sap in house cash management
DESCRIPTION
A good comprehensive book, for all who are interested in the field of Cash Management.TRANSCRIPT
SAP AG 2003
FSC120 SAP In-House CashFS310 Collections and Disbursements
THE BEST-RUN BUSINESSES RUN SAP
© SAP AG 2005
FSC120
SAP In-House Cash
mySAP ERP 2004
2005/Q2 Material number: 50075855
SAP AG 2003
Copyright 2005 SAP AG. All rights reserved.
No part of this publication may be reproduced or transmitted in
any form or for any purpose without the express permission of
SAP AG. The information contained herein may be changed
without prior notice.
Copyright
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Recommended:
AC010 Business Processes in Financial Accounting
FS230 Bank Current Account
Course Prerequisites
Course FSC120 looks at the In-House Cash area in detail, including some of the related procedures and system settings.
This course replaces the previous courses CFM840 (In-House Cash) and FS120 (In-House Cash).
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Course Goals
Course Objectives
Course Content
Course Overview Diagram
Main Business Scenario
Contents:
Course Overview
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This course will prepare you to:
Use the core business processes and functions
offered by In-House Cash
Create the necessary master data and make the area-
specific settings in Customizing
Course Goals
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Course Objectives
At the conclusion of this course, you will be able to:
Describe the organizational units used in the
In-House Cash application
Maintain the master data
Automate intra-group payments and payments made
to external partners, and describe the procedure for
central incoming payments
Explain the cross-bank area posting function
Carry out special periodic activities
Carry out basic area-specific Customizing
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Unit 5 Master Data Maintenance
Unit 6 In-House Cashprocesses
Unit 7 Periodic Tasks
Preface
Unit 1 Course Overview
Unit 2 Overview of FinancialSupply Chain Mgmt.
Unit 3 Introduction to In-House Cash
Unit 4 Organizational Units
Appendix
Course Content
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Course Overview Diagram
Unit 4: Organizational Units
Unit 6: In-House Cash Processes
Unit 7: Periodic Tasks
Unit 5: Master Data Maintenance
Unit 3: Introduction to In-House Cash
Unit 2: Overview of Financial Supply Chain Mgmt.
Unit 1: Course Overview
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You first want to gain an overview of the Financial
Supply Chain Management (FSCM) components.
What are the goals and advantages of the SAP
In-House Cash solution?
To find out about the basic structure and the
preparations that need to be made, you want to gain
an overview of the organizational units involved and
then maintain the master data.
You want to manage your intra-group and external
payment transactions and the corresponding risks
as effectively as possible and, in doing so, secure
a competitive advantage.
Main Business Scenario I
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How can payment transactions within the group be
automated efficiently?
How can group payment transactions with third
parties be automated?
What is the procedure for central incoming
payments?
What settings need to be made in the application and
in Customizing in order to use the In-House Cash
solution effectively?
Main Business Scenario II
You are a member of a project team. Your task is to make the basic settings for the core business processes and functions in In-House Cash, and you assist in completing this task.
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Overview of Financial Supply Chain Management
Unit 4: Organizational Units
Unit 6: In-House Cash Processes
Unit 7: Periodic Tasks
Unit 5: Master Data Maintenance
Unit 3: Introduction to In-House Cash
Unit 2: Overview of Financial Supply Chain Mgmt.
Unit 1: Course Overview
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Financial Supply Chain Management
Financial Supply Chain Management (FSCM) is an integrated
approach for improved transparency and control of all processes relevant to liquidity:
Improved cash flow forecasts
Reduced working capital
Reduced operating expenses
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At the conclusion of this unit, you will be able to:
Provide an overview of the Financial Supply Chain
Management (FSCM) components.
Overview of Financial Supply Chain Management: Unit Objectives
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Before you begin working in the project team, you
want to obtain an overview of the components of SAP
Financial Supply Chain Management.
What are the components of FSCM, and what are
the most important functions of the individual
components?
Overview of Financial Supply Chain Management: Business Scenario
You are a member of a project team. Your task is to make the basic settings that are required for the core business processes and functions of the In-House Cash component.
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SAP FSCM: SAP Credit Management
SAP Credit Management
Increase the financial visibility of the customer base:
Gain control over how credit is issued
Optimize terms for customers
Reduce amount of bad or doubtful debt
Settle
&
Pay
Cash Flow
Forecast
Finance
Work Capital
Resolve
DisputesReconcile
Issue
Invoice
Evaluate
Credit
SAP Financial Supply Chain Management
Financial Supply
Chain
Management
Credit
Management
Electronic Bill
Presentment &
Payment
Dispute
ManagementIn-House Cash
Cash & Liquidity
Management
Treasury & Risk
Management
Collect
Cash
Collections
Management
Credit Management provides you with the tools you need to assess the customer's credit, enabling you to rely on internal assessment guidelines and external credit data. You can easily manage even the most complicated customer base with the most diverse customers and conditions.
As a result, you can make decisions regarding credits quickly and consistently, thus allowing you to reduce delays in payment and the number of uncollectible receivables as well as total transaction costs. Furthermore you are now able to offer an improved service to your best customers.
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SAP FSCM: SAP Biller Direct
SAP Biller Direct
Supplement traditional billing procedures:
Electronic invoicing for businesses
Electronic payment for customers
Integrate customer service with finance
SAP Financial Supply Chain Management
Financial Supply
Chain
Management
Credit
Management
Electronic Bill
Presentment &
Payment
Dispute
ManagementIn-House Cash
Cash & Liquidity
Management
Treasury & Risk
Management
Settle
&
Pay
Cash Flow
Forecast
Finance
Working Capital
Resolve
DisputesReconcile
Issue
Invoice
Evaluate
Credit
Collect
Cash
Collections
Management
Using the electronic invoicing and payment tool Electronic Bill Presentment and Payment, your
customers can display accounts, settle invoices, resolve problems, and check the payment status online.
As a result, your payment, invoicing and reconciliation processes are simplified while, at the same time, your sales cash flow is accelerated.
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SAP FSCM: SAP Dispute Management
SAP Financial Supply Chain Management
Financial Supply
Chain
Management
Credit
Management
Electronic Bill
Presentment &
Payment
Dispute
ManagementIn-House Cash
Cash & Liquidity
Management
Treasury & Risk
Management
Settle
&
Pay
Cash Flow
Forecast
Finance
Working Capital
Resolve
DisputesReconcile
Issue
Invoice
Evaluate
Credit
Collecte
Cash
SAP Dispute Management
Enhance customer profitability and reduce days sales outstanding:
Identify issues and disputes earlier in the payment cycle
Track and monitor reasons that drive DSO
Reduce the frequency of deductions and underpayments
Collections
Management
SAP Dispute Management allows you to resolve disputes with customers regarding invoices and payments quickly and efficiently. Dispute Management lets you analyze the problems and issues behind your days sales outstanding (DSO) as well as decrease the number of payment deductions. As a result, your accounts receivable accounting department will be able to work much more productively.
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SAP FSCM: SAP Collections Management
SAP Collections Management
Establish customer-centric receivables management
Identify, evaluate and prioritize accounts
Collect receivables proactively
Collaborate with external and internal business partners
SAP Financial Supply Chain Management
Financial Supply Chain
Management
Credit
Management
Electronic Bill
Presentment &
Payment
Collections
Management
Dispute
ManagementIn-House Cash
Cash & Liquidity
Management
Treasury & Risk
Management
Settle
&
Pay
Cash Flow
Forecast
Finance
WorkingCapital
Resolve
DisputesReconcile
Issue
Invoice
Evaluate
Credit
Collecte
Cash
The SAP Collections Management component lets you actively manage receivables. Tracking and collecting outstanding amounts: You receive access to data that allows you to
monitor your customer accounts. Based on this data, you can contact the customer and point out any outstanding amounts.
You can record the customer's promise to pay in the system. Due to its integration with accounts receivable accounting, the system monitors whether the payment is received and the payment promise is kept.
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SAP FSCM: SAP In-House Cash
SAP Financial Supply Chain Management
Financial Supply
Chain
Management
Credit
Management
Electronic Bill
Presentment &
Payment
Dispute
ManagementIn-House Cash
Cash & Liquidity
Management
Treasury & Risk
Management
Cash Flow
Forecast
Finance
Working
Capital
Resolve
DisputesReconcile
Issue
Invoice
Evaluate
Credit
Collect
Cash
SAP In-House Cash
Lower cost of managing banking relationships
Cost-effective processing of intra-group and external payment transactions
Consolidate banking relationships
Aggregate transactions by business units or regions
Lower cost of inter-company payments
Collections
Management
Settle
&
Pay
The SAP In-House Cash component is a solution for processing and optimizing a group's intra-
group and external payment transactions. It reduces the need for external bank accounts and for cross-border payments.
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SAP FSCM: Treasury & Risk Management
SAP Financial Supply Chain Management
Financial Supply
Chain
Management
Credit
Management
Electronic Bill
Presentment &
Payment
Dispute
ManagementIn-House Cash
Cash & Liquidity
Management
Treasury & Risk
Management
Settle
&
Pay
Cash Flow
Forecast
Finance
Working
Capital
Resolve
DisputesReconcile
Issue
Invoice
Evaluate
Credit
Collect
Cash
SAP Treasury and Risk Management
Manage investments in securities and deposits:
Straight-through processing of financial transactions
Manag interest rates and currency exposure
Gain overview of deals and cash position
Control and limit market risks
Collections
Management
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SAP FSCM: SAP Cash & Liquidity Management
SAP Financial Supply Chain Management
Financial Supply
Chain
Management
Credit
Management
Electronic Bill
Presentment &
Payment
Dispute
ManagementIn-House Cash
Cash & Liquidity
Management
Treasury & Risk
Management
Settle
& Pay
Cash Flow
Forecast
Finance
Working Capital
Resolve
DisputesReconcile
Issue
Invoice
Evaluate
Credit
Collecte
Cash
SAP Cash and Liquidity Management
Gain greater visibility and predictability of Cash Flows:
Plan and manage available cash flows
Reconcile payments with bank accounts
Forecast liquidity
Collections
Management
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SAP Financial Supply Chain Management (FSCM) includes the following components:
SAP Credit Management
SAP Biller Direct
SAP Dispute Management
SAP Collections Management
SAP In-House Cash
SAP Treasury & Risk Management
SAP Cash & Liquidity Management
Overview of Financial Supply Chain Management: Summary
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Introduction to In-House Cash
Unit 4: Organizational Units
Unit 6: In-House Cash Processes
Unit 7: Periodic Tasks
Unit 5: Master Data Maintenance
Unit 3: Introduction to In-House Cash
Unit 2: Overview of Financial Supply Chain Mgmt.
Unit 1: Course Overview
SAP AG 2003
At the conclusion of this unit, you will be able to:
Explain the objectives of In-House Cash
List the advantages of In-House Cash
Introduction to In-House Cash: Unit Objectives
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You want to manage your intra-group and external
payment transactions and the associated risks as
effectively as possible and, in doing so, secure a
competitive advantage.
How is this reflected in the objectives of In-House
Cash? What are the advantages to your company?
Introduction to In-House Cash: Business Scenario
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Subsidiary
Subsidiary
SubsidiarySubsidiary
Subsidiary
Subsidiary
Head office
(Europe)
Region 1Region 1
Region 2Region 2
US
Asia
Various and ever-changing multinational corporate structures . . .
. . . with a high volume of internal and external payment transactions
Current Situation
The current situation is characterized by: - Multinational group structures
- Separate banking relationships maintained by each of the group's units - Companies with subsidiaries or branches that do business with each other
-> Large number of intra-group payment flows - Companies with external payment obligations/receivables
-> Large number of external bank accounts - Companies with multinational customer relations
-> Large number of cross-border payments One effect of the global economy is the upsurge in the number of companies that have a
multinational customer base. As the number of internal trading partners is also growing, down the line, international companies are faced with a surge in bank connections and internal and external payment flows. This goes hand-in-hand with considerable costs for cross-border payments.
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CompaniesCompanies withwith subsidiariessubsidiaries oror branchesbranches thatthat do do businessbusiness
withwith eacheach otherother
=> Large => Large numbernumber of of intraintra--groupgroup paymentpayment flowsflows
CompaniesCompanies withwith externalexternal paymentpayment obligationsobligations//receivablesreceivables
=> Large => Large numbernumber of of externalexternal bankbank accountsaccounts
CompaniesCompanies withwith multinationalmultinational customercustomer relations relations
=> Large => Large numbernumber of of crosscross--borderborder paymentspayments
Current Situation
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The goal is to find a solution that facilitates these tasks:
Payment transaction control on a regional and global level
Cost-effective processing of intra-group and external payment transactions
Reduction of external bank accounts
Reduction of cross-border payments
Automation and standardization of business processes
Objectives of In-House Cash
The SAP In-House Cash component is a solution for processing and optimizing a group's intra-
group and external payment transactions. It reduces the need for external bank accounts and for cross-border payments.
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No need to install additional software in subsidiaries
Reduction of transaction volume due to internal netting
Reduction of bank accounts and fees
Bundling of currency quantities
Standardized, rationalized, and integrated business processesand controls
Significantly greater efficiency and lower costs in
processing international payment transactions
Advantages of SAP In-House Cash
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Use of standard payment programs
Use of standard bank statement programs
Maintenance of accounts in any currency
Free choice of payment terms
Interest on Credit balance
Current account overdraft facility for subsidiaries (using
credit limits)
Advantages of SAP In-House Cash
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In-House Cash enables you to automate payment
transactions within the group and with third parties
and supports the central cash receipt process.
In-House Cash offers numerous advantages, including
automated and standardized business processes,
fewer external bank accounts, and a reduction in the
volume of cross-border payments.
Introduction to In-House Cash:Summary
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Organizational Units
Unit 4: Organizational Units
Unit 6: In-House Cash Processes
Unit 7: Periodic Tasks
Unit 5: Master Data Maintenance
Unit 3: Introduction to In-House Cash
Unit 2: Overview of Financial Supply Chain Mgmt.
Unit 1: Course Overview
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At the conclusion of this unit, you will be able to:
List the organizational units involved and
describe their roles
Summarize the basic functions of the In-House
Cash Center and the financial accounting system
Organizational Units: Unit Objectives
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Before you decide how to set up the system, you
need to gain an overview of the organizational units
involved.
Which functions are dealt with by the In-House Cash
Center and which by Financial Accounting?
Organizational Units: Business Scenario
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Head officeGroup
Tasks and functions of the organizational
units involved
Subsidiary03
Subsidiary02
Subsidiary01
In-House Cash
Center
Bank Account
Management
Financial
Account-
ing
Organizational Units Involved
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Group
Subsidiary03
Subsidiary02
Subsidiary01
Company
Individual trading entity (e.g. subsidiary) with its own systems.
This company has one or more accounts with the group head office
(In-House Cash Center).
