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SAP In-House Cash

Solution Overview

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This presentation is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document.

© SAP AG 2009. All rights reserved. / Page 2

Agenda

1. 2. 3. 4. 5. 6. 7. 8. 9.

Introduction Organizational Entities Master Data In-House Cash Center Business Processes Periodic Activities Integration with SAP Cash and Liquidity Management Enterprise SOA Deployment Options Summary

© SAP AG 2009. All rights reserved. / Page 3

. . / Page 4 . Head office (Europe) Internal Bank USA Subsidiary Internal Bank Region 2 Subsidiary Asia Subsidiary Subsidiary Subsidiary Subsidiary Region 1 . . All rights reserved. . with a high volume of internal and external payment transactions © SAP AG 2009.Current Situation Various and ever-changing multi-national corporate group structures .

All rights reserved. with which each associated company has one account or more. interest expenses. An In-House Cash Center is a virtual bank within the corporate group. the In-House Cash Center is just another house bank. such as inflexible procedures with fixed dates and extra costs resulting from manual post processing. and losses resulting from delays in value-dating payments. which they use primarily to process payables and receivables involving other group companies. At the same time. you can set up accounts for external companies that are not associated with the group.    © SAP AG 2009. It also helps to avoid many of the disadvantages associated with external clearing solutions. For the associated companies. By managing accounts centrally. / Page 5 . and maximize interest revenues. The In-House Cash Center is used to process all payments between company units. The SAP in-House Cash application allows companies with a diversified organizational structure to minimize the actual flow of cash and therefore reduce bank charges. thus keeping cash resources within the group and optimizing how they are applied. you can assure your company’s ability to pay. This allows them to be included in the netting process.SAP In-House Cash – What is it?  The SAP In-House Cash application allows diversified companies to optimize their intragroup payment transactions by opening an in-house bank. optimize credit management. minimize interest expenses. This saves on the costs of external netting services and provides greater flexibility when you process payment netting transactions.

/ Page 6 SAP Bank Communication Management . All rights reserved.Financial Excellence with Treasury Applications from SAP Treasury applications from SAP SAP Treasury and Risk Management Risk Analyzers Manage Global Financial Risks Optimize Debt and Investment Strategies Credit Risk Analyzer Market Risk Analyzer Portfolio Analyzer Exposure Management Money Market Foreign Exchange Derivatives Hedge Management Debt Mgmt Securities Commodities Transaction Manager Manage Cash and Liquidity SAP Cash and Liquidity Management Cash Management Liquidity Planning SAP In-House Cash Optimize Payments and Bank Communication © SAP AG 2009.

Agenda 1. 9. / Page 7 . 7. 5. 4. Introduction Organizational Entities Master Data In-House Cash Center Business Processes Periodic Activities Integration with SAP Cash and Liquidity Management Enterprise SOA Deployment Options Summary © SAP AG 2009. 6. 3. 8. All rights reserved. 2.

SAP In-House Cash Organizational Entities – Overview Corporate Group Head Office Subsidiary 3 Subsidiary 2 Account management In-House Cash Center Financial Accounting Subsidiary 1 Functions and Tasks of the Organizational Entities Involved © SAP AG 2009. / Page 8 . All rights reserved.

g. All rights reserved. R/3) This subsidiary holds one or more current accounts within the corporate group head office (In-House Cash Center) The subsidiary simply has to define new bank details (for the virtual bank) to the corporate group head office (In-House Cash Center) as though it were a normal house bank © SAP AG 2009.Organizational Entities: Subsidiary Corporate Group Subsidiary 3 Subsidiary 2 Subsidiary 1 Subsidiary    Individual trading entity (e. / Page 9 .g. subsidiary) with its own systems (e.

..Organizational Entities: Head Office Corporate Group Head Office In-House Cash Center Account management Financial Accounting Head Office    The head office manages the current accounts for the corporate group subsidiaries within the IHC Center The financial accounting department within the head office manages the IHC Center general ledger accounts Other components such as CO. / Page 10 .. All rights reserved. could be in use at the head office © SAP AG 2009. MM..

