfers are controlled using
document types.
The enhanced payment transfer is available for
clearing revenues and expenditures.
 SAP AG 1999
Information System
Contents
Report selection
ALV reports
Master data indices
Totals records
Line items
 SAP AG 1999
Information System: Unit Objectives
Explain the different views of Cash Budget

Management data
Navigate in the individual reports
Adapt reports
 SAP AG 1999
Introduction
Overview
How Cash Budget Management Works
Configuration
Master Data
Transaction Data
Planning
Information System
 SAP AG 1999
Report Selection
ABAP List Viewer reports
Master data indices
Totals records
Line item reports
 SAP AG 1999
Cash Budget Management reporting is divided into master data reports, totals records, and line-item
reports.
You can see this subdivision in the report tree.
Report Selection
Master data indices
Totals records
Line item reports
 SAP AG 1999
reports.
ABAP List Viewer: Plan/Actual/Commitment Report
Display Fields List of Fields

Column Content Itm Lgth Total Column Content Lgth
Description 1 20 Item 8
Plan in FMA crcy 2 20 Commitment item 10
Actual data 3 20 Commt in FMA crcy 20
Variance 4 20
Key Figure Plan in FMA Crcy Act.data Variance
Opening balance 150,000
Revenues 150,000 200,000 50,000

Expenditures 70,000 100,000 30,000
Closing balance 250,000
 SAP AG 1999
The planned/actual commitment report is based on the ABAP List Viewer (ALV). You can change
the variant we deliver to suit your individual requirements.
The following ALVreports are available, in addition to the one above:
Actual/commitment report with hierarchy
Actual/commitment report
Actual/commitment per company code
12 period preview report, actual and plan

Report Selection
Master data indices
Totals records
Line item reports
 SAP AG 1999
reports.
Master Data Indices
Master data index

Assignment:
Commitment items G/L accounts to
commitment items
Hierarchy Master data
G/L accounts:
Company code 1000
FM area 1000 FM area 1000 FM area 1000
Key date: Dec.31, 2000 Key date: Dec.31, 2000 Key date: Dec.31, 2000
Expenditure item FM Commt :.. Company G/L Commt

11 area item code acct item
111 1000 1 1000 1000 111
112 1000 11 1000 1001 112
113 1000 112 1000 1002 113
1000 113 ... ... ...
Master record ... ...
info
12
 SAP AG 1999
You can use these programs to check the master data values you have defined.
For example: Are commitment items defined in every G/L account?
Totals Records
Master data indices
Totals records
Plan/actual comparison
Commitment/actual/balance
Line item report
 SAP AG 1999
Totals records are predefined drilldown reports which you can use to analyze business transactions
affecting liquidity from MM and FI from various viewpoints.
Report: Commitment/Actual - Financial Budget
Navigation
Company code
Period
Value type
Trans.currency
Commitment item Financial ...

Commt/Actual
Display in Budget
2111 Sales revs 1000 1200
1111 Exp.: Materials 800- 800-
112600 Exp.: Training 100- 150-

Total 100 250
 SAP AG 1999
When you access the plan/actual comparison, the system first displays a drilldown list, showing
a comparison of the financial budget with the commitment/actual values. You can then evaluate
this information per company code, value type, currency, or commitment item.
You can also use the report to compare financial budgeting with the actual payments or
payment obligations.
Report: Commitment/Actual/Balance
Navigation
Company code
Period
Value type
Trans.currency
Key Figure Opening balance Revenues Expends Closing bal.
1st quarter 0 100 100
2nd quarter 100 100

3rd quarter 100 100
4th quarter 100 100
 SAP AG 1999
Unlike the "Plan/actual comparison", the first display in the "Commitment/actual/balance"

reports first shows a detail list. The list analyzes the characteristics in detail. The drilldown is
reduced to show the data for an FM area for one year.
The detail list of the commitment/actual/balance report shows all the balances, revenues, and
expenditures for an FM area for one year.
Report: Commitment/Actual/Balance - Drilldown
List
Navigation
Company code
Period
Value type
Trans.currency 1st Quarter
Commitment item
Display in Op.balance Revenues Expends Closing bal.
2111 Sales revs 1000 1200 2200