The company defines new accounts with the In-House Cash Center as
though it were a normal house bank.
Organizational Units: Company
The companies are independent entities that have their own systems. The In-House Cash Center fulfils the role of an internal house bank. The subsidiary maintains an
account relationship with the In-House Cash Center as if it were an external house bank.
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Head officeGroup
In-House Cash
Center
Bank accounts
management
Financial
Account-
ing
Head office
The head office manages the current accounts for the group companies in
the In-House Cash Center (IHC Center).
The financial accounting department at the head office manages the IHC
general ledger accounts.
The head office may also be using other SAP solutions, such as CO, MM, ...
Organizational Units: Head Office
Typically, the SAP In-House Cash Center is set up at a central location.
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Head officeGroup
In-House Cash
Center
Bank Account
Management
Financial
Account-
ing
In-House Cash Center
The IHC Center is normally situated at the head office and can be a
separate organizational entity (such as a Call-Center).
The IHC Center manages the current accounts of the subsidiaries as a
subledger.
The In-House Cash Center processes intercompany payments and
payments between the group and third parties.
Organizational Units: In-House Cash Center
The In-House Cash Center is like a bank, with which the subsidiaries have current accounts. This processing of current account transactions focuses on keeping track of payables and receivables between the In-House Cash Center and the participating affiliated companies. The turnovers and balances of the current accounts are transferred to SAP Financial Accounting as totals records.
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Charges
Interest
Debit Debit
interestinterestCredit Credit
interestinterestOverdraftOverdraft
interestinterestTransactionTransaction
interestinterest
Item Item
chargeschargesDirectDirect
chargeschargesPeriodicPeriodic
chargescharges
DispatchDispatch
chargeschargesAccountAccount maintmaint. .
chargescharges
Account A
+ 100.00
- 10.00
+ 0.45
Account charges 10.00€ Credit interest 0.5%
In-House Cash Center: Condition Structure
The IHC Center acts as a service department responsible for looking after the financial interests of the group and takes on the role of a virtual bank for the group companies. The IHC Center manages current accounts for the subsidiaries.
The account management functions provided in the IHC Center allow you to maintain and manage accounts in any currency. This includes functions for calculating interest, debiting charges, granting overdrafts, and creating bank statements for the affiliated companies.
The IHC Center manages the payment transaction processes, such as the automation of payment transactions within the group (internal payments), central payments for the affiliated companies (central payments), or it manages the external incoming payments for the subsidiaries in house bank accounts at the head office (external incoming payments).
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Head officeGroup
In-House Cash
Center
Bank accounts
management
Financial
Account-
ing
Financial Accounting
Contains the G/L accounts required for the IHC subledger.
Financial Accounting manages the summarized balances from the IHC Center
and draws up the Balance Sheet for the head office, including the IHC Center.
The financial accounting department uses SAP-FI.
Organizational Units: Financial Accounting
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Companies are independent entities (such as
subsidiaries) that have their own systems.
The head office includes financial accounting
and the IHC Center.
The solution is based on account management in
the IHC Center and the IDoc link to FI.
The IHC Center manages the
current accounts of the subsidiaries as a
subledger of the head office.
Organizational Units: Summary
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Master Data Maintenance
Unit 4: Organizational Units
Unit 6: In-House Cash Processes
Unit 7: Periodic Tasks
Unit 5: Master Data Maintenance
Unit 3: Introduction to In-House Cash
Unit 2: Overview of Financial Supply Chain Mgmt.
Unit 1: Course Overview
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At the conclusion of this unit, you will be able to:
Explain the principle of the central business
partner, including the role concept
Define the bank area as the central organizational
unit for the current account management system
Create a current account with all its
components
Describe the framework for entering
conditions
Explain the limit categories
Master Data Maintenance: Unit Objectives
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You first want to maintain the necessary master
data. Mater data is usually created once at the beginning and
then provides the framework for the transaction data. However,
changes can be made later on, if necessary. Master data forms
the basis that enables you to work with the system.
What is the role of the bank area as the
central organizational unit?
How do you create a current account with its key
components? (The In-House Cash Center manages the
current accounts of the subsidiaries as a subledger of the head
office.)
Master Data Maintenance: Business Scenario
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Central Business Partner
Financial Supply Chain Management
FSCM
IBU Insurance
IBU Banking
IBU Utilities
. . .
CustomerRelationshipManagement
CRM
IBU Health Care
Business? Business? PartnerPartner
SAP Business Partner was developed using the Business Data Toolset (BDT). The applications (such as
FSCM) incorporate the additional attributes, roles and relationships they require into BDT dialog maintenance. The Business Data Toolset (BDT) supports the maintenance of master data and simple transaction data. The BDT is completely independent of the application data and is open for other application objects, such as CRM, FSCM and industry solutions like IBU Insurance, IBU Banking, etc., where IBU stands for Industry Business Unit.
SAP Business Partner Stores data in a central master record, reducing the maintenance effort and storage space needed
and preventing data inconsistencies (Business Partner is present only once in the system) Contains central data, such as names, addresses, communication details and bank details
Business Partner can be involved in different business processes Business Partner: Role Concept (see next page)
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• Account holder
• Authorized drawer
• Bank statement recipient
• Contact person
• Account maintenance
officer ...
Business Partner: Role Concept
FSCM
In-House CashExample
You create an SAP Business Partner once as a central data object. It can then be used by various SAP applications, including In-House Cash, in different roles.
A Business Partner can have several roles. For example, the following roles are available as role categories and standard roles: Account holder (BKK010):
The account holder is the owner of the current account. Each account is assigned one account holder. Note: If the account holder is an organization or group, you must also define an authorized drawer.
Authorized drawer (BKK020): The authorized drawer is not the owner of the account. You can assign more than one authorized drawer to an account.
Bank statement recipient (BKK030): The bank statement recipient is the addressee for bank statements. You can assign more than one bank statement recipient to an account.
Contact person: The contact person is a group's or organization's point of contact. The contact person must be an actual person. You can assign more than one contact person to an account. The assignment is for informational purposes only.
Account maintenance officer (BKK200): Typically, the account maintenance officer is an internal employee who is responsible for certain accounts.
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Bank areaIn-House Cash
Center
Bank area
002
Bank current accounts
Bank area
003
Bank key 999 999 99Bank key 999 999 99 Bank key XBank key X Bank key YBank key Y
• A company code has to be assigned to each bank area.
• There is a Bank Area that represents the IHC Center.
• If you have more than one IHC Center, multiple bank areas
are required.
Bank area
Company code AFI
The bank area is the central organizational unit of current accounts. It processes and manages all the current accounts in an independent, self-contained system. Since the same bank key can be assigned to multiple bank areas, account numbers that have already been assigned are blocked in the other bank areas using the same bank key.
You should consider at an early stage how many bank areas you will need and how they will be defined, because accounts and conditions are created for a specific bank area. There is a Bank Area that represents the ICH Center. If you have more than one IHC Center, multiple bank areas are required. The IHC Center receives its own Bank Key (for instance, 999 999 99).
The bank area determines: The bank key/bank identification number of the institution The check digit procedure used to determine the check digit in the account number The company code to which the BCA (Bank Customer Accounts) balances are transferred The products that can be used within the bank area The country, language and public holiday calendar used.
To avoid problems when checking the length of the bank key or the bank number, use transaction code FIHC for creating the IHC Center. See also SAP Notes 335278 and 376180.
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C
U
S
T
O
M
I
Z
I
N
G
CC
UU
SS
T T
OO
MM
II
ZZ
II
NN
GG
Product configurator:
Example
Account
fields
Conditions
and limits
Features
Payment
transaction
operations
Administration Product name, validity period, status
Attribute control:
- Attribute control of the fields visible at the
time of account creation
- Storing of default values for account fields
- Control of the field modifications
Hide
Required entry
Optional entry
Display
Permitted combinations of payment media
and activity types
Product: Overview
A product is a set of current account attributes. It is used as a template for defining fields, conditions and limits, features and payment transaction operations. Products are used to control general processing characteristics which are transferred to the assigned accounts.
You first define products and then create accounts based on these products. Products serve as templates for accounts. A product configurator is available for defining the products. The Product Configurator facilitates the definition of the business and technical features of a product, its version creation and the layout of the functions on the screen.
Initially, you create products across all bank areas. Then you assign them to the bank areas in which they are to be used.
You create products in Customizing. There are separate sections for product administration, the fields in the account, conditions and limits, the account features, and the payment transactions supported for the product.
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Business Business partnerspartners
ConditionsConditions
BlocksBlocks
TurnoversTurnovers
No. Post.date Crcy AmountVal.date
1 12/30/04 12/31/04 EUR 100.00 C
2 12/31/04 12/31/04 EUR 9.58 D
.........ReportingReporting
LimitsLimits
Account A
Bank Bank statementsstatements
+ 100
- 120
...
IHC
Center
General
ledger
FI
General General ledgerledger transfertransfer
Account Overview
Master data
Accounts are seen as characteristics of a product. Each account must be assigned to an account holder. You must create an account in In-House Cash for each participating affiliated company.
Account master data: In the account master data views, first you store the bank area, account number and business partner key for the account holder. Assigning an account holder to an account is prerequisite for opening the account.
The account master data also contains all the information on the accounts managed in the current account system.
Examples: Administration: Status, date account was opened Identification: Currency, product, account name (To facilitate identification, the name of the
account should include the account currency.) Condition groups: Condition area, interest, charges, value dates Account holder: Master data for the business partner Bank statement recipient: Business partner in the role of bank statement recipient Other business partners: Contact person, authorized drawer, for example
You can also define limits. SAP delivers the standard limit categories Account Overdraft limit, Internal Account limit and External Limit. The master data for the limits is required to limit the amount that can be drawn from an account and thus affects account maintenance.
You can define blocking reasons with respect to the account. Blocking reasons enable you to block features, transaction types or media type defined for the product specific to a particular account. (The term 'media' refers to the media used to communicate the payment order to the bank, such as a document, EFT, SWIFT.)
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Account maintenance 10.00€Posting date + 1 day
Credit interest 0.5%
4912132213D C
100.00
0.4210.00
ChargesCharges
InterestInterest
ValueValue datedate
Condition Master Data
Condition master data: This data contains all the information needed to calculate the interest and charges for an account and determine the value date for postings.
Conditions control the settlement of the accounts with regard to the crediting and debiting of interest and charges. The conditions also determine the value dates in the area of payment transactions and account settlement.
Structure: Each condition belongs to a certain condition category. The available condition categories are divided into the condition group categories “interest”, “charges” and “value dates”.
Individual conditions supplement standard conditions. You can create individual conditions for a specific account. The individual condition overrides the corresponding standard condition, If the individual condition is a markup condition (flag in the condition header), it is added to the
standard condition. If an individual condition becomes invalid, the standard condition automatically applies again.
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Condition group categoryCondition group category
ConditionsConditions
Condition
category
Condition
category
Condition groupCondition group
0004
Interest of affiliated
companies
InterestInterestInterest
Debit
interest
Debit
interestOverdraft
interest
Overdraft
interest
Credit
interest
Credit
interest
EUR overdraftinterest
EUR debitinterest
EUR creditinterest
Condition Group Category: Interest
EUR transinterest
EUR EUR transtransinterestinterest
Transaction interestTransaction interest
The condition categories “debit interest”, “credit interest" and “overdraft interest” are summarized,
for example, in the condition group “interest of affiliated companies”. (Another condition group could be, for example, “interest of non-affiliated companies”.)
Condition groups, in turn, are summarized in the condition group categories “interest”, “charges” and “value dates”.
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Condition item: as of Jan. 1 9.0%
Condition item: as of May 1 9.5%
Condition header: EUR debit int.
Condition header:
Condition area, description, condition category,
differentiation, condition currency, calculation method
Condition item:
Amount, interest rate, interest rate reference
Creating Conditions I
You create the condition header in the condition area. The condition area is the central
organizational unit in which standard conditions are defined. In the condition header, you maintain: the description, the condition category, the differentiation, the condition currency, and the calculation method.
You can further define the condition categories using the differentiation type. For example, based on the turnover of an account, you can set up different rates of debit interest: for example, 9% for a turnover of up to EUR 100,000, 7% for a turnover of up to EUR 200,000.
The interest calculation method determines on which time base interests are calculated on payments throughout the year. Variances in the number of days in a month as well as leap years are taken into account by the different methods in various ways.
Each condition has one or more condition items. The condition items are time-dependent. The system uses the amount or percentage that is currently valid. Alternatively, you can define interest markups and markdowns on reference interest rates.
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Condition Condition
areaarea
Account A
Condition
group
e.g. G1
Account B
ProductProductDebit Debit interestinterest
Credit Credit interestinterest
TransactionTransaction
interestinterest
OverdraftOverdraft
interestinterest
Standard
conditions
The condition area controls which conditions can be
assigned to an account.
Creating Conditions II
Conditions are always created in relation to a condition area (central organizational unit), which you
assign to the product in the ‘Create product’ section. You can assign precisely one condition area to each product.
The conditions are always created in the application, in relation to a condition area. In a second step, you assign the conditions you have created to the condition groups belonging to that condition area.
In Customizing, you set how standard and individual conditions are displayed. You define condition areas, condition groups, and the counters used for item-based and activity-based charges.
When you assign interest conditions to the condition group, make sure that the condition group category Interest has been defined for both. In the condition group, you can only define one condition per condition category, differentiation type and currency key.
When you assign charges to the condition group, make sure that the condition group category Charges has been defined for both. In the condition group, you can only define one condition per condition category, differentiation type and currency key.
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0004
Charges of affiliated
companies
ChargesChargesCharges
Item
charge
Item
chargeAccount
maintenance
charge
Account
maintenance
charge
Trans-
action
charge
Trans-
action
charge
Dispatch
expenses
Dispatch
expenses
EUR-PER-CEUR-IT-C EUR-TR-C
Direct
charge
Direct
charge
EUR-DI-C
Condition group categoryCondition group category
ConditionsConditions
Condition
category
Condition
category
Condition groupCondition group
EUR-DE
Condition Group Category: Charges
Condition categories belonging to the condition group category “charges”: Item charge:
Balancing condition Fixed amount per posting item, depending on the type of item Free items can be taken into account
Dispatch expenses Balancing condition Based on dispatch expenses counter Business event for individualized calculation of the expense involved in dispatching the bank
statements Account maintenance charges
Balancing condition Fixed amount per period
Transaction charge Charge for payment transaction operations (for example, returned direct debit charge) The transaction charge is posted directly when the transaction is executed
Direct charge Charge for certain services (for example, closing an account)
The direct charge is posted when the activity is carried out
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Condition group categoryCondition group category
ConditionsConditions
Condition categoryCondition category
Condition groupCondition group
Value dateValue dateValue date
Value date
subject to final
payment
Value date
subject to final
payment
Value dateValue date
EUR-VD-f.p.EUR-VD
0004
Value date of affiliated
companies
Condition Group Category: Value Date
Condition categories belonging to the condition group category value date: Value date Value date condition Determines the value date of a posting item according to the type of item (for example, bank
transfer) Specification of the difference (in days) from the posting date Validation against the specified value date condition, taking tolerances into account The value date affects the account balancing, and as such, the interest calculation.
