CASH MANAGEMENT

CONFIGURATION
By : Youssef EL HAJJAMI
SAP Finance & Controling Consultant
© 2024 Youssef EL HAJJAMI. All rights reserved. This material may not be copied,
shared, or distributed in any format or by any method, whether digital, mechanical, or
otherwise, including duplication, audio recording, or information storage systems,
without explicit written consent from Youssef EL HAJJAMI.

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 TABLE OF CONTENTS
INTRODUCTION ...................................................................................................................... 4
1. Basic Settings ........................................................................................................... 5
1.1 Define Value Date Default ..................................................................................... 5
1.2 Define Source Symbols ........................................................................................... 5
2. Master Data ............................................................................................................... 7
2.1 Define Planning Levels ............................................................................................. 7
2.2 Define Planning Groups............................................................................................ 8
3. Structuring .............................................................................................................. 10
3.1 Define Cash Management Account Name ........................................................ 10
3.2 Define Groupings and Maintain Headers .......................................................... 13
3.3 Maintain Grouping structure................................................................................ 15
3.4 Define Number range for Manual Planning (OT20) ....................................... 18
3.5 Define Planning types for Manual Planning ...................................................... 21
3.6 Define planning levels for Logistics ................................................................... 28
3.7 Maintain Special GL transaction level for Customer down payment request
.................................................................................................................................... 30
3.8 Maintain Special GL transaction level for Vendor Down Payment request 32
4. ACTIVATE CASH MANAGEMENT .................................................................... 35
4.1 Prepare Production Startup and Data Setup .................................................. 35
4.2 Update bank master data with cash management levels .............................. 48

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INTRODUCTION

SAP Cash Management‘s objective are as follows:-

✓ To ensure an optimum amount of liquidity to meet required
payments as they become due.
✓ Monitor Cash inflows and outflows.

The Cash Management component reproduces the activity in bank accounts

in the report Cash position, while activity in subledger account is reproduced
in the report Liquidity Forecast.

This Cash position and Liquidity Forecast are the 2 important reports in Cash
management.

What is Cash position and how is data updated in it?

A cash position report gives the bank balance over a few days in your bank
accounts .
Cash position captures it data from the bank accounts. Cash management
planning level is updated in the Bank GL account master. In configuration we
define the set up of cash position by using groupings. The grouping
determines which levels and accounts should be displayed in the cash
position. The data in cash position is updated based on value dates entered
while posting entries in the bank clearing accounts .

What is Liquidity Forecast and how is data updated in it?

The Liquidity Forecast reproduces the liquidity trend in the subledger

accounts i.e. Customers and Vendors. The Liquidity Forecast is more useful
then the Cash position report, since we actually can project our liquidity
trend over the next few weeks or next few months.
The data in liquidity forecast is captured from the following source:-
1) Purchase requisition
2) Purchase orders
3) Scheduling agreement
4) Sales orders
5) Vendor invoices
6) Customer invoices

In the Vendor and Customer master, payment terms are updated. This
payment term is defaulted in the transaction data. The due date for the

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transaction data is calculated from the payment terms. The data is
immediately updated in the liquidity forecast on posting the transaction data.

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1. Basic Settings

1.1 Define Value Date Default

For configuration we use the following path on the SAP application screen:-

SAP Menu Tools Customizing IMG SPRO – Edit Project

SAP Customizing Implementation Guide Financial Supply Chain Management

Cash and Liquidity Management Cash Management Basic Settings
Define Value Date Default

Here you specify whether the current date is the default value for the
value date when line items are entered. You make this specification for
the company codes in which you implement Cash Management.

1.2 Define Source Symbols

SAP Customizing Implementation Guide Financial Supply Chain Management

Cash and Liquidity Management Cash Management Basic Settings
Define Source Symbols

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In this step you define source symbols and allocate them either to the
liquidity forecast or to the cash position.

The source symbol divides the planning levels according to the sources that
supply them with data, for example:

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 • Bank accounting

• Subledger accounting

• Materials management

• Sales and distribution

We will use the SAP standard source symbols which are shown below.

