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Cash and Liquidity Management

in
SAP S4 Hana FSCM
Financial Supply Chain Management

Muhammad Hassan Askari

https://www.linkedin.com/in/askari1/
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Cash operations is used for current cash position calculation and

liquidity forecast is used for the cash position calculation in the longer
term.
Forecasted incoming payments are derived using invoice payment
terms, sales order etc and forecasted outgoing payments are derived
using vendor invoice payment terms, PR/PO etc.
To activate the cash management basic settings should be done for the
implemention company.

Muhammad Hassan Askari

https://www.linkedin.com/in/askari1/
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Payment are segregated using differnet planning levels.

To define planning levels deriving from MM & SD module it must be

defined separately. Planning levels are defined at the GL master data of
bank accounts (House Banks & Clearing Bank GLs). Planning groups are
used to segregate value of subledgers like customer & vender and they
are defined at the customer / vendor master data.

Muhammad Hassan Askari

https://www.linkedin.com/in/askari1/
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Each and every transaction is posted to cash management table :

FQM_FLOW.
During liquidity forecasting liquidity item is used for segregation of
values instead of planning level & group.

Muhammad Hassan Askari

https://www.linkedin.com/in/askari1/
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Flow types are used for the preparation of cash flow statements. It
determine the source of any particular transaction.

Muhammad Hassan Askari

https://www.linkedin.com/in/askari1/
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Data setup is required to activate the cash management reporting.

Muhammad Hassan Askari

https://www.linkedin.com/in/askari1/
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Flow builder is used to flow logistics data (SD & MM) to cash
management table FQM_FLOW.

Muhammad Hassan Askari

https://www.linkedin.com/in/askari1/
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If we analyze any overdraft balance in cash position statement of any

bank account, we can transfer the balance from one house bank to
another using Fiori app for bank transfer.

Muhammad Hassan Askari

https://www.linkedin.com/in/askari1/
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Cash pooling / concentration is used to concentrate the bank balance at

one target bank to get more benefits like if any bank is providing more
benefits due to more bank balance, then our entity will focus on it to
maintain higher balance at that bank account. In this case our must
create the group of bank accounts and specify the target and source
bank accounts.

Muhammad Hassan Askari

https://www.linkedin.com/in/askari1/
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Liquidity management and forecasting reports are based upon the

values derived from liquidity items.

Muhammad Hassan Askari

https://www.linkedin.com/in/askari1/
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Derivation rules are used for the assignment of liquidity items.

Liquidity item hierarchy is created and based on this liquidity report will
be generated which will help to generate cash flow report as:
1. Cash flow from operating activities
2. Cash flow from investing activities
3. Cash flow from financing activities

Muhammad Hassan Askari

https://www.linkedin.com/in/askari1/
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Muhammad Hassan Askari

https://www.linkedin.com/in/askari1/