Value date “subject to final payment” (f.p.) Value date condition Determines the account balance that is subject to final payment, according to the type of item (for
example, bank transfer) Value dates that are subject to final payment affect the allocation of funds.
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Configuring Limits: Overview
Overdraft limit
Internal credit limit
External credit limit
Valid from
01/01/2005
Valid from
01/01/2005
Valid from
01/01/2005
Valid to
12/31/9999
Valid to
12/31/9999
Valid to
12/31/9999
Limit amount
100,000,000
Limit amount
100,000,000
Limit amount
100,000,000
Currency
EUR
Currency
EUR
Currency
EUR
The limits you assign to an account always belong to a certain category. SAP distinguishes between the following standard limit categories:
Overdraft limit Internal credit limit External credit limit
These limit categories control the coverage check for the account during the payment transactions as well as balance-dependent conditions. Because the limit categories are each linked to various functions, we advise you not to change them.
The overdraft limit controls the calculation of overdraft interest. If the limit is exceeded, any existing overdraft interest condition takes effect.
The internal credit limit controls the credit limit for payment transactions. The external credit limit is the credit limit communicated to the customer. It is for information
purposes only and has no effect whatsoever on any other functions. The external limit must be less than or equal to the internal limit.
The limits are currency-dependent. The currency of the limit is governed by the account currency.
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Account balancing
Time periods, next date
Reference accounts
Cash concentration
Bank statement
Time periods, next date
Bank statement history
Display of the current bank statement
Account Master Data: Balancing Information
Account balancing: Here you enter the conditions under which accounts are to be balanced, in other words, when interest and charges are to be calculated. You can also post the interest and charges resulting from account balancing to a reference account.
Cash concentration: Here you specify at which intervals a cash concentration run is to take place. Bank statement: This is where you specify how often you want bank statements for this account to
be generated. You can also display current and historical bank statements for each account.
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Product Product -- CreateCreate
-- ChangeChange
-- DisplayDisplay
-- CopyCopy
Product Product -- DisplayDisplay AccountAccount -- CreateCreate
-- ChangeChange
-- DisplayDisplay
-- ReleaseRelease
-- DeleteDelete
Assign bank
areas
Define bank
area
Maintain product
attributes
AccountAccount
-- Define statusDefine status
-- Locking reasons Locking reasons
-- Account relationshipAccount relationship
typestypes
-- Formats for bankFormats for bank
statementsstatements
-- Dispatch type for bankDispatch type for bank
statements statements
-- Resubmission ReasonsResubmission Reasons
APPLICATIONAPPLICATION
CUSTOMIZING
Relationship Between Product and Account
Additional functions in Customizing (Implementation Guide - IMG) ‘Change Product’:
Change existing products Create new versions of existing products. This does not mean changing the whole product, but
just versions of the product. ‘Display product’: Display products which have already been created. ‘Copy product’: Copy existing products. ‘Assign products to bank areas’: You can assign a product to several bank areas. Unless assigned, a
product is not available in any bank area. When you open an account in a bank area, you can only select products assigned to the bank area.
Account management centers on the current account. Accounts are created as characteristic of a product.
You always create accounts for a certain bank area. As a result, you can have accounts with the same account number in different bank areas.
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You create an SAP business partner once as a central
data object. It can then be used by various SAP
applications, including In-House Cash, in different roles.
The bank area is the current account's central
organizational unit.
Accounts are seen as characteristics of a product.
You must create an account in In-House Cash for
each participating affiliated company.
The available condition categories are divided into the
condition group categories interest, charges and value
dates.
SAP has standard limit categories for overdraft
limits, internal credit limits and external credit limits.
Master Data Maintenance: Summary
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ExerciseExercise
Create Current AccountCreate Current Account
Master Data Maintenance: Exercise: Create Current Account
Data for the exercises
Symbols used in the exercises and solutions
Exercises
Solutions
Unit objectives
Business scenario
Hints and tips
Warning or caution
Data used in the exercises
Data Data in the training system
Company codes Participating companies: TR01 to TR38 Instructor: TR01 to TR02 Do not use. Participants: TR03 to TR38
Financial accounting system of parent company: TR00
Bank Area IHC
G/L accounts 113590 IHC EUR Account 113592 IHC Transfers (EUR) 113599 IHC Customer Payments (EUR) 113550 IHC USD Account 113552 IHC Transfers (USD) 113559 IHC Customer Payments (USD)
Customer Company01 to Company38
Vendor
External vendor
Company01 to Company38
EXTERN
Current accounts
in In-House Cash
10490190 to 10493890
10490150 to 10493850 (to be created as part of the exercise)
Business partners
Role: Account holder and Bank statement recipient
Role: Authorized drawer and Account maintenance officer
Company01 to Company38
Employee01 to Employee38
Notes on the exercises:
Since all participants will be working in the same bank area, it is important that you follow
the instructions in the exercises exactly.
Do not delete any existing entries in Customizing. You should only add new entries.
Group 1st Company Code 2nd Company
Code
Customer Vendor
## XX YY XX YY
01 TR03 TR04 COMPANY03 COMPANY04
02 TR05 TR06 COMPANY05 COMPANY06
03 TR07 TR08 COMPANY07 COMPANY08
04 TR09 TR10 COMPANY09 COMPANY10
05 TR11 TR12 COMPANY11 COMPANY12
06 TR13 TR14 COMPANY13 COMPANY14
07 TR15 TR16 COMPANY15 COMPANY16
08 TR17 TR18 COMPANY17 COMPANY18
09 TR19 TR20 COMPANY19 COMPANY20
10 TR21 TR22 COMPANY21 COMPANY22
11 TR23 TR24 COMPANY23 COMPANY24
12 TR25 TR26 COMPANY25 COMPANY26
13 TR27 TR28 COMPANY27 COMPANY28
14 TR29 TR30 COMPANY29 COMPANY30
15 TR31 TR32 COMPANY31 COMPANY32
16 TR33 TR34 COMPANY33 COMPANY34
17 TR35 TR36 COMPANY35 COMPANY36
18 TR37 TR38 COMPANY37 COMPANY38
Master Data Maintenance: Exercises
Unit: Master Data Maintenance
Topic: Create Current Account
After completing these exercises, you will be able to:
Create a current account
Assign this current account to an existing house bank
Complete the details for the payment program (optional)
In addition to your existing current account in EUR, you now want to
create a current account in USD. As a result, you also need to adjust your
house bank data.
1-1 Create a current account in the bank area IHC with the number 1049XX50 for the
respective account holder CompanyXX. Use the product IHC MAX_T as the basis
for the account.
Make sure that you remember to create a USD account.
Enter an authorized drawer in the Other Business Partners section of the Basic Data
tab page. Choose the business partner EmployeeXX in the role of "Authorized
drawer".
Based on the default values for the product, limits have already been defined in EUR.
However, the limit currency must be the same as the account currency, in this case
USD. Delete the existing EUR limits and enter new USD limits. First, go to the
screens for the individual limit period and delete all the existing EUR limits. Delete
the external account limit first, since the external limit is not allowed to be greater
than the internal limit. Enter the following values for all three limit types:
Valid from: 1st Jan 0001
Valid to: 31st Dec 9999
Amount: 100,000,000.00 USD
Define the business partner CompanyXX as the bank statement recipient. Now repeat
the whole of Exercise 1-1 for YY.
Do this for both of your company codes.
1-2 You now also have a USD current account with the In-House Cash Center. You now
need to add this account to your house bank data.
To do so, define account 1049XX50 for the house bank IHC using the account ID
IHCUS in YOUR OWN company code, TRXX. Remember to assign the necessary
G/L account 113550. Now do the same for YY.
1-3 OPTIONAL: Maintain the details for the payment program.
Enter the following bank determination details for your own company code:
Payment method: I
Currency: USD
Ranking order: 1
House bank: IHC
Maintain the bank accounts as follows:
House bank: IHC
Payment method: I
Currency: USD
Account-ID: IHCUS
Bank subaccount: 113552
Maintain the available amounts:
House bank: IHC
Account-ID: IHCUS
Days: 999I
Currency: USD
Available for outgoing payment: 999,999,999.00
Scheduled incoming payment: 999,999,999.00
Master Data Maintenance: Solutions
Unit: Master Data Maintenance
Topic: Create Current Account
SAP menu: Extras > Settings > Display technical names
1-1 Create USD current account:
Accounting
Financial Supply Chain Management
In-House Cash
Account
Create (F9K1)
Field name or data type Values
Bank Area IHC
Account number 1049XX50
Account holder CompanyXX
Product IHC MAX_T
Deactivate Check Digit Set indicator
If the indicator is set the
system creates the account
number without running the
check digit calculation.
Enter
Field name or data type Values
Currency USD
Authorized drawer Employee
Tab page: Limits; button: breakdown, Select and delete the limit (trash can icon).
Start with the External Account Limit and delete all 3 limits.
Button: breakdown. Create new limits for all 3. Start with the Internal limit this time.
Field name or data type Values
Valid from 1st Jan 0001
Valid to 31st Dec 9999
Limit amount 100,000,000.00
Currency USD
Tab page: Account statements
Field name or data type Values
Business partners CompanyXX
Save
1-2 Add account to house bank data:
Menu: Tools > Customising > IMG > Execute Project (SPRO) > SAP
Reference IMG
Customizing: (SPRO transaction)
Financial Accounting
Bank Accounting
Bank Accounts
Define House Banks (FI12)
Field name or data type Values
Company code TRXX
Select IHC, double-click Bank accounts, button: New entries
Field name or data type Values
Company code TRXX
House bank IHC
Account ID IHCUS
Description In-House Cash Account XX
USD
Bank account Number 1049XX50
General ledger 113550 (IHC USD bank
account)
Currency USD
Save
1-3 Solution for: Maintain payment program. Do this for both of your company codes
Accounting
Financial Accounting
Vendors
Periodic Processing
Payments (F110)
Environment
Maintain config.
Button: Bank determination
Select your company code TRXX.
1. Ranking Order:
Button: New entries
Field name or data type Values
Payment method I
Currency USD
Ranking order 1
House bank IHC
2. Bank Accounts:
Button: New entries
Field name or data type Values
House bank IHC
Payment method I
Currency USD
Account ID IHCUS
Bank subaccount 113552 (IHC USD outgoing
domestic payment)
3. Available Amounts:
Button: New entries
Field name or data type Values
House bank IHC
Account ID IHCUS
Days 999 (value date days are not
taken into account)
Currency USD
Available for outgoing payment 999,999,999.00
Scheduled incoming payment 999,999,999.00
Save. Now repeat steps 1-1 to 1-3 for YY.
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In-House Cash Processes
Unit 4: Organizational Units
Unit 6: In-House Cash Processes
Unit 7: Periodic Tasks
Unit 5: Master Data Maintenance
Unit 3: Introduction to In-House Cash
Unit 2: Overview of Financial Supply Chain Mgmt.
Unit 1: Course Overview
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At the conclusion of this unit, you will be able to:
Explain how classical payment transaction
processes are handled by the In-House Cash
solution, based on the organizational units
described earlier, and work with these
processes in the system
Make some of the area-specific Customizing
settings
Describe the principle of cross-bank area
posting
In-House Cash Processes: Unit Objectives
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How can payment transactions within the group be
automated efficiently?
How can group payment transactions with third
parties be automated?
What is the procedure for central incoming payments?
What basic settings need to be made in the
application and in Customizing?
In-House Cash Processes: Business Scenario
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IHC-2 (Bank transfer - USD) 0000113552
Table of account numbers for course FSC120
Relevant chart of accounts: INT
Account description Account number
IHC-0 (Current account - EUR) 0000113590
Chart of Accounts
IHC-2 (Bank transfer - EUR) 0000113592
IHC-9 (Incoming payment - EUR) 0000113599
IHC-0 (Current account - USD) 0000113550
Sales revenues 000800200
IHC-9 (Incoming payment - USD) 0000113559
Consumption (material consumption) 0000400020
Bank Customer Accounts *
In-House Cash account EUR 1049##90
In-House Cash account USD 1049##50
* Will be created as part of the exercises
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Table of customers/vendors and business partners
used in course FSC120:
Account description Account number
Customer Company##
Vendor Company##
External vendor EXTERN
Business partner (Role: Account holder) Company##
Business partner (Role: Authorized drawer) Employee##
Customers / Vendors / Business Partners
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HeadHead officeoffice
Company 03
Company 02
Company 01
Pmnt program OI
Group
1.
2a.
2b.
Example: Company 01 makes a payment to Company 02
Payment Bank statement
IHC Center
Account
management
Financial
Account-
ing
Process 1: Internal Payments
The term internal payment clearing refers to the process of clearing payables and receivables between group affiliates.
Example: Company 01 instructs the In-House Cash Center to make a payment to Company 02. The In-House Cash Center posts the payment to the relevant current accounts and generates and sends bank statements to Company 01 and Company 02.
In the accounts of the financial accounting system at head office, the data is managed in summarized form. The end-of-day processing function in the In-House Cash Center summarizes the account turnovers and then transfers the data to the general ledger.
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1st
IDOC:
Payext
2n
d ID
OC
:F
insta
3rd
IDO
C:
Fin
sta
In-House Cash Center
(IHC)
Account
Company 01
(10490190)
Head office
Company 01Company 01
CoCd: TR01CoCd: TR01
Vendor: Vendor:
Company 02Company 02
Company 02Company 02
CoCd: TR02CoCd: TR02
Customer:Customer:
Company 01Company 01
Account
Company 02(10490290)
Acct crcy: EUR Acct crcy: EUR
Process 1: Internal Payments
Bank statement
Payment run
An IDoc (Intermediate document) is a container for the data of a business object or technical SAP
object. Each IDoc has a message type, which indicates the nature of the business object or the business
purpose of the data (for example, Payext for a payment order and Finsta for a bank statement).
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Company 03
Company 02
Company 01
Pmnt program OI
Head officeGroup
Company 01:
Defines a new (virtual) house bank “IHC Center” (before making the
payment)
Runs the standard payment program and creates a payment order
House bank: IHC Center
Payment recipient: Vendor Company 02
Partner bank: IHC Center
When using IHC, you still have the full choice of payment terms
In-House Cash
Center
Account
management
Financial
Account-
ing
Process 1: Internal Payments
To settle the invoice, Company 01 runs the standard payment program (SAPF110). The system determines the open items and generates a proposal dataset for the payment run. If the In-House Cash Center has been specified as the vendor's bank, the In-House Cash Center is instructed to make the payment to Company 02. During the payment run, the payment program posts the payment documents and simultaneously generates an IDoc (type PAYEXT), which contains all the relevant information for the In-House Cash Center.
