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Cash Accounting and Cash Flow Planning With SAP Liquidity Planner
Cash Accounting and Cash Flow Planning With SAP Liquidity Planner
Content
Introduction .............................................. 3
3.4
Acknowledgments ..........................................
1.2
1.4
3.5
1.5
1.6
Conclusion ........................................... 11
Conclusion ........................................... 37
Conclusion ........................................... 15
......................... 40
4.2
3.1
4.3
Integration ............................................ 17
4.4
4.5
Conclusion ........................................... 69
3.2
Planning Layout in
SAP SEM-BPS/BW-BPS ........................ 54
Calculation ........................................... 17
3.3
5.1
Overview .............................................. 71
FunctionalityOverview ..................... 21
5.2
Customizing .......................................... 71
... 21
5.3
Tools .................................................... 26
5.4
Planning ............................................... 76
Tables ................................................... 27
5.5
Reporting ............................................. 77
5.6
Conclusion ........................................... 78
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Content
Outlook ...................................................... 79
Appendix .................................................... 81
Lee Iacocca and Cash Flow ............................. 81
Indirect Cash Flow .......................................... 81
Plug-in ........................................................... 81
Case Scenario ................................................. 82
Bibliography .............................................. 83
Index ........................................................... 85
Introduction
surpluses. In this context, companies constantly try to analyze and plan their cash ow. Unfortunately, established
applications such as Accounting or Cash Management
nent.
completed.
Chapter 5 describes a workaround for simplied liquidity planning and reporting in SAP R/3 without using SAP
BW.
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Introduction
Acknowledgments
SAP is a registered trademark of SAP AG, Dietmar-HoppAllee 16, D-69190 Walldorf. We would like to thank
SAP AG for its permission to use the trademark and the
materials provided in this book. Note that SAP AG, however, is not the publisher of this book nor is it responsible
for the contents of this book.
We would like to express our deepest gratitude to our
colleague Robert Bieber who supported us with numerous tips and invaluable information.
1 Business Overview
ing standards such as FASB and IAS, we will use the term
1.1
Data Source
(SAP)
Incoming/Outgoing Payments
Expenditure/Revenue
Expense/Profit
Costs/Benefits
Cash
Accounting
Accounting
Controlling
Cash Accounting
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Business Overview
counting.
Cash Accounting
Liquidity Planning
t
past
current
period
future
The reason for such a discrepancy can be found in the different ways in which information is analyzed by accounting. For example, discrepancies can occur due to an in-
Retrograde Determination
Reciprocal Determination
creased stocking up of a warehouse, an expansion strategy that requires high investments, or by a bad overall
1.2
and is therefore frequently cited, is the situation at Chrysler Corporation at the end of the 1970s when Lee Iacocca
assumed the position of CEO. At that time, Chrysler had
situation of a company.
a company.
Usually a companys external nancing potential, for
1.3
Customers
eas:
Management
To managers, the cash ows of a business enterprise are
467):
assets
For management
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Business Overview
Investors
Investment
Lenders
Loan
Amortization and
Interest Payments
Dividends and
Withdrawals
Suppliers
Payment of
Activity
Company
Payment of
Activity
Payment of
Activity
Employees
Customers
Cash Flow
Activity
Figure 1.4 Cash Inow and Cash Outow from a Companys Perspective (according to Geuppert 2003, p. 10)
The data source (see Figure 1.1) for cash accounting is the
amortization
For suppliers
in cash accounting.
evaluations
1.4
For employees
Evaluating the creditworthiness, solvency, and future
Chart of accounts
Cash accounts
Balance sheet
accounts
P&L accounts
Cash accounting
Balance sheet
For customers
Assessing the delivery reliability and the consistency
of conditions
The different recipientsand therefore varying information needsdemonstrate the importance of cash accounting and liquidity planning.
Revenues
Expenditures
Assets
(without
liquid
funds)
Cash balance
Liabilities
Expense
Prot
P&L account
ing is the What for search: What have funds been re-
example.
evant for both cash accounting and the prot and loss
1.2.
Bank
Ofce
equipment
Vendor
$ 100
(1)
(1) $ 100
2.
3.
4.
5.
Invoicing of an activity
6.
Dissolving of provisions
7.
8.
Borrowing
9.
