Cash Accounting and Cash Flow Planning with SAP Liquidity Planner

Stephan Kerber, Dirk Warntje

Content Introduction .............................................. 3
Structure of the Book ..................................... Acknowledgments .......................................... 3 4 3.4 Cash Accounting Processes ................... 28 Information Acquisition from Assignment Mechanisms ...................... 28 Information Acquisition from Bank Statement Information ................ 29 Information Acquisition from Financial Accounting ............................ 31 6 7 3.5 8 9 Manual Assignment and Manual Transfer Posting ................................... 36 Analysis Reports ................................... 36 Conclusion ........................................... 37


Business Overview .................................. 5
1.1 1.2 1.3 1.4 1.5 1.6 The Concept of Cash Accounting .......... Tasks of Cash Accounting and Liquidity Planning ................................. Recipients and the Need for Information .......................................... Financial Accounting and Cash Accounting ................................... Differences to Cash Management ......... 5


Conclusion ........................................... 11

SAP Liquidity Planner: Liquidity Planning and Reporting Using SAP BW/SEM ............................... 39
4.1 Modeling in SAP BW/SEM .................... 40 SAP Business Content ......................... 40 Master Data ......................................... 45 Characteristics ..................................... 53 Planning Layout in SAP SEM-BPS/BW-BPS ........................ 54 4.2 4.3 4.4 4.5 The Liquidity Planning Process .............. 63 Extracting Actual Data .......................... 64 Reporting in SAP BW ............................ 67 Conclusion ........................................... 69


Case Scenario: Implementing Cash Accounting and Liquidity Planning .... 13
2.1 Conclusion ........................................... 15


SAP Liquidity Planner: Liquidity Analysis Using SAP Actual Calculation ................................................. 17
3.1 3.2 3.3 Overall Process and System Integration ............................................ 17 Technical Settings in SAP Actual Calculation ........................................... 17 SAP Actual Calculation (Cash Accounting) ................................ 19 Data Model and Master Data ............... 19 Functionality—Overview ..................... 21 Customizing SAP Actual Calculation ... 21 Tools .................................................... 26 Tables ................................................... 27


Liquidity Planning and Reporting Without SAP BW/SEM .......................... 71
5.1 5.2 5.3 5.4 5.5 5.6 Overview .............................................. 71 Customizing .......................................... 71 Master Data and Actual Data ................ 75 Planning ............................................... 76 Reporting ............................................. 77 Conclusion ........................................... 78


............................. 81 Lee Iacocca and Cash Flow ............ 81 Plug-in ............................................... ... 81 Indirect Cash Flow ...............Content 6 Outlook . 79 Appendix ....................................... 81 Case Scenario .................................................................. All rights reserved... 82 Bibliography ................................................................................................................................................................ 85 2 © Galileo Press 2006............. 83 Index .....

