SAP Liquidity

Planner

Doris Mllgaard
Product Manager, SAP AG

Agenda SAP Liquidity Planner

Environment and Objectives

Planning

3 Integration of Actual Data

4
5
SAP AG 2002, Title of Presentation, Speaker Name 2

Reporting

Summary

Agenda SAP Liquidity Planner

Environment and Objectives

Planning

3 Integration of Actual Data

4
5
SAP AG 2002, Title of Presentation, Speaker Name 3

Reporting

Summary

Cash Management

Market information

Cash
Management
decision

Cash position

Bank accounts
in currency:
Account 1
:
Account n
Total

SAP AG 2002, Title of Presentation, Speaker Name 4

Payment
transactions
in transit:
- incoming
- outgoing

TRADING

Liquidity forecast

Financial
investments
and
borrowings

Subledgers:
- A/P
- A/R
- Purchase
orders
- Orders

... The Market Requirements

Value-based enterprise management is increasingly important
Foresighted management of global cash flows & their related risks
Increase on the efficiency of planning processes & monitoring targets

Modern-day liquidity planning requires

A central planning tool with automatic data exchange
Central reporting functions
Decentralized access for data entry and for local evaluations
Group-wide use irrespective of the existing system landscape
Flexibility when defining the planning environment and its parameters
An easy adaption to changes in the organizational structure and its
planning parameters

SAP AG 2002, Title of Presentation, Speaker Name 5

Liquidity Planner - Objectives

Supports the finance manager in identifying

expected liquidity and foreign currency risks
Key features of
Liquidity Planner
Centralized
Centralized system
system for
for handling
handling plan
plan data
data
in
in aa mediummedium- and
and long-term
long-term liquidity
liquidity planning
planning
Group-wide
Group-wide database
database in
in invoice
invoice currency
currency
Immediate
Immediate availability
availability of
of information
information
to
to decision-makers
decision-makers
Easy-to-use
Easy-to-use front-end
front-end and
and evaluation
evaluation tools
tools

SAP AG 2002, Title of Presentation, Speaker Name 6

Terms for Liquidity Planning

ACTUAL and COMMITMENT data in Cash Management

Activities entered in the SAP System
(that is, concluded business transactions + commitment)
Data structuring

Bank accounts

Customers vendors

Purchase orders orders

PLAN data in the Liquidity Planner

Exclusively planned (expected) future cash flows
All group subsidiaries
In invoice currency

SAP AG 2002, Title of Presentation, Speaker Name 7

Processes in the SAP Liquidity Planner

Plan data

Group

Planning
unit 1

Planning
unit 2

Planning
unit 1

Data
warehouse

Planning
unit 3

Planning
unit 2

Planning
unit 3

Reporting
SAP AG 2002, Title of Presentation, Speaker Name 8

Actual data

SAP Liquidity Planner Architecture Overview

Planning Framework
Front-end clients

Entering
plan data

Manual planning

Planning levels, packets,

methods and functions

2
BPS server

Configuring the planning

OLAP database

OLAP data buffer, master data buffer,

field catalogue

SAP BW

Determining actual data in

Liquidity Planner as Plug-In

SAP Financial
Accounting

Configuring the
determination of actuals
Importing the bank
statements and
postprocessing

Local SAP Systems

SAP AG 2002, Title of Presentation, Speaker Name 9

Configuring the InfoCube

and the reports
Reporting
Configuring the extractors

Agenda SAP Liquidity Planner

Environment and Objectives

Planning

3 Integration of Actual Data

4
5
SAP AG 2002, Title of Presentation, Speaker Name 10

Reporting

Summary

Planning Process
Plan data

Group

Reporting

Planning
unit 1

Planning
unit 2

Data
Warehouse

Planning
unit 3

z Centralized planning system with data storage on

group level
z Decentralized user interface for planning units
z Centralized/decentralized reporting
SAP AG 2002, Title of Presentation, Speaker Name 11

Planning Structure

Definition of objectives of liquidity planning

Objectives
Means of achieving the objectives

Responsibilities within the planning process

Individual tasks to be assigned to the employee responsible
User roles, authorizations

Timing and procedures in the planning process

Data model

SAP AG 2002, Title of Presentation, Speaker Name 12

Data Model
Header data

Header data
Time line

Clear assignment of plan data

for aggregation and evaluation

Liquidity
items

Planning unit
Currency
Key date (version)

Time line
Defining planning horizon and periods
For example: Next 12 months divided into months or quarters
Freely scalable

Liquidity items
SAP AG 2002, Title of Presentation, Speaker Name 13

Item-oriented structure of cash flows to be planned

Data input

Liquidity Planner - Data Entry

Header Data
Timeline

Data Input

Liquidity
Items

SAP AG 2002, Title of Presentation, Speaker Name 14

Data Model Liquidity items

Header data

Criteria for definition

Time line

Ability to plan
Which incoming and outgoing payments
should be planned in the company?

