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TABLE OF CONTENTS
INTRODUCTION.........................................................................................................4
1.
Basic Settings ...............................................................................................5
1.1 Define Value Date Default ..........................................................................5
1.2 Define Source Symbols ...............................................................................5
2.
Master Data ...................................................................................................7
2.1 Define Planning Levels................................................................................7
2.2 Define Planning Groups ..............................................................................8
3.
Structuring .................................................................................................. 10
3.1 Define Cash Management Account Name............................................ 10
3.2 Define Groupings and Maintain Headers .............................................. 13
3.3 Maintain Grouping structure .................................................................... 15
3.4 Define Number range for Manual Planning (OT20)............................. 18
3.5 Define Planning types for Manual Planning .......................................... 21
3.6 Define planning levels for Logistics ........................................................ 28
3.7 Maintain Special GL transaction level for Customer down payment
request........................................................................................................ 30
3.8 Maintain Special GL transaction level for Vendor Down Payment
request........................................................................................................ 32
4.
ACTIVATE CASH MANAGEMENT ........................................................ 35
4.1 Prepare Production Startup and Data Setup ........................................ 35
4.2 Update bank master data with cash management levels ................... 48

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INTRODUCTION
SAP Cash Managements objective are as follows: To ensure an optimum amount of liquidity to meet required payments
as they become due.
Monitor Cash inflows and outflows.
The Cash Management component reproduces the activity in bank accounts
in the report Cash position, while activity in subledger account is reproduced
in the report Liquidity Forecast.
Thus Cash position and Liquidity Forecast are the 2 important reports in Cash
management.
What is Cash position and how is data updated in it?
A cash position report gives the bank balance over a few days in your bank
accounts .
Cash position captures it data from the bank accounts. Cash management
planning level is updated in the Bank GL account master. In configuration we
define the set up of cash position by using groupings. The grouping
determines which levels and accounts should be displayed in the cash
position. The data in cash position is updated based on value dates entered
while posting entries in the bank clearing accounts.

What is Liquidity Forecast and how is data updated in it?

The Liquidity Forecast reproduces the liquidity trend in the subledger
accounts i.e. Customers and Vendors. The Liquidity Forecast is more useful
then the Cash position report, since we actually can project our liquidity trend
over the next few weeks or next few months.
The data in liquidity forecast is captured from the following source:1) Purchase requisition
2) Purchase orders
3) Scheduling agreement
4) Sales orders
5) Vendor invoices
6) Customer invoices
In the Vendor and Customer master, payment terms are updated. This
payment term is defaulted in the transaction data. The due date for the
transaction data is calculated from the payment terms. The data is
immediately updated in the liquidity forecast on posting the transaction data.

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1. Basic Settings
1.1 Define Value Date Default
For configuration we use the following path on the SAP application screen:SAP Menu Tools Customizing IMG SPRO Edit Project

SAP Customizing Implementation Guide Financial Supply Chain

Management Cash and Liquidity Management Cash Management
Basic Settings Define Value Date Default
Here you specify whether the current date is the default value for the value
date when line items are entered. You make this specification for the
company codes in which you implement Cash Management.

1.2 Define Source Symbols

SAP Customizing Implementation Guide Financial Supply Chain
Management Cash and Liquidity Management Cash Management
Basic Settings Define Source Symbols

In this step you define source symbols and allocate them either to the liquidity
forecast or to the cash position.
The source symbol divides the planning levels according to the sources that
supply them with data, for example:

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Bank accounting

Subledger accounting

Materials management

Sales and distribution

We will use the SAP standard source symbols which are shown below.
Please note the source BNK (BNK) and IHC (In -House Cash) only is ticked for
the cash position.
No data will be posted to cash position from Materials Management, Sales
and Distribution and Subledger accounting.