you will also find detailed information on customizing and the various functions of the application.Introduction This book is about money. however. companies constantly try to analyze and plan their cash flow. but it should also serve as an aide to you in implementing this component. and completed. This SAP Press Essentials book outlines the concepts of cash accounting and liquidity planning. The Appendix contains additional information. We use this example to help you understand the functionality and the technical concept of SAP Liquidity Planner. Chapter 5 describes a workaround for simplified liquidity planning and reporting in SAP R/3 without using SAP BW. In addition. as well as the resulting requirements that a business software must be able to meet. In this a decentral planning tool. In both chapters. the concept of cash accounting is introduced. along with a description of its interdependencies with accounting. Liquidity planning is carried out using the planning functionality in SAP BW. Wherever necessary. and since the introduction of mySAP Enterprise Resource Planning (mySAP ERP) in 2004.5 onwards. SAP Liquidity Planner is a component that consists of two applications: Cash Accounting (SAP R/3) and Liquidity Planning (prior to Release 3. the authors demonstrate how you can meet these requirements using SAP Liquidity Planner and also. Chapter 3 and Chapter 4 contain a detailed description of SAP Liquidity Planner. we clearly distinguish SAP Liquidity Planner from SAP Cash Management. Reporting is performed by SAP BW. SAP Liquidity Planner affords you with the much needed relief in this area. it is integral to running a 3 . Readers of this book should have a sound knowledge of the accounting application in SAP R/3 as well as SAP BW and SAP SEM. The complex requirements placed on a retrograde liquidity analysis. it was part of SAP Strategic Enterprise Management (SAP SEM). the case scenario is referred to. Cash accounting determines the cash flow either based on an electronic bank statement or data from financial accounting. The most important aspects of liquidity are the ability to ensure solvency and generate payment surpluses. enhanced. established applications such as Accounting or Cash Management don’t provide the necessary information on cash flow required by companies. from SAP Business Information Warehouse (SAP BW) Release 3. as shown by its first implementations in both nationally and internationally operating companies. Where does money come from and where does it go? Because liquidity is one of the critical success factors for a company. www. They provide an insightful introduction to the two main areas of the product: Chapter 3 describes Cash Accounting (SAP R/3). Chapter 2 describes a case study that is referred to and further developed throughout the book. it has been located in the Cash Management and Liquidity Management area as part of Financial Supply Chain Management (FSCM). In the past. this component was part of Corporate Finance Management (CFM).5. and an efficient reporting were met by the use of SAP Liquidity Planner. how you can implement this product. it has been included in BW). Chapter 6 addresses possible developments and future requirements of SAP Liquidity Planner. Structure of the Book Chapter 1 outlines the business principles and provides clear definitions of the terms used in the context of cash accounting and liquidity planning. Unfortunately. In this context. In the final sections of this chapter. while Chapter 4 deals with Liquidity Planning (SAP BW).

. however. D-69190 Walldorf. 4 © Galileo Press 2006. All rights reserved. Note that SAP AG. We would like to express our deepest gratitude to our colleague Robert Bieber who supported us with numerous tips and invaluable information. is not the publisher of this book nor is it responsible for the contents of this book.Introduction Acknowledgments SAP is a registered trademark of SAP AG. Dietmar-HoppAllee 16. We would like to thank SAP AG for its permission to use the trademark and the materials provided in this book.

you’ll also encounter the following terms: cash budget management. Figure 1. cash flows being incoming and outgoing payments of liquid funds such as cash in hand and bank savings. This is a rather important step in understanding these concepts as they are often used in a multitude of ways. pp.1 illustrates 1. This type of recording and displaying of cash flows can be compared to fiscal accounting.1 Business Overview In this chapter. Within a certain period. 8). Because cash accounting and general accounting are inherently interrelated. Lastly. we should point out their interrelationships. cash accounting distinguishes itself from accrual accounting and cost accounting.1 Cash Accounting in the Context of General Accounting (according to Baetge 1992. we‘ll describe the tasks performed by cash accounting and liquidity planning. we will use the term “cash flow” in this book to describe the changes in the means of payment. which is used in the public sector.1 The Concept of Cash Accounting In business literature. and cash flow statement. we will first define and differentiate cash accounting and liquidity planning. cash accounting records transactions that have a direct influence on the stock of liquid Liquidity is therefore referred to as a financial accounting-related concept. as well as cash flow accounting. Next. Therefore. In these discussions. 3) www. you’ll find countless discussions about the concept of cash accounting and its 5 . Incoming/Outgoing Payments Expenditure/Revenue Expense/Profit Costs/Benefits Cash Accounting Profit and Loss Statement Data Source (SAP) Cash Accounting Accounting Controlling Cash Basis Accounting Cost and Activity Accounting Figure 1. In accordance with national and international accounting standards such as FASB and IAS. Cash accounting records the changes of cash flows. flow-of-funds analysis. we’ll describe the differences between cash accounting and SAP Cash Management. p. regardless of the period the payments refer to (see Geuppert 2003.

