Presentation is loading. Please wait.

Presentation is loading. Please wait.

Scenario Overview – 1 Purpose and Benefits: Purpose

Similar presentations


Presentation on theme: "Scenario Overview – 1 Purpose and Benefits: Purpose"— Presentation transcript:

1 Business Network Integration In-House Cash SAP Best Practices Cross-Industry Package

2 Scenario Overview – 1 Purpose and Benefits: Purpose
This scenario describes how to set up in-house cash (IHC) within corporate groups and subsidiaries. Automated intra-group payments between headquarters (in-house-cash center) and subsidiaries are made. Subsidiary 2 must deliver goods to subsidiary 1 for internal payments to be possible. For external outgoing payments: subsidiaries pay the vendor invoices to the headquarters and the headquarters creates a payment medium for the house bank. Subsidiaries create payments by check for vendors. This is a separate payment method, defined in vendor master or in the purchase invoice. The headquarters prints the check for the vendor. When there is a wrong internal payment between the subsidiaries, the headquarters will reverse the payment and the subsidiaries will receive a reversed payment. When the headquarters receives an outgoing payment from the house bank, it will reverse the payment and send a reversed payment to the subsidiary.

3 Scenario Overview – 1 Purpose and Benefits: Purpose
Payments from subsidiaries’ customers. The headquarters receives the payments from the house bank and creates bank statements for the subsidiaries. Cash pooling: balancing the bank accounts from the subsidiaries bank accounts. – the headquarters receives the cash pool payments from the house bank and balances the accounts. When the balance is negative, the IHC transfers money to the subsidiary account, otherwise it will take money to invest in the IHC. Outgoing payments for foreign currency to another clearing center, for example, payments with currency Yen. The other clearing center is a company affiliated with the headquarters. Interest calculation between IHC and subsidiaries. At the end of the month the IHC calculates all receivable and payable payments between the IHC and the subsidiaries. This results in the subsidiaries receiving debit interest or credit interest bank statements from the headquarters.

4 Scenario Overview – 2 Purpose and Benefits: Benefits
Optimized cash resources Fewer external bank accounts needed Reduced costs for cross-country payments Greater flexibility in the execution of payment netting transactions Key process flows covered – Internal Payments Create payment orders at the subsidiaries for the headquarters Create bank statements at the headquarters for the subsidiaries Subsidiary 2 receives the bank statement for incoming payments Subsidiary 1 receives the bank statement for outgoing payments Subsidiaries post the internal payments

5 Scenario Overview – 3 SAP Applications Required:
Key process flows covered – External Outgoing Payments Create payment orders at the subsidiaries for the headquarters Create bank statements at the headquarters for the subsidiaries Create a payment medium at the headquarters for a house bank Subsidiaries receive the bank statement for outgoing payments Subsidiaries post the bank statements Key process flows covered – External Outgoing Payments by Check Print the Checks at the headquarters for vendors Subsidiaries receive the bank statement for payments by check

6 Scenario Overview – 4 SAP Applications Required:
Key process flows covered – Internal Returns Reverse payment order at the headquarters Create bank statements at headquarters for the subsidiaries Subsidiaries receive the bank statements from reversed payments Subsidiaries post the reversed bank statements Key process flows covered – External Returns Headquarters receives back an outgoing payment from the house bank Headquarters reverses the document from a back payment request Headquarters reverses payment orders from the subsidiaries Create bank statements at the headquarters for the subsidiaries Subsidiaries receive the bank statement from reversed payments Subsidiaries post the reversed bank statement

7 Scenario Overview – 5 SAP Applications Required:
Key process flows covered – Incoming payments Headquarters receives customer payments from the house bank Create bank statements at the headquarters for the subsidiaries Subsidiaries receive the bank statements from incoming payments Subsidiaries post the incoming bank statements Key process flows covered – Cash Pooling Headquarters receives cash pool payments from the house bank Headquarters posts the incoming cash pool payment Subsidiaries receive the bank statements from cash pool payments Subsidiaries post the bank statements

