Cash and Liquidity Management

Scenario Overview
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chevrons for details

Processing
Processing
Managing Receivables Managing
Payables and Dunning
Petty Cash and Cash
Payments
Payments

Procure-to-Pay Scenarios Field Service and Repair

(Stock/Non-Stock/Services)
Expense and Reimbursement Order-to-Cash Scenarios (Sell-from-Stock/Standardized
Management Services/Project-Based Services)
Financial Closing
Customer Returns
Customer Returns

Scenario Open Legend

Scenario Description
Explorer
The Cash and Liquidity Management business scenario enables financial professionals at midsize companies to quickly and efficiently
meet cash flow deadlines and achieve better transparency in managing the company's liquidity position. It comprises cash flow information
from payables and receivables and tax, as well as payment and liquidity management, and streamlines your daily cash management cycle
Scenario/Processes by automatically collecting and aggregating this information. This scenario covers the cash flow management cycle from the actual liquidity
snapshot to forecasting, and analyzes steps through to optimized cash flow from money transfers or other cash flow impacting strategies.
Business Value

Scenario Flow

Further Information
The following business roles are involved in this scenario:

Accounts Accounts
Payable Receivable
© © 2013 SAP AG. All rights reserved. Accountant Accountant
 Cash and Liquidity Management
Scenario Overview
Click process
chevrons for details

Processing
Processing
Managing Receivables Managing
Payables and Dunning
Petty Cash and Cash
Payments
Payments

Procure-to-Pay Scenarios Field Service and Repair

(Stock/Non-Stock/Services)
Expense and Reimbursement Order-to-Cash Scenarios (Sell-from-Stock/Standardized
Management Services/Project-Based Services)
Financial Closing
Customer Returns
Customer Returns

Scenario Open
Scenario Description Legend Close Legend
Legend
Explorer
The Cash and Liquidity Management business scenario enables financial professionals at midsize companies to quickly and efficiently
meet cash flow deadlines and achieve better transparency in managing the company's liquidity position. It comprises cash flow information
Process mainly driven by the user
from payables and receivables and tax, as well as payment and liquidity management, and streamlines your daily cash management cycle
Scenario/Processes by automatically collecting and aggregating this information. This scenario covers the cash flow management
Processcycle from
mainly thebyactual
driven liquidity
the system
snapshot to forecasting, and analyzes steps through to optimized cash flow from money transfers or other cash flow impacting strategies.
Manual process not supported by the
Business Value system

Process that communicates with third-

Scenario Flow party software (mouse-over for details)

Further Information Process with relevance to Financials

The following business roles are involved in this scenario: Related scenario

Accounts Accounts Info button with more information

Payable Receivable
© © 2013 SAP AG. All rights reserved. Accountant Accountant <Role Name> <Role Name>
 Cash and Liquidity Management
Process Details: Processing Payables and Payments
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chevrons for details

Processing Payables and Payments X

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

Scenario Process Description Further Information

Explorer
The Processing Payables and Payments business process enables the processing of
outgoing payments initiated either internally by your company or externally by your Performed by
suppliers. Accounts Payable Accountant
Scenario/Processes Payments can be made manually or automatically via a payment run in which the system
proposes the open items for payment. You then release the payments and the system In the Work Centers
Business Value posts them to accounting. You create the payment medium, either manually or as part of Payables
an automatic run. The standard work center provides checks, outgoing bank transfers, Payment Management
credit memos, as well as other country-specific payment methods. Once the payments Liquidity Management
Scenario Flow have been debited from the bank account, the bank statement is entered in the system, in
which it is uploaded electronically or entered manually, before being confirmed. If
Further Information payments are initiated externally, the bank statement provides the notification that a
payment has been made. The payments are matched in the system to the open invoices
before being cleared.

© © 2013 SAP AG. All rights reserved.

 Cash and Liquidity Management
Process Details: Processing Payables and Payments
Click process
chevrons for details

Processing Payables and Payments X

Center a Processing
Process Allocate a Clear a Managing Receivables Managing
chevron for
bank Dunning
main payment payment Petty Cash and Cash
statement Payments
processes
i i i
Click here to hide process variants
i Processing Payments Automatically
i Processing Payments Manually with Bills of Exchange
i Processing Payments Manually with Open Item Clearing
i Processing Payments with Petty Cash

Scenario Process Description Further Information

Explorer
The Processing Payables and Payments business process enables the processing of
outgoing payments initiated either internally by your company or externally by your Performed by
suppliers. Accounts Payable Accountant
Scenario/Processes Payments can be made manually or automatically via a payment run in which the system
proposes the open items for payment. You then release the payments and the system In the Work Centers
Business Value posts them to accounting. You create the payment medium, either manually or as part of Payables
an automatic run. The standard work center provides checks, outgoing bank transfers, Payment Management
credit memos, as well as other country-specific payment methods. Once the payments Liquidity Management
Scenario Flow have been debited from the bank account, the bank statement is entered in the system, in
which it is uploaded electronically or entered manually, before being confirmed. If
Further Information payments are initiated externally, the bank statement provides the notification that a
payment has been made. The payments are matched in the system to the open invoices
before being cleared.

