Cash and Liquidity Forecast

Scenario

One of the main purposes of the Treasury Management System in SAP is to predict the cash flows that will be occuring in future periods. These amounts flow from the Accounts Receivable and Accounts Payable processes and depend on expected payment dates and value dates.

In addition to the embedded cash flow patterns the planner can also include planning levels for other cash flows that will be expected to occur during the planning period.

Looking at the current and expected cash forecast:

MENU PATH

Accounting/Treasury/ Basic functions/ Tools/ Compare cash mgt/ Summary Records

Select the Execute Icon

LOOKING AT THE CASH MANAGEMENT POSITION

MENU PATH

Accounting> Treasury> Cash management> Basic functions> Status> Cash management position

Select the Execute Icon.

DISPLAYING THE LIQUIDITY FORECAST

MENU PATH

Accounting> Treasury> Cash management> Basic functions> Status> Liquidity Forecast

Select the Execute Icon

Drill down on the bank and subledger lines to see the detail of the source of the data.

Back up to the Summarized Display

Select the New Display Button

Select Delta Display with Balances

Select Continue

Entering a Payment advice for a planned outgoing payment.

You have just received a notice that you must transfer funds to cover computer equipment purchased as outline below in the table. You will enter these payments in the Cash Budgeting system and observe the effect on the plan.

MENU PATH

Accounting> Treasury> Cash management> Basic functions> Input> Payment advices> Create

Select Enter Icon

Select the Save Icon

Make a note of the Record #

MENU PATH

Accounting> Treasury> Cash management> Basic Functions> Status> Cash management position

You should observe the effect of the payment advice that you entered. The forecasted cash balance is shown. Oher students are using this same company code so you see the net advice. A green balance indicates an excess and a red balance indicates a deficiency.