FS120 (CFM840) in House Cash

8/10/2019 FS120 (CFM840) in House Cash

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SAP AG 2002

FS 120 In-House Cash

FS 120(CFM840)

FS 120FS 120(CFM840)(CFM840)

In-House CashIn-House Cash

SAP AG 2001

No part of this publication may be reproducedor transmitted in

any form or for any purpose without the express permission of

SAP AG. The information contained herein may be changed

without prior notice.

Copyright

SAP AG 2002

mySAP Financials Corporate Finance Management

Basic Functions in

Corporate FinanceManagement

3 Days

In-House Cash

2 Days

SecuritiesManagement

5 Days

Money Market,

Foreign Exchange

and Derivatives

4 Days

Corporate FinanceManagementCFM - Overview

3 Days

Business DataToolset

2 Days

Loans Managementfor FinancialServices

5 Days

Credit Risk Analyzer

3 Days

Market Risk Analyzer

3 Days

SAPFIN

mySAP Financials

Overview Course

..................................

2 Days

Cash Management

3 Days

SAP AG 2002

Recommended: AC010

Course Prerequisites

SAP AG 2001

Target Group

Participants:

Members of the project team

System managers

Staff responsible for organizational

issues

Duration: 2 days

SAP AG 2001

Course goals

Course objectives

Course content

Course overview diagram

Main business scenario

Contents:

Course Overview

http://slidepdf.com/reader/full/fs120-cfm840-in-house-cash 7/201 SAP AG 2001

This course will prepare you to:

Use the core business processes and functions

offered by In-House Cash

Create the necessary master data and make the

area-specific settings in Customizing

Course Goals

Course Objectives

At the conclusion of this course, you will be able to:

Describe the organizational units used in In-House

Maintain the master data

Automate intra-group payments and payments madeto external partners, and describe the procedure for

central incoming payments

Explain the cross-bank area posting function

Explain the currency swap functions

Carry out special periodic activities

Explain the area-specific Customizing settings and

the system architecture

Unit 5 Master Data

Unit 6 In-House CashProcesses

Unit 7 Currency Swap

Unit 8 Periodic Activities

Unit 9 System Architecture

Preface

Unit 1 Course Overview

Unit 2 Overview of Corporate Finance Management

Unit 3 Introduction to In-HouseCash

Unit 4 Organizational Units

Appendix

Course Content

Course Overview Diagram

Overview of Corporate Finance Management

Organizational Units

In-House Cash Processes

Currency Swap

Periodic Activities

Introduction to In-House Cash

Master Data Maintenance

System Architecture/ Technical Connection

You first want to gain an overview of the

Corporate Finance Management (CFM)components.

What are the objectives and advantages of

the SAP In-House Cash solution?

In order to set up the system, you want togain an overview of the organizational units

involved and then maintain the master data.

You want to manage your intra-group and

external payment transactions and the

corresponding risks as efficiently aspossible.

Main Business Scenario I

Selection of Financial

Instruments

Transaction Manager: Function

Overview

O i f C t Fi M t

At the conclusion of this unit, you will be able to:

Provide an overview of the Corporate Finance

Management (CFM) components.

Overview of Corporate Finance Management:Unit Objectives

Overview of Corporate Finance ManagementOverview of Corporate Finance ManagementOverview of Corporate Finance Management

Currency Swap

Periodic Activities

O i f C t Fi M t

Before you begin working in the project team, you

want to obtain an overview of the components in SAPCorporate Finance Management.

SAP Corporate Finance Management is a series of

solutions geared towards analyzing and optimizing

business processes in the finance area of a company.

Altogether, there are six components, which includeexisting SAP applications and new ones developed

specifically for the CFM initiative.

Which components make up CFM and what are the

key tasks of each component?

Overview of Corporate Finance Management:Business Scenario

3 Transaction Manager 4 Portfolio Analyzer

6 Credit Risk Analyzer

1 Liquidity Planner 2 In-House Cash

5 Market Risk Analyzer

“Corporate Finance Management enables

treasurers and finance managers to

analyze, optimize and control

their business decisions at a globalenterprise level”

SAP AG 2001

Transaction Manager: Function Overview

Complete financial transaction and position management

Support of trading and back office functions

Functions to monitor, check and release transactions

Data transfer to Financial Accounting

(including accrual/deferral and valuation)

Flexible settings for company-specific transaction and

position management processes

Financial transactions assigned to portfolios or managed in

securities accounts

Flexible reporting and portfolio analysis

Datafeed interface

Overview of Corporate Finance Management: Unit

SAP AG 2001

SAP Corporate Finance Management (CFM) covers

the following components:

- Liqu idi ty Planner*

- In-House Cash

- Transaction Manager

- Portfol io A nalyzer*

- Market Risk Analyzer

- Credit Risk Analyzer

Overview of Corporate Finance Management: UnitSummary

I t d ti t I H C h

SAP AG 2001

Advantages of In-House Cash

Objectives of In-House Cash

Initial Situation

444Background Information: Role-

Based Menus

I t d ti t I H C h U it Obj ti

SAP AG 2001

Describe the initial situation before In-House Cash

Explain the objectives of In-House Cash

List the advantages of In-House Cash

Introduction to In-House Cash: Unit Objectives

C O i Di

SAP AG 2001

Currency Swap

Periodic Activities

Introduction to In-House CashIntroduction to In-House Cash

I t d ti t I H C h B i S i

SAP AG 2001

You want to manage your intra-group and external

payment transactions and the corresponding risks

as efficiently as possible.

