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.

A) Initialization
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.

In my last blog post, I detailed all the configuration processes for managing cash and liquidity. 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).

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.

1. 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 here how to assign one planning level, L1, but you must do the same for all planning levels (L2, L3, etc.).

2. In the Vendor & Customer Master, assign Cash Management Groups (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)
In the below screen I have posted one Vendor Invoice and just showing the posted document.

4. Vendor Line Item Report- FBL1N
In the Vendor line item report you can able to see the updated Planning Level- K1 and planning Group- V1.


If the invoice is blocked for payment, then the system will update planning level Y1/Y2 as soon as the invoice is posted for the customer/Vendor. You can verify the same in the vendor /customer line items reports (FBL1N/FBL5N).
If the invoice is not blocked, then the system will update planning level K1/D1(unconfirmed vendor/ unconfirmed customer) in the FBl1N/FBL5N report, until the user made a change to confirmed vendor/customer.
If the user removes the payment block manually, it will be changed from Unconfirmed to Confirmed item. Then the system will update the planning level from K1/D1 to K2/D2 in the invoice and you can verify it in the vendor/customer line item reports FBl1N/FBL5N report.
The system will derive planning levels from the planning groups, which are assigned in the business partner/vendor/customer master data.

5. Post Customer Invoice (T.Code-F-22)
I have posted one Customer Invoice and just showing the posted document.

6. Customer Line Item Report (T.Code-FBL5N)
In the Customer line item report you can able see the updated Planning Level- D1 and planning Group-C1.

7. Verify Liquidity Position (T.Code-FF7A/FF7B)
The system will only show open items, parked documents in the report. It will not show the cleared items.


If you double click on ‘sum. Group ‘you can able to see each Vendor / Customer wise report. The below screenshot shows the Liquidity items Inflow.

The below screenshot shows Liquidity items outflow.

8. Make Vendor Payment (T.Code-F-53/F110)
I have done Vendor Manual Payment- F-53 and showing the just posted document

9. Check Vendor Line item report (T.Code-FBL1N)
The below screenshots shows the clearing documents, which will not be reflected in the liquidity forecast report.

10. Verify Liquidity Position and Cash Position Post Payment (T.Code-FF7A/FF7B)
Cleared sub-ledger line items will not appear in the liquidity position report. In the below example, I have selected the cash position group and liquidity position group to verify cash and liquidity forecast.

Execute to verify the output.

11. Verify Cash Position (T.Code-FF7A)
Verify the cash position report just to verify the cash position.

Execute to check the output.

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 Post-Memo entry (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 below details and save it

A memo record has been created.

Verify the Cash and Liquidity forecast report (FF7A)

Enter the above details and execute to get the output.

Double-click on the required line item to verify the line item information.

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