/ Page 11 . All rights reserved.Organizational Entities: In-House Cash Center Corporate Group Head Office In-House Cash Center Account management Financial Accounting In-House Cash Center (IHC Center)    The IHC Center is situated at the head office and can be a separate organizational entity within the head office The IHC Center manages the subsidiaries IHC current accounts as a head office subledger Represents a part of the company that processes internal corporate group and cross-group payments © SAP AG 2009.

taking account of IHC The financial accounting department uses SAP-FI © SAP AG 2009.Organizational Entities: Financial Accounting Department Corporate Group Head Office In-House Cash Center Account management Financial Accounting Financial Accounting Department     The general ledger accounts for the IHC Center subledger are set up here It holds the IHC Center balances in summarized form It creates the balance for the corporate group. All rights reserved. / Page 12 .

2..3.Summary Corporate Group Head Office Subsidiary 3 Subsidiary 2 Account management In-House Cash Center Financial Accounting Subsidiary 1 Organizational entities     Operative subsidiaries 1.. / Page 13 . All rights reserved. The IHC Center and the financial accounting department are situated within the head office The IHC Center (manages the subsidiary current accounts) The financial accounting department manages the chart of accounts and the general ledger balances © SAP AG 2009.

6. / Page 14 . 5. 7. 8. All rights reserved. 2.Agenda 1. 4. Introduction Organizational Entities Master Data In-House Cash Center Business Processes Periodic Activities Integration with SAP Cash and Liquidity Management Enterprise SOA Deployment Options Summary © SAP AG 2009. 9. 3.

The product configurator facilitates the definition of the business and technical features of a product. Accounts are seen as characteristics of a product. such as account holder. / Page 15 . an external business partner. You must create an account in SAP InHouse Cash for each participated affiliated company. Business Partners can be an affiliated company. The solution recognizes standard roles. bank statement recipient. If you want to use several in-house cash centers. charge and value dates. All rights reserved. It is used as a template for defining fields. You first define products and then crate accounts based on these products. contact person. There is a bank area for each in-house cash center. its version creation and the layout of the functions on the screen. authorized drawer. another bank.Master Data in SAP In-House Cash Center  Bank area is a central. another in-house cash center. conditions and limits. Each business partner can have more than one role. SAP has standard limit categories for overdraft limits. or an internal organizational entity. The available condition categories are divided into the condition group categories interest. features and payment transaction operations. A product configurator is available for defining the products. and account maintenance office. Product is a set of current account attributes. the head office. self-contained organizational unit that manages and processes all the accounts for an in-house cash center. you must set up several bank areas. internal credit limits and external credit limit      © SAP AG 2009.

Limits .Account Overview FI – GL Headquarter IHC Pmnt clearing (1) 200 (2) 540 Bank statements Subsidiary 1 Subsidiary 2 + 100 .00 31.50 .58 D Currency conversion © SAP AG 2009..00 Val.dte 31. .120 . EUR EUR Amnt 100.00 Curr. IHC Payab. (2) 540 (1) 200 G/L Transfer Conditions Account A + 100 ..12... IHC Receiv.12.20 + 50 . .12. Blocks Business partner No 1 Post. All rights reserved.00 C 9. / Page 16 2 Reporting Turnovers .dte 30. ...12.00 31.

5% Posting date +1 day © SAP AG 2009.42 Charges  Interest  Value date  Account maintenance 10.00 100. All rights reserved.00 USD Credit interest 0.00 0.Condition Master Data Head Office D 4912132213 C 10. / Page 17 .

All rights reserved.Condition Group Category: Interest Condition group category Interest 0004 Interest of affiliated companies Condition group Conditon category Debit interest Credit interest Overdraft interest Transaction interest © SAP AG 2009. / Page 18 .

All rights reserved.Condition Group Category: Charges Condition group category Charges 0004 Charges of affiliated companies Condition group Conditon category Item charges Mailing charges Account charges Periodic charges Direct charges © SAP AG 2009. / Page 19 .

All rights reserved. / Page 20 .Condition Group Category: Value Date Condition group category Value date 0004 Value date of affiliated companies Condition group Conditon category Value date Value date subject of final payment © SAP AG 2009.

