SAP Simple Finance: SAP Cash Management

Vivek Chhibber,
Doha & Dubai, March 17-18, 2015
Agenda

Overview
Daily Cash Operations
Bank Account Management
Liquidity Management

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End-to-End Treasury
Assure compliance, efficient operations and ad-hoc insights

Payments and Bank Workflow and Monitoring and Status Bank and SWIFT
Payment Operations Payment Factory
Communications Signatures Tracking Connectivity

Cash and Liquidity Electronic Bank Bank Account

Cash Position Cash Forecasting Liquidity Planning
Management Statements Management

Debt and Investment Front Office Mid Office

Financial Instruments Back Office Accounting
Management Deal capture Risk Controlling

Financial Risk Risk Quantification Hedge with Financial Commodity Risk

Risk Identification Risk Analysis
Management Exposure Mgmt Instruments Management

Sanction Party List

Compliance Accounting Standards SEPA and ISO20022 Reporting System Access
Screening

Working Capital Collections Dispute Credit Shared Service Working Capital

Management Management Management Management Framework Analytics

Integration to SAP
Foundation Cloud HANA Analytics Mobile
Industry Solutions

Treasury Solution Map, Edition 2015

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SAP Cash Management

 Daily Cash Operations

– Cash Positions and Short-Term Cash
Forecasting SAP Cash Management powered by SAP HANA
– Bank Transfer, and Payment Approval
– Analyze Payment Details, and Payment
Statistics.

 Bank Account Management

– Central Bank Account Management including
overdraft limit analysis, bank risk analysis,
signatory management and workflow support

 New Fiori (HTML5) user interface, and KPI cockpit

– SAP Smart Business for Cash Management.

 Liquidity Management (plan to be available as of

H1 2015)
– Integrated liquidity forecasting including cash
flow analysis using multi dimensional real-time
analytics

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Daily Cash Operations
Morning Tasks of a Cash Manager

Bank Statement Cash Position Bank Transfer Payment Approval

Monitor whether bank Review yesterday’s Make bank transfer in Approve big-amount
statements have all bank-confirmed case of deficit or payment or bank
been imported position, and forecast surplus. transfer.
successfully. today’s closing
balance.

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Start from KPIs to High-level Breakdowns…

Understand whether all bank statements have been

imported successfully on time.
Analyze your cash position by Country, Currency,
Company Code, or Bank

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…Navigate to Cash Disposition to Forecast Today’s
Closing Balance…
Drill-down to Cash Disposition on currency or bank
accounts.
Make detailed analysis on the forecasted cash
flows and closing balance of today.
Incorporate payments, memo records, and
Treasury instruments to help you forecast today’s
closing balance

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…Drill-down to Payment Details…

If necessary, drill-down to payment details to

analyze what are behind the forecasted amounts.
Single view to analyze the complete lifecycle of a
payment: memo records  payment  bank
communication status  reconciliation status.

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…Once You Are Sure of the Forecast, Start
Bank Transfer…
Once you are sure of the deficit or surplus of
today’s closing balance, you may trigger bank
transfer directly from Cash Disposition.
Can track my bank transfers’ status.
Very simple and intuitive to use.

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…Approve or Reject Payments…

Approve or reject payments on desktop, or mobile

devices, before the payment is sent to the banks.

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…Finish Up the Morning Tasks

Information to support precise and

thorough forecast

Efficient decision making

Take actions right away

Finish the task anywhere

All instructions sent to banks

before the cut-off time!

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Bank Account Management
Bank Account Management

Centralized Bank Account Management

 Approval process for Bank Account Opening ,
adjustment, and Closing New
Bank Account
Master Data
 Separate Bank Account Master Data from G/L
Bank &
accounts Bank Account
Workflow for
Bank Account
Hierarchy
 Signatory integrated with BCM Payment Approval Bank Account
Management
 Plenty of attributes reflecting controls on both bank Integrated with
side and internal side Overdraft Limit BCM Payment
Approval

 Bank Account yearly review process

Change History

 Navigation to Cash Position and Bank Statement

Monitor Reports

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Process to Open a Bank Account (an example)

Request Approve Open in the Bank IT Configuration

Subsidiary financial Group Cash Manager Bank Relationship IT consultant makes
manager requests to reviews the request, Manager negotiates necessary
open a bank account, compare with the with the bank on the configurations in the
with business reasons existing bank accounts, contract, gets the bank system, to really enable
attached. and decide to approve account opened in the the bank account into
or reject the request. bank, and fills in all the the payment and bank
detailed information of statement processes.
the account.

Bank Account Management (BAM) in SAP Cash Management leverages SAP’s NetWeaver Workflow to
standardize the process and link all involved people together.

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Liquidity Management
(to be available in H1 2015)
Rolling Liquidity Forecast

Analyze and review the overall Group Cash Manager triggers

Liquidity Status planning cycle

Make Investment and Financing Plan Subsidiaries make the forecast/

according to the surplus or deficit of plan on cash flows
aggregated cash flows

Make FX Hedge Plan in case of FX cash

flows need to be hedged

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Subsidiaries cash managers receive liquidity planning tasks

Subsidiaries receive the

planning cycle, with the
activities they need to
perform

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Planning data entry with suggestion amounts from system

Planning data entry layout.

Automated forecast,
planned amounts from last
planning cycle, and the
actual amounts of last
year, could be the
suggested amounts of the
planning

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Copy suggestion amounts to Plan amounts and
make further adjustments

Copy suggested amounts

with a certain factor…

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Variance Analysis (1)

Variance analysis on a
specific Liquidity Item

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Variance Analysis (2)

Plan/Actual/Forecast
comparisons

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Variance Analysis (3)

Compare with all

versions from the rolling
plan/forecast

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Q&A …

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Thank you

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