Liquidity
items

Data input

Level of detail
How detailed should the planning be
for these payments?
General validity
How do the liquidity items have to be structured in order to convey information
that is meaningful to the group and to the individual planning unit?
Manageability
Which payments can be found again in the actuals and are therefore accessible for
plan/actual comparisons?
SAP AG 2002, Title of Presentation, Speaker Name 15

Timing and Procedures in the Planning

Process
Header data

Revolving planning
z Adjust or enter plan data in a
defined frequency
z Defining milestones within the
revolving planning process
z You can choose your own planning
frequency

t0

Header data
t 1 line
Time
Header
data
tTime
2
line
Planposition Time line
PlanData Input
Liquidityitems
Data Input
items
Data input

Version
01/2000
02/2000
03/2000
Time

JAN FEB
SAP AG 2002, Title of Presentation, Speaker Name 16

MAR APR

...

SEP

OCT

NOV

Liquidity Planner - Data Entry

Local plan
data entry

Centralized
aggregation
and evaluation

z Only planned cash flows in invoice currency

z Copy and evaluation functions
z Text field for notes
SAP AG 2002, Title of Presentation, Speaker Name 17

Liquidity Planner - Data Entry

SAP AG 2002, Title of Presentation, Speaker Name 18

Data Entry via Browser

SAP AG 2002, Title of Presentation, Speaker Name 19

Hardware Architecture

Scenario 1

Scenario 2

Business Warehouse

SEM

Liquidity
Planner

Liquidity
Planner

SEM

SAP AG 2002, Title of Presentation, Speaker Name 20

Business Warehouse

Agenda SAP Liquidity Planner

Environment and Objectives

Planning

3 Integration of Actual Data

4
5
SAP AG 2002, Title of Presentation, Speaker Name 21

Reporting

Summary

Integration of Actual Data

Objectives

Group-wide determination and assignment of all paid

incoming and outgoing cash flows
Operative, financial and other cash flows stated
according to the structure of liquidity items within the
planning
Enabling immediate, automatic plan / actual comparisons
Support of further analyses
(e.g. cash flow-oriented controlling)
SAP AG 2002, Title of Presentation, Speaker Name 22

Processes in the SAP Liquidity Planner

Planning data

Group

Planning
unit 1

Planning
unit 1

Planning
unit 2

Data
warehouse

Planning
unit 2

Planning
unit 3

Planning
unit 3

Reporting
SAP AG 2002, Title of Presentation, Speaker Name 23

Actual data

Integration of Actual Data

Integration of actuals for e.g.
plan/actual comparisons

Liquidity Planner
Business Information Warehouse

Determination of actual data

according to the structure
of the liquidity items

SAP
Accounting

SAP AG 2002, Title of Presentation, Speaker Name 24

Liquidity Planner - Process Flow

Import
Import of
of
account
account statements
statements

Enter
Enter plan
plan data
data
in
in SEM
SEM BPS
BPS

Automatic
assignment
mechanisms

SAP BW
Results logs

Result of
assignment
satisfying?

yes

Work
evaluations

SAP AG 2002, Title of Presentation, Speaker Name 25

Actual
data

no Postprocessing of
parameters

Extraction

Reporting

Assignment Mechanisms (1)

Assignment based on account statements

one liquidity item for each account statement item
purposes of the payment are taken from the notes

Such as amount, posting text, notes to payee, business transaction code, payer

Such as SWIFT MT 940: 54 fields

predefined assignment rules determine the corresponding liquidity item

Assignment rules are freely definable

Result: All items are assigned, but not precisely in all cases

SAP AG 2002, Title of Presentation, Speaker Name 26

Assignment based on Account Statements Example

Sample AG
New York
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------Post office Manhattan
Account holder:
John Smith
Sort code: 66010075
Account no.:
179097-756
Statement no.:
00051
Currency:
USD
Statement date:
09/24/2000
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------CNr

Val.dte

Pst dte Note to payee

Posting text

BTC

Daybook no.

Amount

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

00001
00002
00003

09/24
09/24
09/24

09/24
09/24
09/24

00004 09/24
00005 09/24

09/24
09/24

00006 09/24

09/24

CHECK DEPOSIT
Doc. 1500000285
AS 8899100 / X4711
WorldTEL GmbH
Check 1500000282
Paid on 06/03/YY
Pmt no. 17100008111
CAcct 3 %
Paid on 06/12/YY

DEBIT MEMO

Telephone costs WorldTEL

SAP AG 2002, Title of Presentation, Speaker Name 27

070
004
005
001
051

Beginning balance 33,900.00

--------------------------------------------30,000.00
3,300.00
386.16
-

600,00
10,700.00

051
1,000,000,000.00
------------------------------------------------------------Total
Debit
4,286.16
Total
Credit
1,000,040,700.00
------------------------------------------------------------Ending balance 1,000,070,314.00

Assignment based on Account Statements Settings

SAP AG 2002, Title of Presentation, Speaker Name 28

Assignment Mechanisms (2)

Assignment based on information from SAP Accounting

Used where assignment based on account statements
is not accurate enough
Analysis of information in payment runs
(for example, for combined payments)
Clearing entries evaluations of open items (for example, checks)
Assignment logic, for example, by segmentation of customers/vendors