8 Scenario Overview – 6 SAP Applications Required:
Key process flows covered – additional Clearing Center Subsidiaries create payments using a foreign currency Create bank statements at the headquarters for the subsidiaries Create a payment medium –IDoc- at the headquarters for the clearing center Headquarters posts the payments Subsidiaries receive the bank statement for outgoing payments Subsidiaries post the bank statement for outgoing payments

9 IHC = In-House Cash Center
Scenario Overview – 7 Process Description in Detail: Internal Payments Subsidiary 1 receives and posts a billing document from subsidiary 2 Subsidiary 1 pays an invoice to subsidiary 2 Subsidiary 1 creates and sends a payment order to the headquarters (IHC) The headquarters posts the payments – bank accounts The headquarters creates bank statements for subsidiaries 1 and 2 The subsidiaries post the bank statements Payment Order Bank Statements 1 3 2 Delivery / Billing Subsidiary 1 Subsidiary 2 Headquarters IHC = In-House Cash Center

10 Internal Payments Scenario Overview – 8 Process Description in Detail:
Subsidiary 1 Headquarters Subsidiary 2 Receive Delivery or Invoice Post vendor invoice Pay Vendor Invoice Create and send payment order (PAYEXT) Posting: Creditor -> clearing account IHC Receive outgoing payments / bank statements Posting: clearing account IHC – account IHC Receive Payment Order Post accounts (subsidiary 1 / subsidiary 2) Create and send bank statements (FINSTA) Delivery and Invoice Post customer invoice Receive incoming payments / bank statements Posting: account IHC – customer account Internal Payments

11 IHC = In-House Cash Center
Scenario Overview – 9 Process Description in Detail: External Outgoing Payments Subsidiaries receive and post billing documents from a vendor Subsidiaries pay the vendor invoice to the headquarters (IHC) Subsidiaries create and send a payment order to the headquarters (IHC) The headquarters posts the payments – bank account The headquarters creates bank statements for the subsidiaries The headquarters creates a payment medium for the house bank The subsidiaries post the bank statements Delivery / Billing 1 Bank Statements Headquarters 3 Subsidiary Payment Medium Payment Order 2 House Bank Vendor IHC = In-House Cash Center

12 External Outgoing Payments
Scenario Overview – 10 Process Description in Detail: Subsidiary Headquarters Vendor Receive Delivery and Invoice Post vendor invoice Pay Vendor Invoice Create and send payment order (PAYEXT) Posting: Creditor -> clearing account IHC Receive outgoing payments / bank statements Posting: clearing account IHC – account IHC Receive Payment Order Posting: bank accounts subsidiaries Create and send bank statements (FINSTA) Create and send bank medium for house bank Delivery and Invoice Receives payments from the house bank External Outgoing Payments

13 IHC = In-House Cash Center
Scenario Overview – 11 Process Description in Detail: External Outgoing Payments by Check Subsidiaries receive and post the billing document from a vendor with the payment method check Subsidiaries pay the vendor invoice to the headquarters (IHC) Subsidiaries create and send a payment order to the headquarters (IHC) The headquarters posts the payments – bank account The headquarters creates bank statements for the subsidiaries The headquarters creates/prints checks for the vendor The subsidiaries post the bank statements Delivery / Billing 1 Bank Statements Headquarters 3 4 Subsidiary Checks Payment Order 2 Vendor IHC = In-House Cash Center

14 External Outgoing Payments by Checks
Scenario Overview – 12 Process Description in Detail: Subsidiary Headquarters Vendor Receive Delivery and Invoice Post vendor invoice Pay Vendor Invoice Create and send payment order (PAYEXT) Posting: Creditor -> clearing account IHC Receive bank statements Post bank statements Posting: clearing account IHC -> account IHC Receive Payment Order Posting: bank accounts subsidiaries Create and send bank statements (FINSTA) Create and send check for vendor Delivery and Invoice Receive check from Headquarters External Outgoing Payments by Checks