Functions of the payment program: Automatic selection of the items to paid, taking account of exceptions (such as blocked items) Generation of payment documents (debit/credit) Generation of payment data Generation of payment lists and logs Print programs write this payment data to payment media, such as checks.
Usually, you carry out a payment proposal run first. This generates a proposal dataset, which you can check and edit before the update run.
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IHC Center:
Debits the current account of Company 01
=> Head office has a receivable due from Company 01
Credits the current account of Company 02
=> Head office has a payable due to Company 02
Generates and sends bank statements to Company 01 and
Company 02
The netting amount is worked out on the basis of the account balance
(for several items)
Company 03
Company 02
Company 01
Pmnt program OI
Head officeGroup
In-House Cash
Center
Account
management
Financial
Account-
ing
Process 1: Internal Payments
The In-House Cash Center receives the IDoc and posts the payment transaction to the corresponding current accounts: It debits the account of Company 01 (ordering party) and credits the account of Company 02 (payment recipient). As a consequence, the In-House Cash Center has a claim against Company 01 and a liability towards Company 02. This clears payables to group companies without the need for physical payments. The In-House Cash Center generates and sends bank statements to Company 01 and Company 02 at the predefined intervals, or upon request.
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Tools
ALE
ALE administration
Monitoring
IDoc display
Display
WE02 WE60
Type information:
Basic type:
PEXR2002
Message type:
PAYEXT
Payment Order: PAYEXT
Tools
ALE
ALE administration
Services
Documentation
IDoc types and segments
For payment orders from the affiliated companies to the In-House Cash Center, you use the message
type PAYEXT with the basic type PEXR2002 and the process code PEXN as the inbound parameter. When an IDoc list is displayed, you can go to a specific IDoc by double-clicking the corresponding bar.
A traffic light indicates whether the current status is considered a success or failure status or whether further processing is scheduled so that a decision has not yet been made with respect to success or failure (yellow light).
The individual IDoc is shown in a tree structure. The top node is the IDoc number. The lower-level nodes include the control record as well as data and status records. (Further explanations via WE60)
For the control record, for example, the “letter header” (sender and recipient), the direction, and the IDoc type are displayed.
For the data records, the segments including their names (E1 structures in SAP segments), the segment number, and the short description are displayed.
For the status records, the individual status values are displayed with a short description.
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Bank area
Account number
Statement date
Control parametersControl parameters
Simulation runSimulation run
Standard outputStandard output
Statement w/o turnoversStatement w/o turnovers
With addressWith address
Generates a single bank statement
(on request)
Company 01
...
BNo/Acct number: 99999999 10490190
Account name: COMPANY01, Frankfurt
Bank statement no.: 2004/001
Beg. balance: EUR 0.00
Creation date/time
Acct currency: EUR
...
Bank transfer 12/18/2003 80,000.00EUR
Ending balance: 80,000.00EUR
...
Generates a single bank statement Generates a single bank statement
(on request)(on request)
Company 01Company 01
......
BNoBNo/Acct number: 99999999 10490190/Acct number: 99999999 10490190
Account name: COMPANY01, FrankfurtAccount name: COMPANY01, Frankfurt
Bank statement no.: 2004/001Bank statement no.: 2004/001
Beg. balance: EURBeg. balance: EUR 0.000.00
Creation date/timeCreation date/time
Acct currency: EURAcct currency: EUR
... ...
Bank transfer 12/18/2003 80,000.00EUR Bank transfer 12/18/2003 80,000.00EUR
Ending balance: Ending balance: 80,000.00EUR80,000.00EUR
......
Generate Bank Statement (F9N7)
In the In-House Cash Center, bank statements can be generated and sent periodically (daily or monthly, for example) or upon request, depending on what has been agreed with the affiliated companies. You can maintain your own settings regarding the bank statement frequency and the administrative data (business partner, bank statement format, bank statement duplicates).
You can also define multiple bank statement recipients for each account. You can create bank statements using a single run or a mass run.
When it generates an internal bank statement, the In-House Cash Center creates an IDoc (type FINSTA01), which contains all the relevant bank statement information. This IDoc is then sent automatically to the corresponding company.
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WE02 WE60
Type information:
Basic type:
FINSTA01
Message type:
FINSTA
Bank Statement: FINSTA
Tools
ALE
ALE administration
Monitoring
IDoc display
Display
Tools
ALE
ALE administration
Services
Documentation
IDoc types and segments
For bank statements from the In-House Cash Center to the affiliated companies, you use the message
type FINSTA with the basic type FINSTA01 and the process code FINS as the inbound parameter. Use transaction WE60 to access documentation on IDoc types.
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Companies 01 and 02:
Import bank statements (FF_5) using the standard bank statement
programs
Open items are cleared automatically
Company 3
Company 2
Company 1
Pmnt program OI
Head officeGroup
In-House Cash
Center
Account
management
Financial
account-
ing
Process 1: Internal Payments
The group companies import the bank statements, which trigger corresponding postings on their bank clearing accounts, and automatically clear the open subledger items.
SAP AG 2003
Electronic and manual
bank statement
Account Statement
Application
Statement dateStatement number
House bank
Account ID
Company code
Currency
Posting parameters
Post immediately Bank accounts only
Generate batch input sessions Session names
Do not post
Assign value date to account
Cash Management & Forecast
Algorithms
Output Control
Post Bank Statement - Cash Management
The report RFEBKA30 creates postings for bank statements in the bank data store. It is possible either
to create batch input sessions or direct postings for the update to general and special ledger accounts.
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House Banks
Company code TR##Company code TR##
House banks
House bank Bank country Bank key ...
IHC DE 99999999
House bank dataBank country DEBank key 99999999
AddressBank name ___Region ___Street ___City ___
Control data ________Swift code ___Bank group ___Post office bank acct ___Bank number 99999999
House banks for each company code are stored under a freely definable ID (maximum five
characters). All details of the house banks (address, control data,...) are managed in the bank directory.
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Company code TR##Company code TR##
Bank accounts
House bank Account ID Bank account ...
... ... ...
IHC IHCEU
... ... ...
G/L account
Current account IHC
Company code TR01
House bank IHC
Bank account key IHCEU
Bank account data
Bank account 10490190
Currency EUR
General ledger 113590
...10490190
Bank Accounts
You specify the relevant bank accounts for house banks you have defined for the company code using
an account ID. You enter the external account number with the bank and its currency, along with the relevant G/L account number, thereby ensuring that postings go to the right accounts.
Each bank account must be assigned to a G/L account. (see, for example, transaction F110 Environment Maintain config. House banks)
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Exercise Exercise
Internal PaymentsInternal Payments
In-House Cash Processes: Exercise – Internal Payments
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Payment Bank statement
Head officeGroup
External
business
partner
Partner bank House bank of head office
1.
2.
7. 6.
Example: Company 01 makes a payment to an external partner
Company 03
Company 02
Company 01
Pmnt program OI
In-House Cash
Center
Account
management
Financial
Account-
ing
5.
4.
3.
Process 2: Central Payments
Central payment describes a process whereby the payables between affiliated companies and external business partners are settled by a central office within the group. In this process, the In-House Cash Center handles the payments on behalf of the subsidiaries. This can greatly simplify the workflow.
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1st IDOC:
Payext
External
business partner
External bank
IHC Center
External
business partner
Company 01Company 01
CoCd: TR01CoCd: TR01
Vendor: EXTERNVendor: EXTERN
In-House Cash Center
(IHC)
Account
Company 01(10490190)
Head officeHead office
Payment
program
2n
d ID
OC
:
Fin
sta
Process 2: Central Payments
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Company 03
Company 02
Company 01
Pmnt program OI
Head officeGroup
External
business
partner
Partner bank House bankof head office
Company 01
Same as for process 1
IHC Center
Debits current account of Company 01
Generates and sends a bank statement to Company 01
In-House Cash
Center
Account
management
Financial
Account-
ing
Process 2: Central Payments
View of the subsidiary (Company 01): Company 01 receives the invoice from an external business partner and enters it as a payable in the system. It then runs the payment program (SAPF110) to clear the vendor account. This clears the open item in the vendor account and generates a corresponding offsetting entry in the bank clearing account. During the payment run, the system automatically creates an IDoc (type: PAYEXT), which passes the payment information to the In-House Cash Center.
IHC Center View: On the basis of the imported IDoc, the In-House Cash Center debits the current account of Company 01 and forwards the payment information to the head office's financial accounting system. When it generates the bank statement, the In-House Cash Center creates an IDoc (type: FINSTA), which contains all the relevant bank statement information. This IDoc is then sent to Company 01.
Company View: Company 01 imports the bank statement and clears the posting in the clearing account.
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Company 03
Company 02
Company 01
Pmnt program OI
Head officeGroup
External
business
partner
Partner bank House bankof head office
IHC Center
IHC Center forwards payment information to SAP FI (Financial Accounting)
Financial Accounting
On the basis of this payment information, SAP FI generates a payment
request
The payment request is sent to the head office's house bank, either
immediately or later (aggregation of multiple payment requests = external
netting)
Head office
In-House Cash
Center
Account
management
Financial
Account-
ing
Process 2: Central Payments
The In-House Cash Center makes the payment to the external partner's bank by sending a payment
request to the house bank of the head office. The interface for the outgoing payment resides in the financial accounting system at the head office. The financial accounting division at the head office runs the payment program for payment requests (SAPF111).
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Payment Notes for Central Payments (Splitting)
Account
mgmt
Company
IHC FI
PAYRQ
F111
Splitting of payment order
IDocs in
n payment requests
PAYEXT
Reference information
contained in the
individual payment
requests
A separate payment
request is generated
for each invoice
Available data
•XBLNR (invoice no. of the vendor)
•BLDAT (invoice date)
•SGTXT (segment text with *)
•KIDNO (payment reference in Finland)
•LZBKZ (state central bank indicator)
PAYEXT
When making a central payment, you can transfer the payment note (for example, the invoice number) to the payment request. The available data is shown on the slide.
This information enables the payment recipient to assign the payment more easily to the respective invoice.
In Customizing of In-House Cash: Under +++Automatically Created Payment Orders, you can set the Split indicator. If the payment is to a third party, a separate payment request is generated for each invoice and sent to the FI system that is responsible for the payment.
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Company 03
Company 02
Company 01
Pmnt program OI
Head officeGroup
External
business
partner
Partner bank House bankof head office
House bank of the head office
Partner bank
Process flow as for a “normal”
payment order to a house bank
Head office
In-House Cash
Center
Account
management
Financial
Account-
ing
SAP FI
Imports bank statement using the standard bank statement programs
(FF_5)
Process 2: Central Payments
The financial accounting division imports the bank statement from the house bank and posts the items to a bank clearing account.
The bank statement log is available in the application menu of In-House Cash: Periodic Processing, Application Logs: Bank Statement
Upon receipt of the payment information, the house bank of the head office makes the payment to the house bank of the external business partner.
The external business partner receives a bank statement from its bank.
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1st IDOC:
PAYEXTExternal bank
IHC Center
External bank
Partner
Company 01
CoCd: TR01
Vendor: EXTERN
In-House Cash Center
(IHC)
Account
Company 01
(10490190)
Head office
Payment
program
2n
d ID
OC
: F
INS
TA
Handling of Returns
External
business partner
STOP
The subsidiary pays the invoices that are due for a vendor. The vendor's payment data is incorrect or the payment should not be transferred. The financial
accounting system of the In-House Cash Center stops the payment before the data file is sent to the external house bank.
You can reverse the payment request and the payment order in the current account in In-House Cash.
You can view the log in the In-House Cash menu: Account Management → Application Log: The subsidiary receives the reversed items, including the payment advice notes, in the bank
statement of the In-House Cash Center.
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1st IDOC:
PAYEXTExternal bank
IHC Center
External bank
Partner
Company 01
CoCd: TR01
Vendor: EXTERN
In-House Cash Center
(IHC)
Account
Company 01
(10490190)
Head office
Payment
program
2n
d ID
OC
: F
INS
TA
Handling of Returns
External
business partner
The vendor's bank account is
closed or the account number
is incorrect.
STOP
The subsidiary pays the invoices of a vendor. The vendor's bank account is closed or the account number is incorrect. Depending on the bank, there are several possible scenarios: First scenario: Financial Accounting imports the bank statement from the house bank and posts it. Because some payment information is missing, the In-House Cash Center's house bank cannot
transfer the amount to the house bank of the external business partner, and the payment “comes back”. Financial Accounting would be notified through a bank statement some days later.
Financial Accounting imports the house bank's statement and posts the item to a bank clearing account. The subsidiary receives the In-House Cash Center's bank statement and has to post the item. The FI document must be canceled, and the subsidiary has to execute the payment program F110 again.
Second scenario: Because the payment information is missing, the bank does not transfer the amount immediately. The transfer is made only after the payment information has been corrected.
Third scenario: The bank does not accept the data file. The data file must be corrected and then sent to the external house bank.
See SAP R/3 Note 501068.
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Central Reporting (Z1)
The subsidiary pays a vendor in foreign currency. This payment is
the subject of Central Bank Reporting.
The subsidiary provides the central bank indicator and the
country code of the central bank. This information is contained in
the IDoc.
The In-House Cash Center processes the IDoc and saves the data
in the payment request.
External payments are reflected in the reporting of the group's head office. If the subsidiaries do not report directly to the central bank, as is supported in the standard version
of the financial accounting system, this procedure is enabled through the use of the In-House Cash component.
Recommendation: The foreign subsidiary itself should report to their respective central bank.
Usually, you carry out a payment proposal run first. This generates a proposal dataset, which you can check and edit before the update run.
Using the global settings for payment handling, you can specify which input parameter fields appear and which are hidden. You can specify which of the following fields should appear on the screen for entering payment parameters in the Customizing section of Bank Accounting: - Vendor accounts - Customer accounts - G/L accounts - Created on - Origin
You can use the origin indicator to specify the application for which payments should be generated.
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You use the Origin indicator to specify the applications for
which you want to generate payments
The following origin indicators are available:
- TR-CM-BT Bank account transfers
- TR-LO Loans Management
- TR-TM Treasury Management
- TR-IHC In-House Cash
Origin Indicator
In the Origin indicator field, you specify the application for which you want to generate payments and how the payments should be processed. SAP supplies origin indicators for the following applications, which generate payment requests: TR-CM-BT (bank account transfers from Cash Management) TR-IHC (for In-House Cash transactions) TR-TM (transactions from Treasury Management: money market, forex, securities, and derivatives) TR-LO (transactions from Loans Management)
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Show/hide fields on the screen
for entering payment parameters
Vendor accounts
Customer accounts
G/L accounts
Entry date
Origin
Entry date
G/L accounts
Restrictions
Customer accounts
Vendor accounts
Origin
Distribution
ALE active
Payment Program: Field Selection Control
In the global settings for payment handling in Customizing for bank accounting, you can define which of the following fields should appear when the user specifies the payment parameters, and in which of these fields entries can be made: - Vendor accounts - Customer accounts - G/L accounts - Created on - Origin If you always want to pay all the items that are due without any restrictions, do not select any of the fields.