© © 2013 SAP AG. All rights reserved.

 Cash and Liquidity Management
Process Details: Managing Petty Cash
Click process
chevrons for details

Managing Petty X
Cash

Processing
Processing Create a cash Receivables Managing
Payables and receipt or Dunning
and Cash
Payments disbursement Payments
i

Scenario Process Description Further Information

Explorer The Managing Petty Cash business process enables your company to enter all incoming
and outgoing cash payments in the system. The petty cash fund always needs to contain Performed by
sufficient cash for outgoing cash payments to be made. For this reason, it is possible to Accounts Payable Accountant
Scenario/Processes transfer cash between petty cash funds or between bank accounts and petty cash.

Business Value
In the Work Centers
Payment Management
Scenario Flow

Further Information

© © 2013 SAP AG. All rights reserved.

 Cash and Liquidity Management
Process Details: Processing Receivables and Payments
Click process
chevrons for details

Processing Receivables and Payments X

Processing Enter a Process a

Managing Allocate a Clear a Managing
Payables and remittance bank Dunning
Petty Cash payment payment Cash
Payments advice statement

i i i i

Click here to display process variants

Scenario Process Description Further Information

Explorer The Processing Receivables and Payments business process enables the processing Performed by
of incoming payments, initiated either internally by your company or externally by your Account Receivables
customers. The process uses country-specific payment methods. Accountant
Scenario/Processes Payments can be made manually, or automatically via a payment run in which the system
proposes open items for payment. You then release the payments and the system posts In the Work Centers
Business Value them to accounting. You create the payment medium, either manually or as part of an Receivables
automatic run, using files for direct debit or credit card payments. It is also possible to Payment Management
upload credit card statements to pre-confirm payments. When the payments are credited Liquidity Management
Scenario Flow to the company's bank account, the bank statement is entered in the system, either
uploaded electronically or entered manually, before being confirmed. If payments are
Further Information initiated externally by the customer, the bank statement provides notification of payment.
The payments are matched in the system to the open invoices before being cleared.

© © 2013 SAP AG. All rights reserved.

 Cash and Liquidity Management
Process Details: Processing Receivables and Payments
Click process
chevrons for details

Processing Receivables and Payments X

Processing Enter a Process a

Managing Allocate a Clear a Managing
Payables and remittance bank Dunning
Petty Cash payment payment Cash
Payments advice statement

i i i i

Click here to hide process variants

i Processing Externally-Initiated Payments by Incoming Check
i Processing Externally-Initiated Payments by Incoming Check with Lockbox
i Processing Externally-Initiated Payments by Multiple Incoming Checks
i Processing Incoming Payments by Bill of Exchange
i Processing Incoming Payments with Petty Cash
i Processing Internally-Initiated Payments by Credit Card
i Processing Internally-Initiated Payments by Direct Debit
Scenario Process Description Further Information
Explorer The Processing Receivables and Payments business process enables the processing Performed by
of incoming payments, initiated either internally by your company or externally by your Account Receivables
customers. The process uses country-specific payment methods. Accountant
Scenario/Processes Payments can be made manually, or automatically via a payment run in which the system
proposes open items for payment. You then release the payments and the system posts In the Work Centers
Business Value them to accounting. You create the payment medium, either manually or as part of an Receivables
automatic run, using files for direct debit or credit card payments. It is also possible to Payment Management
upload credit card statements to pre-confirm payments. When the payments are credited Liquidity Management
Scenario Flow to the company's bank account, the bank statement is entered in the system, either
uploaded electronically or entered manually, before being confirmed. If payments are
Further Information initiated externally by the customer, the bank statement provides notification of payment.
The payments are matched in the system to the open invoices before being cleared.

© © 2013 SAP AG. All rights reserved.

 Cash and Liquidity Management
Process Details: Dunning
Click process
chevrons for details

Dunning X

Processing Create a Process a Release a

Processing
Managing Receivables dunning dunning dunning Managing
Payables and
Petty Cash and proposal proposal proposal Cash
Payments
Payments
i i i

Scenario Process Description Further Information

Explorer The Dunning business process covers the automatic creation of dunning proposals. Your Performed by
company can edit and release dunning proposals to send payment reminders or dunning Account Receivables
notices to customers for overdue payments. Accountant
Scenario/Processes
In the Work Centers
Business Value Receivables
Payment Management
Liquidity Management
Scenario Flow

Further Information

© © 2013 SAP AG. All rights reserved.