9. / Page 21 . 8. 7.Agenda 1. 4. 5. Introduction Organizational Entities Master Data In-House Cash Center Business Processes Periodic Activities Integration with SAP Cash and Liquidity Management Enterprise SOA Deployment Options Summary © SAP AG 2009. 3. 2. 6. All rights reserved.

/ Page 22 .Process 1: Internal Payment Example: “Subsidiary 1 makes a payment to Subsidiary 2” Corporate Group Head Office Subsidiary 3 Subsidiary 2 Subsidiary 1 Pmnt Program OP 2a 1 Account management 2b In-House Cash Center Financial Accounting Payment Bank Statement © SAP AG 2009. All rights reserved.

Process 1: Internal Payment

Corporate Group
Head Office
Subsidiary 3 Subsidiary 2 Subsidiary 1 Pmnt Program OP
2a 1

2b

In-House Cash Center
Account management

Financial Accounting

1

Subsidiary 1:

Defines a new (virtual) house bank „IHC Center“ beforehand


   

Starts the standard payment program and generates a payment order
House bank: IHC Center Payee: Vendor „Subsidiary 2“ Partner bank: IHC Center When the IHC Center is in operation, it is possible to freely define the payment conditions

© SAP AG 2009. All rights reserved. / Page 23

Process 1: Internal Payment

Corporate Group
Head Office
Subsidiary 3 Subsidiary 2 Subsidiary 1 Pmnt Program OP
2a 1

2b

In-House Cash Center
Account management

Financial Accounting

2

IHC-Center:
   

Debits the IHC current account of subsidiary 1 => Receivable due from subsidiary 1 Creates a credit memo for the IHC current account of subsidiary 2 => Payable due to subsidiary 2 Generates and sends bank statements to subsidiaries 1 and 2 The netting amount results from the account balance (based on the turnovers)

© SAP AG 2009. All rights reserved. / Page 24

Process 1: Internal Payment

Corporate Group
Head Office
Subsidiary 3 Subsidiary 2 Subsidiary 1 Pmnt Program OP
Account management

In-House Cash Center

Financial Accounting

Subsidiaries 1 and 2:
  

Import the internal bank statements in the same way as the bank statements from external house banks via the standard bank statement programs At this point the system automatically clears the open items Internal payments without involvement of banks

© SAP AG 2009. All rights reserved. / Page 25

Subsequent Process: Internal Netting Head Office In-House Cash Center Subsidiary 1 .. Subsidiary 3 .. . = + 30 = + 50 = . ..100 + 20 . / Page 26 .. ..80 © SAP AG 2009.50 . Subsidiary 2 + 100 . All rights reserved..20 + 50 .

All rights reserved. / Page 27 .Process 2: Central Payments Example: “Subsidiary 1 makes a payment to an external partner” Corporate Group Head Office Subsidiary 3 Subsidiary 2 Subsidiary 1 Pmnt Program OP 2 1 4 5 Account management 3 In-House Cash Center Financial Accounting 7 6 External business partner Partner bank Payment Head office house bank Bank Statement © SAP AG 2009.

All rights reserved.Process 2: Central Payments Corporate Group Head Office Subsidiary 3 Subsidiary 2 Subsidiary 1 Pmnt Program OP 2 1 In-House Cash Center Account management 3 Financial Accounting 4 5 7 6 External business partner Head office house bank Partner bank 1 Subsidiary 1  The same steps as in process 1 2 IHC Center  Debits the IHC current account of subsidiary 1  Generates and sends a bank statement to subsidiary 1 © SAP AG 2009. / Page 28 .

All rights reserved.Process 2: Central Payments Corporate Group Head Office Subsidiary 3 Subsidiary 2 Subsidiary 1 Pmnt Program OP 2 1 In-House Cash Center Account management 3 Financial Accounting 4 5 7 6 External business partner Head office house bank Partner bank 3 IHC Center  IHC Center forwards payment information to SAP-FI (Financial accounting) 4 Financial Accounting   A payment order (payment request) is created in SAP-FI on the basis of this payment information The payment order is either sent to the head office house bank immediately or at a later point in time (collection of several payment orders = external netting) © SAP AG 2009. / Page 29 .