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Customizing settings for each origin indicator:
Select available amounts? (yes/no)
Use account determination (bank clearing account) from theapplication? yes/no (If no, account determined by the payment program)
Use “grouping” indicator to apply settings for this indicator? (yes/no)
Display "Origin Control" View: Overview
Origin control
In-House Cash
Planned amnts
Bank account transfers
DescriptionOrigin Account deter... Grouping Collective posting
TR-CM-BT
TR-IHC
TR-TM Transaction Manager
TR-LO Loans Management
Origin Indicator: Customizing
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Define business transaction codes
Maintain transaction types
Assign offsetting transaction types
Maintain features
Maintain media/payment method
Maintain accounts for payment transactions
Assign medium/payment method to posting processes
Maintain posting categories
Assign transaction types to posting categories
Account Management
The medium determines the method for transferring a payment order or payment item to the bank. Examples: Document, data medium exchange (DME).
The payment method determines how (with which medium) the recipient items of a payment order are transferred in a payment transaction.
Maintain Accounts for Payment Transactions: In this IMG activity, you define the clearing accounts that you need for processing the payment transactions. When you create an account, create a CPD (suspense) account and a clearing account for each bank area and for each currency within the bank area.
Each posting process involves one or several posting categories, which describe how the items resulting from the process are posted. In the next IMG activity, you assign transaction types to the posting categories. This completes the definition of the posting process.
The postings that the system generates automatically are organized internally using posting categories.
The items that the system generates automatically are posted to the corresponding accounts on the basis of transaction types. You can assign a transaction type for the posting item to each of the internal posting categories.
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Transaction types characterize payment transaction
operations (such as bank transfers, debit memos).
You can configure transaction types by changing
various attributes.
A transaction type is assigned to every posting
created by the system.
Transaction Types: Definition
In a payment transaction, a payment order consists of at least two payment items: one ordering party item, and one or several recipient items. A transaction type describes how such a payment item is posted.
Examples of transaction types: Debit memo, credit memo, returned debit memo, cash deposit, cash withdrawal, and so on.
By setting attributes, you store information relating to the checks to be performed, the control, the use and the assignment to business transaction codes of the respective transaction types.
Based on the transaction type assignment, every posting generated in the system is supplied with the technical information required for the update.
Standard settings: SAP supplies all transaction types pre-configured.
For each of these transaction types, you can specify which checks are to be carried out before the item is updated. These checks relate to the
business partner permitted functions/blocks for the account limit specified value date
Control attributes: Is the transaction type a debit or credit? Is the update subject to final payment (f.p.)? On which position type is the transaction type based? Is a reversal or value date specification allowed? Is an item to be handled with priority in post processing? If you set the several recipients indicator, the screen layout of the payment order is changed,
enabling entry of several recipient items. Sample transaction types are supplied for this purpose.
Use: Is online entry possible for the transaction type? Reversing/value dating allowed Assignment: Which business transaction code corresponds to the transaction type?
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Payment order
Use: Internally-initiated payment transactions
Payment item:
Offsetting transaction type
e.g. credit from donation
Payment item:
Transaction type
e.g. bank transfer
Payment item:
Offsetting transaction type
e.g. credit from investment
scheme
Payment item:
Offsetting transaction type
e.g. credit from bank transfer
Offsetting Transaction Types: Definition
Offsetting transaction types are the corresponding transaction types for the second item of a payment order. When you enter an internally initiated payment order, the system automatically assigns the transaction type for the second item on the basis of the transaction type for the first item.
It is possible to assign several offsetting transaction types per transaction type. In this case, when you enter a payment order, you need to select one of the offsetting transaction types entered here from the possible entries list.
Standard settings: SAP also supplies the respective assignment of the offsetting transaction type for the pre-configured transaction types.
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Local Payments
Example The illustration shows a group whose organization enables local payments: · Two companies use SAP In-House Cash and act as internal banks for some of the other
subsidiaries. · Furthermore, they act as mutual clearing partners. · Subsidiaries 3 and 4 function as clearing partners and make local payments for other
subsidiaries.
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Preliminary and Final Postings
The In-House Cash Center or the clearing partner should not receive profits or
bear losses resulting from differences in exchange rates. Instead, they should
apply to the business partner who initiated the payment.
The main current account is always the current account to which the final
postings are made. These postings are shown on the bank statement that the
In-House Cash participant receives.
Each of the companies participating in In-House Cash has a current account in
the main currencies for preliminary postings as well as one for final postings.
Reasons for preliminary postings:
Payments to external business partners are transferred to In-House Cash two
days in advance to obtain a better idea of the Cash Management situation.
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Preliminary and Final Postings
Example for local payment
Company DE does not have a local payer in Norway. The payment from
Company DE to the external business partner in Norway, for example, is carried
out via the Cash Center's house bank. The In-House Cash Center does not
manage any accounts in NOK. In other words, the payment is effected via a
EUR account. Therefore the NOK payment amount must be converted to EUR.
Yesterday's exchange rate for NOK:
1000NOK = 124EUR
Today's exchange rate for NOK:
1000NOK = 130EUR
The IHC can offer the same exchange rate to the group companies as is given
to the IHC by the external bank. Therefore the payment order of Company DE is
posted with a preliminary exchange rate of 1000 NOK = 124 EUR first as long as
the final exchange rate of the house bank is not yet known.
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Preliminary and Final Postings
External
business partner
IHB
7a.
Ext. BP
2 1
1000NOK
(124EUR)
IHB cl. acct
7a. 2
House bank
Company
Cash Center
Partner bank of
external BP
House bank
5a
Bank clearing
4b5a
FIFI
Payment transfer
7b4b
IHCIHC
4b
Company DE
Pmnt program
F110 generates
payment order
IDoc „PAYEXT’
2
Bank
statement
Clearing of
cl. acct
7a
Company In-House Bank
Prel (EUR) Company CC
+ 124EUR (1000NOK) - 124EUR (1000NOK)
Prel (EUR) Company DE
3b 3a.
Entry into Payment request table
Pmnt program F111 4b
IC Company DE
9a
130EUR
IC Company CC
9b
130EUR
PT clear.act IHC
9a9b
130EUR 130EUR
End of day processing:
G/L transfer and
Balance sheet preparation
Generation of „FINSTA‟
4a.
7
9
Clearing of cl. acct
FI Company Cash Center1000NOK
(124EUR)
Expenses
1
1000NOK
(124EUR)
1000NOK
(124EUR)
1000NOK
(130EUR)
CA (EUR) Company CC CA (EUR) Company DE
6b 6a.+ 130EUR (1000NOK)
- 124EUR (1000NOK) +124EUR (1000NOK)6b 6a.
- 130EUR (1000NOK)
1000NOK
(124EUR)
6EUR
1000NOK
(124EUR)
6EUR
130EUR
(100NOK)
130EUR
(1000NOK)
5b
Profits/losses
5b
6EUR
1000NOK
(130EUR)
Profits/losses
8a
6EUR
6EUR 8a.IHC
7b
1000NOK
(130EUR)
1000NOK
(130EUR)
Bank
statement
5
8b
8b
6EUR
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Exercise Exercise
Central PaymentsCentral Payments
In-House Cash Processes: Exercise – Central Payments
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Head officeGroup
External
business
partner
Pmnt program OIPartner bank House bank
of head office1.
2.
5.
3.
Example: External partner makes a payment to Company 01
Payment Bank statement
Company 03
Company 02
Company 01
In-House Cash
Center
Account
management
Financial
Account-
ing
4.
Process 3: Central Incoming Payments
The term “central incoming payments” is used when external business partners make payments to a central office to clear their payables towards group affiliates. In this process, the In-House Cash Center acts as the payment recipient and handles the payments on behalf of the subsidiaries.
Example: An external business partner makes a payment to Company 01 via the In-House Cash Center.
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Company 03
Company 02
Company 01
Head officeGroup
External
business
partner Partner bank
House bank of head office
Business partner
Partner bank
House bank of the head office
Process flow as for a “normal”
payment order to a house bank
Head officeIn-House Cash
Center
Account
manageme
nt
Financial
Account-
ing
Process 3: Central Incoming Payments
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Company 03
Company 02
Company 01
Head officeGroup
External
business
partner
Partner bank House bank of head office
SAP FI
Imports bank statement using the standard bank statement programs
Identifies items that are relevant for the IHC Center
Forwards the corresponding items to the IHC Center
In-House Cash
Center
Account
management
Financial
Account-
ing
IHC Center
Credits the payment to the current account of Company 01
Generates and sends a bank statement to Company 01
Process 3: Central Incoming Payments
The external business partner instructs its bank to make the payment. Once the payment has been debited, the external business partner receives a bank statement from its bank. The partner bank makes the payment to the house bank of the head office.
The financial accounting system at the head office imports a bank statement from its house bank. Using special internal algorithms, the system determines whether the items belong to In-House Cash account management and, if so, which current account is affected. Once the items have been identified, the system automatically transfers them to In-House Cash so that they can be posted to the appropriate current accounts.
The In-House Cash Center credits the payment to the current account of Company 01 and generates a corresponding bank statement.
Company 01 receives a bank statement from the In-House Cash Center. When the bank statement is imported, the system generates postings to the corresponding accounts automatically.
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Head officeGroup
3.
Payment Bank statement
Company 03
Company 02
Company 01
In-House Cash
Center
Account
management
FI
4.
Process 3: Central Incoming Payments With Zero Balancing
House bank
Company 03 House bank
Company 02 House bank
Company 01
Zero Balancing1.
2.
3.
3.
House bank
of head office
Each company has only one bank account for incoming payments, such as its receivables. Example:
The external business partner makes a payment to Company 01 via the house bank of Company 01. The head office's house bank carries out the ‘zero balancing’ process on a daily basis.
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Central incoming payments/incoming bank statementsCentral incoming payments/incoming bank statements
Set up link to IHC in FISet up link to IHC in FI
IHC account determination using payment notesIHC account determination using payment notes
IHC account determination using external bank accountIHC account determination using external bank account
Central Incoming Payments/Incoming Bank Statements
In this IMG activity you define which of the items from an incoming bank statement should be posted in In-House Cash. The system first checks if it can determine the account using the notes to the payee.
SAP recommends that you define a unique character string for each account in the In-House Cash Center for identification purposes. Ensure that all customers use this character string in their payment orders.
IHC account determination from the external bank account: By making corresponding settings, you can enable the system to determine the relevant In-House Cash Center on the basis of the external bank number of the house bank, the external account number of the account with the house bank for the affiliated companies, and the bank number and account number of the ordering party. The system can then work out the internal bank area and account number and post the items on the incoming bank statement in In-House Cash. Prerequisite: The In-House Cash Center maintains one account for each affiliated company with the house bank of the In-House Cash Center.
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Central incoming payments/incoming bank statementsCentral incoming payments/incoming bank statements
Assign posting categories to business transaction codes
Determine IHC accounts via the account currency
Charge posting
Central Incoming Payments/Incoming Bank Statements
External business transaction code: Allows you to assign posting categories to business transaction
codes. You can also post charges that were calculated separately using Business Add-In. Account determination using the account currency: The incoming bank statement always
references the same account without referring to the transaction currency. In the In-House Cash Center, the account determination function uses the account number of the external bank. A separate account exists in the In-House Cash Center for each currency (and for each subsidiary). The user can specify the In-House Cash account based on the external account number AND the
currency. Posting charges for central incoming payments: The incoming bank statement from the external
bank contains items for charges. You can determine the charge by analyzing the reference text of the bank statement item. The original amount and the charge must be entered separately. The posting categories for the charge and for the original posting should be different, so that the subsidiaries can differentiate between the two when they receive the bank statement from the In-House Cash Center.
SAP Note 494777
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Subsidiary
Subsidiary
Subsidiary
Head office
(Europe)
Subsidiary
Subsidiary
Region 1Region 1
Region 2Region 2
Subsidiary
IHC US
IHC Asia
Initial Situation –Cross-Bank Area Posting
Cross-bank area posting enables you to route payments between two In-House Cash Centers via all existing In House Cash Centers. Each In-House Cash Center is defined in a client as a separate bank area.
By defining routes and rules for route determination, you can make payments via several In-House Cash Centers. Route determination enables you to define the desired route for a payment and avoid the charges that would be incurred when making a direct payment. You can also define the payment flow between In-House Cash Centers.
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Company 01
Pmnt program OI
1.
2.
In-House Cash
Center_DE
Account
management
Company 02
4.
In-House Cash
Center_US
Account
management
CA for Company 01 -
CA for IHC_US +
CA for Company 02 +
CA for IHC_DE -
*CA= Current Account
3.
Process 1: Example of Internal Payment –Cross-Bank Area Posting
In-House Cash Center IHC_US is defined in the bank details for the vendor (here Company 02). Consequently, Company 01's house bank (= In-House Cash Center IHC_DE) is instructed to make a payment to Company 02 via the In-House Cash Center IHC_US.
The IDoc received by the In-House Cash Center IHC_DE triggers postings on the following current accounts: The payment amount is debited from the account of the ordering party (Company 01) and credited to the account of the In-House Cash Center IHC_US. Consequently, the In-House Cash Center IHC_DE has a receivable position due from Company 01 and a payable position owed to the In-House Cash Center IHC_US.
In the In-House Cash Center IHC_US, the payment is credited to the current account for Company 02 and debited from the current account of the In-House Cash Center IHC_DE.
Prerequisite: Both In-House Cash Centers have been set up in the same system and client. Each In-House Cash Center represents a bank area.
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Process Flow: Cross-Bank Area Posting
In-House Cash
Center_DE
Account
management
In-House Cash
Center_US
Account
management
Company 01
Pmnt program OI
Route determination
Company 02
Executing bank = recipient bank
Route determination
On receiving a payment order, the In-House Cash Center first checks whether it is a payment within the In-House Cash Center (i.e., if the ordering party and recipient bank numbers are the same). If the bank numbers differ, the system checks whether a route has been defined for the recipient bank number and if a different In-House Cash Center has been defined for this route.
If no other In-House Cash Center has been defined, then the system assumes that the recipient bank is an external bank (“external payment”).
If another In-House Cash Center has been defined, the system uses the route determination settings to identify the route by which the order should be executed. The route determines the next In-House Cash Center and the account to which the payment order is forwarded.
Once the account has been established, the payment order is ‘split’. The system creates an additional payment order and modifies the original payment order.
