1 Business and Functional Overview

19

1.1 International Cash Management

19

1.1.1 Growing Importance of International Cash Management

19

1.1.2 Key Business Processes in International Cash Management

20

1.1.3 The Global Liquidity Crisis and the Treasury Department

22

1.1.4 Challenges and Opportunities for the Treasury Department

25

1.2 Regulatory Compliance and Governance Issues

25

1.2.1 SEPA

25

1.2.2 International Accounting Standards (IAS)

27

1.2.3 Bank Secrecy Act

28

1.2.4 Stimulus Package

28

1.2.5 Regional Tax and Legal Requirements

29

1.2.6 Sarbanes-Oxley Act

30

1.3 Technology as an Enabler

30

1.3.1 Treasury Systems and Technology

30

1.3.2 The Case for ERP Treasury Systems

31

1.3.3 Key Drivers and Benefits of a Global ERP Treasury System

31

1.4 Summary

32

2 Global Banking and Payment Systems and Practices

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2.1 Overview of International and Regional Banking

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2.1.1 International Banking

33

2.1.2 Regional Banking

34

2.1.3 Universal Elements of a Payment Process

35

2.2 Challenges for Global Treasury Management

36

2.2.1 Treasury Technology Platforms

37

2.2.2 Centralized versus Decentralized Treasury Operations

38

2.2.3 Integrated versus Standalone Treasury Operations

40

2.3 Leveraging SAP ERP Treasury Functionality

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2.3.1 Cash and Liquidity Management

41

2.3.2 Treasury and Risk Management

42

2.3.3 SAP In-House Cash

42

2.3.4 SAP Bank Communication Management

42

2.3.5 Bank Communications and Interfaces

43

2.3.6 SAP ERP Tools and Architecture

44

2.4 Summary

44

3 Advanced Inbound Electronic Banking in SAP ERP

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3.1 Business Process Overview