How is this reflected in the objectives of In-House

Cash? What are the advantages to your company?

Introduction to In-House Cash: Business Scenario

I iti l Sit ti

SAP AG 2001

Initial Situation

Internal

Subsidiary

Region 1Region 1

Region 2 Region 2

Different multinational group structures that are subject to change . . .

. . . with a high volume of intra-group and external payment transactions

Subsidiary

Head office

(Europe)

Initial Situation

SAP AG 2001

Companies with subsidiaries or branches thatCompanies with subsidiaries or branches that

dodo business with each other business with each other

=> Large number of intra-group payment f lows => Large number of intra-grou p payment f lows

Companies with external payment obligations/Companies with external payment obligations/receivablesreceivables

=> Large number of external bank accounts => Large number of external bank accounts

Companies with a multinational customerCompanies with a multinational customer basebase

=> Large number of cross -bord er payments => Large num ber of cross -bord er payments

Initial Situation

Objectives of In House Cash

SAP AG 2001

Objectives of In-House Cash

A solut ion is required which

Supports different, ever-changing group structures

Manages payment transactions at a regional and global

Processes internal payment transactions on a cost-effective basis

Reduces the number of external bank accounts needed

Reduces cross-border payment traffic

Automates and standardizes the business processes

Advantages of SAP In House Cash

SAP AG 2001

Advantages of SAP In-House Cash

Internal netting reduces the transaction volume

Fewer bank accounts and reduced bank charges

No value date losses

Concentrated currency exposure

Standardized, streamlined, and integrated business processesand check mechanisms

Significant inc rease in eff icienc y and substantial cos t savings

when processing internat ional payment transact ion s

Advantages of SAP In House Cash

SAP AG 2001

Advantages of SAP In-House Cash

Free choice of payment conditions

Interest on credit balances

Current account overdraft facility for subsidiaries (usingcredit limits)

Accounts can be managed in any currency

Supports standard payment programs

Supports standard bank statement programs

Role Based Menus

SAP AG 2001

Roles in Corporate Finance Management

Back Office

Administrator

Trader

Risk Controller

Staff Accountant

Trade Controller

Treasury Manager

Fund Manager

IHC Supervisor

Limit Manager

Assign

activities

Generate

Role-Based Menus

Introduction to In House Cash: Unit Summary

SAP AG 2001

In-House Cash enables you to automate payments

within the group and with third parties, and supports

central incoming payments.

The solution offers numerous advantages, including

automated and standardized business processes,

fewer external bank accounts, and a reduction in thevolume of cross-border payments.

Introduction to In-House Cash: Unit Summary

SAP AG 2001

Subsidiaries / Affiliated Companies

333 Financial Accounting

In-House Cash Center

Organizational Units: Unit Objectives

SAP AG 2001

At the conclusion of this unit, you will be able to: List the organizational entities involved and

describe their roles

Summarize the basic functions of the In-House

Cash Center and the financial accounting system

Organizational Units: Unit Objectives

SAP AG 2002

Organizational UnitsOrganizational Units

Currency Swap

Periodic Activities

Organizational Units: Business Scenario

SAP AG 2001

Before you decide how to set up the system, you

need to gain an overview of the organizational units

involved.

Which functions are dealt with by the In-House Cash

Center and which by Financial Accounting?

Organizational Units: Business Scenario

Organizational Units: Company

SAP AG 2001

Company 03

Company 02

Company 01

Company

Independent entity (such as a subsidiary) that may also have its own

systems

This company has one or several accounts with the group head office (In-

House Cash Center)

The affiliated company defines accounts with the In-House Cash Center

(virtual house bank) in the same way as for any other house bank

Organizational Units: Company

In-House Cash Center: Condition Structure

SAP AG 2001

Charges

Interest

DebitDebit

interestinterestCreditCredit

interestinterestOverdraftOverdraft

interestinterestTransactionTransaction

interestinterest

ItemItem

chargescharges

DirectDirect

chargeschargesPeriodicPeriodic

chargeschargesDispatchDispatch

chargeschargesAccount maint.Account maint.

chargescharges

Account A

+ 100.00

- 10.00

+ 0.42

Acct maintenance 10.00 DEM Credit interest 0.5%

In House Cash Center: Condition Structure

Organizational Units: Unit Summary

SAP AG 2001

Companies are independent entities (such assubsidiaries) that may also have their own

systems.