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2. Master Data
2.1 Define Planning Levels
SAP Customizing Implementation Guide Financial Supply Chain
Management Cash and Liquidity Management Cash Management
Master Data G/L Accounts Define Planning Levels

Here you specify a planning level for each cash account and allocate this
planning level to the cash position by using the appropriate source symbol.
Financial transactions in Cash Management are displayed using planning
levels in order to explain beginning and ending account balances.

We will create separate planning levels for each of the following:Bank clearing accounts
Purchase order
Sales order
Customers and Vendors

Click on

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Update the following:-

Click on

2.2 Define Planning Groups

SAP Customizing Implementation Guide Financial Supply Chain
Management Cash and Liquidity Managem ent Cash Management
Master Data Subledger Accounts Define Planning Groups

Here you define the planning groups for customers and vendors. A planning
group represents particular characteristics, behaviors or risks of the customer
or vendor group for e .g. Domestic vendor, Import vendor and affiliate vendor.

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The planning group is then assigned to customers and vendors by making an

entry in the master record.
Click on
Update the following:-

Click on

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3. Structuring
3.1 Define Cash Management Account Name
SAP Customizing Implementation Guide Financial Supply Chain
Management Cash and Liquidity Management Cash Management
Structuring Define Cash Management Account Name

Here you assign a name as the cash management account name to each
bank account and bank clearing account. This name is used with all functions
and reports in Cash Management instead of the account number.
In some instances it is useful to set up a cash management account without a
master record. You must indicate these ac counts as internal, cash
management accounts by selecting the "CM" field. Thus, you can set up onetime transactions, such as fixed term deposits, with banks in Cash
Management, without having to create a G/L account master record for them.

Update the following:-

Click

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Click on

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Update the following:-

Click
You

get

Click

message

to continue.

Click on

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3.2 Define Groupings and Maintain Headers

SAP Customizing Implementation Guide Financial Supply Chain
Management Cash and Liquidity Management Cash Management
Structuring Groupings Define Groupings and Maintain Headers
Here we define the grouping whic h will be used to select in the report Liquidity
forecast report or cash management forecast.

Click on

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Update the following:-

Click on

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3.3 Maintain Grouping structure

SAP Customizing Implementation Guide Financial Supply Chain
Management Cash and Liquidity Management Cash Management
Structuring Groupings Maintain Structure
The Grouping structure enables you to group together bank and subledger
accounts in the cash position or the liquidity forecast.
For the cash position and the liquidity forecast, you specify:

The accounts you want to see in the grouping and those you want to
exclude
The summarization term under which you want to group together the
lines for levels and the lines for groups in the display
The line type, whereby "E" stands for level and "G" for the account or
planning group.

If you want the display to be as detailed as possible, SAP recommends

selecting all levels for each grouping. To do this, mask your entry with ++.

Click on

Update the following:-

Take a drop down in the field Ty.

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Select E for levels (Customers and Vendors)

Update th e following:-

Thereafter we will maintain structure for the Banks

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Thereafter update the following:-

Click on

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3.4 Define Number range for Manual Planning (OT20)

SAP Customizing Implementation Guide Financial Supply Chain
Management Cash and Liquidity Management Cash Management
Structuring Manual Planning Define Number Ranges
Here we create number ranges for manual planning i.e. for entering memo
records.

Click on
Update the following:-

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Click

Click

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Click

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The number range is copied with the number range key 01.

3.5 Define Planning types for Manual Planning

SAP Customizing Implementation Guide Financial Supply Chain
Management Cash and Liquidity Management Cash Management
Structuring Manual Planning Define Planning Types

Here you define the respective planning types for manual planning. Using the
planning type, you control the manual entry of planned memo records. For
each planning type, you specify

the level to which the planning type is allocated

the archiving category in which a memo record is stored after it

becomes invalid

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whether memo records expire automatically

the number range to which the planning type is allocated

which fields are displayed for the respective planning type, and
whether an entry is required or optional in the fields.