/ Page 30 .Process 2: Central Payments Corporate Group Head Office Subsidiary 3 Subsidiary 2 Subsidiary 1 Pmnt Program OP 2 1 In-House Cash Center Account management 3 Financial Accounting 4 5 7 6 External business partner Head office house bank Partner bank 5 SAP-FI  Imports the bank statement via the standard bank statement programs Procedure is the same as for a „normal“ payment order to a house bank 6 7 Head office house bank Partner bank © SAP AG 2009. All rights reserved.

All rights reserved.Process 3: External Incoming Payments Via IHC Example: “Partner pays subsidiary 1” Corporate Group Head Office Subsidiary 3 Subsidiary 2 5 In-House Cash Center Account management Financial Accounting Subsidiary 1 4 External business partner Pmnt Program OP 1 2 3 Head office house bank Partner bank Payment Bank Statement © SAP AG 2009. / Page 31 .

All rights reserved. / Page 32 .Process 3: External Incoming Payments via IHC Corporate Group Head Office Subsidiary 3 In-House Cash Center Financial Accounting Subsidiary 2 5 Subsidiary 1 Account management 4 External business partner Pmnt Program OP 1 2 3 Head office house bank Partner bank 1 2 3 Business partner Partner bank Head office house bank Procedure is the same as for a „normal“ payment order to a house bank © SAP AG 2009.

Process 3: External Incoming Payments via IHC Corporate Group Head Office Subsidiary 3 In-House Cash Center Financial Accounting Subsidiary 2 5 Subsidiary 1 Account management 4 External business partner Pmnt Program OP 1 2 3 Head office house bank Partner bank 4 SAP-FI  Imports the bank statement via the standard bank statement programs  Identifies items which are relevant for the IHC Center  Forwards the corresponding items to the IHC Center 5 IHC Center  Generates a credit memo for the IHC current account belonging to subsidiary 1  Creates and sends a bank statement to subsidiary 1 © SAP AG 2009. / Page 33 . All rights reserved.

Process 3: External Incoming Payments with Zero Balancing Each company has only one bank-link for the incoming payments e. receivables Corporate Group 4c Head Office 4b Subsidiary 3 4a In-House Cash Center Account management 3 Subsidiary 2 Subsidiary 1 Pmnt Program OP Financial Accounting 2 1 House bank Subsidiary 3 House bank Subsidiary 2 House bank Subsidiary 1 Zero Balancing Head office house bank Payment © SAP AG 2009. All rights reserved.g. / Page 34 Bank Statement .

All rights reserved.Process 4: Internal Payments with Several IHC Centers Head Office Subsidiary 3 Subsidiary 2 2 In-House Cash Center America Account management Financial Accounting Subsidiary 1 1 3 Head Office Subsidiary 6 Subsidiary 5 4 In-House Cash Center Europe Account management Financial Accounting Subsidiary 4 Payment © SAP AG 2009. / Page 35 Bank Statement .

and vice versa © SAP AG 2009. All rights reserved. / Page 36 . and one in the IHC Center Europe IHC Center A manages a current account for IHC Center E.Process 4: Internal Payments with Several IHC Centers Head Office Subsidiary 3 Subsidiary 2 2 In-House Cash Center America Account management Financial Accounting Subsidiary 1 1 3 Head Office Subsidiary 6 Subsidiary 5 4 In-House Cash Center Europe Account management Financial Accounting Subsidiary 4 SAP-FI   The incoming payment order from subsidiary 1 generates two payment orders. one in the IHC Center America.

Process 5: Central Payments with Several IHC Centers Head Office Subsidiary 3 Subsidiary 2 2 In-House Cash Center America Account management Financial Accounting Subsidiary 1 1 3 Head Office 5 4 In-House Cash Center Europe Account management External business partner Partner bank Head office house bank Financial Accounting Payment © SAP AG 2009. All rights reserved. / Page 37 Bank Statement .

Process 6: Local Payments Example: “A Subsidiary in Germany makes a payment to an external partner in UK” Subsidiary A Germany Pmnt Program OP In-House Bank Germany 4a 1 Subsidiary B (UK) 2 4b Account management Financial Accounting 3 5 7 6 External business partner UK Partner bank Payment House bank of Subsidiary C Bank Statement © SAP AG 2009. All rights reserved. / Page 38 .