Please note the source BNK (BNK) and IHC (In -House Cash) only is ticked
for the cash position.

No data will be posted to cash position from Materials Management,

Sales and Distribution and Subledger accounting.

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2. Master Data

2.1 Define Planning Levels

SAP Customizing Implementation Guide Financial Supply Chain Management

Cash and Liquidity Management Cash Management Master Data G/L
Accounts Define Planning Levels

Here you specify a planning level for each cash account and allocate this
planning level to the cash position by using the appropriate source symbol.

Financial transactions in Cash Management are displayed using planning

levels in order to explain beginning and ending account balances.

We will create separate planning levels for each of the following:-

Bank clearing accounts

Purchase order
Sales order
Customers and Vendors

Click on

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Update the following:-

Click on

2.2 Define Planning Groups

SAP Customizing Implementation Guide Financial Supply Chain Management

Cash and Liquidity Managem ent Cash Management Master Data
Subledger Accounts Define Planning Groups

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Here you define the planning groups for customers and vendors. A planning
group represents particular characteristics, behaviors or risks of the
customer or vendor group for e.g. Domestic vendor, Import vendor and
affiliate vendor.

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The planning group is then assigned to customers and vendors by making an
entry in the master record.

Click on

Update the following:-

Click on

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3. Structuring

3.1 Define Cash Management Account Name

SAP Customizing Implementation Guide Financial Supply Chain Management

Cash and Liquidity Management Cash Management Structuring Define
Cash Management Account Name

Here you assign a name as the cash management account name to each
bank account and bank clearing account. This name is used with all functions
and reports in Cash Management instead of the account number.

In some instances it is useful to set up a cash management account without a

master record. You must indicate these ac counts as internal, cash
management accounts by selecting the "CM" field. Thus, you can set up one-
time transactions, such as fixed term deposits, with banks in Cash
Management, without having to create a G/L account master record for them.

Update the following:-

Click

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Click on

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Update the following:-

Click

You get a message .

Click to continue.

Click on

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 3.2 Define Groupings and Maintain Headers

SAP Customizing Implementation Guide Financial Supply Chain Management

Cash and Liquidity Management Cash Management Structuring
Groupings Define Groupings and Maintain Headers

Here we define the grouping whic h will be used to select in the report
Liquidity forecast report or cash management forecast.

Click on

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Update the following:-

Click on

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 3.3 Maintain Grouping structure

SAP Customizing Implementation Guide Financial Supply Chain Management

Cash and Liquidity Management Cash Management Structuring
Groupings Maintain Structure

The Grouping structure enables you to group together bank and subledger
accounts in the cash position or the liquidity forecast.

For the cash position and the liquidity forecast, you specify:

✓ The accounts you want to see in the grouping and those you want
to exclude
✓ The summarization term under which you want to group together the
lines for levels and the lines for groups in the display
✓ The line type, whereby "E" stands for level and "G" for the
account or planning group.

If you want the display to be as detailed as possible, SAP recommends

selecting all levels for each grouping. To do this, mask your entry with ++.

Click on

Update the following:-

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Take a drop down in the field Ty.

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Select E for levels (Customers and Vendors)

Update th e following:-

Thereafter we will maintain structure for the Banks

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Thereafter update the following:-

Click on

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 3.4 Define Number range for Manual Planning (OT20)

SAP Customizing Implementation Guide Financial Supply Chain Management

Cash and Liquidity Management Cash Management Structuring Manual
Planning Define Number Ranges

Here we create number ranges for manual planning i.e. for entering memo
records.

Click on

Update the following:-

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Click

Click

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Click

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The number range is copied with the number range key 01.

3.5 Define Planning types for Manual Planning

SAP Customizing Implementation Guide Financial Supply Chain Management

Cash and Liquidity Management Cash Management Structuring Manual
Planning Define Planning Types

Here you define the respective planning types for manual planning. Using the
planning type, you control the manual entry of planned memo records. For
each planning type, you specify

• the level to which the planning type is allocated

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• the archiving category in which a memo record is stored
after it becomes invalid

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 • whether memo records expire automatically

• the number range to which the planning type is allocated

• which fields are displayed for the respective planning type,

and whether an entry is required or optional in the fields.