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Payment order split (*)
Additional payment order
ORDERING PARTY NEW:
internal account of the original
In-House Cash Center
ORDERING PARTY:
stays the same
RECIPIENT: NEW
internal account of next
In-House Cash Center instructed
modified
RECIPIENT:
Data from original payment
order
The system creates an additional payment order and modifies the original payment order: - In the additional payment order, the In-House Cash Center is the ordering party and the recipient data is taken from the original payment order. - In the original payment order, the system enters the next In-House Cash Center instructed to make the payment as the recipient.
Note: (*) This example is simplified for a payment between two In-House Cash Centers.
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Cross-bank area posting
Set route determination
Set Route Determination
RoutePayment
method
Transaction
Currency
Bank KeyBank
country
Determines the last executing bank in the posting chain
Determines the next In-House Cash Center/clearing accounts
In this section, you specify the route for payments from one In-House Cash Center to another. All entries are made from the point of view of the In-House Cash Center instructed to make the
payment. Therefore the bank area of the instructed In-House Cash Center is a key field for the table entries.
Bank Country of Recipient Bank: The bank key and the bank country of the recipient bank determine the last executing bank in a cross-bank area payment transaction. For external payments, this is the business partner's (external) house bank. For internal payment orders, the recipient bank is the last In-House Cash Center instructed to make the payment. In both cases, the recipient bank manages the current account of the payment recipient.
The payment method is the method previously mapped out. Route:
The route is the main key field for cross-bank area posting. You can use the route to process the original payment order via several In-House Cash Centers. The route determines the next In-House Cash Center and the relevant clearing accounts for the payment.
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Cross-bank area posting
Define routes
Define Routes I
DE09US09IHC_USUSUS-1
Account with
Executing Bank
Account in
Bank Area
Bank KeyBank
country
Route
Example: There are two IHCC, one in Germany (IHC_DE), one in the
United States (IHC_US). IHC_DE manages account US09 for IHC_US,
IHC_US manages account DE09 for IHC_DE.
IHC_DE
Route: The route is the main key field for cross-bank area posting. You can use the route to process the original payment order via several In-House Cash Centers. The route determines the next In-House Cash Center and the relevant clearing accounts for the payment.
Account in Bank Area: Account of next executing In-House Cash Center with the In-House Cash Center that has just been selected. The account holder is therefore the next executing In-House Cash Center. This is clearly defined in the Bank country and Bank Key fields in the route definition table.
Account with Executing Bank: Own In-House Cash Center account (just selected) with the next executing In-House Cash Center. The account holder is therefore your own In-House Cash Center. The next executing In-House Cash Center is clearly defined in the Bank country and Bank Key fields in the route definition table.
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Cross-bank area posting
Define routes
Define Route II
US09DE09IHC_DEDEDE-1
Account with
Executing Bank
Account in
Bank Area
Bank KeyBank
country
Route
Example: There are two IHCC, one in Germany (IHC_DE), one in the
United States (IHC_US). IHC_DE manages account US09 for IHC_US,
IHC_US manages account DE09 for IHC_DE.
IHC_US
These route definitions only apply in the respective bank area. You can display and check the route settings in Customizing. A red light indicates that a route
contains errors, which you can correct in the corresponding IMG activities. If a yellow light is displayed, either no check was carried out, or the check resulted in a warning.
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The term “internal payment clearing” refers to the
process of clearing payables and receivables
between group affiliates.
Central payment describes a process whereby
the payables between affiliated companies and
external business partners are settled by a
central office within the group.
The term “central incoming payments” is used when
external business partners make payments to a
central office to clear their payables towards group
affiliates.
In-House Cash Processes: Summary
In-House Cash Processes: Exercises
Unit: In-House Cash Processes
Topic: Internal Payments
After completing these exercises, you will be able to:
Describe the process of internal payments in the SAP system
A group company TRYY delivers goods to another group company
TRXX. You want to process the payment via the In-House Cash Center.
Note: To do this exercise, you need to split up into different roles.
The tasks you do for the exercise will depend on the role assigned to
you.
Role assignment: Companies with an odd number take on the role
of customer. Companies with an even number act as the vendor.
Companies with an even number assume the role of In-House Cash
Center (IHC).
Before you start, check that the posting date is set correctly in the
system. Accounting -> Financial Supply Chain Management -> In-
House Cash -> Periodic Processing -> Posting Date -> Payment
transactions (F9B1). Make sure that the New Posting Date field has
the current date in it and then Save.
Example: Company 4 (TRYY) delivers goods to Company 3 (TRXX):
1-1 Company 03 (TRXX) enters the vendor invoice on vendor CompanyYY
Company 04 (TRYY) enters a customer invoice on customer CompanyXX
1-2 Company 03 (TRXX) runs payment program SAPF110
1-3 Track postings to the current accounts in the In-House Cash Center
1-4 View IHC payment order and finalize the posting
1-5 Company 04 (TRYY) acts as In-House Cash Center and creates bank statements
1-6 Company 03 (TRXX) imports bank statement
Company 04 (TRYY) imports bank statement
1-1 Company with odd number (TRXX):
Post the vendor invoice you have received from vendor CompanyYY (even number) in
your company code TRXX (odd number).
Incoming invoice: EUR 11,000.00
Vendor: CompanyYY
G/L account: 400020 (material consumption)
Invoice date/Posting date: 7 days ago
Terms of payment: ZB00
Input tax: 16% domestic (VN)
Make a note of the document number: (____________________________________)
Company with even number (TRYY):
Enter the customer invoice you have sent to customer CompanyXX (odd number) in
your company code TRYY (even number).
Outgoing invoice: EUR 11,000.00
Customer: CompanyXX
G/L account: 800200 (revenues)
Invoice date/Posting date: 7 days ago
Terms of payment: ZB00
Output tax: 16% domestic (AN)
Make a note of the document number: (____________________________________)
1-2 Payment processing is under Periodic Processing for accounts payable.
The company with the odd number (TRXX) performs a payment run to settle the
invoice from vendor CompanyYY (even number).
Enter the current date as the run date. Use ID GR## (where ## is your group number).
Define the parameters. Include your company code TRXX (odd number e.g. TR01)
and payment method I in the run. The next posting date is in one month. Enter
vendor CompanyYY (even number e.g. Company02).
Make the following log settings: Due date check, Payment method selection in all
cases, Line items of the payment documents, Accounts required: Vendor
CompanyYY (even number e.g. Company02).
Printout/data medium: Program RFFOEDI1, variant IHC_PAYEXT
Save your entries and schedule a proposal run to start immediately. Display the log
for the proposal run.
Now start the update run. Look at the log, in particular the information about the
generated IDoc.
Has the open vendor item been cleared? Display the corresponding cleared items.
Make a note of the document number for the payment program:
(__________________________________)
Display the IDoc generated by the payment run (message type: PAYEXT).
Make a note of the IDoc number: (__________________________________)
1-3 Company with odd number (TRXX):
Company with even number (TRYY):
Trace the postings in the In-House Cash Center by looking at the turnovers on the
relevant current accounts.
1-4 Display the IHC payment order that was created and finalize its posting.
To do this, open the payment order browser and display the payment orders for the
bank area IHC. Finalize the posting of the payment order and check the log.
1-5 Company with even number (TRYY) acting as the In-House Cash Center:
The function for generating bank statements is under Periodic Processing in In-House
Cash. Generate bank statements for the two current accounts in the In-House Cash
Center. Use the bank area IHC.
Make a note of the current bank statement number: (________________________)
1-6 Company with odd number (TRXX):
Company with even number (TRYY):
Display the IDoc (type FINSTA) that was generated.
Make a note of the IDoc number: (__________________________________)
Trigger posting of the bank statement in your company code.
Be careful to only post the bank statement for your own company codes. Otherwise,
the other course participants will no longer be able to post their bank statements. Look at
the relevant bank accounts and bank clearing accounts.
Exercises
Unit: In-House Cash Processes
Topic: Central Payments
After completing these exercises, you will be able to:
Describe the process of central payments in the SAP system
An external business partner, EXTERN, delivers goods to a group
company, CompanyYY. You want to process the payment via the In-
House Cash Center.
Each company does this exercise for itself. The roles used in the
exercise for internal payments no longer apply.
2-1 Post the vendor invoice you have received from vendor EXTERN in your company code
TRXX.
Incoming invoice: EUR 5,500.00
Vendor: EXTERN
G/L account: 400020
Invoice date/Posting date: 7 days ago
Terms of payment: ZB00
Input tax: 16% domestic (VN)
Make a note of the document number: (____________________________________)
2-2 Your company performs a payment run to settle the invoice from vendor EXTERN.
Enter the current date as the run date. Identification: Choose one of the possible
entries.
Define the parameters. Include your company code TRYY and payment method I
in the run. The next posting date is in one month. Enter the vendor EXTERN.
Make the following log settings: Due date check, Payment method selection in all
cases, Line items of the payment documents, Accounts required: Vendor EXTERN.
Printout/data medium: Program RFFOEDI1, variant IHC_PAYEXT
Save your entries and schedule a proposal run to start immediately. Display the log for
the proposal run. Now start the update run. Look at the log, in particular the information
about the generated IDoc.
Has the open vendor item been cleared? Display the corresponding items.
Make a note of the document number for the payment program:
(__________________________________)
Display the IDoc (type PAYEXT) that was generated.
Make a note of the IDoc number: (__________________________________)
2-3 Trace the postings in the In-House Cash Center by looking at the turnovers on your
current account 1049XX90.
2-4 Post the payment order.
Display the entry for the payment request in the Payment Request table.
2-5 Perform the payment run for payment requests and display the cleared payment
request.
2-6 Generate a bank statement for your current account 1049XX90 in the In-House Cash
Center as a single update run. Use the bank area IHC.
Make a note of the current bank statement number: (________________________)
2-7 Display the IDoc of the type FINSTA.
Make a note of the IDoc number: (__________________________________)
Trigger posting of the bank statement in your company code (TRXX).
Be careful to only post the bank statement for your own company code. Otherwise,
the other course participants will no longer be able to post their bank statements.
Have a look at the relevant bank clearing account (113592) and bank account (113590).
In-House Cash Processes: Solutions
Unit: In-House Cash Processes
Topic: Internal Payments
1-1 Enter a vendor invoice
Company with odd number (TRXX):
Application:
Accounting
Financial Accounting
Vendors
Document Entry
Invoice (FB60)
Company Code button: Company Code TRXX
Button: Tree On – Select screen variant Standard 1 – Button Tree Off
Field name or data type Values
Vendor CompanyYY
Invoice date -7 Days
Posting date -7 Days
Reference Optional, e.g. 4711
Amount 11000.00 EUR
Input tax 16% domestic(VN)
Calculate tax Set indicator
Payment terms Due immediately
(ZB00)
Payment method I
G/L account 400020 (material
consumption)
Text Vendor invoice
Amount 11,000.00
Save
Enter a customer invoice
Company with even number (TRYY):
Application:
Accounting
Financial Accounting
Customers
Document Entry
Invoice (FB70)
Company Code button: Company Code TRYY
Button: Tree On – Select screen variant Standard 1 – Button Tree Off
Field name or data type Values
Customer Company##
Invoice date -7 Days
Posting date -7 Days
Reference Optional, e.g. 4711
Amount 11000.00 EUR
Output tax 16% domestic (AN)
Calculate tax Set indicator
Payment terms Due immediately (ZB00)
G/L account 800200 (revenues)
Amount 11,000.00
Text Customer invoice
Save
1-2 Execute payment run:
Company with odd number (TRXX):
Application:
Accounting
Financial Accounting
Vendors
Periodic Processing
Payments (F110)
Field name or data type Values
Run date Today's date
Identification Enter GR## where ## is your
logon group
Tab page: Parameter
Field name or data type Values
Company codes TR##
(odd number e.g. TR01)
Payment methods I
Next posting date Today's date + 1 month
Vendor CompanyYY
Field name or data type Values
Field name Document number (BKPF-
BELNR)
Values Document number of the
vendor invoice
Tab page: Additional log
Field name or data type Values
Required logging type Due date check
Payment method selection in
all cases
Line items of the payment
documents
Accounts required / Vendors CompanyYY
Tab page: Printout/data medium
Field name or data type Values
Program: RFFOEDI1 Variant: IHC_PAYEXT
Tab Page: Status
Save
Button: Schedule Proposal: set indicator for Start immediately
Button: Pmnt Run Schedule: set indicators for Start immediately and Create payment
medium
Display the log and look at the information about the generated IDoc.
Button: Display Payment Run Log
Application:
Accounting
Financial Accounting
Vendors
Account
Display/Change Line Items (FBL1N)
Field name or data type Values
Vendor account CompanyYY (Even Number )
Company Code TRXX
All items Select this option
The vendor item should now be cleared.
Display IDoc:
Application:
Accounting
Financial Supply Chain Management
In-House Cash
Environment
IDoc and EDI Basis
Display IDoc (WE02)
Field name or data type Values
Logical message PAYEXT
Execute.
Note: If you get the message difference is too large for a clearing go to transaction code
FEBA_BANK_STATEMENT (Accounting -> Financial Accounting -> Banks -> Input -
> Bank Statement -> Reprocess. Select the item to be matched Statement Items -> Post
and match manually.
1-3 Display postings in the In-House Cash Center:
Company with odd number (TRXX):
Company with even number (TRYY):
Application:
Accounting
Financial Supply Chain Management
In-House Cash
Account
Display (F9K3)
Field name or data type Values
Bank Area IHC
Account number 1049XX90
Button: Display turnovers, Enter
1-4 Display postings in the In-House Cash Center:
Company with odd number (TRXX):
Company with even number (TRYY):
Application:
Accounting
Financial Supply Chain Management
In-House Cash
Account Management
IHC Payment Orders
Payment Order Browser (IHC0)
Field name or data type Values
Bank Area IHC
Year 2005
Button: Select
Double-click the payment order to open it, switch to change mode, and press the Post
button.
Next, select the Log tab and the message text, and press the Detail View On/Off button.
1-5 Generate bank statement in the In-House Cash Center:
Company with even number acts as the In-House Cash Center:
Application:
Accounting
Financial Supply Chain Management
In-House Cash
Periodic Processing
Bank Statement
New Run
Single Run (F9N7)
Field name or data type Values
Bank Area IHC
Account number 1049XX90
Statement date Today's date
Control parameters With address
Execute
Note: You should get a message Finsta Idoc created for account 1049YY90,
Bank Area IHC. Repeat the whole of exercise 1-5 for Accout 1049XX90.