Possible to take flows on inter-company clearing accounts into

consideration

SAP AG 2002, Title of Presentation, Speaker Name 29

Assignment based on SAP FI Information Settings

SAP AG 2002, Title of Presentation, Speaker Name 30

Determination of Actual Data Expected

Results
Accurate assignment
based on information
from SAP Accounting

Blanket
assignment

Scalable accuracy
Blanket assignments
Exact assignments

Completeness
Complete assignment of all
account statement items

Capable of enhancements
Precise the assignment
mechanisms

Exact assignment
based on
account statements
SAP AG 2002, Title of Presentation, Speaker Name 31

High level of
differentiation

Agenda SAP Liquidity Planner

Environment and Objectives

Planning

3 Integration of Actual Data

4
5
SAP AG 2002, Title of Presentation, Speaker Name 32

Reporting

Summary

Liquidity Planner - Reporting

Total

Group
Treasury

Country GER

Planning unit
1500
Country GER

Planning unit
1000
Country GER

Planning unit
3000
Country UK

Currency EUR

SAP AG 2002, Title of Presentation, Speaker Name 33

Principle of Multi-Dimensional Reporting

z in SEM BPS
Data
output

Version

03/2000

z in SAP BW Business
Explorer / Analyzer

02/2000

01/2000

JPY
USD

USA
UK
FRA

Planning unit

SAP AG 2002, Title of Presentation, Speaker Name 34

EUR

Currency

Total Evaluation

SAP AG 2002, Title of Presentation, Speaker Name 35

System Demo
Offline

Reporting - Comparison

Plan / Actual comparison

Selection
Currency
Comparison period
Planning version

Region A
Euro
06/2000
06/2000

Region A
P 06/2000
in EUR(1000's) PP 06/2000
A/R
12,200
A/P
-11,500
Balance
700

Actuals
Derivation
06/2000
Absolute
%
11,500
700
6.09%
-10,900
-600
5.50%
600
100
16.67%

Plan / Plan comparisons

Current plan versus plan from previous month
Current plan versus annual plan
SAP AG 2002, Title of Presentation, Speaker Name 37

Agenda SAP Liquidity Planner

Environment and Objectives

Planning

3 Integration of Actual Data

4
5
SAP AG 2002, Title of Presentation, Speaker Name 38

Reporting

Summary

Liquidity Planner - Summary

Planning
unit 1

Planning
unit 2

Planning
unit Y

Decentralized
data entry
Update as of ...

Planning
Planning

Mapping
&
assignment
Operational
Operational
actual
actualdata
data

SAP AG 2002, Title of Presentation, Speaker Name 39

Update as of ...

Cash flow-related planning

per liquidity item
per period
per currency

Cash
SAPposition
Systems

Cash
forecast

Features of the Liquidity Planner

The decision-makers have immediate access to the

information they need on expected changes in the liquidity
and foreign currency position
Central planning system
Reduction in maintenance costs

Group-wide use using decentralized user interface

Easy-to-use front-end
Internet/Intranet scenario
Integration of actual data
from SAP R/3 Systems
SAP AG 2002, Title of Presentation, Speaker Name 40

Other Possible Integration Scenarios

Integration of actual data for

e.g. plan/actual comparisons

Integration of plan data with

operational data
for e.g. exposure analysis

Liquidity Planner
Business Information Warehouse

Determination of actual
data according to the
structure of liquidity items

SAP
Financials

SAP AG 2002, Title of Presentation, Speaker Name 41

Plan data

Market Risk
Analyzer

Possible Integration of Plan Data

Liquidity Planner
Business Information
Warehouse

Plan

Planned cash flows as underlying

for determining expected
open currency position

TRMRM

Expected
currency exposure

SAP AG 2002, Title of Presentation, Speaker Name 42

Plan data

Closed hedge
transactions

Open
position

Liquidity Planner Workplace

Local
liquidity
planning

Total

Group
Treasury

Division X

Planning unit 1
Land A

Planning unit 2
Land B

Planning unit 3
Land B

Land B

Group-wide aggregation and evaluation

Financing
SAP AG 2002, Title of Presentation, Speaker Name 43

Hedging

Investments

Live Customers (inofficial)

Implement.partner

GASAG Berlin

Istdatenermittlung

Bearing Point

Planung

Ferrovie dello Stato

merckle ratiopharm

Hanseorga

AGIV real estate

Stefan Kerber, SAP

Woolworth

M. Heesch, SAP

BSH

SAP AG 2002, Title of Presentation, Speaker Name 44

X
--

Further Implementation Projects

Lufthansa

Lufthansa Systems

EADS (Toulouse), bauen Airbus

sterreichische Bundesbahnen
1 Projekt in Brasilien
1 Projekt in Indien

Dauer Implementierungsprojekt:
Istdatenermittlung: Im Falle nicht zu komplexer Strukturen und nicht zu
vieler Buchungskreise schtzungsweise 20 Tage.
Planung: Dirk Braun fragen

SAP AG 2002, Title of Presentation, Speaker Name 45

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