15 Scenario Overview – 13 Process Description in Detail: Internal Returns
Reverse payment order at the headquarters The headquarters creates and sends bank statements for the subsidiaries The subsidiaries receive bank statements from the reversed payments The subsidiaries post the reversed bank statements Bank Statements 1 Subsidiary 1 Subsidiary 2 Headquarters

16 Internal Returns Scenario Overview – 14 Process Description in Detail:
Subsidiary 1 Headquarters Subsidiary 2 Receive reversed bank statements Post reversed bank statements (Account reversal) Reverse Payment Order Posting: account subsidiaries Create and send bank statements (FINSTA) Receive reversed bank statements Post reversed bank statements (Account reversal) Internal Returns

17 IHC = In-House Cash Center
Scenario Overview – 15 Process Description in Detail: External Returns The headquarters receives payments from the house bank The headquarters reverses the payment request The headquarters reverses the payment order The headquarters creates bank statements for the subsidiary The subsidiary receives bank statements from the reversed payments The subsidiary posts the reversed bank statements Bank Statements Headquarters 2 1 Payment back Subsidiary House Bank IHC = In-House Cash Center

18 External Returns Scenario Overview – 16 Process Description in Detail:
Subsidiary Headquarters House Bank Receive reversed bank statements Post reversed bank statements (Account reversal) Receive payment back from house bank Reverse payment request Reverse payment order Create and send bank statements (FINSTA) Send payment back to Headquarters External Returns

19 IHC = In-House Cash Center
Scenario Overview – 17 Process Description in Detail: Incoming Payments The headquarters receives, from a subsidiary, customer payments from the house bank The headquarters creates bank statements for the subsidiaries The headquarters posts the payments The subsidiaries receive bank statements from the headquarters The subsidiaries post the bank statements Payments Headquarters 2 3 Bank Statements 1 Subsidiary Payment Medium House Bank Customer from subsidiary IHC = In-House Cash Center

20 Incoming Payments Scenario Overview – 18
Process Description in Detail: Subsidiary Headquarters House Bank Receive bank statements from the headquarters Post bank statements Receive customer payments from the House Bank Create and send bank statements (FINSTA) Post incoming payments from the house bank Send customer payments to Headquarters Incoming Payments

21 IHC = In-House Cash Center
Scenario Overview – 19 Process Description in Detail: Cash Pooling The headquarters receives cash pool payments from the house bank The headquarters creates bank statements for the subsidiaries The headquarters posts the payments The subsidiaries receive bank statements from the headquarters The subsidiaries post bank statements – balance the bank accounts Bank Statements 2 Headquarters 1 Subsidiary Payment Medium House Bank IHC = In-House Cash Center

22 Cash Pooling Scenario Overview – 20 Process Description in Detail:
Subsidiary Headquarters House Bank Receive bank statements from the headquarters Post bank statements (Balance bank accounts) Receive cash pool payments from the house bank Create and send bank statements (FINSTA) Post cash pool payments from the house bank Send cash pool payments to Headquarters (IHC) Cash Pooling

23 Additional clearing center IHC = In-House Cash Center
Scenario Overview – 21 Process Description in Detail: Additional Clearing Center The subsidiaries pay the vendor invoice with the foreign currency to the headquarters The subsidiaries create and send a payment order to the headquarters The headquarters creates bank statements for the subsidiaries The headquarters creates a payment medium for the clearing center The headquarters posts the payments The subsidiaries post the bank statements Subsidiary 2 Payment request Headquarters 1 Payment Medium 3 Additional clearing center Bank statements IHC = In-House Cash Center

24 Additional Clearing Center
Scenario Overview – 22 Process Description in Detail: Headquarters Clearing Center Subsidiary Subsidiary Create bank statements (FINSTA) Create and send payment request to clearing center Send bank statements to subsidiary Post bank statements Pay vendor invoice with foreign currency Create and send payment order (PAYEXT) Receive bank statements Post bank statements Receive payment request from Headquarters Additional Clearing Center