1-6 Display IDoc:
Application:
Accounting
Financial Supply Chain Management
In-House Cash
Environment
IDoc and EDI Basis
Display IDoc (WE02)
Field name or data type Values
Logical message FINSTA
Post electronic bank statements:
Company with odd number (TRXX):
Company with even number (TRYY):
Application:
Accounting
Financial Accounting
Banks
Input
Bank Statement
Post (FEBP)
Field name or data type Values
Algorithms Enter bank statement number
in BELNR Number Interval
fields
Posting parameters Post immediately
Assign Value Date to Account
Output control Print Bank Statement
Print Posting Log
Print Statistics
Separate lists
Execute
Display bank clearing account and bank account:
Company with odd number (TRXX):
Application:
Accounting
Financial Accounting
General Ledger
Account
Display/Change Line Items (FBL3N)
Field name or data type Values
G/L account 113592 (IHC EUR domestic
outgoing payment)
Company code TRXX
(odd number)
Line Item Selection: Select All items
Execute
The payment document should be matched by the bank statement posting.
Field name or data type Values
G/L account 113590 (IHC EUR bank
account)
Company code TRXX
(odd number)
Line Item Selection: Select All items
Execute
The account should now reflect the Bank Statement position.
Posting the bank statement generates a debit posting on the bank clearing account
(113592) and a credit posting on the bank account (113590).
Display bank clearing account and bank account:
Company with even number (TRYY):
Application:
Accounting
Financial Accounting
General Ledger
Account
Display/Change Line Items (FBL3N)
Field name or data type Values
G/L account 113599 (IHC EUR customer
payments)
Company code TRYY
Line Item Selection: Select All items
Execute
Field name or data type Values
G/L account 113590 (IHC EUR bank
account)
Company code TRYY
(even number)
Line Item Selection: Select All items
Execute
Application:
Accounting
Financial Accounting
Customers
Account
Display/Change Line Items (FBL5N)
Field name or data type Values
Customer account CompanyYY
Company code TRYY
Line Item Selection: Select Cleared items
Execute
Posting the bank statement generates a debit posting on the bank account (113590) and
a credit posting on the clearing account for incoming payments (113599. At the same
time it generates a debit posting on the clearing account for incoming payments
(113599) and a credit posting (clearing posting) on the customer account for
CompanyXX.
Solutions
Unit: In-House Cash Processes
Topic: Central Payments
2-1 Enter a vendor invoice:
Application:
Accounting
Financial Accounting
Vendors
Document Entry
Invoice (FB60)
Field name or data type Values
Vendor EXTERN
Invoice date -7 Days
Posting date -7 Days
Amount 5500.00 EUR
Input tax 16% domestic(VN)
Calculate tax Set indicator
Payment terms Without cash discount (ZB00)
Payment method I
Partner bank VW01
House bank IHC
G/L account 400020
Amount 5500.00 EUR
Save
2-2 Execute payment run:
Application:
Accounting
Financial Accounting
Vendors
Periodic Processing
Payments (F110)
Field name or data type Values
Run date Today's date
Identification GR##A (where ## is your
group number)
Tab page: Parameter
Field name or data type Values
Posting date Today's date
Docs entered up to Today's date + 1 week
Company codes TRYY
Payment methods I
Next posting date Today's date + 1 month
Vendor EXTERN
Tab page: Additional log
Field name or data type Values
Required logging type Due date check
Payment method selection in
all cases
Line items of the payment
documents
Accounts required / Vendors EXTERN
Tab page: Printout/data medium
Field name or data type Values
Program: RFFOEDI1 Variant: IHC_PAYEXT
Tab page: Status
Save
Button: Schedule Proposal, Start immediately: set indicator
Button: Pmnt Run, Create payment medium: set indicator
Display the log and look at the information about the generated IDoc.
Button: Display Payment Run Log
Display cleared items:
Application:
Accounting
Financial Accounting
Vendors
Account
Display/Change Line Items (FBL1N)
Field name or data type Values
Vendor account EXTERN
Company Code TRXX
Cleared items Select this option
Display IDoc:
Application:
Accounting
Financial Supply Chain Management
In-House Cash
Environment
IDoc and EDI Basis
Display Idoc (WE02)
Field name or data type Values
Logical message PAYEXT
2-3 Display postings in the In-House Cash Center:
Application:
Accounting
Financial Supply Chain Management
In-House Cash
Account
Display (F9K3)
Field name or data type Values
Bank Area IHC
Account number 1049XX90
Button: Display turnovers, Enter
2-4 Display and post payment order:
Application:
Accounting
Financial Supply Chain Management
In-House Cash
Account Management
IHC Payment Orders
Payment Order Browser (IHC0)
Field name or data type Values
Bank Area IHC
Year 2005
Button: Select
Double-click the payment order to open it, switch to change mode, and press the Post
button.
Next, select the Log tab and the message text, and press the Detail View On/Off button.
Display the payment request in the Payment Request table
Transaction SE16 (table display)
Field name or data type Values
Table name PAYRQ
2-5 Execute payment run for payment request:
Application:
Accounting
Financial Accounting
Banks
Outgoings
Automatic Payment
Payment Requests (F111)
Field name or data type Values
Run date Today's date
Identification GR##B (where ## is your
group number)
Button: Parameters
Field name or data type Values
Company codes TRXX
Payment methods U
Next posting run on Today's date + 1 month
Vendor EXTERN
Button: Additional log
Field name or data type Values
Required logging type Due date check
Payment method selection in
all cases
Line items of the payment
documents
Accounts required / Vendor EXTERN
Button: Payment medium
Field name or data type Values
Program: RFFOEDI1 Variant: IHC_PAYEXT
Save
Button: Proposal, Start immediately: set indicator
Button: Pmnt Run, Create payment medium: set indicator
Display Payment Request (F8BT):
Application:
Accounting
Corporate Finance Management
Transaction Manager
Information System
Reports
Liquidity
Liquidity Planning
Compare and Check
Display Payment Requests
Field name or data type Values
Company code TRXX
Selection of Payment Requests Cleared and Open
Origin TR-IHC
Execute
2-6 Generate bank statement in the In-House Cash Center:
Application:
Accounting
Financial Accounting
In-House Cash
Periodic Processing
Bank Statement
New Run
Single Run (F9N7)
Field name or data type Values
Bank Area IHC
Account number 1049XX90
Statement date Today's date
Control parameters With address
Execute
2-7 Display IDoc:
Application:
Tools
ALE
ALE Administration
Monitoring
IDoc Display
Display (WE02)
Field name or data type Values
Logical message FINSTA
Post electronic bank statement:
Application:
Accounting
Financial Accounting
Banks
Input
Bank Statement
Post (FEBP) /Reprocess (FEBA_BANK_STATEMENT)
Field name or data type Values
Statement Date Current Date
Statement number 2
House bank IHC
Account ID IHCEU
Company code TRXX
Currency EUR
Posting parameters Post immediately
Output control Print Bank Statement
Print posting log
Print Statistics
Separate lists
Execute
Note: If you get the message difference is to large for a clearing go to transaction code
FEBA_BANK_STATEMENT (Accounting -> Financial Accounting -> Banks -> Input -
> Bank Statement -> Reprocess. Select the item to be matched Statement Items -> Post
and match manually.
SAP AG 2003
Periodic Tasks
Unit 4: Organizational Units
Unit 6: In-House Cash Processes
Unit 7: Periodic Tasks
Unit 5: Master Data Maintenance
Unit 3: Introduction to In-House Cash
Unit 2: Overview of Financial Supply Chain Mgmt.
Unit 1: Course Overview
SAP AG 2003
At the conclusion of this unit, you will be able to:
Give an overview of the periodic tasks
Organize the process flow for end of day
processing
Perform cash concentration and set up account
hierarchies
Explain the procedure for the transfer to the
general ledger, including the logic and scope as
well as the posting system used and some of the
settings to be made in Customizing
Periodic Tasks: Unit Objectives
SAP AG 2003
What end-of-day processing options are available?
Which steps might be involved?
What is meant by cash concentration?
How is data transferred to the general ledger?
What settings need to be made?
Periodic Tasks: Business Scenario
SAP AG 2003
Posting date
Cash concentration
Account balancing
Bank statement
Balance notification
G/L transfer
Examples of Periodic Tasks
Posting date: Posting cut-off for payment transactions: Function for setting the posting date for payment transactions. Any payment transactions entered after this cut-off time take the next posting date. Set next posting date for account balancing: After performing all the account balancing activities, you change the posting date for balancing postings.
Cash concentration: Cash concentration enables you to fill up or clear the balances of accounts within an account hierarchy you have defined. You can specify, for example, that an account should always have a certain minimum balance, or that the remaining credit balance should be transferred to a different account at the end of each month.
Account balancing: In the framework of periodic tasks, account balancing is executed to prepare for period-end closing. The settings defined in the account determine when account balancing is triggered. You define when accounts should be balanced by defining the account balancing frequency (daily, weekly, monthly), the key date, and the next date. Interest and charges for the accounts due to be balanced are calculated and posted on the basis of the defined conditions.
Account closure: You can close an account immediately or on a specific future date.
SAP AG 2003
En
d-o
f -d
ay
pro
cessin
gE
nd
-of -
day
pro
cessin
g
Execute cash concentration
Execute account balancing
Generate bank statement
Increase the balancing posting date
Execute posting cut-off for payment transactions
General ledger transfer
Procedure for End-of-Day Processing: Overview
The process flow of end-of-day processing is a process that you can adjust to suit the respective situation in your day-to-day business.
Posting cut-off for payment transactions: When the posting cut-off has been set, all subsequent postings have the date of the next working day. This means that no additional postings can be made to the period to be balanced during the account settlement run (although value dates in the past are still possible). The posting date for the balancing postings is not affected and remains in the period to be balanced.
Cash concentration: Creation of carry forwards for those accounts organized in the hierarchy type cash concentration. You can execute cash concentration either before or after account settlement.
Account balancing: Calculation and posting of interest and charges for due accounts. Create bank statements: Mass run for transferring the account statement data to the appropriate
interface. Increase posting date for balancing postings: Increase this daily, even if there is no balancing run, to
ensure that the posting date for the balancing postings is always at the end of the period to be balanced.
General ledger transfer / interest accrual/deferral: This task is independent of the other periodic tasks. Ideally it is carried out daily, at the conclusion of end-of-day processing.
Set posting date for payment transactions (posting cut-off): Sets the date on which the postings from internally and externally initiated payment transactions are made by the system. You set this date to the following day by executing the posting cut-off. Set manually: You can enter the following posting date for every bank area in the application. Set automatically: In the Implementation Guide (IMG), you can store a fixed time of day for the
posting cut-off. Posting date for balancing postings: Posting date used to generate the postings for account
settlement and cash concentration.
SAP AG 2003
Account 4Account 4
Root accountRoot account
2.
3.3.
Level 1
Level 2
Level 3Level 3
Sett
lem
en
ts
eq
uen
ce
3.3.
Account 3Account 3
3.3.
Account 2Account 2
Account 5Account 5Account 6Account 6
2.
Account 7Account 71.1.
Cash Concentration: Process Flow
Cash concentration involves the automatic generation of payment orders to be credited or debited to accounts within an account hierarchy. You create a tree structure for the accounts in question with the hierarchy type ‘Cash concentration’.
You can execute cash concentration on a cross-bank area basis. Process flow: The system first works through the lowest hierarchy level, then proceeds with the
accounts on the next hierarchy level, continuing right up to the root account. Amounts below the minimum balance are debited from the structurally superior account, amounts in
excess of the maximum balance are transferred to the superior account. Cash concentration functions: Fill up account to minimum balance. The required amounts are transferred from the structurally
superior account. Amounts that have already been transferred from sub-accounts are taken into consideration.
Transfer of amounts in excess of a specified maximum amount to the root account. Specification of a minimum transfer amount as a threshold for trivial amounts. Specification of the number of digits for rounding off. Individual specification of maximum and minimum balances for each cash concentration run if
required. Simulation of the cash concentration run.
Please note that the Cash Management data transferred in this context is not related to the Cash Management data that is updated from the G/L accounts of the general ledger. To avoid updating IHC data twice in the general ledger, the IHC G/L accounts used for the general ledger transfer must not be connected to SAP Cash Management.
SAP AG 2003
Root accountRoot account
300.00
Account 3Account 3Account 2Account 2
50.00
200.00
50.00
200.00 200.00100.00
2.2.
1.1.
2.2.1.1.
Cash Concentration: Example
Account hierarchy
Hierarchy level 1: Account 1 (root account)Hierarchy level 2: Account 2 and Account 3
Specifications:
Type of carry forwards:
Per posting date-based account balance
Amount specifications per account:
Account 2: Maximum balance = 50.00 creditAccount 3: Minimum balance = 0
Account balances before cash
concentration
Root account: 300.00 Debit
Account 2: 100.00 CreditAccount 3: 200.00 Debit
Account balances after cash
concentration
Root account: 450.00 Debit
Account 2: 50.00 Credit
Account 3: 0,-
During a general ledger transfer, the items posted to the current accounts are transferred as one total to the corresponding accounts of the general ledger.
Make sure that the accounts to which you want to transfer the aggregated current account balances have been created in the chart of accounts and that they have been specified in Customizing accordingly.
SAP AG 2003
Posting of payables and
receivables
Posting of interest and charges
income and expense
Balance sheet netting of
current accounts
Interest accrual/deferral
Transfer to General Ledger: Features
The following features are used in the course of a general ledger transfer: Allocation of the balances from the superior BCA accounts to the accounts payable and receivable,
depending on the +/– sign of the individual BCA account balance Updating of the items posted on the G/L accounts and updating of income and expense Netting of the current accounts on the balance sheet in accordance with the applicable accounting
regulations An interest accrual/deferral run (optional) can be performed during the general ledger transfer.
SAP AG 2003
Determine account balances
Balance sheet preparations
Interest accrual/deferral
Transfer to G/LTransfer to G/L
The results of the individual steps within G/L transfer are displayed in the respective report in the
application log.
Determine accrual/deferral
amounts
Prepare G/L transfer
Generate the FI documents
Posting on the general ledger
General Ledger Transfer: Process Flow
Balance sheet preparation: Preparation of the current balances from the BCA accounts for the transfer posting from payment transaction clearing accounts to the accounts payable and receivable.
Interest accrual/deferral: Debit interest and credit interest must be recorded in the balance sheet as soon as they are
incurred. The accrual amounts are calculated per account and prepared for transfer together with the
posting date and transaction type. Transfer: FI documents are generated from the data determined earlier (posting totals and interest
accrual/deferral details). Posting of the FI documents to the general ledger accounts.