In addition. it is now apparent that in business theory. 15) The reason for such a discrepancy can be found in the different ways in which information is analyzed by accounting. compounded by a low demand for these vehicles. cash flow is a far better indicator than the profit of a company. it wasn‘t able to meet its payment obligations. p. cash accounting enables you to better assess the financial situation of a company. Grant company. Compared to the balance sheet and the profit and loss statement. high debt-equity ratio). up until one year before its insolvency. At that time. Internal financing potential means that a company can Figure 1. the first application. Because the SAP Liquidity Planner component consists of two applications (see Section 3.3 Comparison of Profit and Cash Flow at W. demonstrates the importance of analyzing and determining the cash flow situation. considers future periods. T. A classic example that personifies this state of affairs. p..2 Time-Based Delimitation of Cash Accounting and Liquidity Planning 1.3.2 Tasks of Cash Accounting and Liquidity Planning The primary task of cash accounting is to provide information on a company’s solvency and internal financing potential. is the situation at Chrysler Corporation at the end of the 1970s when Lee Iacocca assumed the position of CEO. Even though the Grant company was profitable 6 © Galileo Press 2006. 4). However. T. SAP Actual Calculation. Chrysler had a high stock of automobiles. pp. as shown in Figure 1. cash flow had already been negative in earlier years. Cash accounting supports a company in evaluating its solvency status as well as its insolvency risk. For example. 200). The ability to generate sufficient liquid funds from its business activities and to secure these funds in future periods is one of the prerequisites for a company to survive (static aspect) (Amen 1999. Apart from that. external financing can become increasingly difficult. Grant and Chrysler) clearly show that in order to evaluate the degree of solvency. and is therefore frequently cited. This concept is generally adopted by SAP Liquidity Planner. Lee Iacocca and Cash Flow. is rather limited. The comparison of profit and cash flow of the W. Grant (Source: Largay/Stickney 1980. or Iacocca 1984. All rights reserved. for example. The cash flow situation was very critical (see also the section in the Appendix.1). cash accounting always refers to several periods. W. . Cash Accounting Liquidity Planning t past current period future Figure 1. it serves as a basis for the creation of flow-of-funds analyses and plannings. SAP Liquidity Planning (SAP BW/SEM). or by a bad overall economic situation during which extended terms of payment are granted. T.1 Business Overview the basic differences between the various types of accounting. by acquiring external capital. discrepancies can occur due to an in- Retrograde Determination Reciprocal Determination creased stocking up of a warehouse.e. the internal financing potential plays an increasingly important role within the range of different financing possibilities for a company (dynamic aspect) (Amen 1999. 4). refers to past and current periods. while the other application. pp. These two examples (i. an expansion strategy that requires high investments. Usually a company‘s external financing potential. Due to the size of the company or its current situation (for example. For this reason.

para. To obtain universally valid and comparable information on the degree of solvency of a company. or salaries or wages. the cash flows of a business enterprise are a significant part of their management responsibilities. each of the involved parties has a specific need for information with regard to cash accounting. the basic structure of a flow-of-funds analysis could look as follows (Kütting/Weber 2001. suppliers. 24):   Cash flow from investing activities + Incoming payments from asset retirements – Outgoing payments for asset acquisitions + Incoming payments from financial asset retirements – Outgoing payments for investments in financial assets = Cash flow from investing activities (2) For management  Ensuring solvency by optimizing cash flow based on short-term and long-term liquidity planning Determining the internal financing including their accountability to directors and owners. pp.” According to IAS 7 . According to national and international regulations. 467):  Cash flow from operating activities + Incoming payments from customers – Outgoing payments to suppliers = Cash flow from operating activities (1) Figure 1.3). but only by obtaining sufficient cash to pay for the resources it uses—and to meet its other obligations— can the enterprise provide those goods or services. this surplus is called strategic liquidity.3 Recipients and the Need for Information According to the Financial Accounting Standards Board (FASB). and FASB 1978. You can find an example of the indirect procedure. the flow-of-funds analysis can be divided into three areas:    The total of the three areas represents the total cash flow of the company.4 illustrates the major important relationships between a company and its business partners in terms of activities and liquidity. If a company can continuously build up liquidity. lenders. lenders. the internal financing potential and the overall financial situation. pp. 25):  Investors. in addition to conducting its regular business activity. 1. Due to the different kinds of business relationships.3 Recipients and the Need for Information generate more revenue than expenditures from its activities. employees “To investors. in the Indirect Cash Flow section in the Appendix of this book. Therefore. suppliers. They invest cash. goods. The following list contains the most important items (Geuppert 2003. In this book we will only describe the direct procedure since cash accounting doesn‘t support the indirect procedure. and employees. repayment of borrowing. a business enterprise is a source of goods or service. which is supported by accounting (SAP FI). the major recipients of cash accounting information that is contained in a cash flow statement are the following groups (FASB 1978. direct procedure will be a critical part of this book. The cash flow statement is an essential part of quarterly and annual reports since it meets the information needs of various recipients (see Section 1. payment for goods or services. 10. Here a distinction is made between indirect and direct procedures. or services … expect to obtain sufficient cash in return …”  Customers “To customers. and determining requirements for external financing  Cash flow from financing activities + Incoming payments from equity allocations – Outgoing payments to company shareholders + Incoming payments from borrowings – Outgoing payments for loans = Cash flow from financing activities (3)   Determining financing requirements for planned investments and integration in cash accounting and liquidity planning www. a business enterprise is a source of cash in the form of dividends or interests …. building up strategic liquidity.” Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities  Management “To managers. national and international accounting principles require flow-of-funds analyses or cash flow statements as procedures and display formats. para.1. This potential is also referred to as internal financing strength.