25 Process Flow Diagram In-House Cash (Internal Payments)
Sales Administration (S2) Create and send billing document to subsidiary_1 Buyer (S1) Receive billing document Accountant Receivable (S2) Post invoice - debtor Receive incoming payments / bank statements Post bank statements Accountant Payable (S1) Post invoice creditor Pay invoice. Create and send payment order Post: Creditor – clearing account IHC Receive outgoing payment / bank statements Post bank statements Accountant Headquarters Receive payment order Create and send bank statements End-of-day processing Post in finance account Post payment order account (subsidiary_2 – subsidiary_1

26 Process Flow Diagram In-House Cash (External Outgoing Payments)
Buyer (S1) Receive billing document from vendor Accountant Payable (S1) Post invoice creditor Pay invoice. Create and send payment order Post: Creditor – clearing account IHC Receive outgoing payment / bank statements Post bank statements Accountant Headquarters Post payment order (account subsidiary) Receive payment order Create and send bank Statements Create payment request Create payment medium for house bank End-of-day processing Post in finance account

27 Process Flow Diagram In-House Cash (Internal Returns)
Accountant Headquarters Reverse payment order Post payment order (account subsidiary) Create and send bank statements End-of-day processing Post in finance account Accountant Payable (S2) Receive and post bank statements Post bank statements (account reversal) Accountant Receivable (S1) Post bank statement (account reversal) Receive and post bank statements

28 Process Flow Diagram In-House Cash (External Returns)
Accountant Headquarters Reverse Payment Request Reverse payment order Post payment order (account subsidiary) Create and send bank Statements End-of-day processing Post in finance account Accountant Payable (S1) Post Bank Statements Post bank statement (account reversal)

29 Process Flow Diagram In-House Cash (Incoming Payments)
Accountant Headquarters Receive customer payments from house bank Post incoming payments Create and send bank statements End-of-day processing Post in finance account Accountant Recipient (S1) Post bank statements

30 Process Flow Diagram In-House Cash (Cash Pooling)
Accountant Headquarters Receive cash pool payments from house bank Post cash pool payments Create and send bank statements End-of-day processing Post in finance account Accountant Recipient (S1) Post bank statements

31 Process Flow Diagram In-House Cash (Additional Clearing Center)
Accountant Payable (S1) Post invoice creditor Pay invoice. Create and send payment order Receive outgoing payment / bank statements Post bank statement Accountant Headquarters Post payment order (account subsidiary) Receive payment order Create and send bank Statements Create payment request Post payments End-of-day processing Post in finance account Accountant Clearing Center Receive payment request

32 Legend Symbol Description Usage Comments Symbol Description
Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role. The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario. Role band contains tasks common to that role. External Events: Contains events that start or end the scenario, or influence the course of events in the scenario. Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario. Flow line (dashed): Line indicates flow to infrequently- used or conditional tasks in a scenario. Line can also lead to documents involved in the process flow. Connects two tasks in a scenario process or a non-step event Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario Does not correspond to a task step in the document Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario Corresponds to a task step in the document Process Reference: If the scenario references another scenario in total, put the scenario number and name here. Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond. Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution Symbol Description Usage Comments To next / From last Diagram: Leads to the next / previous page of the Diagram Flow chart continues on the next / previous page Hardcopy / Document: Identifies a printed document, report, or form Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines Financial Actuals: Indicates a financial posting document Budget Planning: Indicates a budget planning document Manual Process: Covers a task that is manually done Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow. Existing Version / Data: This block covers data that feeds in from an external process Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines System Pass / Fail Decision: This block covers an automatic decision made by the software Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed. Diagram Connection <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference System Pass/Fail Decision Process Decision

33 © 2010 SAP AG. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.  Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.  Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.  IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation.  Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.  Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries.  Oracle is a registered trademark of Oracle Corporation.  UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.  HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.  Java is a registered trademark of Sun Microsystems, Inc.  JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.  SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, Clear Enterprise, SAP BusinessObjects Explorer, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.  Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP France in the United States and in other countries.  All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.  The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG.  This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice.  SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence.  The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages.


Download ppt "Scenario Overview – 1 Purpose and Benefits: Purpose"

Similar presentations


Ads by Google