Process 6: Local Payments Example: “A Subsidiary in Germany makes a payment to an external partner in UK” Headquarter IHC In-House Bank Germany Subsidiary Germany Pmnt Program OP 4 1 Subsidiary UK Financial Accounting Account management 2 3 5 7 6 External business partner UK Partner bank Payment House bank of Subsidiary UK Bank Statement © SAP AG 2009. All rights reserved. / Page 39 .

All rights reserved. formal checks. currencies. business partner Dual control principle © SAP AG 2009. value date. posting date. / Page 40 Principle of dual control also for automatic payments (IDocs) . current accounts.Process 6: Local Payments Headquarter IHC In-House Bank Germany Subsidiary Germany Pmnt Program OP Account management Subsidiary UK Financial Accounting Route determination Automatic identification of the external house bank that carries out the payment depending on the recipient Limit monitoring Automatic validation regarding the liquidity on the current account of the subsidiaries Inbound checks Duplicate files.

Process 6: Local Payments Example: “A Subsidiary in Germany makes a payment to an external partner in UK” Headquarter IHC In-House Bank Germany Subsidiary Germany Pmnt Program OP 4 1 Subsidiary UK Financial Accounting Account management 2 3 5 7 6 External business partner UK Partner bank House bank of Subsidiary UK Payment © SAP AG 2009. / Page 41 Bank Statement . All rights reserved.

Process 6: Local Payments Headquarter IHC In-House Bank Germany Account management 2 Subsidiary UK Subsidiary Germany Pmnt Program OP 5 1 3 Financial Accounting 4 6 8 7 External business partner UK Partner bank House bank of Subsidiary UK 1 Subsidiary Germany     has defined the Headquarter In-House Cash Center as(virtual) house bank Runs the standard payment programm (F110) and creates a payment order House bank: In-House Bank Germany Recipient of the payment: Vendor „External business partner UK“ © SAP AG 2009. / Page 42 . All rights reserved.

Process 6: Local Payments Headquarter IHC In-House Bank Germany Account management 2 Subsidiary UK Subsidiary Germany Pmnt Program OP 5 1 3 Financial Accounting 4 6 8 7 External business partner UK Partner bank House bank of Subsidiary UK 2 In-House Bank Germany    Modifies the payment order if necessary Validation of limits Validation whether the payment is internal or external. which external house bank is used   Validation whether the payment order should be posted finally. All rights reserved. provisionally or be parked Validation if dual-control principle is necessary to post the payment order © SAP AG 2009. if external. / Page 43 .

using the standard payment program F111 © SAP AG 2009. All rights reserved.Process 6: Local Payments Headquarter IHC In-House Bank Germany Account management 2 Subsidiary UK Subsidiary Germany Pmnt Program OP 5 1 3 Financial Accounting 4 6 8 7 External business partner UK Partner bank House bank of Subsidiary UK 3 In-House Bank Germany  On the basis of the recipient of the payment the In-House Bank forwards the payment informations to SAP FI of Subsidiary UK  Debits current account of Subsidiary Germany  Credits current account of Subsidiary UK 4 Financial Accounting Subsidiary UK  The payment order is sent to the external house bank of Subsidiary UK. either immediately or later. / Page 44 .

Process 6: Local Payments Headquarter IHC In-House Bank Germany Account management 2 Subsidiary UK Subsidiary Germany Pmnt Program OP 5 1 3 Financial Accounting 4 6 8 7 External business partner UK Partner bank House bank of Subsidiary UK 5 In-House Bank Germany  Generates and sends a bank statement to Aesculap and B.Braun UK 6 Financial Accounting Subsidiary UK  Imports external bank statement using the standard bank statement programs Procedure is the same as for a „normal“ payment order to a house bank 7 8 House bank of Subsidiary UK Partner bank © SAP AG 2009. / Page 45 . All rights reserved.