p. we can also speak of a threefold accounting system. Chart of accounts Cash accounts Balance sheet accounts P&L accounts  For investors and lenders (equity providers and providers of external capital) Assessing the ability to pay dividends. In financial accounting. All rights reserved.1) for cash accounting is the posting material in financial accounting. and profit and loss accounts (P&L accounts) are interrelated.1. 8 © Galileo Press 2006. Revenues Expenditures Liabilities Expense Profit Cash balance P&L account Table 1. balance sheet accounts.4 Cash Inflow and Cash Outflow from a Company‘s Perspective (according to Geuppert 2003. 10)  Ensuring creditworthiness.1 The Three Parts of Accounting 1 Accounting and consequently ERP systems are structured according to the principle of double-entry accounting. . particularly with regard to the requirements of rating agencies 1. This account-based integration1. as shown in Table 1. therefore. and amortization  For suppliers Evaluating the creditworthiness and solvency and forecasting the payment behavior based on these evaluations  For employees Evaluating the creditworthiness. and future existence of the company  For customers Assessing the delivery reliability and the consistency of conditions Cash accounting Balance sheet Assets (without liquid funds) Profit and loss statement The different recipients—and therefore varying information needs—demonstrate the importance of cash accounting and liquidity planning. cash accounts. solvency. A triple-entry accounting system hasn’t been implemented yet. interest.4 Financial Accounting and Cash Accounting The data source (see Figure 1. enables you to determine the cash flow required in cash accounting.1 Business Overview Investors Investment Loan Dividends and Withdrawals Lenders Suppliers Amortization and Interest Payments Company Payment of Activity Payment of Activity Payment of Activity Employees Customers Activity Cash Flow Figure 1.

for This is because the central task of cash accounting is the “What for” search: “What have funds been received or paid for?” Let‘s try to clarify this with another example. 10. According to Figure 1. 7.6. pp. Cash payment for material purchases 11. but not on the net income. we’ll describe the primary differences between Cash Management and Liquidity Planner. This is further clarified by the posting example in Table 1. is a transaction that affects the net income and the liquidity. 9. Clearing of receivables and payables 14. SAP Cash Management is focused on short-term cash manage- Figure 1.2 Vendor Payment Then the open item is paid (2). Balance Sheet Accounts.1. 6. Contribution in kind from shareholders 13. 2. but has no effect on liquidity. 5.5 Differences to Cash Management In this section.5 Accounting-Relevant Linking of Cash Accounts. and as having an effect on liquidity and having no effect on liquidity (Gebhardt 9 .5 affects the net income.5 Differences to Cash Management In addition. 4. Accounting exchange on the liabilities side 1. In the accounting department of a company. and P&L Accounts www. Figure 1. business transactions related to accounting can be classified as affecting net income and not affecting net income. Only when these two postings haven been linked with each other can you determine the cash flow according to its application. This distinction makes it easier to determine the source of funds and their application. The posting displayed in Figure 1. One hundred dollars ($ 100) was used for office equipment. 21). 8. 3. This posting is a simple example of the direct determination of a cash flow. The payment of a dividend. we have provided an example (the following numbers correspond to the posting example used in Figure 1. therefore.2. it is relevant for both cash accounting and the profit and loss statement. Cash payment for office equipment Revenue from cash sales Depreciation of tangible assets Posting of supplier invoice Invoicing of an activity Dissolving of provisions Revenues from invoices Borrowing Payment of supplier invoices It is apparent that the connection between two account assignment types demonstrates the source or application of funds. a supplier invoice (1) is posted. Here you can see that there are 14 different account assignment types available to post business transactions in accounting.5): 1. For each account assignment type.5 illustrates the relationships between the individual accounts in financial accounting. this transaction has an effect on the liquidity. The depreciation of an asset merely affects the net income. Bank $ 100 Vendor (2) (2) $ 100 $ 100 Office equipment (1) (1) $ 100 Table 1. Accounting exchange on the assets side 12. but not the liquidity.