The head office embraces financial accounting

and the In-House Cash Center.

The solution is based on account management in

the In-House Cash Center and the IDoc/FI link.

The In-House Cash Center manages the current

accounts of the subsidiaries as a subledger of the

head office.

Organizational Units: Unit Summary

Master Data: Unit Objectives

SAP AG 2001

Explain the principles of the central

business partner, including the role

concept

Define the bank area as the centralorganizational unit for the current account

management system

Create a current account with its various

components

Describe the framework for enteringconditions

Explain the limit categories

SAP AG 2002

Master Data MaintenanceMaster Data Maintenance

Currency Swap

Periodic Activities

Master Data: Business Scenario

SAP AG 2001

You first want to maintain the necessary master data.Master data is usually created once at the start and

provides the framework for managing the accounts.

However, changes can be made later on if necessary.

Master data forms the basis for working with the

system.

What is the role of the bank area as the central

organizational unit?

How do you create a current account with its key

components?

Central Business Partner

SAP AG 2001

CorporateFinance

Management(CFM)

IBU Insurance

IBU Banking

IBU Utilities

Customer RelationshipManagement

Contract AccountsReceivable/Payable

(FI-CA)

BusinessBusinesspartner partner

Business Partner – Roles in In-House Cash

SAP AG 2001

• Account holder

• Authorized drawer

• Bank statement recipient

• Contact person

Account maintenanceofficer ...

Organizational Structure: Overview

SAP AG 2002

Bank area

Company code AFI

Bank area

003Bank key 999 999 99Bank key 999 999 99 Bank key XBank key X Bank key YBank key Y

When FI is used, a company code has to be

assigned to each bank area

Bank current accounts

Product - Overview

SAP AG 2001

Product configurator:

Example

Account

fields

Conditions

and limits

Features

Payment

transaction

operations

Administration Product name, validity period, status

Attribute control settings allow you to:

- Define the attributes of the fields that are

visible when the user creates an account

- Define default proposals for account fields

- Make field modification settings

Required entry

Optional entry

Display

Permitted combinations of payment media

and payment transaction types

p l e m e

n t a t i o n

u i d e

p l e m e

n t a t i o n

u i d e

Account Master Data: Overview of Conditions

SAP AG 2001

Account management 10.00 DEMPosting date + 1 day

Credit interest 0.5%

4912132213D C

100.00

0.4210.00

Charges

Interest

Value date

Creating Conditions

SAP AG 2001

Condition item: as of 01/01 9.0 %

Condition item: as of 05/01 9.5 %

Condition header: EUR debit interest

Condition header:

Condition area, condition category, description,

differentiation, calculation method, may apply for a specificperiod (Customizing)

Condition item:

Amount, interest rate, interest rate reference, for a given

validity period

Conditions: Terminology

SAP AG 2001

Condition

Account A

Condition

e.g. G1

Account B

ProductProduct

DebitDebit

interestinterest

CreditCredit

interestinterest

TransactionTransaction

interestinterest

OverdraftOverdraft

interestinterest

Standard

conditions

The condition area controls which conditions

can be assigned to an account.

Condition Group Category: Interest

SAP AG 2001

Condition group categoryCondition group category

ConditionsConditions

Condition categoryCondition category

Condition groupCondition group

Interest of affiliated

companies

InterestInterestInterest

interest

interestOverdraft

interest

Overdraft

interestTransaction

interest

Transaction

interestCredit

interest

Credit

interest

EUR overdr.int. EUR trans. int.EUR debit int. EUR credit int.

Condition Group Category: Charges (1)

SAP AG 2002

Charges of affiliated

companies

ChargesChargesCharges

charge

Account

maintenance

charge

Account

maintenance

charge

Transaction

charge

Transaction

chargeDispatch

expenses

Dispatch

expenses

EUR-PER-CEUR-IT-C EUR-TR-C

Direct

charge

Direct

charge

EUR-DI-C

Condition cat.Condition cat.

EUR-DS

Condition Group Category: Charges (2)

SAP AG 2001

Charges of affiliated

companies

ChargesChargesCharges

EUR-PER-CEUR-IT-C EUR-TR-C EUR-DI-C

EUR-DS

charge

Account

maintenance

charge

Account

maintenance

charge

Transaction

charge

Transaction

chargeDispatch

expenses

Dispatch

expensesDirect

charge

Direct

chargeCondition cat.Condition cat.