UK IDOC: Payext Payment Program (F111) 3 3 IDOC: Finsta External bank Subsidiary UK External business partner External bank partner © SAP AG 2009.Braun Subsidiary Germany Vendor: EXTERN 1 Subsidiary UK Financial Accounting 2 IDOC: Payext Debits account Sub. Germany Credits account Sub. / Page 46 .Process 6: Local Payments Headquarter IHC In-House Bank B. All rights reserved.

g.SAP In-House Cash Currency Conversion Function Corporate Group Head Office Subsidiary 3 Account management Subsidiary 2 Account management Currency Conversion Function Financial Accounting Local currency GBP Subsidiary 1 Pmnt Program OP Transaction currency YEN Payment order: -100 YEN Acct 1 +100 YEN Acct 2 Account Currency USD Currency Conversion Function    Converts the incoming payment items from the subsidiaries into account currency (manual conversion of payment items with IHC supported) Enters the account currency and the reference transaction amount (e. for bank statement purposes) in the posting documents in IHC. All rights reserved. © SAP AG 2009. / Page 47 . Generates an additional posting on currency position accounts.

Introduction Organizational Entities Master Data In-House Cash Center Business Processes Periodic Activities Integration with SAP Cash and Liquidity Management Enterprise SOA Deployment Options Summary © SAP AG 2009. All rights reserved. / Page 48 . 4. 8. 7. 9. 6. 5.Agenda 1. 3. 2.

All rights reserved. / Page 49 .Periodic Activities Posting cut-off for payment transactions Cash Concentration Account balancing Interest compensation Set next account balancing date Interest accrual/deferral Broken Promises to Pay Balance sheet preparations Transfer to general ledger © SAP AG 2009.

All rights reserved. 2. 5.Agenda 1. 7. 3. Introduction Organizational Entities Master Data In-House Cash Center Business Processes Periodic Activities Integration with SAP Cash and Liquidity Management Enterprise SOA Deployment Options Summary © SAP AG 2009. 4. 6. 9. / Page 50 . 8.

It should be avoided to use the same accounts in SAP Cash and Liquidity Management as in SAP General Ledger. All rights reserved. © SAP AG 2009. / Page 51 .Full Integration of SAP Cash and Liquidity Management New transactions to support the integration of SAP Cash and Liquidity Management:   IHCCM1: To submit the IHC financial status to CM IHCCM2: Online Analysis Note: The updated accounts in SAP Cash and Liquidity Management are not identical with the accounts in SAP General Ledger.

/ Page 52 .Full Integration of SAP Cash and Liquidity Management The balances on the SAP In-House Cash current accounts are displayed in SAP Cash and Liquidity Management The following planning levels are used:    Account balances that are finally posted Internal provisional turnovers External provisional turnovers © SAP AG 2009. All rights reserved.

© SAP AG 2009.Full Integration of SAP Cash and Liquidity Management A new online analysis report for SAP In-House Cash & Cash and Liquidity Management is additionally available. With the ABAP List Viewer (ALV) it is possible to define your own report variants providing you with a high degree of flexibility. / Page 53 . All rights reserved.

2. Introduction Organizational Entities Master Data In-House Cash Center Business Processes Periodic Activities Integration with SAP Cash and Liquidity Management Enterprise SOA Deployment Options Summary © SAP AG 2009. 6. 9. 5. All rights reserved. 4. 7. / Page 54 . 3.Agenda 1. 8.

All rights reserved. / Page 55 .Enterprise SOA for SAP In-House Cash – Overview SAP In-House Cash provides payment related services for a group of affiliated companies:     Central dispatching.g. to support secure reversal of payments) account statements to account holders financial status to cash management Scenario is characterized by  multi-system / heterogeneous system landscape   huge number of connected subsidiaries possible high volume information exchange / networking between the systems Currently used interfaces are based on   IDoc RFC © SAP AG 2009. routing and processing of payments (intra-group payments / external payments / incoming payments) tracking of payment status (e.

and messaging managed by SAP NetWeaver leverage enterprise services to orchestrate an end-to-end payment process Software Component Enterprise Services © SAP AG 2009. All rights reserved. / Page 56 . identity. security.Payment Factories with Enterprise SOA A/P Accountant Treasury Manager Cash Manager Procurement Payment In-House Cash Bank Communication Management Bank Connection SAP NetWeaver SAP ERP Legacy Third-party ERP/Treasury Bank(s) Transactions.