45

3.1.1 Importing Bank Master Data

46

3.1.2 Importing Electronic Bank Statements

46

3.1.3 Importing the Cashed Checks File

52

3.1.4 Processing Lockbox Files

52

3.2 Inbound Processes: Screens and Examples

53

3.2.1 Importing Bank Master Data

53

3.2.2 Importing Electronic Bank Statements

55

3.2.3 Importing Cashed Checks Files

63

3.2.4 Importing Lockbox Files

64

3.3 Configuration and Integration of Inbound Processes

67

3.3.1 Importing Bank Master Data

67

3.3.2 Importing Electronic Bank Statement

68

3.3.3 Importing Cashed Checks Files

82

3.3.4 Importing Lockbox Files

82

3.4 Summary

85

4 Advanced Outbound Electronic Banking in SAP ERP

87

4.1 Business Process Overview

87

4.1.1 Check Payment Processing and Positive Pay File Generation

88

4.1.2 ACH Payments: Domestic and International

91

4.1.3 Wire Transfers

94

4.1.4 Cash Concentration

101

4.2 System Configuration

102

4.2.1 House Bank and Account ID Creation (Including ALE Configuration)

103

4.2.2 Payment Program Configuration

116

4.2.3 Cash Concentration Configuration

138

4.3 Business Process Examples

140

4.3.1 Payment Process

141

4.3.2 Cash Concentration

153

4.4 Summary

157

5 Overview of SAP Bank Communication Management

159

5.1 Evolution of Bank Communications and Introduction to the SWIFTNet Service

160

5.2 SAP Bank Communication Management Functionality Overview

164

5.2.1 Merge Payments

165

5.2.2 Approve Payments — Batch and Payment Monitor

166

5.2.3 Bank Statement Monitor

168

5.3 SAP Bank Communication Management Configuration

170

5.3.1 Basic Settings

171

5.3.2 Payment Grouping

171

5.3.3 Payment Status Management

175

5.3.4 Bank Statement Monitor

177

5.3.5 Release Strategy

178

5.4 SAP Bank Communication Management in Action

184

5.4.1 Bank Statement Monitor

184

5.4.2 Batch and Payment Monitor

189

5.5 Summary

197

6 In-House Banking with SAP ERP

199

6.1 Overview of SAP In-House Cash

199

6.1.1 Key Drivers for Implementing SAP In-House Cash

202

6.1.2 Business Scenarios Supported by SAP In-House Cash

203

6.1.3 Cost Benefit Considerations

206

6.2 Master Data

208

6.3 System Configuration

209

6.3.1 Bank Key Terms

209

6.3.2 Virtual Bank Creation

210

6.3.3 ALE Configuration

211

6.3.4 SAP In-House Cash General Configuration

214

6.3.5 SAP In-House Cash Payments Configuration

218

6.3.6 SAP In-House Cash Collections Configuration

227

6.4 Periodic Tasks

229

6.5 Reporting

230

6.6 Examples of SAP In-House Cash in Action

231

6.7 Summary

239

7 Global Liquidity Forecasting with Liquidity Planner

241

7.1 Business Process Overview

241

7.1.1 Cash Accounting

243

7.1.2 Liquidity Planning and Reporting

246

7.2 Liquidity Item Assignment Programs

249

7.2.1 Assigning Liquidity Items from Bank Statements

250

7.2.2 Assigning Liquidity Items from Financial Accounting Documents

251

7.2.3 Assigning Liquidity Items from Accounts Payable Invoices

252

7.2.4 Assigning Liquidity Items Manually

252

7.3 Configuration of Cash Accounting

253

7.3.1 Basic Settings Liquidity Calculations

253

7.3.2 Assignment

257

7.3.3 Query Definition

261

7.3.4 Information System

265

7.3.5 Additional Liquidity Planner Tools

268

7.4 Liquidity Planner in Action

269

7.4.1 Cash Accounting: Calculation of Actual Cash Flows

269

7.4.2 Data Extraction to SAP NetWeaver BW

275

7.4.3 Planning in Liquidity Planner

277

7.4.4 Reporting and Actual versus Plan Comparisons

281

7.5 Summary

286

8 Integration with Procure-to-Pay, Order-to-Cash, and Other Financial Processes

289

8.1 Integration Points for the Cash Position and Liquidity Forecast Reports

289

8.1.1 Integration with Sales and Distribution

290

8.1.2 Integration with Accounts Receivable

292

8.1.3 Integration with Purchasing

294

8.1.4 Integration with Accounts Payable

296

8.1.5 Integration with Transaction Manager

298

8.1.6 Integration with SAP In-House Cash

300

8.2 Forecasting in Liquidity Planner

303

8.3 Summary

304

9 Global Cash Position Reporting and Management

305

9.1 Introduction to the Cash Position Report

307

9.1.1 Working with the Cash Position and Liquidity Forecast Reports

308

9.1.2 Memo Records

314

9.2 Cash Management Configuration

320

9.2.1 Activating the Default Value Date

320

9.2.2 Configuring Source Symbols

321

9.2.3 Configuring Planning Levels

322

9.2.4 Configuring Cash Management Account Names

324

9.2.5 Configuring Planning Groups

326

9.2.6 Structuring the Cash Position Report

327

9.2.7 Configuring the Distribution Function

329

9.2.8 Configuring Archiving Categories

330

9.2.9 Configuring Memo Records

332

9.2.10 Defining Levels in Payment Requests

333

9.2.11 Configuring Production Startup and Reorganization

334

9.3 Summary

336

10 Building an Integrated SAP ERP Treasury System

337

10.1 Treasury Workstations Versus ERP Systems

337

10.2 Migrating Standalone Treasury Workstations to SAP ERP

339

10.3 Implementing SAP ERP Treasury Applications

340

10.3.1 Project Methodology

340

10.3.2 “Big Bang” or “Phased Roll Out”

343

10.3.3 Time and Resources

344

10.3.4 Lessons Learned

345

10.4 Summary

347

11 Leveraging Tools and Enhancements

349

11.1 Architecture Options for SAP FSCM

349

11.2 Tools and Architectures of SAP ERP

350

11.2.1 Business Framework Architecture (BFA)

351

11.2.2 SAP NetWeaver Process Integration (SAP NetWeaver PI)

352

11.3 SAP Enhancement Packs and New Treasury Functionality

353

11.4 Summary

354