1.5
Figure 1.5 Accounting-Relevant Linking of Cash Accounts, Balance Sheet Accounts, and P&L Accounts
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Business Overview
Cash Management
Cash Accounting
Opening Balance
Revenues
Revenues
Revenue
Liquid Tangible Assets
Other
Customer Group X
Customer Group Y
Expenditures
Expenditures
Material
Personnel
Taxes
Vendor Group X
Vendor Group Y
Closing Balance
Closing Balance
Section 1.4.
and 4.
Cash Management
Cash Accounting
No consideration of cash ow
No identication of source
and application of funds
10
1.6 Conclusion
Cash Management
Cash Accounting
No integration in planning
process
1.6
Conclusion
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11
ow.
headquarters in Germany.
cash outow).
mentioned above:
described as follows:
uct takes two years. To cover R&D for this period, the
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13
platform.
plan/actual analyses.
this product.
Corporate management benets from using SAP Li-
counting
can measure (actual data) and plan (planned data) the in-
trolling the corporation in general. In addition, the decentralized planning process will become more efcient
14
2.1 Conclusion
Our experience has shown that these or similar situations, carrying out cash accounting and liquidity planning
with SAP Liquidity Planner can be very useful. In the remainder of the book, well describe the functionality of
SAP Liquidity Planner and how you can implement it.
2.1
Conclusion
ner.
Account number
Summarization item
100000
------------
LI
110000
800002
LI
120000
800001
LI
130000
Raw materials
170000
Summarization item
140000
Personnel
------------
LI
141000
LI
142000
440000
LI
150000
471000
LI
160000
476100; 476000
LI
170000
300000
Summarization item
200000
------------
LI
210000
133000
LI
220000
11000
LI
230000
11000
LI
240000
Capital gains
133000
Summarization item
300000
------------
LI
310000
62110
LI
320000
62110
LI
330000
273100
LI
340000
220000
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15
Index
Cash account 15
Document update 75
ABAP editor 19
Drilldown report 78
ABAP report 28
Account-based integration 8
Accounting 8, 11
Accounts receivable and accounts
payable accounting 26
77
Cash inflow 8, 13
Cash Management 5, 9, 10
Element definition 73
External capital 6
Accrual accounting 5
Extraction 64, 66
value 73
Chart of accounts 8
Extractor 17
Clearing transaction 25
tion 22
Analysis report 36
Application menu 28
Financing requirement 7
Application of funds 9
Consistency check 37
Assignment 23
Corporate accounting 13
FI Document Chains 37
from FI information 24
Flow-of-funds analysis 5, 6, 7
Cost accounting 5
Flow-of-funds planning 6
Creditworthiness 8
Crystal Reports 40
FM area 72, 75
Bank account 23
item 29
Basic InfoCube 44
D
DataSource 40
Buffer item 35
Business Area 22
35, 37
From Invoices 26, 35
Data target 40
Defining
actual accounts 21
Deletion process 26
Determinability 20
Direct determination 9
statement 5, 7, 81
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85
Index
Hierarchy 52
N:M Treatment 24
Rebuild 27
Recipients 20
I
IAS 5
New Formula 68
Release status 17
object 20
IDES 13
IDES system 15
platform 14
Report Painter 73
Retrograde determination 21
ODS object 43
InfoObject 40, 43
Overall process 21
InfoProvider 43
Information System 28, 36, 71
Actual Calculation
Insolvency 81
Partial reassignment 24
risk 6
Plan/actual
analysis 14, 20
deviation 69
K
Key figure 57
Planability 20
Planned data 14
Planning 76, 79
area 54, 55, 56, 61, 74
Scheduler 66
Solvency 6, 7
Source of funds 9
depth 20
Source symbol 36
Layout Builder 54
Lead column 73
functionality 17
Strategic liquidity 7
interval 53
System integration 17
Line item 28
System table 19
Liquidity
structure 74
analysis 25
forecast 10
profile 74
Test run 28
screen 61
Tools 26
unit 53
Totals list 37
relationship 7
value 74
workbench 55
Transactional InfoCube 44
Plug-in 17, 81
Transaction Events 18
Posting data 25
Transfer posting 36
Posting transaction 31
Transfer rule 65
Modeling 40
Profit 6
Multi-planning area 54
MultiCube 41, 45
MultiProviders 43
mySAP ERP 71
86
U
Update rule 50
Index
V
Variable 40
Version concept 17
W
Web Template 40
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