” What the funds are paid for cannot be identified. If a bank account shows a current status of $ 500. cash accounting is part of an overall process that consists of cash accounting and liquidity planning.4. Moreover. Table 1. The only information that can be deter- mined is “From whom” and “For whom. . cash accounting requires all general ledger accounts that have an effect on liquidity.3 Differences Between Cash Management and Cash Accounting 10 © Galileo Press 2006.1 Business Overview Cash Management Cash Management and Forecast Revenues Cash Accounting Opening Balance Revenues Customer Group X Customer Group Y … Expenditures Revenue Liquid Tangible Assets Other … Expenditures Vendor Group X Vendor Group Y … Closing Balance Figure 1. It evaluates the open items of suppliers and customers.6 Distinction Between Cash Management and Cash Accounting Material Personnel Taxes … Closing Balance ment. Unlike Cash Management. All rights reserved. this status is displayed in the bank account status in Cash Management. or suppliers and supplier groups respectively. because only the open items are evaluated and displayed. and displays this information in the liquidity forecast. The bank accounts in the general ledger constitute the data basis for the bank account status. cash accounting refers to real cash flow and the source and application of funds can be identified. the cash flows to be expected can be displayed only with regard to specific customers and customer groups. In addition. Conversely. whereas SAP Liquidity Planner considers medium to long-term liquidity planning. as described in Section 1. The liquidity forecast uses accounts receivable and accounts payable as a basis. which will be described in further detail in Chapters 3 and 4. and the terms of payment stored with the respective documents. Cash Management provides information on the current bank account status and it contains a liquidity forecast regarding incoming and outgoing payments from the perspective of payments for accounts receivables and for accounts payables (or write: payments to customer and to vendor).3 contains a list of the most important differences: Cash Management No consideration of cash flow No identification of source and application of funds Cash Accounting Real cash flow consideration Identification of source and application of funds Table 1. A cash flow is not determined.

and we highlight the interdependencies with accounting by clarifying how you can use the information from accounting to determine your cash flow 11 . we describe the differences between SAP Liquidity Planner and SAP Cash Management to outline the tasks performed by SAP Liquidity Planner within the FSCM product portfolio. www.3 Differences Between Cash Management and Cash Accounting (cont. we define the concepts of cash accounting and liquidity planning and introduce them in the context of different accounting Finally. we describe the group of recipients and their need for information regarding cash accounting. but only bank accounts and subledgers Liquidity forecast (based on open items) View: Vendors and customers (groups) and bank account status No integration in planning process Cash Accounting All relevant accounts of cash accounting chart of accounts as data source Forecast of revenues and expenditures possible (based on open items) View: Revenue and expenditure items Integrated planning process (SAP BW/SEM) Table 1.1. Moreover.) 1.6 Conclusion Cash Management Accounting as the data source.6 Conclusion In the following chapters.

