Overview of Cash Management and Liquidity Planning

Excerpt from Cash Management in SAP S/4HANA by Praveen Gupta and Mary Loughran.

With the many changes involved in an SAP S/4HANA implementation, it is critical to understand the new functionality and the different options customers have in using it. In this chapter, we provide an overview of the three components of SAP Cash Management on S/4HANA. We introduce the reader to what has changed and what has stayed the same. Subsequent chapters describe the functionality in more detail. SAP’s Cash Management powered by SAP HANA (also known as Cash Management on HANA and Advanced Cash Management and CM on HANA) is a suite of programs including Cash Operations, Bank Account Management (BAM), and Liquidity Management that upgrade the cash and liquidity management functionality in ECC. The Cash Operations and Liquidity Management components enhance existing ECC functionality with improvements in functionality and the introduction of Fiori tiles. The Bank Account Management component is completely new with S/4HANA. Figure 2.1 shows where the components of SAP Cash Management powered by SAP HANA fit within the end-to-end Treasury and Risk Management solution map.

Figure 2.1: SAP Treasury and Risk Management solution map

With the move to SAP Cash Management powered by SAP HANA, SAP has significantly changed the user interface, and has upgraded the functionality in certain areas. Another change we notice in the area of Cash Management is a move from configuration to application-side processing. This is seen with the move from house bank accounts being an IT configuration step in ECC to master data in S/4HANA. There are other examples of this, which we cover throughout the book.
Next, we take a cursory view at each of the components of SAP Cash Management powered by SAP HANA. Subsequent chapters are devoted to exploring the functionality of each of the components in detail.

Keep reading!

Dive into Cash Management and Liquidity Planning in SAP. Explore each area of S/4HANA Cash Management, including business functionality and configuration. Understand the many changes users need to be aware of in moving from SAP ERP Central Component (ECC) to S/4 HANA Cash Management. Find out what has changed, and what has stayed the same. Explore Bank Communication Management and Multi-Bank Connectivity. Identify the initial steps required for basic management of banks, house banks, and house bank accounts in S/4 HANA. Take a detailed look at cash operations. Learn more about One Exposure, the data storage structure for the data that feeds cash management reports. Get an overview of release 1809 and identify some of the new functionality delivered with SAP Cash Management powered by SAP HANA in release 1809.

– Principle areas of Cash Management powered by S/4HANA
– Comparison between ECC and SAP S/4HANA functionality, including an overview of release 1809
– Deployment options and implementation steps
– SAP Cash Management implementation tips and tricks

Author Mary Loughran has been specializing in the SAP Financials area since 1997 and has worked with numerous clients throughout North America and Europe in the areas of finance and treasury. Mary’s expertise is in SAP’s Treasury and Risk Management, In-House Cash, Liquidity Planning, Accounts Payable, payments from SAP in general, Cash Management, and Electronic Banking.

Author Praveen Gupta has been specializing in the SAP Financials area since 2005 and has worked on numerous projects in the areas of finance, treasury, banking and product management. Praveen’s expertise is in SAP’s Treasury and Risk Management, Accounts Payable, Electronic Banking, Cash Management, In-House Cash, Payments, Bank Communication Management, and SWIFT.