Condition Group Category: Value Date

SAP AG 2002

Condition categoryCondition category

Value dateValue dateValue date

Value date

subject to final

payment

Value date

subject to final

paymentValue dateValue date

EUR-VD-f.p.EUR-VD

Value dates for affiliated

companies

Configuring Limits: Overview

SAP AG 2001

Overdraft limit

Internal account limit:

External account limit

Valid from

01/01/2000

Valid from

01/01/2000

Valid from

01/01/2000

Valid to

12/31/9999

Valid to

12/31/9999

Valid to

12/31/9999

Limit amount

100,000,000

Limit amount

100,000,000

Limit amount

100,000,000

Currency

Account Master Data: Balancing Information

SAP AG 2001

Account balancing

Time periods, next date

Reference accounts

Cash Concentration

Bank statement

Time periods, next date

Bank statement history

Display of the current bank statement

Relationship Between Product and Account

SAP AG 2001

Product - CreateProduct - Create - Change - Change

- Display - Display

- Copy - Copy

Product - DisplayProduct - Display AccountAccount - Create- Create

- Change- Change

- Display- Display

- Release- Release

- Delete- Delete

Assign bankareas

Define bank

Maintain product

attributes

AccountAccount-- Define statusDefine status

-- Blocking reasonsBlocking reasons

-- Account relationshipAccount relationship

typestypes

-- Formats for bankFormats for bank

statementsstatements

-- Dispatch type for bankDispatch type for bank

statementsstatements

APPLICATIONAPPLICATION

CUSTOMIZING

Master Data: Exercise - Create Current Account

SAP AG 2001

ExerciseExercise

Creating a CurrentCreating a Current

AccountAccount

Master Data: Unit Summary

SAP AG 2002

You create an SAP business partner once as a central

data object. It can then be used by various SAP

applications, including In-House Cash, in different roles.

The bank area is the central organizational element for

current account management.

Products serve as templates for accounts.

You must create an account in In-House Cash for each

participating affiliated company.

The available condition categories are divided into the

condition group categories interest, charges, and value

dates.

SAP has standard limit categories for overdraft limits,

internal credit limits, and external credit limits.

Data for the exercises

Master Data Solutions

SAP AG 2001

Process 1: Internal Payments

333 Process 2: Central Payments

Process 3: Central IncomingPayments

Area-Specific Customizing Settings III

Area-Specific Customizing Settings I

Area-Specific Customizing

Settings II

In-House Cash Processes: Unit Objectives

SAP AG 2002

Explain how classical payment transaction

processes are handled by the In-House Cash

solution, based on the organizational units

described earlier, and work with these

processes in the system.

Make the area-specific Customizing settings.

Describe the cross-bank area posting

principle.

SAP AG 2002

Currency Swap

Periodic Activities

In-House Cash ProcessesIn-House Cash Processes

In-House Cash Processes: Business Scenario

SAP AG 2002

How can intra-group payment transactions be

automated efficiently?

How can group payment transactions with third

parties be automated?

What is the procedure for central incoming payments?

What basic settings need to be made in the

application and in Customizing?

Chart of Accounts

SAP AG 2002

Table of account numbers for course FS120

Relevant chart of accounts: INT

Account description Account number

IHC-0 (Current account - EUR) 0000113590

IHC-2 (Bank transfer - EUR) 0000113592

IHC-9 (Incoming payment - EUR) 0000113599

IHC-0 (Current account - USD) 0000113550

IHC-2 (Bank transfer - USD) 0000113552IHC-9 (Incoming payment - USD) 0000113559

Sales revenue - without CO-PA 0000800200

Material consumption 0000400020

Bank current accounts

In-House Cash account EUR 1049XX90

In-House Cash account USD 1049XX50

(to be created as part of the exercise)

Customers / Vendors / Business Partners

SAP AG 2002

Table of customers/vendors and business partners

used in course FS120:

Customer CompanyXX

Vendor CompanyXX

External vendor EXTERN

Business partner (Role: Account holder) CompanyXX

Business partner (Role: Authorized drawer) Mit_ComXX

Payment Order: PAYEXT

SAP AG 2002

Business Communication IDoc Basis

Display IDoc

WE02 WE60

information:

Basic type:

PEXR2002

Message type:

PAYEXT

Generate Bank Statement

SAP AG 2002

Bank area

Account number

Statement date

Control parameters

Simulation run

Standard outputStatement w/o turnovers

With address

Generates a single bank statement

(on request)

Company 01

...Bank statement no.: 2000/001

Creation date/time:

BNo: 99999999 Acct number: 10490190

Account name: COMPANY01, Frankfurt

Acct currency: EUR

Beg. balance: 0.00

1 12/18/2000 80,000.00 0.00 80,000.00 EUR

12/18/2000

Bank transfer

End balance: EUR 80,000.00

Generates a single bank statementGenerates a single bank statement

(on request)(on request)

Company 01Company 01

......

Bank statement no.: 2000/001Bank statement no.: 2000/001Creation date/time:Creation date/time:

BNo: 99999999 Acct number: 10490190BNo: 99999999 Acct number: 10490190

Account name: COMPANY01, FrankfurtAccount name: COMPANY01, Frankfurt

Acct currency: EURAcct currency: EUR

Beg. balance: 0.00Beg. balance: 0.00

......