Before you create a planning type you need to create a relevant

planning level also.

Create a planning level (Z5 - Short term loan taken) in step

2.1 as follows:-

Thereafter proceed to create the planning

type:- Click on

Update the following:-

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Click on

Click

Select Z5

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Double click

Double click

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Update the following:-

Click

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Update the following:-

Click on

3.6 Define planning levels for Logistics

SAP Customizing Implementation Guide Financial Supply Chain Management

Cash and Liquidity Management Cash Management Structuring Define
planning levels for Logistics

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In this step, you allocate the transactions from Materials Management (MM)
and Sales and Distribution (SD) to the planning levels you have defined for
updating this data.

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A business transaction in Logistics is represented by an internal ID:
1 = purchase requisition
2 = purchase order
3 = scheduling agreement
101 = Sales order
You must assign these transactions to a planning level so that you can
distinguish them in Cash Management.

Since we have defined another planning level for Purchase order (M9)
and Sales order (S9), replace M2 (for 2) with M9 and Replace S1 (101) with
S9

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Click on

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 3.7 Maintain Special GL transaction level for
Customer down payment request

SAP Customizing Implementation Guide Financial Supply Chain Management

Cash and Liquidity Management Cash Management Structuring Special
G/L Transaction Levels Customer Define Down Payment Request

Here you assign to special G/L transactions a planning level under which you
want to see the cash flows in the liquidity forecast.
Use SAP standard FF for down payment request. F being for FI postings and
the second letter F (special GL indicator F)

Thus Customer down payment request will be seen under planning level FF
separately instead of VC planning level.

Double click

Update the following:-

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Update the planning level FF (Down payment request).

FF is SAP standard planning level for down payment request.

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Click on

3.8 Maintain Special GL transaction level for Vendor

Down Payment request

SAP Customizing Implementation Guide Financial Supply Chain Management

Cash and Liquidity Management Cash Management Structuring Special
G/L Transaction Levels Vendor Define Down Payment Request

Here you assign to special G/L transactions a planning level under which you
want to see the cash flows in the liquidity forecast.
Use SAP standard FF for down payment request. F being for FI postings
and the second letter F (special GL indicator F)

Thus Vendor down payment request will be seen under planning level FF
separately instead of VC planning level.

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Double click

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Update the planning level FF

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Click on

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4. ACTIVATE CASH MANAGEMENT

4.1 Prepare Production Startup and Data Setup

SAP Customizing Implementation Guide Financial Supply Chain

Management Cash and Liquidity Management Cash Management Tools
Prepare Production Startup and Data Setup

This menu supports you when you are implementing the cash management and
forecast (CM&F). You can activate company codes for the CM&F update:
table settings are checked in the process. The management groups needed
for the CM&F update can be entered in the customer and vendor master
records, and partial or total reconstruction of the totals records is now much
easier.

Update the following:-

Click

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Update the following:-

Click

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Click

Click

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Click

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Update the following:-

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Click

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Click

Click

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Click

The Customer master data is updated with the cash management group.

Now select Vendors and Update the following:-

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Click

Click

Click

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Click

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Now let us check the customer master data, whether they have been
updated with the cash management group.

Use transaction code FD02

Update the following:-

Click

You see above that the cash mgmt group field has been updated with C1 –
Domestic customers.

Let us now check the Vendor master data:-

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Update the following:-

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Click

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The Cash mgmnt group has been updated with V1 – Domestic Vendor

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4.2 Update bank master data with cash management levels

Use transaction code FS00

Update the following:-

Click on

Click

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Update the Planning level:-

Take a drop down in the field Planning level

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Click on

Similarly edit the next account

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Click

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Update planning level Z1

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Click on

Update the next GL account

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Update the following:-

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Click on

Update the next account

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Update the following:-

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Click on

Update the next GL account

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Click on

Congratulations, you have now implemented the Cash management

module.
Start postin g AR, AP data, MM data (purchase orders) and SD data (Sales
order) and see the results in the report Liquidity Forecast.
For results in the Cash position, post data in the bank accounts.

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