Cash and Liquidity Management

Cash and Liquidity Management
Scenario Overview
Click process
chevrons for details
Processing
Payables and
Payments
Managing
Petty Cash
Processing
Receivables
and
Payments
Dunning
Managing
Cash
Procure-to-Pay Scenarios
(Stock/Non-Stock/Services)
Field Service and Repair
Expense and Reimbursement

Management
Order-to-Cash Scenarios (Sell-from-Stock/Standardized

Services/Project-Based Services)
Financial Closing
Customer Returns
Customer Returns
Scenario
Explorer
Scenario/Processes
Scenario Description
Open Legend
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.
Business Value
Scenario Flow
Further Information
The following business roles are involved in this scenario:
2013 SAP AG. All rights reserved.
Accounts
Payable
Accountant
Accounts
Receivable
Accountant

Scenario Overview
Click process
Processing
Payables and
Payments
Managing
Petty Cash
Processing
Receivables
and
Payments
Dunning
Managing
Cash
Field Service and Repair

Management
Order-to-Cash Scenarios (Sell-from-Stock/Standardized

Services/Project-Based Services)
Financial Closing
Customer Returns
Customer Returns
Scenario
Explorer
Scenario/Processes
Scenario Description
Legend
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
Process mainly driven by the user
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
from
theby
actual
liquidity
Processcycle
mainly
driven
the system
snapshot to forecasting, and analyzes steps through to optimized cash flow from money transfers or other cash flow impacting strategies.
Business Value
Manual process not supported by the

system
Scenario Flow
Process that communicates with thirdparty software (mouse-over for details)

Process with relevance to Financials
Further Information
The following business roles are involved in this scenario:
Open
Close Legend
Legend
Accounts
Payable
Accountant
Accounts
Receivable
Accountant
Related scenario
Info button with more information
<Role Name>
<Role Name>

Process Details: Processing Payables and Payments
Click process
Processing Payables and Payments
Center a
Process
chevron for
bank
main
statement
processes
Allocate a
payment
Managing
Petty Cash
Clear a
payment
Processing
Receivables
and
Payments
Dunning
Managing
Cash
Click here to display process variants
Scenario
Explorer
Process Description
The Processing Payables and Payments business process enables the processing of
outgoing payments initiated either internally by your company or externally by your
suppliers.
Scenario/Processes 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
Business Value
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
Scenario Flow
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
Further Information
payment has been made. The payments are matched in the system to the open invoices
before being cleared.
Further Information
Performed by
Accounts Payable Accountant
In the Work Centers

Payables
Payment Management
Liquidity Management
See also
Payment Allocation Quick Guide
Allocate a Payment Manually

Process Details: Processing Payables and Payments
Click process
Center a
Process
chevron for
bank
main
statement
processes
Allocate a
payment
Managing
Petty Cash
Clear a
payment
Processing
Receivables
and
Payments
Dunning
Managing
Cash
Click here to hide process variants
i
i
i
i
Processing Payments Automatically

Processing Payments Manually with Bills of Exchange
Processing Payments Manually with Open Item Clearing
Processing Payments with Petty Cash
Scenario
Explorer
Process Description
The Processing Payables and Payments business process enables the processing of
outgoing payments initiated either internally by your company or externally by your
suppliers.
Scenario/Processes 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
Business Value
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
Scenario Flow
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
Further Information
payment has been made. The payments are matched in the system to the open invoices
before being cleared.
Further Information
Performed by
In the Work Centers

Payables
Payment Management
See also

Process Details: Managing Petty Cash
Click process
Managing Petty
Cash
Processing
Payables and
Payments
Processing
Receivables
and
Payments
Create a cash
receipt or
disbursement
Dunning
Managing
Cash
Scenario
Explorer
Process Description
The 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
Scenario/Processes transfer cash between petty cash funds or between bank accounts and petty cash.
Business Value
Further Information
Performed by
In the Work Centers

Payment Management
Scenario Flow
Further Information
See also

Process Details: Processing Receivables and Payments
Click process
Processing Receivables and Payments
Processing
Payables and
Payments
Managing
Petty Cash
Process a
bank
statement
Enter a
remittance
advice
Allocate a
payment
Clear a
payment
Dunning
Managing
Cash
Click here to display process variants
Scenario
Explorer
Process Description
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.
Scenario/Processes 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
Business Value
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
Scenario Flow
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.
Further Information
The payments are matched in the system to the open invoices before being cleared.
Further Information
Performed by
Account Receivables
Accountant
In the Work Centers

