Cash Management
Effective management and monitoring of the flow of funds of your company

Cash Management is one of the financial modules of the IS SAP. This module offers companies to effectively manage and monitor the flow of funds and optimize liquidity in their bank accounts. Today, this topic is more relevant than ever. Therefore, our customers are very interested in deploying selected functionalities of this solution, especially the report “Daily state of finances and liquidity forecast”.

This report has two levels:

1st – Daily state of finances

  • It provides an up-to-date overview of the state of funds in bank accounts and their movement in the short term, in the order of days.

2nd – Liquidity forecast

  • This is a long-term forecast of the inflow and outflow of funds, which is related to:
    • posted invoices (issued and received),
    • purchase orders and sales orders.
  • The report tries to estimate when it will be necessary to spend funds and, conversely, when the customer will pay us for goods and services.

It is possible to run both levels of the report at the same time and model the state of finances in the long term with a daily, weekly, or monthly raster. Individual receivables and payables are classified according to the so-called cash management group, in which each supplier or customer is included (eg supplier of materials, services, energy, cleaning services, etc.). It is possible to view the summary report in detail up to the level of individual items and click on the detail of a specific order or invoice and analyze which purchases or sales will cause future money movements. It is possible to insert so-called manual dispositions into the report, such as wages, taxes, etc., and refine the results by items that do not have an exact payment prescription in SAP.

The deployment of Cash Management is preceded by a thorough cleaning of data, especially at the level of logistics and financial accounting.

Thursday, 2. July 2020

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