Before you create a planning type you need to create a relevant planning
level also.
Create a planning level (Z5 - Short term loan taken) in step 2.1 as
follows:-

Thereafter proceed to create the planning type:Click on

Update the following:-

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Click on

Click
Select Z5

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Double click

Double click

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Update the following:-

Click

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Update the following:-

Click on

3.6 Define planning levels for Logistics

SAP Customizing Implementation Guide Financial Supply Chain
Management Cash and Liquidity Management Cash Management
Structuring Define planning levels for Logistics
In this step, you allocate the transactions from Materials Management (MM)
and Sales and Distribution (SD) to the planning levels you have defined for
updating this data.

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A business transaction in Logistics is represented by an internal ID:

1 = purchase requisition
2 = purchase order
3 = scheduling agreement
101 = Sales order
You must assign these transactions to a planning level so that you can
distinguish them in Cash Management.

Since we have defined another planning level for Purchase order (M9) and
Sales order (S9), replace M2 (for 2) with M9 and Replace S1 (101) wit h S9

Click on

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3.7 Maintain Special GL transaction level for Customer

down payment request
SAP Customizing Implementation Guide Financial Supply Chain
Management Cash and Liquidity Management Cash Management
Structuring Special G/L Transaction Levels Customer Define Down
Payment Request

Here you assign to special G/L transactions a planning level under which you
want to see the cash flows in the liquidity forecast.
Use SAP standard FF for down payment request. F being for FI postings and
the second letter F (special GL indicator F)
Thus Customer down payment request will be seen under planning level FF
separately instead of VC planning level.
Double click
Update the following:-

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Update the planning level FF (Down payment request).

FF is SAP standard planning level for down payment request.

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Click on

3.8 Maintain Special GL transaction level for Vendor Down

Payment request
SAP Customizing Implementation Guide Financial Supply Chain
Management Cash and Liquidity Management Cash Management
Structuring Special G/L Transaction Levels Vendor Define Down
Payment Request

Here you assign to special G/L transactions a planning level under which you
want to see the cash flows in the liquidity forecast.
Use SAP standard FF for down payment request. F being for FI postings and
the second letter F (special GL indicator F)
Thus Vendor down payment request will be seen under planning level FF
separately instead of VC planning level.

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Double click

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Update the planning level FF

Click on

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4. ACTIVATE CASH MANAGEMENT

4.1 Prepare Production Startup and Data Setup
SAP Customizing Implementation Guide Financial Supply Chain
Management Cash and Liquidity Management Cash Management
Tools Prepare Production Startup and Data Setup

This menu supports you when you are implementing the cash management
and forecast (CM&F). You can activate company codes for the CM&F update:
table settings are checked in the process. The management groups needed
for the CM&F update can be entered in the customer and vendor master
records, and partial or total reconstruction of the totals records is now much
easier.

Update the following:-

Click

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Update the following:-

Click

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Click

Click

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Click

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Update the following:-

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Click

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Click

Click

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Click
The Customer master data is updated with the cash management group.

Now select Vendors and Update the following:-

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Click

Click

Click

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Click

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Now let us check the customer master data, whether they have been
updated with the cash management group.
Use transaction code FD02
Update the following:-

Click

You see above that the cash mgmt group field has been updated with C1
Domestic customers.
Let us now check the Vendor master data:Update the following:-

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Click

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The Cash mgmnt group has been updated with V1 Domestic Vendor

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4.2 Update bank master data with cash management levels

Use transaction code FS00
Update the following:-

Click on

Click

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Update the Planning level:Take a drop down in the field Planning level

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Click on
Similarly edit the next account

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Click

Update planning level Z1

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Click on

Update the next GL account

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Update the following:-

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Click on

Update the next account

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Update the following:-

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Click on
Update the next GL account

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Click on
Congratulations, you have now implemented the Cash management
module.
Start postin g AR, AP data, MM data (purchase orders) and SD data (Sales
order) and see the results in the report Liquidity Forecast.
For results in the Cash position, post data in the bank accounts.

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