1111 Exp.: Materials 800- 800-
112600 Exp.: Training 100- 100-
Total 1000 1200 900- 1300
 SAP AG 1999
The drilldown list enables you to display various characteristics (such as company codes or
commitment items) per the opening balance, revenues, expenditures, and closing balance. Unlike the
detail list, however, you can look at more than one characteristic configuration at a time.
Line Item Report
Master data indices
Totals records
Line item report
Commitment/Actual -
Commitment Item
 SAP AG 1999
Line Item Report
Commitment/Actual Line Items: By Commitment Item
Date Doc.no. Item no. CoCd G/L Vendor/ Amount

account customer
FM area FA00 2500
112600 Exp: Training 1500
Invoice 1500
01/01/xx 1900009 2 AC00 160000 91200 1500
Purchase order 1000

03/02/xx 4500008 4 AC00 440500 91200 1000
 SAP AG 1999
You can use the commitment/actual line item report sorted by commitment item to list the line
items according to different criteria, such as company codes or value types.
Information System: Unit Summary
Cash Budget Management reporting is

divided into specific ABAP List Viewer reports,
master data indices, totals records and
line item reports.
 SAP AG 1999
Information System: Exercises
Unit: Information System

Topic: ABAP List Viewer

• Explain the different views of Cash Budget Management data
• Navigate in the individual reports
• Adapt reports
Process the reports and display variants SAP delivers so that they
meet your specific requirements.
1-1 Access the plan/actual/commitment report, then call up the field setup for the current
display variant.
1-2 Choose the field "Commitment/actual in FM area currency" for display, then store the
variant.
1-3 Access the report again and display your variant.

Information System: Solutions
Unit: Information System
Report Selection -> Line Items -> Commitment/Actual Line Items by
Commitment Item
=> Settings => Current Display Variant
1-2 Choose the "Commitment/Actual in FM area currency" => Include in view and
save variant.
Report Selection -> Line Items -> Commitment/Actual Line Items by
Commitment Item
=> Settings => Display Variant => Choose.

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AC215 Cash Budget Management

R/3 System Release 46D 05.02.2001

Copyright 2000 SAP AG. All rights reserved.

All rights reserved.

Course AC 215 presupposes a knowledge of accounting.

Notes to the user

This course will prepare you to:

Work with the Cash Budget Management

On completing the course, you will be able to:

Explain how Cash Budget Management functions

Unit 1 Introduction Unit 5 Configuration and

Update and Integration

Configuration and Organization

Your business has implemented SAP R/3 FI and/or

The project team stipulates the expenditure and

At the conclusion of this unit, you will be able to:

Explain the Treasury Model concept

Enumerate the differences between Cash Budget

Explain how Cash Budget Management works

Enumerate the business transactions that can be

Update and Integration

Configuration and Organization

Forward Forward Option

Purc. Vendor Pay- Forecast Pay- Invoice

Cash Management Cash Budget Management

Closing balance Closing balance

Cash Budget Management Funds Management

Closing balance Responsibility areas

Purchase Down Bank

Down pymt Invoice Outgoing

Down pymt Invoice Incoming

In addition to payment obligations based on payment transactions entered in the FI Financial

Commitment Item Op.balance Revenues Expenditures Clsg balance

2111 Sales revs

1111 Mat.issue 200- 100- 100-

Total 200- 100- 300-

Company code 1000 Company code 2000

Cash Budget Management is part of the Treasury

At the conclusion of this unit, you will be able to:

Maintain commitment items

Update and Integration

Configuration and Organization

G/L acct / Raw mats:

There are two types of commitment item:

40 Goods receipt/goods issue

Revenues Raw materials Irrelevant

Raw materials Aux.mats

Node area Navigation area

Commt Item Summarization

Display in hierarchy form

G/L account 1 G/L account 2 G/L account 3 G/L account 4

Financial Accounting Cash Budget Management

80 In bank clearing accounts

70 50 For more complex postings, such as in

Define in the GR/IR accounts

All expenditure/revenue accounts, asset

Commitment Item Assignment to G/L

G/L acct with commitment item

Commitment item w/o G/L acct

Summarization items offer a hierarchical

Unit: Master Data

At the conclusion of these exercises, you will be able to:

The project team stipulates the expenditure/revenue types and,

Master data in the test phase