In this blog post, I’d like to provide an outline of the cash and liquidity management End-User procedures. It will aid in your comprehension of how cash flows, such as cash influx and outflow, as well as the level of liquidity in your system. It aids companies in making financial management decisions. By examining the Cash and Liquidity management reports, the Treasury Department can decide whether to manage its finances internally or by obtaining a working capital loan from a bank.
Financial Supply Chain Management is divided into two subcomponents: Cash Management and Liquidity Management (FSCM). Liquidity management is used to verify the liquidity situation of the sub-ledgers, such as Accounts payable and Accounts receivable, while cash management is used to verify the cash position of all bank accounts. To confirm the Cash and Liquidity status, we can additionally employ Memo records, Payment requests, and Parked documents. The Treasury division and the Cash Management operations team both use it. In order to confirm the cash and liquidity position report, we employ the T-codes “FF7A /FF7B.” This document was created with SAP ECC 6.0.
I’d want to quickly summarise this document’s end-user steps.
I’ve uploaded all the configuration instructions for managing cash and liquid assets. In my prior blog entry. In this part of my blog post series, I’ll outline a few end-user processes for confirming the organization’s cash and liquidity condition. I discussed the planning levels, planning groups, and cash management groups in the last blog article. If you wish to confirm the Cash and Liquidity positions, we must assign the planning levels and planning groups in the relevant master data (G/L, Vendor, and Customer).
KDS Information quickly
|Planning level||Planning level description||Source||Used for|
|PR||Payment request (B2B)||BNK||Memo Record-Bank|
|MP||Bank loans||PSK||Memo Record-Bank|
|MQ||Subledger transactions||PSK||Memo Record- Vendor/Customer|
|Planning Group||Planning level||Planning Group Description|
|Planning Type||Planning Group Description|
You must update the Planning levels (For Bank G/L accounts) in the G/L Master if you wish to confirm your bank’s Cash Position.
Update the Cash management group in the Vendor and Customer Master if you want to validate the Liquidity Position for the Subledgers.
- Identify the Planning level in the G/L Master (T.Code-FS00)
Each Bank GL account must have the Planning level assigned to it under the Company Code Segment before being saved. Give the main bank account Planning level L1, Outgoing level L2, and Incoming level L3 status.
I’m only demonstrating the assignment of Planning Level L1 here; however, you must also allocate Planning Levels Ex, L2, and L3 to the Bank G/Ls.
2. Add Cash Management Groups to the Vendor and Customer Master (T.Code-FK02/XD02)
For each vendor and client under the company code segment, you must assign a Cash management group (also known as a planning group) and save it. As per my KDS described in the configuration blog article, you need to allocate Planning Group-V1 to Domestic Vendors, V2 to Foreign Vendors, D1 to Domestic Customers, and D2 to Foreign Customers.
I’m allocating the Planning Group V1 here, however you must allocating each Planning Group to each Vendor and Customer in accordance with your arrangement.
3. Post Vendor Invoice (T.Code-F-43)
I have posted one vendor invoice and am only displaying the posted document on the screen below.
4. The Vendor Line Item Report (FBL1N)
You can view the most recent Planning Level K1 and Planning Group V1 in the Vendor Line Item Report.
- As soon as the invoice is submitted for the customer/vendor, the system will update planning level Y1/Y2 if the invoice is denied for payment. The vendor/customer line items reports (FBL1N/FBL5N) allow you to confirm this.
- The system will update planning level K1/D1 (unconfirmed vendor/unconfirmed customer) in the FBl1N/FBL5N report if the invoice is not blocked, up until the user makes a change to a confirmed vendor/customer.
- The status of the item will change from Unconfirmed to Confirmed if the user manually removes the payment block. Once this has happened, the system will update the planning level in the invoice from K1/D1 to K2/D2, which you can confirm in the vendor/customer line item reports included in the FBl1N and FBL5N reports.
- From the planning groups that are designated in the business partner/vendor/customer master data, the system will produce planning levels.
5. Post the client’s invoice (T.Code-F-22)
I only display the posted document for one customer invoice that I have posted.
6. Customer Line Item Report (T.Code-FBL5N)
The modified Planning Level- D1 and Planning Group- C1 can be seen in the Customer Line Item Report.
7. Check the liquid position (T.Code-FF7A/FF7B)
Only open items and parked documents will be displayed by the system in the report. The cleared items won’t be visible.
You can view each vendor or customer-specific report by double clicking on “sum. Group.” The inflow of liquidity items is depicted in the screenshot below.
The screenshot below displays the outflow of liquidity items.
8. Pay the vendor (T.Code-F-53/F110)
I completed Vendor Manual Payment-F-53 and presented the recently released document.
9. Verify the vendor line item report (T.Code-FBL1N)
The clearing documents are depicted in the screenshots below, but they will not be included in the report on liquidity expectations.
10. Check Cash Position and Liquidity Position After Payment (T.Code-FF7A/FF7B)
The report on the liquidity position will not include cleared sub-ledger line items. To verify the cash and liquidity forecast, I have chosen the cash position group and the liquidity position group in the example below.
Verify the results after execution.
11. Check the cash balance (T.Code-FF7A)
Simply to confirm the cash position, check the cash position report.
Check the results after execution.
Records of Memos
It’s employed for keeping track of transactions that were completed prior to real posts into the SAP system. You can control your liquidity position with its assistance. You can insert incoming payments that have been notified, noted items, payroll postings, provisional bank statement postings, fixed-term deposits, loan revenue, all bank fields, etc.
Your GL is not updated by memo records. They are merely informative, and once the transaction is put into SAP, they become invalid. Records from memos can be removed.
12. A note-taking record (T.Code-FF63)
Create a memo entry in SPRO-FSCM-Cash and Liquidity Management-Cash Managementàincomings
Enter the relevant planning type and the Co.Code.
Enter the information below, then save it.
There is now a memo record.
Verify the forecast report for cash and liquid assets (FF7A)
To obtain the output, enter the aforementioned information and execute.
To double-check the line item information, click on the necessary line item twice.
In this blog article, the cash situation, customer liquidity position, vendor liquidity position, and memo records have all been validated using various scenarios. The same is true for testing various scenarios to confirm the Cash and Liquidity status using Memo records, Payment requests (Bank to Bank transfers), and Parked documents. I trust you comprehend the many commercial conditions.
I’m eager to hear your thoughts. If you have any questions, I would be pleased to respond. I sincerely appreciate your time.