What is planning level in SAP Cash Management?

The planning level reflects typical financial transactions, for example, posting to a bank
account, posting to a clearing account, confirmed or unconfirmed payment notes, and so on.
It explains the origin of the data and thus enables you to better estimate its reliability.

What strategies do you use to optimize Cash Management?

How Can You Increase Cash Flow? Ways to increase cash flow for a business
include offering discounts for early payments, leasing not buying, improving
inventory, conducting consumer credit checks, and using high-interest savings
accounts.

What is cash and liquidity management in SAP?

Cash Management is used to verify the cash position of all the bank accounts and liquidity
Management is used to verify the liquidity position of the sub-ledgers like Accounts
payable and Accounts receivable. We can also use Memo records, Payment requests,
Parked documents to verify the Cash and Liquidity position

Which functions are included in basic cash management for SAP's 4HANA?
SAP Cash Management consists of three components, namely “Bank Account
Management” (BAM), “Cash Operations” and “Liquidity Management”. BAM handles
the Bank Master data creation, approval, payments and Bank statement upload/download
operations.

Nostro/Vostro Account in IHC.

 The account manager manages the account of the correspondent bank as a vostro
account.
 Account holder manages the offsetting account as a nostro account.
 The vostro account is the account for which the bank statements are created and
sent to the other bank by the account managing bank.
 The account managing bank creates the original settlement calculation and the
offsetting calculation is mirrored on the nostro account of the correspondent bank.
The account manager manages the account of the correspondent bank as a vostro account
and the account holder manages the offsetting account as a nostro account.

The vostro account is the account for which the bank statements are created and sent to
the other bank by the account managing bank. The account managing bank creates the
original settlement calculation and the offsetting calculation is mirrored on the nostro
account of the correspondent bank.

 Activate cash management -OT29

 Activate business function
FIN_FSCM_CLM
 Define Source symbol- OT05
 Define Planning level - OT15
F2- Bank Account
F3- Vendor
AA- Cash Credit

 Define Planning group

Planning group Planning level

F2- Bank Account F2- Bank A/c
F3- Vendor F3- Vendor
AA- Cash Credit AA- Cash Credit

 Define cash management account

name OT17
 Maintain structure OT18

 Master data : Customer/Vendor

GL Account Master data