Receivables
Payment Management
See also
Payment Allocation and
Clearing

Process Details: Processing Receivables and Payments
Click process
Processing Receivables and Payments
Processing
Payables and
Payments
Managing
Petty Cash
Process a
bank
statement
Enter a
remittance
advice
Allocate a
payment
Clear a
payment
Dunning
Managing
Cash
Click here to hide process variants
Scenario
Explorer
i Processing Externally-Initiated Payments by Incoming Check

i Processing Externally-Initiated Payments by Incoming Check with Lockbox
i Processing Externally-Initiated Payments by Multiple Incoming Checks
i Processing Incoming Payments by Bill of Exchange
i Processing Incoming Payments with Petty Cash
i Processing Internally-Initiated Payments by Credit Card
i Processing Internally-Initiated Payments by Direct Debit
Process Description
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.
Scenario/Processes 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
Business Value
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
Scenario Flow
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.
Further Information
The payments are matched in the system to the open invoices before being cleared.
Further Information
Performed by
Account Receivables
Accountant
In the Work Centers

Receivables
Payment Management
See also
Quick Guide for Payment

Allocation
Internally
Initiated Manual Outgoing
Payments

Process Details: Dunning
Click process
Dunning
Processing
Payables and
Payments
Managing
Petty Cash
Scenario
Explorer
Processing
Receivables
and
Payments
Create a
dunning
proposal
Process a
dunning
proposal
Release a
dunning
proposal
Managing
Cash
Process Description
The 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.
Further Information
Performed by
Account Receivables
Accountant
Scenario/Processes
In the Work Centers
Business Value
Receivables
Payment Management
Scenario Flow
Further Information
See also
Create a Dunning Run
Quick Guide for Dunning Runs

Process Details: Managing Cash
Click process
Managing Cash
Processing
Payables and
Payments
Managing
Petty Cash
Scenario
Explorer
Processing
Receivables
and
Payments
Dunning
Show and
analyze cash
position
Create a
liquidity
status
Create
planned
items
Create a
cash transfer
Process Description
The 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
Scenario/Processes 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.
Business Value
Process a
bank
statement
Allocate a
payment
Further Information
Performed by
Accounts Payable/Accounts
Receivable Accountant
In the Work Centers

Payment Management
Scenario Flow
See also
Further Information
Monitoring Payment Allocation

Processing
Payment Monitor Quick Guide

Business Value
Collect
Collect bank
balances
Transaction
details
Consolidate
Retrieve
collections
Scenario
Explorer
Scenario/Processes
Set cash
position
Set liquidity
forecasts
Overview
For financial professionals at midsize companies who
want to quickly and efficiently meet cash flow
deadlines and achieve better transparency to manage
the companys liquidity position, this scenario
streamlines the daily cash management cycle.
Business Value
You can collect and aggregate liquidity information

efficiently in a fast, streamlined, and automated
fashion.
Scenario Flow
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.
Further Information
Retrieve
disburseme
nts
Analyze
Analyze
todays
cash
balance
Manage
Analyze
future
cash
balance
Transfer
funds
Invest /
borrow
money
Optimize
cash flow
time lines
Key Benefits
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 todays 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.

Scenario Flow for Variant: Processing Payables and Payments
Payables
Payment
Managemen
t
Cash
and Liquidity
Processing
Payables and
Payments
Managing
Cash
Payment
Managemen
t
Petty Cash
Automatic Payments
Manual Payment with Open Item
Clearing
Payment by Petty Cash
.
Scenario
Explorer

Management
Order-to-Cash (Drop
Shipment)
Financial
Closing
Scenario/Processes
Customer
Returns
Business Value
Scenario Flow
Further Information
Legend & Variants

Process
mainly
driven by
the user
Process
variant1
Process
variant 2
Variants of the Scenario:
Work
Center
Process related
to Financials
Work center in which

process is performed
Related
scenarios
Business
document flow
Processing Payables and

Payments
Processing Receivables and
Payments

Scenario Flow for Variant: Processing Receivables and Payments
Receivables
Payment
Managemen
t
Processing
Receivables
and Payments
Receivables
Payment
Managemen
t
Dunning
Petty Cash
Cash
and Liquidity
Managing Cash
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
Field Service
and Repair
Scenario
Explorer
Order-to-Cash Scenarios
(Sell-from-Stock/Standardized Services/
Project-Based Services/Drop Shipment)
Customer
Returns
Scenario/Processes
Business Value
Scenario Flow
Further Information
Legend & Variants

Process
mainly
driven by
the user
Process
variant1
Process
variant 2
Variants of the Scenario:

Work
Center
Process related
to Financials
Work center in which

process is performed
Related
scenarios
Business
document flow

Processing Receivables and
Payments

Further Information
Scenario
Explorer
Scenario/Processes
Do you want to try it out?
Do you need more information?

More Details
SAP provides a complete product
documentation, covering all
aspects of the business scenario.
For more details, click here.
Self-Enablement Systems
If you want to try out the business
scenario, click here.*
Business Value
VV
Scenario Flow
Further Information
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Wikis that describe additional
aspects of SAP Business
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To access the WIKI, click here.*
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Cash and Liquidity Management

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Cash and Liquidity Management

Field Service and Repair

Expense and Reimbursement

Order-to-Cash Scenarios (Sell-from-Stock/Standardized

2013 SAP AG. All rights reserved.