1 12/18/2000 80,000.00 0.00 80,000.00 EUR1 12/18/2000 80,000.00 0.00 80,000.00 EUR

12/18/200012/18/2000

Bank transfer Bank transfer

End balance: EUR 80,000.00End balance: EUR 80,000.00

......

Post Bank Statement - Cash Management

SAP AG 2002

Electronic and manual bank

statement

Account Statements

Application

Statement date

Statement number

House bank

Account ID

Company code

Currency

Posting parameters

Post immediately Bank accounts only

Generate batch input sessions Session names

Do not post

Assign value date to account

Cash Management & Forecast

Algorithms

Output Control

SAP AG 2001

Settings II

House Banks - Correspondence Banks

SAP AG 2002

Company code TR01

House banks

House bank Bank country Bank key ...

IHC DE 99999999

House bank dataBank country DEBank key 99999999

AddressBank name ___ Region ___ Street ___

City ___ Control data

Swift code ___ Bank group ___ Post office bank acct ___ Bank number 99999999

Bank Accounts

SAP AG 2002

Company code TR01

Bank accounts

House bank Acct ID Bank acct ...

... ... ...

IHC IHCEU

... ... ...

G/L account

Current account IHC

Company code TR01

House bank IHC

Bank account ID IHCEU

Bank account data

Bank account no. 10490190

Currency EUR

G/L account 113590

...10490190

Posting Specifications

SAP AG 2002

Post. rule Text

00010001 Cash receipt via interim accountCash receipt via interim account

Posting rule 0001Posting area 1Debit 40 BANK Bank accountCredit 50 CASHREC Cash receipt accountDocument type SA Posting type 1

Posting rule 0001Posting area 2Debit 40 CASHREC Cash receipt accountCreditDocument type DZ P/act Posting type 8

Account Determination Using House Bank Data

SAP AG 2002

House bank /

bank accounts

1000GIRO :

House bank: IHCAccount ID: IHCEU :

Bank account: 10490190G/L account: 113590 :

Customizing: Account assignment

Application 0001 Bank statement / check deposit

Chart of accounts INT

Account symbol Account modif. Currency G/L account

BANK + + ++++++++++CASH OUTFLOW + + +++++++++2

CASH INFLOW + + +++++++++9

Charges + + 479000

In-House Cash Processes:Exercise - Internal Payments

SAP AG 2002

ExerciseExerciseInternal PaymentsInternal Payments

SAP AG 2001

Settings II

Origin Indicator

SAP AG 2002

You use the or ig in indicator to specify the applications for

which you want payments to be generated

Possible origin indicators:

- TR-CM-BT Bank account transfers

- TR-LO Loans Management

- TR-TM Transaction Manager

- TR-IHC In-House Cash

Partner Profile

SAP AG 2002

Output parameter:

FINSTA

Input parameter:

PAYEXT

Company 01 Company 02 ...

Partner type

Partner profile

Payment Processes in In-House Cash

SAP AG 2002

Outgoing payment orders

In IHC, set up link to FI

Outgoing payment orders generated manually

Outgoing payment orders generated automatically

Account Management

SAP AG 2002

Define business transaction codes

Maintain transaction typesAssign offsetting transaction types

Maintain features

Maintain media / payment method

Maintain accounts for payment transactions

Assign medium/payment method to posting processes

Maintain posting categoriesAssign transaction types to posting categories

Transaction Types: Definition

SAP AG 2002

Transaction types characterize payment transaction

operations (e.g. bank transfer, debit memo)

You can configure transaction types by changing

various attributes

A transaction type is assigned to every posting

generated by the system

Offsetting Transaction Types: Definition

SAP AG 2002

Payment order Usage: Internally-initiated payment transactions

Payment item:

Offsetting transaction type

e.g. credit from donation

Payment item:

Transaction type

e.g. Bank transfer

Payment item:

e.g. credit from investm. scheme

Payment item:

e.g. credit from bank transfer

In-House Cash Processes:Exercise - Central Payments

SAP AG 2002

ExerciseExerciseCentral PaymentsCentral Payments

SAP AG 2001

Settings II

Central Incoming Payments / Incoming BankStatements

SAP AG 2002

Central incoming payments / incoming bank statementsCentral incoming payments / incoming bank statements

In FI, set up link to IHC

IHC account determination using payment notes

IHC account determination using external bank account

SAP AG 2001

Settings II

Initial Situation – Cross-Bank Area Posting

SAP AG 2002

Subsidiary

Region 1Region 1

Region 2 Region 2

IHC Asia

IHC US

Subsidiary

Head Office

(Europe)

Head Office

(Europe)