 Cash and Liquidity Management
Process Details: Managing Cash
Click process
chevrons for details

Managing Cash X

Processing Show and

Processing Create a Create Process a
Managing Receivables analyze Create a Allocate a
Payables and Dunning liquidity planned bank
Petty Cash and cash cash transfer payment
Payments status items statement
Payments position
i i i i i i

Scenario Process Description Further Information

Explorer The Managing Cash business process allows you to view the status of all payment Performed by
processes in order to analyze your company's cash balances and determine the cash Accounts Payable/Accounts
position in real time. This business process prepares information and creates planned Receivable Accountant
Scenario/Processes items that are processed as liquidity forecast according to their expected value date. If
necessary, your company can transfer funds between bank accounts. It is also possible
to transfer funds between bank accounts of different companies in your group. In the Work Centers
Business Value Liquidity Management
Payment Management
Scenario Flow

Further Information

© © 2013 SAP AG. All rights reserved.

 Cash and Liquidity Management
Business Value

Collect Consolidate Analyze Manage

Collect bank Analyze Analyze

Retrieve Invest / Optimize
balances Retrieve Set cash Set liquidity today’s future Transfer
disbursemen borrow cash flow
Transaction collections position forecasts cash cash funds
ts money time lines
details balance balance

Scenario Overview Key Benefits

Explorer For financial professionals at midsize companies who
want to quickly and efficiently meet cash flow  Liquidity Management provides the analytical framework for efficient
deadlines and achieve better transparency to manage financial value chain management including tools for bank balance
reporting, liquidity monitoring, and optimizing liquidity positions.
Scenario/Processes the company’s liquidity position, this scenario
streamlines the daily cash management cycle.  Cash managers can easily determine, initiate, and execute required funds
transfers to manage liquidity positions in terms of investing excess cash or
You can collect and aggregate liquidity information funding liquidity shortages.
Business Value
efficiently in a fast, streamlined, and automated
 Automated processes for collecting information about account balances
fashion.
and transactions from banks, as well as internal information on collections,
Scenario Flow SAP Business ByDesign helps efficiently manage disbursements, and other financial activities are spread across different
Liquidity Management: from the actual liquidity business units within the company.
Further Information snapshot, forecasting, and analyzing steps through to  Built-in analytics and reporting ensure a seamless consolidation of the
optimized cash flow from money transfers or other liquidity information into today’s cash position as well as various forecast
cash flow-impacting strategies. worksheets. Analytical tools support a comprehensive liquidity analysis,
projecting cash shortages or surpluses for a variety of reporting criteria and
timelines.
© © 2013 SAP AG. All rights reserved.
 Cash and Liquidity Management
Scenario Flow for Variant: Processing Payables and Payments

Payment Cash Payment

Payables Management and Liquidity Management

Processing
Managing
Payables and Petty Cash
Cash
Payments

• Automatic Payments
• Manual Payment with Open Item
Clearing
• Payment by Petty Cash
• ….

Procure-to-Pay Scenarios
(Stock/Non-Stock/Services)

Scenario Expense and Reimbursement

Management
Explorer Order-to-Cash (Drop
Shipment)

Financial
Closing
Scenario/Processes
Customer
Returns

Business Value

Scenario Flow Legend & Variants

• Process Process related Work center in which

Process
Further Information mainly variant1 Work to Financials process is performed
driven by • Process Center
the user variant 2
Related Business
scenarios document flow

© © 2013 SAP AG. All rights reserved.

 Cash and Liquidity Management
Scenario Flow for Variant: Processing Receivables and Payments

Payment Payment Cash

Receivables Management Receivables Management and Liquidity

Processing
Receivables and Dunning Petty Cash Managing Cash
Payments

• Internally initiated by direct debit

• Externally initiated payment by incoming check
• Externally initiated payment by incoming bank
transfer
• Internally initiated by direct debit
• Account maintenance - Standard variant

Field Service
and Repair
Scenario Order-to-Cash Scenarios
(Sell-from-Stock/Standardized Services/
Explorer Project-Based Services/Drop Shipment)

Customer
Returns

Scenario/Processes

Business Value

Scenario Flow Legend & Variants

• Process Process related Work center in which

Process
Further Information mainly variant1 Work to Financials process is performed
driven by • Process Center
the user variant 2
Related Business
scenarios document flow

© © 2013 SAP AG. All rights reserved.

 Cash and Liquidity Management
Further Information

Scenario Do you want to try it out? Do you need more information? Do you want to discuss with others?
Explorer
Self-Enablement Systems More Details Forum
If you want to try out the business SAP provides a complete product Get in touch with experts to
Scenario/Processes scenario, click here.* documentation, covering all discuss your specific
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For more details, click here. community, click here.*
Business Value

WIKI
Scenario Flow VV In addition to the product
documentation, SAP provides
Further Information Wikis that describe additional
aspects of SAP Business
ByDesign.
To access the WIKI, click here.*

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