com 13 . the IDES Group. IDES uses a standard off-the-shelf office software. which could lead to price wars and further aggravate the situation. However. investments should be made for the research and development of new products.  The corporate headquarters is in Consequently. This example is used to support your understanding of the functionality and the technical concept of SAP Liquidity Planner. For this scenario. the company forecasts a strong increase in raw material prices and rising labor costs at the production sites. net cash flow will be strongly reduced in the coming years. This acquisition was financed with a large bank loan that will be amortized within the next 10 years. At IDES.  Research and development is located at corporate headquarters in Germany. This means that the revenues from its core business will go down (cash inflow reduction).  Legally independent production sites exist in Germany and Eastern Europe. however. company management expects product imitations to enter the market in two or three years. For this reason. the company acquired a USbased competitor in order to strengthen its market position abroad. the management decides to develop a comprehensive strategy that should include the factors mentioned above:   Concerning office applications. we will build up a scenario for implementing SAP Liquidity Planner. the company expects a decrease in prices in the long run. In the subsequent chapters. To cover R&D for this period. but it will also serve as an aide in helping you to implement this component.2 Case Scenario: Implementing Cash Accounting and Liquidity Planning Based on a specific real-life situation that we’ve encountered several times. the development of a product takes two years. At the same time. The initial situation looks as follows: We’ll consider an international corporation. The central departments of corporate accounting and global treasury are also located in Germany. The sales and distribution network stretches across Europe and the US. IDES uses SAP as its standard business software with the currently implemented applications:       SAP FI for accounting SAP CO for controlling SAP SD for sales and distribution SAP MM for materials management SAP PP for production Corporate management realizes that a continued pursuit of its existing strategy can quickly lead to a negative cash flow situation. This will lead to a situation in which the expenditures in production will increase dramatically (increase in cash outflow). for a period of 10 years. which is structured as follows:   or three years. there will be payments for amortization and interest (increasing cash outflow).  In the preceding year. this case scenario will be further developed in parts. Future competitors will be met with a product offensive at an early stage. corporate management expects an even stronger reduction of net cash flow. Furthermore. since the company is expected to remain sound. So. with legally independent sales companies in the respective countries. the The current business situation of the IDES group can be described as follows:  Existing products have been introduced and distributed throughout the markets and will continue to be distributed at the same high level for the next two www.

This planning process proves to be too complicated. and rigid. you cannot use the SAP Accounting module to directly determine your cash flow situation. Corporate management benefits from using SAP Liquidity Planner in the following ways:    In addition. management can ensure the quality of the actual data because of this integration. the decentralized planning process will become more efficient and less time-consuming. Furthermore. This data forms the basis for qualified plan/actual analyses. similar to the initial situation described above. especially in Asia. As mentioned in the introduction. The company management wants to use a tool that can measure (actual data) and plan (planned data) the individual cash flows. In various implementation projects. which are intended to reduce costs and expenditures (reduction of cash outflow in production for the coming years). corporate management realizes that a powerful tool is required for cash accounting and liquidity planning. SAP Liquidity Planner is precisely the tool that meets the company‘s requirements (see also Section 3. The tool should also be used as a central reporting platform.1). . liquidity planning has been conducted by the global treasury department. Cash accounting enables you to identify and evaluate the cash flows in the company with regard to their value dates. The companies need reliable and up-to-date information. A cash accounting based on value-date dependent documents from SAP FI is not carried out because Cash Accounting in SAP Liquidity Planner is currently not being used. the company checks whether the existing bank loan can be converted into a maturity loan. Based on the new strategy. we’ve seen many companies struggling to survive with ever-changing market environments. the company can optimize the advantages of this product. SAP Actual Calculation (cash accounting) SAP BW/SEM (planning application and reporting)  The company wants to maintain the production sites in Germany. Direct determination of cash flows Quality of actual data by integrating SAP R/3 Accounting Extraction from the SAP R/3 systems into SAP BW Flexible planning functionalities to map different planning scenarios in SAP BW/SEM Successful implementation of an efficient corporatewide planning process due to the use of SAP BW/ SEM as a central planning platform (this is particularly efficient for decentrally organized companies)      Central reporting tool for all parts of the company Use of SAP BW/SEM for the planning aspects of SAP Liquidity Planner. Until now.4). The policy unit receives spreadsheets from the individual subsidiaries and integrates them into a central liquidity planning document. SAP Liquidity Planner consists of two components:   The existing range of products will be introduced into new markets. this enables you to establish a relationship with other plannings (for example.  narios. it must be possible to easily and quickly map the various planning sce2 As already described in Chapter 1. This measure would lead to a reduced cash outflow for a period of 10 years (reduction of cash outflow by rescheduling the existing loan). Section 1. investment plans) and an integration with liquidity planning. At the same time. the company needs additional funds (cash outflow for expansion to new markets). corporate management will develop new work and production models with its personnel. Since the planning and reporting functions in SAP Liquidity Planner are based on the functionalities of SAP BW/SEM. Therefore. sales and distribution plans. For this expansion. as well as the ability to run through various 14 © Galileo Press 2006. time-consuming. but also for controlling the corporation in general.2 Case Scenario: Implementing Cash Accounting and Liquidity Planning company needs liquid funds (cash outflow for research and development in the coming two years). As SAP Actual Calculation accesses the data provided by SAP R/3 Accounting (cf. All rights reserved. In addition.2 The corporate accounting department merely performs an indirect analysis of actual data (indirect cash flow statement). management expects additional revenues from selling existing products to the new markets (cash inflow from selling existing products to new markets).