Cross Bank Area Posting

Set Route Determination

SAP AG 2002

Cross-Bank Area Posting

Set route determination

RoutePayment

method

Transaction

currency

Bank keyBank country

Determine the last

executing bank in the

posting chain

Determines the next

In-House Cash Center/

clearing accounts

Define Routes I

SAP AG 2002

Define Routes

DE09US09IHC_USUSUS-1

Account with the

executing bank

Account in

bank area

Bank keyBank

country

Example: There are two IHCCs, one in Germany (IHC_DE),and one in America (IHC_US). IHC_DE manages account US09for IHC_US, IHC_US manages account DE09 for IHC_DE

IHC_DE

Define Routes II

SAP AG 2002

Define Routes

US09DE09IHC_DEDEDE-1

Account with the

executing bank

Account in

bank area

Bank keyBank

country

Example: There are two IHCCs, one in Germany (IHC_DE),

and one in America (IHC_US). IHC_DE manages account US09

for IHC_US, IHC_US manages account DE09 for IHC_DE

IHC_US

In-House Cash Processes: Unit Summary

SAP AG 2002

Internal payment clearing refers to the process of

clearing payables and receivables within the group.

Central payments are payments made by the

affiliated companies to external business partners

via a central office within the group.

The term central incoming payments is used whenexternal business partners make payments to a

central office to clear their payables towards group

affiliates.

I H C h P E i

In-House Cash Processes Exercises

In House Cash Processes Solutions

In-House Cash Processes Solutions

Currency Swap

SAP AG 2001

Describe the currency swap function

Make the necessary Customizing settings

SAP AG 2002

Master Data MaintenanceIn-House Cash Processes

Currency SwapCurrency Swap

Periodic Tasks

Currency Swap

SAP AG 2001

In your company, the transaction currency maydiffer from the account currency. You therefore

want to make use of the automatic currency swap

function.

What settings need to be made?

Integration of the Currency Swap Function I

Currency swap function

IHCIHC

SAP AG 2002

-100 USD Acct 1+100 USD Acct 2

Payment order (PO1)

IHCIHCaccountsaccounts

statementSAP

Payment

request

Subsidiary 1 - 100 USD / -10 T JPYSubsidiary 2 +100 USD / +100 EUR

Payment order (PO1.1)

Example:

Subsidiary 1 transfers 100 USD to

Subsidiary 2.

The account currency of Subsidiary 1 isJPY

=> 100 USD is translated into 10,000 JPY.

The account currency of Subsidiary 2 is

=> 100 USD is translated into 100 EUR.

Integration of the Currency Swap Function II

Currency swap function

IHCIHC

SAP AG 2002

-100 USD Acct 1+100 USD Acct 2

Payment order (PO1)

IHCIHCaccountsaccounts

statementSAP

Payment

request

Subsidiary 1 - 100 USD / -10,000 JPY

Subsidiary 2 +100 USD / + 100 EUR

Payment order (PO1.1)

bExample:

Subsidiary 1 transfers 100 USD to Subsidiary 2.

The account currency of Subsidiary 1 is JPY

=> 100 USD is translated into 10,000 JPY

The account currency of Subsidiary 2 is EUR

=> 100 USD is translated into 100 EUR

Settings for Currency Swap

Settings for the Currency Swap Function

SAP AG 2002

Settings for Currency Swap

Store Different Exchange Rate Type for Currency Swap

Assign Balance Sheet Accounts for Currency Swap

Prerequisite: Create balance sheet account

Manual Currency Swap

'manual payment

order' Currency swap function

SAP AG 2002

-100 USD Acct 1

+100 USD Acct 2 IHCIHCaccountsaccounts

Subsidiary 1 -10.000 JPY

Subsidiary 2 +100 EUR

Example:

Subsidiary 1 transfers 100 USD to

Subsidiary 2.

=> 100 USD is translated into 10.000 JPY

=> 100 USD is translated into 100 EUR.

Translation into account

currency

Ordering party and recipient account can have different currencies

Transaction currency of the payment order can differ from the currency of the

ordering party account and the recipient account

the exchange rate defined can be manually changed

Manual Payment Order

Manual Currency Swap

Basic Settings

SAP AG 2002

Basic Settings

Bank area

Activate bank area as In-House Cash Center

Manual Currency

ACTIVE INACTIVE

Currency Swap: Unit Summary

SAP AG 2001

If the transaction currency of a payment item differs

from the account currency, the automat ic currency

swap function translates the payment flows into the

account currency.

When the account currency is translated into the

local currency, currency translation differences may

occur. These are cleared automatically via the P&L.

Overview of Periodic Tasks

Periodic Activities

SAP AG 2001

End-of-Day Processing

Cash Concentration

General Ledger Transfer -

Area-Specific Customizing Settings555

444 General Ledger Transfer

Periodic Activities: Unit Objectives

SAP AG 2001

Provide an overview of the periodic tasks

Organize the process flow for end-of-day

processing

Perform cash concentration and set up account

hierarchies

Explain the procedure for the transfer to the

general ledger:

- Functions and process flow

- Posting system- Customizing

SAP AG 2002

Currency Swap

Periodic ActivitiesPeriodic Activities

Periodic Activities: Business Scenario

SAP AG 2001

What end-of-day processing options are available?