Today’s Business Challenges for Payment Factories A/P Accountant Treasury Manager Cash Manager Initiate payment run Process payment orders Create bank statements Process bank statements   Lack of cash flow transparency leads to high capital costs and value date losses High number of bank connections creates high TCO and slows down reconciliation processes Manual handling of process exceptions    No straight-through processing of payments Lacking payment format standards increases integration complexity © SAP AG 2009. / Page 57 . All rights reserved.

. message capacity. IDoc) High number of proprietary interfaces © SAP AG 2009.g.Today’s IT Challenges for Payment Factories A/P Accountant Treasury Manager Cash Manager Legacy System Accounts Payable Treasury System Bank Communication Bank Connection IT Landscape   High integration complexity in process set up across different systems Usage of different kinds of integration types and usage of different technical or business standards Difficult to connect non-SAP systems to payment factory Missing real-time information on payment status     Limitations of current IDoc-based interface technology (e. / Page 58 . All rights reserved.

All rights reserved.Enterprise SOA – Consolidation A/P Accountant Treasury Manager Cash Manager Procurement Payment In-House Cash Bank Communication Management Bank Connection SAP NetWeaver Corporate Payment Factory Set up new affiliate Process payment Create bank statement New subsidiary Set-up in-house bank Payment Process bank statement Consolidate bank connections across affiliates © SAP AG 2009. / Page 59 Centralize outgoing/incoming payments Enterprise Services .

/ Page 60 Receive payment instruction Create bank statement Enterprise Services . All rights reserved.Enterprise SOA – Process Efficiency A/P Accountant Treasury Manager Cash Manager Procurement Payment In-House Cash Bank Communication Management Bank Connection SAP NetWeaver Corporate Payment Factory Subsidiary Process in-house payment Create bank statement Create payment instruction Process bank statement Initiate payment Process bank statement Bank straight-through processing © SAP AG 2009.

All rights reserved. / Page 61 Direct multi-bank connection via SWIFT .Enterprise SOA – Extension/Innovation A/P Accountant Treasury Manager Cash Manager Procurement Payment In-House Cash Bank Communication Management Bank Connection SAP NetWeaver Corporate Payment Factory Subsidiary Process in-house payment Initiate payment Create bank statement Process bank statement Forward payment instruction Process payment instruction Forward bank statement Process payment instruction Create payment instruction Track payment life cycle Process bank statement SWIFT Send status information Bank © SAP AG 2009.

The Unique Value of Business Flexibility for Payment Factories A/P Accountant Cash Manager Treasury Manager Cash Manager Treasury Manager Procurement Payment In-House Cash Bank Communication Management Bank Connection via SWIFT User Productivity Efficiency/Transparency Extensibility Flexible Process Innovation/ Extensibility Increased User Productivity/ Collaboration Increased Process Efficiency/ Automation © SAP AG 2009. / Page 62  Increased cash flow transparency  Easier adaption of new payment standards and multi-bank connectivity  Flexible service bundling with increased bank communication management capabilities  Better exception processing and increased security  Higher straight-through processing rates for payments . All rights reserved.

g.The Unique Value of IT Flexibility for Payment Factories A/P Accountant Treasury Manager Cash Manager Bank Clerk Business Process Platform Accounts Payable In-House Cash SWIFT Gateway Treasury System Legacy System Bank x Bank x Bank x … Collaboration Integration Deployment Flexibility Increased Flexibility in Deployment and Extensibility Increased Collaboration and Visibility Ease of Integration and Consolidation © SAP AG 2009. / Page 63  Ease of integrating new corporate affiliates and/or bank providers  Reduced maintenance costs by using global payment standards   Ease of using additional bank services (e.g. on payment status) Reduced integration complexity and lower TCO by service-enabled application and integration standards  . EIPP) Consolidated and harmonized real-time information across different systems (e. cash mgmt. All rights reserved.

/ Page 64 .Payment Management Services in Detail Service: Inbound Payment Order Request Service Operation: Receive Payment Order Request Technical Name: Interface: Package: CollectivePaymentOrderRequest CollectivePaymentOrderRequest_In EA_FINSERV Description: This service is provided by SAP In-House Cash in order to receive payment orders from affiliated companies Service: Outbound Bank Account Statement Notification Service Operation: Send Bank Statement Technical Name: Interface: Package: Description: BankAccountStatementNotification BankAccountStatementNotification_Out EA_FINSERV This service is provided by SAP In-House Cash to transmit information about turnovers of a bank account to the affiliated companies © SAP AG 2009. All rights reserved.