you should use the IDES system provided by SAP with the following data:   Use the general ledger account. In the remainder of the book.1 Case Scenario: Liquidity Item and Account Numbers www.1 Conclusion SAP Liquidity Planner is the ideal tool for analyzing and planning cash flows. Company code 1000 for IDES AG. Our experience has shown that these or similar situations. company code 2200 for IDES Conclusion planning scenarios. we’ll describe the functionality of SAP Liquidity Planner and how you can implement it. 476000 300000 -----------133000 11000 11000 133000 -----------62110 62110 273100 220000 Table 2. In the next two chapters. we’ll only marginally refer to the above example and provide a detailed description of the technology and functionalities of SAP Liquidity Planner.  Use the international chart of accounts.1). By using this 15 . carrying out cash accounting and liquidity planning with SAP Liquidity Planner can be very useful. INT. You should use the information and assignments provided in the following table (see Table 2. When working in Chapters 3 and 4. and company code 2600 for IDES Italia. Liquidity item (LI) Summarization item LI LI LI Summarization item LI LI LI LI LI Summarization item LI LI LI LI Summarization item LI LI LI LI 100000 110000 120000 130000 140000 141000 142000 150000 160000 170000 200000 210000 220000 230000 240000 300000 310000 320000 330000 340000 Cash flow from operating activities Revenues from product sales Revenues from services sales Raw materials Personnel Payments of wages and salaries Payments of social insurance contributions Payments for rents Payments for materials Payments for raw materials Cash flow from investing activities Expenditures for financial assets Expenditures for tangible assets Revenues from enterprise transfers Capital gains Cash flow from financing activities Revenues from borrowing Expenditures for loan amortization Revenues from interest Expenditures for interest payments Account number -----------800002 800001 170000 -----------449000 and 430000 440000 471000 476100. Often. “100000 cash” as an additional cash account. you can identify imminent bankruptcies due to insolvency and counteract them with the appropriate measures.  2. the focus was on improving the planning process.2.

79 Cash Budget Management 5. 30 From Bank Statement Information 23. 72 Company structure 71. 14 Characteristic 49. 73 value 73 Chart of accounts 8 Clearing document 21. 35 Actual data 14. 73. 14 GR/IR clearing account 25 C Case scenario 13.Index A ABAP editor 19 ABAP report 28 Account-based integration 8 Accounting 8. 75. 28. 21. 31. 11 Accounts receivable and accounts payable accounting 26 Account assignment type 9 Accrual accounting 5 Actual account 22. 20. 26 Deletion process 26 Determinability 20 Direct determination 9 Document chain 21. 76 Administrator Workbench 41. 75 From Bank Statement 23. 31 Financial accounting-related liquidity 5 Financial management area 71. 10 accounting 5 statement 5. 13 Cash Management 5. 22. 36 Data target 40 Default item 19. 19. 32 G/L accounts list 37 Global treasury 13. 34. 7. 19. 9. 76 Consistency check 37 Corporate accounting 13 Corporate Finance Management 28 Cost accounting 5 Creditworthiness 8 Crystal Reports 40 Customizing 18. 21. 24. 28 Clearing transaction 25 Commitment item 72. 52. 59 Cash flow 5. 6. 17. 56. 51 Data model 19. 35 B Bank account 23 Bank statement 23. 81 H Having an effect on liquidity 9 Having no effect on liquidity 9 www. 14. 9. 42 Business transaction code 30 Business Transaction Events 18 D DataSource 40 Data flow 45. 31 item 29 Basic InfoCube 44 Buffer item 35 Business Area 22 Business Content 85 . 36. 23. 64 Company code 19. 23 Actual Calculation 14. 6. 22 Defining actual accounts 21 query-relevant G/L accounts 22 query sequences 22. 66 Extractor 17 F Financial accounting 8. 26. 31 G G/L account 26. 75. 27. 33. 10 Cash outflow 8. 23. 75. 71 Document update 75 Drilldown report 78 E Electronic bank statement 21 Element definition 73 External capital 6 Extraction 64. 54. 76 Communications structure 51. 22. 71. 30. 10. 13. 26. 54. 27. 41. 21. 7 Flow-of-funds planning 6 Flow data 26. 34. 24. 64. 55. 19. 18. 74. 72. 52. 19. 19. 41. 28 Cash account 15 Cash accounting 3. 56. 37 From Invoices 26. 64 Allocating assignments from FI information 22 Analysis report 36 Application menu 28 Application of funds 9 Assignment 23 from FI information 24 mechanism 21. 15. 7. 53. 5. 28. 8. 45. 72 Financing requirement 7 Fiscal year variant 72 FI Document Chains 37 Flow-of-funds analysis 5. 35. 6. 50. 29 From FI Information 24. 77 Cash inflow 8. 75. 27 FM area 72.