Which steps might be involved?

What is meant by cash concentration?

How is data transferred to the general ledger? What

settings need to be made?

Set posting date

Examples of Periodic Tasks

SAP AG 2001

Set posting date

Cash concentration

Account balancing

Bank statement

Balance notification

General ledger transfer

P ti t ff f t t ti

Procedure for End-of-Day Processing: Overview

SAP AG 2001

E n d - o f - d a y

p r o c e s s i n g

E n d - o f - d a y

p r o c e s s i n g

Cash concentration

Account balancing

Interest compensation

Set next posting date for account balancing

Posting cut-off for payment transactions

G/L transfer, interest accrual/deferral

Cash Concentration: Example

A t hi h

SAP AG 2001

Account 3Account 3Account 2Account 2

Root accountRoot account

200 200100

Account hierarchy

Hierarchy level 1: Account 1 (root account)

Hierarchy level 2: Accounts 2 and 3

Specifications:

Type of carry forwards:

Per posting date-based account balance

Amount specifications per account:

Account 2: Maximum balance = 50 credit

Account 3: Minimum balance = 0

Account balances before cash

concentration

Root account: 300 Debit

Account 2: 100 Credit

Account 3: 200 Debit

Account balances after cash

concentration

Root account: 450 Debit

Account 2: 50 Credit

Account 3: 0

Transfer to General Ledger: Features

SAP AG 2001

Posting of payables andreceivables

Posting of revenues and expenses

for interest and charges

Current account netting

for balance sheet

Interest accrual/deferral

Company code

General Ledger Transfer: Customizing

SAP AG 2001

Company codeCompany code

Bank area 02Bank area 02Bank area 02Bank area 01Bank area 01Bank area 01 Bank area 03Bank area 03Bank area 03

General ledger variantGeneral ledger variant

General ledger transactionGeneral ledger transaction General ledger groupGeneral ledger group

Transaction typeTransaction type

Customizing: General Ledger Variant

SAP AG 2001

Clearing

account

Document

Posting key

Credit

50SA198500

General ledger variant

Chart of

accounts

INT 40

G/L transaction

Payments

Customizing: G/L Transaction and G/L Group

SAP AG 2001

G/L transaction

Transaction

0150 0155

Bank transfer Standing order

Transaction

General ledger group

IHCP ...

IHC general ledger variant

Customizing: General Ledger Account Assignment

SAP AG 2001

198500

198000

Define G/L Account Assignment

General ledger variant: IHC

G/L group AcctCur G/L tr. Add. key ChAc G/L clear.act Offset. act Re Relt

From G/L variantAccount master

Customizing: Transfer Postings for Payables/Receivables

SAP AG 2002

ChAcG/L clear.act G/L acct rec.G/L acct pay.

198500

198501

198502

General ledger variant: IHC In-House Cash Center

Transfer Postings Payables/Receivables

Payables/

receivables accountsG/L clearing account

General Ledger Transfer Types

SAP AG 2001

Transfer type

Control of generalledger transfer

FI general ledger in the

same system as IHC

FI general ledger in a

different system to IHC

Periodic Activities: Unit Summary

SAP AG 2002

During a general ledger transfer, the items posted to

the current accounts are transferred as one total tothe corresponding accounts of the general ledger.

Cash concentration involves the automatic

generation of payment orders to be credited or

debited to accounts within an account hierarchy.

Within the general ledger variant, transaction types

are grouped together into general ledger

transactions. The accounts are grouped in G/L

groups.

Overview of ALE

System Architecture

SAP AG 2001

333 ALE Scenarios

ALE Customizing for IHC444

Data Distribution

System Architecture: Unit Objectives

SAP AG 2001

At the conclusion of this unit, you will be able to: Make the necessary ALE Customizing settings

for the In-House Cash component

Explain the ALE terms

Provide an overview of the IDoc functions for In-House Cash

SAP AG 2002

Currency Swap

Periodic Activities

SystemSystem ArchitectureArchitecture / / Technical ConnectionTechnical Connection

System Architecture: Business Scenario

SAP AG 2001

You want to obtain an overview of the available ALE functions.

What ALE Customizing settings need to be made for

In-House Cash?

ALE Scenarios (Examples)

Flow data

In House Cash

SAP AG 2001

In-House Cash

Distributed Cash Management ...

Master data

Customers / Vendors

Customizing data

Several application systems

Different test and application systems(as recommended)

SAP Reference IMG:

ALE Customizing (Path)

SAP AG 2001

SAP Reference IMG:

Basis Components

Application Link Enabling (ALE)

Sending and Receiving Systems Modelling and Implementing Business Processes

System Monitoring

Error Handling

D fi logical systems

ALE Customizing

SAP AG 2001

Define logical systems

Configure systems in network

Technical tests (remote login [...])