/ Page 65 . All rights reserved.Payment Management How to Activate a Service (1/2) IMG Path: Transaction Type for Automatic Payments (Prerequisite: Integration Directory and SLD maintained) Create required entries for inbound payment order requests received by XI interface © SAP AG 2009.

All rights reserved. / Page 66 .Payment Management How to Activate a Service (2/2) Bank Accounts Change: Account Statements (Prerequisite: Integration Directory and SLD maintained) © SAP AG 2009.

/ Page 67 .Advantages of Enterprise SOA  Significant TCO reduction for heterogeneous system landscapes:    Fast and easy integration of non-SAP systems Easy conversion of other payment formats Business Connector no longer supported in the future  Alignment with future developments within Business Process Platform  Potential to overcome some limitations of current IDoc-messages   Limited capacity of account statement FINSTA No multiple payments (e. HR-payments) possible with current PAYEXT-Idoc   XI offers encryption and digital signatures Potential to improve performance and throughput © SAP AG 2009.g. All rights reserved.

Agenda 1. 3. / Page 68 . 7. All rights reserved. 2. 5. Introduction Organizational Entities Master Data In-House Cash Center Business Processes Periodic Activities Integration with SAP Cash and Liquidity Management Enterprise SOA Deployment Options Summary © SAP AG 2009. 4. 6. 8. 9.

0) SAP ERP 6.0 ABAP) RFC SAP ERP 2004 (ECC 5. / Page 69 .0) SAP ERP 6.0) SAP NetWeaver 2004s (SAP Web AS 7.0 ABAP) © SAP AG 2009.0) Multiple Systems Scenario SAP In-House Cash 6.0) or SAP R/3 Enterprise or SAP R/3 4.0 (part of ECC 6.Deployment Options One System Scenario SAP In-House Cash 6.0 (ECC 6.0 (part of ECC 6.0 (ECC 6. All rights reserved.6C SAP NetWeaver 2004s (SAP Web AS 7.

/ Page 70 .Agenda 1. Introduction Organizational Entities Master Data In-House Cash Center Business Processes Periodic Activities Integration with SAP Cash and Liquidity Management Enterprise SOA Deployment Options Summary © SAP AG 2009. 5. 2. 3. 6. 8. 9. All rights reserved. 4. 7.

Business Benefits      Reduce physical cash transfers by internal netting Reduce number of bank accounts Reduce administrative overhead Minimize netting process times Save bank fees for bank accounts and payment transactions Avoid cost for external cross-border payments Reduce float and value date losses Gain more interest keeping cash within the group Lower internal cost     Lower external cost Reduce hedging deals concentrating exposure within the group Reduce hedging cost using economies of scale Improve competitive position in external money markets   © SAP AG 2009. All rights reserved. / Page 71 .

interest expenses and losses resulting from delays in value-dating payments   © SAP 2008 AG 2009. keeping cash resources within the group and optimizing how they are applied The SAP In-House Cash application allows companies with a diversified organizational structure to minimize the actual flow of cash and therefore reduce bank charges. / Page 72 . / Page All 72 rights reserved.Quick Facts – SAP In-House Cash  The SAP In-House Cash application is part of Treasury Applications from SAP  The application enables you to improve control over cash and liquidity and gain greater efficiency by centrally managing cash and payments on behalf of your subsidiaries The In-House Cash Center is used to process all payments between company units.

All rights reserved.de http://www. / Page 73 .sap.com/treasury (log-on required) SAP Service Marketplace  https://service.com/communities/usergroups.sap.epx for more Contact  Your SAP Account and Consulting Engagement Manager © SAP AG 2009.com http://www.asug.sap.dsag.com/education User Groups    http://www.sap.Further Information SAP Public Web  http://www.sap.com/erp-treasury Documentation on SAP Help Portal  http://help.com (SAP ERP >> SAP ERP Central Component >> SAP ERP EHPs) Training / SAP Education  http://www.

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