17. 77 relationship 7 T Test run 28 Tools 26 Totals list 37 Totals table 27. 71 InfoSource 40. 31. 74 level 55. 61. 56. 30. 6. 61. 59. 46. 20. 17. 36. 52. 69 sequence 23. 67. 55. 32. 49. 53. 5.Index Hierarchy 52 House bank 22. 45. 15. 7 O ODS object 43 Online update 27. 32 Overall process 21 S SAP Actual Calculation see Actual Calculation SAP Business Content see Business Content SAP BW 14. 71. 31. 60. 43 InfoProvider 43 Information System 28. 54. 48. 76 functionality 17 interval 53 layout 48. 39 SAP BW-BPS 54 SAP Liquidity Planner 6. 63. 40. 71 Total cash flow 7 Transactional InfoCube 44 Transaction Events 18 Transfer posting 36 Transfer rule 65 Transfer structure 51. 43. 36 Liquidity analysis 25 forecast 10 item 15. 30 N N:M Treatment 24 Net cash flow 13 New Formula 68 Number range 19. 47. 36. 54 Scheduler 66 Solvency 6. 35 planning 3. 66 InfoObject 40. 72. 7 Source of funds 9 Source symbol 36 Storing global data 21. 39 SAP SEM-BPS 48. 73. 44. 14. 77 M Manual transfer posting 19 Master data 19. 79 profile 74 screen 61 unit 53 value 74 workbench 55 Plan version 74. 76. 55. 65 Insolvency 81 risk 6 Installing assignment mechanisms 22 Internal financing potential 6. 28. . 64. 44. 73. 25. 65 SAP R/3 Enterprise 71 SAP SEM 3. 22 Strategic liquidity 7 System integration 17 System table 19 P Partial reassignment 24 Plan/actual analysis 14. 29. 37 U Update rule 50 86 © Galileo Press 2006. 71. 75 Modeling 40 Multi-planning area 54 MultiCube 41. 39. 39 SAP R/3 3. 61 process 14. 17. 30. 45 MultiProviders 43 mySAP ERP 71 Q Query 32. 14. 17. 81 Posting data 25 Posting transaction 31 Profit 6 K Key figure 57 L Layout Builder 54 Lead column 73 structure 74 Line item 28 Line items table 27. 74 data 41. 57 package 55. 53. 56. 36 object 20 R Rebuild 27 Recipients 20 Release status 17 Reporting 14. 79 area 54. 74. 65 Treasury 71. 75 Plug-in 17. 40. 60 depth 20 function 54. 58. 77 platform 14 Report Painter 73 Retrograde determination 21 I IAS 5 IDES 13 IDES system 15 Implementing SAP Liquidity Planner 13 Indirect cash flow statement 14 InfoCube 43. 14. 68. 71. 72 deviation 69 Planability 20 Planned data 14 Planning 76. 19. All rights reserved. 20 comparison 17. 87 .Index V Variable 40 Version concept 17 W Web Template 40 www.

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