Example: Company 01 makes a bank transfer to Company 02. (1) IHC clearing account / clearing of payment transaction (2) Clearing of payment transaction / IHC clearing account General ledger transfer: (3) Intercompany receivables / IHC clearing account (4) IHC clearing account / intercompany payables
Example: Company 01 makes a bank transfer to an external business partner. (1) IHC clearing account / clearing of payment transaction F111 Payment program for payment requests (2) Clearing of payment transaction / bank clearing General ledger transfer: (3) Intercompany receivables / IHC clearing account Bank statement of external house bank: (4) Bank clearing / payables to bank
SAP AG 2003
Company codeCompany code
Bank area 02Bank area 02Bank area 02Bank area 01Bank area 01Bank area 01 Bank area 03Bank area 03Bank area 03
General ledger variantGeneral ledger variant
G/L transactionG/L transaction General ledger groupGeneral ledger group
Transaction typeTransaction type
General Ledger Transfer: Customizing
General Ledger Transfer: Customizing In Customizing, you specify the FI balance sheet and income accounts to which the balances and
transactions are transferred. Structure: You make the Customizing settings for a specific bank area. To keep the maintenance
effort to a minimum when you are assigning several bank areas, you can create G/L variants as transfer templates. You can then assign these variants to multiple bank areas. All further settings then relate to a certain G/L variant.
Within the general ledger variant, transaction types are grouped together into general ledger transactions. The accounts are grouped in G/L groups. Precise specifications for the transfer are then based on these two criteria.
SAP AG 2003
Clearing
account
Document
type
Posting key
Debit
Posting key
Credit
IHC
50SA198500
General ledger variant
Chart of
accounts
INT 40
Customizing: General Ledger Variant
For each general ledger variant, you must specify the following in Customizing: The chart of accounts you use in the general ledger. A clearing account for internal purposes. This allows large postings to be divided up for the transfer
to the general ledger. After the transfer, the balance on this clearing account is zero. The document type with which the transfers are to be posted, together with a posting key for debit
as well as for credit postings.
SAP AG 2003
0001
G/L transaction
Transaction type
Transaction type
Transaction type
0150 0155
Bank transfer Standing order
Transaction type
Payments
Transaction type
General ledger group
IHCP ...
IHC general ledger variant
Customizing: G/L Transaction and G/L Group
A general ledger transaction groups together transaction types, enabling assignment to a G/L account and to the update type.
You create a G/L transaction for a G/L variant. This assignment reduces the maintenance effort required, since you then do not need to maintain the
G/L account assignment for each individual transaction type. You use G/L groups to group together accounts in account groups. When you create an account, you
assign it to a G/L group by maintaining the corresponding field. You define the possible G/L groups in Customizing.
SAP AG 2003
0001
...
INT
...
198500
...
198000
...
G/L Account Assignment Maintenance
General ledger variant: IHC
G/L group AcctCurG/L trans. Add. key ChAc G/L clear.act Offset. act Re Relt
IHCP
...
From G/L variantAccount master
Customizing: General Ledger Account Assignment
The G/L account assignment settings are dependent on the G/L group, account currency and G/L transaction and define the accounts to which the items are posted when they are transferred to the general ledger: The G/L account to which the aggregated items are to be transferred (G/L clearing account) An offsetting account for the corresponding G/L posting (the payment transaction clearing account
for payment transaction operations, the relevant income account for income-affecting transactions)
If the G/L transaction is tax-relevant, you can set an indicator to this effect and specify the corresponding FI tax key.
Entering an additional key allows customer-specific logic to be additionally taken into consideration for account determination. The contents of the additional key has to be entered using a business transaction event (BTE) when a payment item is posted in the BCA.
Items in postprocessing: In this section you define how items should be treated that are being postprocessed and have not yet generated a posting. These items can also be transferred to the general ledger.
Note: If no entry is made in the currency field, the same accounts are stored for all currencies.
SAP AG 2003
INT
...
ChAcG/L clear.act G/L acct debitG/L acct credit
198500
...
198501
...
198502
...
General ledger variant: IHC In-House Cash Center
Transfer Posting Group Maintenance
Payables/
receivables accountsG/L clearing account
Customizing: Transfer Postings for Payables/Receivables
Transfer posting of the balances transferred from the current account system, initially posted to a clearing account, to the appropriate payables and receivables accounts in the general ledger.
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Transfer type
Transfer type
Control of general ledger
transfer
FI general ledger in same
system as BCA
FI general ledger in
different system than BCA
General Ledger Transfer Types
You can also define the type of G/L data transfer to Financial Accounting: You can specify whether the FI general ledger and the bank current accounts are in the same system or in separate systems.
You can also run a check on the G/L data before it is transferred to the general ledger. The system always performs this check when you carry out a simulation run. This additional check is geared towards test systems and is particularly useful when you have changed the Customizing settings. You should not perform this additional check if the general ledger is in an external system that is being used productively.
SAP AG 2003
During a general ledger transfer, the items posted to
the current accounts are transferred as one total to
the corresponding accounts of the general ledger.
Cash concentration refers to the automatic
generation of payment orders to be credited or
debited to accounts within an account hierarchy.
Within the general ledger variant, transaction
types are grouped together into general ledger
transactions. The accounts are grouped in G/L
groups.
Periodic Tasks: Summary
SAP AG 2003
100Company 02 Company 01Head office
Revenues
1
Customer 01
1
100
5a
100100
5b
Clear.act IHC
5a
100 100
Payables/receivables IHC
100
Vendor 02
3 2
Expense
2
Clear.act IHC
5c 3
Payables/receivables IHC
100
5c
100 100100
100100
5b
Pmnt program
F110 generates
pmnt order
IDoc „PAYEXT‟
3
Current accountCompany 02
+ 100 - 100
Current accountCompany 01
5b
4b 4a
5a
Creation of internal
bank statement generates
IDoc „FINSTA‟
IHCIHC
Bank
statement
Bank
statement
Clearing of
clear. actClearing of
customer5b
5a
Invoice for delivery of goods
End-of-day processing:
General ledger transfer
IC Company 02
6b
100
PT clear. IHC
6a6b
100 100
IC Company 01
6a
100
FIFI
Posting Logic for “Internal Payments”
1. Company 02 delivers goods and sends invoice to Company 01. Posting record: from Customer 01 receivables to revenues.
2. Company 01 posts the invoice: posting record: expenses to Vendor 02. 3. Company 01 pays the invoice: posting record: from Vendor 02 to IHC clearing account. 4. IDoc Payext debits current account of Company 01 and credits current account of Company 02.
(debits –, credits +) 5. IHC creates bank statements and generates IDoc Finsta. 5a First posting at Company 02: IHC clearing account to Customer 01. 5b Second posting at Company 02: IHC payables/receivables to IHC clearing account. 5c Posting at Company 01: IHC clearing account to IHC payables/receivables. 6. General ledger transfer posts in FI of head office. Posting records are created: 6a IC Company 01 to PT clear. IHC, i.e., the head office has a claim against Company 01. 6b PT clear. IHC to IC Company 02, i.e., the head office has a liability towards Company 02.
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External
business partner
Ext. BP
2 1
Expense
1
Clear.act. IHC
6 2
Payables/
receivables IHC
1000
6
1000 10001000
10001000
Pmnt program
F110 generates
pmnt order
IDoc „PAYEXT‟
2
Bank
statement
Clearing of
clear. act
6
Invoice for delivery of goods/service
3
House bank of head office
Partner bank of
external BP
- 1000
Current account Company 01
Creation of internal
bank statement generates
IDoc „FINSTA‟
IC Company 01
9
1000
House bank
11
1000
PT clear. IHC
98
1000 1000
FIFI
End-of-day processing:
General ledger transferEntry in
Payment
Request
table
Bank clear.
8
10001000
11
Pmnt program
F111
Clearing of
clear. act
11
IHCIHC
9
External
bank
statement
5
10
Company 01
4
7
Head office
Posting Logic for “Central Payments”
1. External business partner delivers goods and sends invoice to Company 01. Company 01 posts the invoice: posting record: expenses to vendor/ext. BP. 2. Company 01 pays the invoice with F110: posting record: vendor/ext.BP to clearing account IHC. 3. IDoc Payext debits current account of Company 01 (debits –). 4. IDoc Payext adds entry to Payment Request table. 5. IHC creates bank statements and generates IDoc Finsta. 6. Company 01 posts bank statement: IHC clearing account to IHC payables/receivables. 7. Head office runs payment program F111. 8. Posting record: PT clear. IHC to bank clearing. 9. General ledger transfer posts in FI of head office. Posting records are created: IC Company 01 to PT clear. IHC, i.e., the head office has a claim against Company 01. 10. External bank statement from the head office's house bank is received. 11. Posting record for bank statement: bank clear. to house bank.
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External
business partner
Ext. BP
1 6a
Revenues
1
Clear.act. IHC
6a 6b
Payables/
receivables IHC
1000
6b
1000 10001000
10001000
Bank
statement
Clearing of
OI
6
Invoice for delivery of goods/service
4
House bank of head office
Partner bank of
external BP
+ 1000
Current account Company 01
Creation of internal
bank statement generates
IDoc „FINSTA‟
IC Company 01
7
1000
House bank
4
1000
PT clear. IHC
47
1000 1000
FIFI
End-of-day processing:
General ledger transfer
Direct
posting to
PT clear.act
4
IHCIHC
9
External
bank
statement
5
3
Company 01
Head office
2
Posting Logic for “Central Incoming Payments”
1. Company 01 delivers goods and sends invoice to external business partner. Company 01 posts the invoice: posting record: customer/ext. BP to revenues. 2. External business partner instructs its bank to make a payment to the house bank of the head office. 3. House bank of head office sends bank statement to head office. 4. Head office posts bank statement: first posting: house bank to PT clear. IHC; second posting is made in IHC: credit to current account of Company 01 (credit +). 5. IHC creates bank statement and generates IDoc Finsta. 6. Company 01 posts bank statement: 6a. First posting: Clear.act IHC to ext. customer. 6b. Second posting: payables/receivables IHC to clearing account IHC. 7. General ledger transfer posts in FI of head office. Posting records are created: PT clear. IHC to IC Company 01. The head office has a liability towards Company 01. Note: In case neither Financial Accounting nor In-House Cash assumes the responsibility for making
the posting, a posting is made from the house bank to for bank clearing. The employee responsible can make the correct posting when postprocessing the bank statement.
SAP AG 2003
100Company 02 Company 01
Head office
Revenues
1
Customer 01
1
100
5a
100100
5b
Clear.act IHC
5a
100 100
Payables/
receivables IHC
100
Vendor 02
3 2
Expense
2
Clear.act IHC
5b 3
Payables/
receivables IHC
100
5b
100 100100
100100
5b
Pmnt program
F110 generates
pmnt order
IDoc „PAYEXT‟
3
Current accountCompany 02
+ 100 - 100
Current accountCompany 01
5b
4b 4a
5a
Creation of internal
bank statement generates
IDoc „FINSTA‟
IHCIHC--22
Bank
statement
Bank
statement
Clearing of
clear. actClearing of
Customer5b
5a
Invoice for delivery of goods
End-of-day processing:
General ledger transfer
IC Company 02
6b
100
PT clear. IHC-2
6c6b
100 100
IC Company 01
6a
100
FIFI--22 FIFI--11
IHCIHC--11
PT clear. IHC-1
6a6c
100
IC IHC-1 IC IHC-2
Current accountIHC-1
Current accountIHC-2
+ 100- 100 4a4b
100
100100
6c6c
Posting Logic for “Cross-Bank Area Internal Payments”
1. Company 02 delivers goods and sends invoice to Company 01. Posting record: from Customer 01 receivables to revenues.
2. Company 01 posts the invoice: posting record: expenses to Vendor 02. 3. Company 01 pays the invoice: posting record: from Vendor 02 to IHC clearing account. 4. IDoc Payext is received: 4a: The amount is debited to the current account of Company 01 in IHC-1 and
credited to the current account in IHC-2. (debits –, credits +) 4b The amount is credited to the current account of Company 02 in IHC-2 and debited to the current
account in IHC-1. (debits –, credits +) 5. IHC-1 creates bank statement for current account of Company 01, IHC-2 creates bank statements for
current account of Company 02 and generates IDocs Finsta. Note: No bank statements are created for the current accounts IHC-1 and IHC-2.
5a Posting of bank statements: first posting at Company 02: clearing account IHC to Customer 01; second posting at Company 02: payables/receivables IHC to clearing account IHC.
5b Posting at Company 01: clearing account IHC to payables/receivables IHC. 6. General ledger transfer posts in FI of head office. Posting records are created: 6a IC Company 01 to PT clear. IHC-1, i.e., the head office has a claim against Company 01. 6b PT clear. IHC-2 to IC Company 02, i.e., the head office has a liability towards Company 02. 6c In IHC-1: PT clear. IHC-1 to IC IHC-2;
In IHC-2: IC IHC-1 to PT clear. IHC-2
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External
business partner
Ext. BP
2 1
Expense
1
Clear.act. IHC
6 2
Payables/
receivables IHC
100
6
100 100100
100100
Pmnt program
F110 generates
pmnt order
IDoc „PAYEXT‟
2 Clearing of
clear. act
6
Invoice for delivery of goods/service
3a
House bank of head office
Partner bank of
external BP
Creation of internal
bank statement generates
IDoc „FINSTA‟
House bank
11
100
FIFI--22End-of-day processing:
General ledger transferEntry in
Payment
Request
table
Bank clear.
8
100100
11
Pmnt program
F111
Clearing of
clear. act
11
IHCIHC--22
9
3a
10
Company 01
4
7
Head office
IHCIHC--11Current accountIHC-2
Current accountCompany 01
Current account
IHC-1
- 100 + 100
- 100
Bank
statement
3b
5
FIFI--11
PT clear. IHC-1
9a9b
100 100
IC Company 01
9a
100
100
9bIC IHC-2
PT clear. IHC-2
9c
100
9c
IC IHC-1
External
bank
statement
8
Posting Logic for “Cross-Bank Area Central Payments”
1. External business partner delivers goods and sends invoice to Company 01. Company 01 posts the invoice: posting record: expenses to vendor/ext.BP.
2. Company 01 pays the invoice with F110: posting record: vendor/ext.BP to clearing account IHC. 3. IDoc Payext :3a The amount is debited to the current account of Company 01 in IHC-1 and credited to
the current account in IHC-2. (debits –, credits +). 3b In IHC-2, the current account of IHC-1 is debited (debits –). 4. IDoc Payext adds entry to Payment Request table. 5. IHC-1 creates bank statements and generates IDoc Finsta for Company 01. Note: No bank statements
are sent for the accounts IC IHC-1 and IC IHC-2. 6. Company 01 posts bank statement: IHC clearing account to IHC payables/receivables. 7. Head Office runs payment program F111. 8. Posting record: PT clear. IHC-2 for bank clearing. 9. General ledger transfer posts in FI of head office. Posting records are created:
In bank area of IHC-1: 9a IC Company 01 to PT clear. IHC-1, i.e., the head office has a claim against Company 01; 9b PT clearing IHC-1 to IC IHC-2. In the bank area of IHC-2: 9c IC IHC-1 to PT clear IHC-2 .
10. External bank statement from the head office's house bank is received. 11. Posting record for bank statement: bank clear. to house bank.