Maintain distribution model and

distribute views

Generate partner profiles (Maintain partner profiles)

Check technical consistency

(Set up error handling)

Logical Systems

SAP AG 2001

When you use ALE, messages are sent between logical

systems.

In R/3, you define logical systems on a cross-client basis.

You can only assign one logical system to each client.

During the data update, this logical system is copied to the

application documents.

Avoid changing the name of the logical system for a client!

Basis Components

Customizing: Sending and Receiving Systems I

SAP AG 2001

Sending and Receiving Systems

Logical Systems

Define Logical Systems

EXAMPLE

Log.System

TNFCLNT405

T70CLNT400

Subsidiary

Basis Components

Distribution Model

SAP AG 2001

Modelling and Implementing Business Processes

Maintain Distribution Model and Distribute Views

Extract of the distribution model:

IHC distribution model

TNFCLNT405

T70CLNT400

FINSTA Bank statement

T70CLNT400

TNFCLNT405

PAYEXT Extended payment order

Basis Components

Partner Profile

SAP AG 2001

Application Link Enabling (ALE)Modelling and Implementing Business Processes

Partner Profiles and Time of Processing

Model view IHC

T70CLNT400Partner system

Once you have made these settings, the

communication network is available for use.

ALE Customizing: Result

SAP AG 2001

communication network is available for use.

The system now knows the relevant sending

and receiving parties and communication

channels.

What do you want to communicate?

Other Activities: BTE and Application Customizing

SAP AG 2001

What do you want to communicate?

When should the data be communicated?

EITHER

Predefined by the application

BTE = Business Transaction Event

What should be communicated when?

Other Activities: BTE and Application Customizing

SAP AG 2001

Settings for the subsidiaries In the payment programs used by the subsidiaries

In the bank statement programs used by the subsidiaries

Settings in the IHC Center for: "Incoming" orders

Generating the IHC bank statement

External payment orders

Incoming bank statements from external banks

Transfer to the general ledger

Settings for the subsidiaries

Other Application Customizing Settings

SAP AG 2001

Master data for the house banks - In-House Cash Center Set up/change the bank details for the intra-group customers and

vendors

Settings in the IHC Center

Conditions

Products (default settings for accounts)

IHC- Internal transactions

(Customizing settings for business transaction codes delivered

with the system, such as "051" for credit from bank transfer)

System Architecture: Technical Prerequisites

SAP AG 2001

Company 1

Company 3

Company 2

In-House Cash

Center

Head office

System Architecture: Interfaces II

SAP AG 2001

Company 1

Company 3

Company 2

In-House Cash

Center FI

Head office

Accountmanagement

Subsidiary I

EDI and IDocs

Subsidiary II

Subsidiary IIIR/3 4.0B or EDI converter

SAP AG 2002

House bank

(based on R/3 4.6C)

Bank statement

EDI Incoming payments

Bank statement

Pmnt program

(R/3 4.6C)

Electronicbank statement

General ledger

House bank IDoc IDoc

Outgoing payments

Bank statement Payment program

The ALE functions support data consistency and

data availability in distributed business processes.

System Architecture: Unit Summary

SAP AG 2001

An IDoc has a predefined structure and serves asan outgoing or incoming document.

For payment orders from the affiliated companies

to the In-House Cash Center you use the message

type PAYEXT with the basic type PEXR2002 and

the process code PEXR as the inbound parameter.

For bank statements from the In-House Cash

Center to the affiliated companies you use the

message type FINSTA with the basic type

FINSTA01 and the process code FINS as the

inbound parameter.

Appendix: Posting Logic for In-House Cash

SAP AG 2001

Posting Logic for "Internal Payments"

Posting Logic for "Central Payments"

Contents:

TR02TR01

Head office

Posting Logic for "Internal Payments"

SAP AG 2001

TR02TR01

Revenues

Company 01

212,121

212,121212,121

IHC clearing

212,121 212,121

212,121

Company 02

Expenses

IHC clearing

212,121

212,121 212,121212,121

212,121212,121

Payment program

F110 generates

payment order

IDoc "PAYEXT"

Current acct

Company 02

212,121 + 212,121 -

Current acct

Company 01

Generation of internal

bank statement creates

IDoc "FINSTA"

Pmnt trans.clearing IHC

PayablesReceivables

212,121 212,121

IHCIHC

Bankstatement

clearing

account

customer

account 6b6a

End-of-day processing:

General ledger transfer

External

Head office

Posting Logic for "Central Payments"

External

Expenses

IHC clearing

IHC bank

323,232

323,232 323,232323,232

323,232323,232

Payment program

F110 generates

323,232 -

Current acct

Company 01

Generation of internal

bank statement creates

IDoc "FINSTA"

Pmnt trans.clearing IHC

323,232 323,232

IHCIHC

clearing

account 5

End-of-day processing:General ledger transfer 8

Entry in

payment

request

Pmnt program

F111 6

Partner bank

FS120 (CFM840) in House Cash

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