1. ©© 2013 SAP AG. All rights reserved. Cash and Liquidity Management Scenario Overview Processing Payables and Payments Managing Petty Cash Processing Receivables and Payments Dunning Managing Cash Open Legend Accounts Payable Accountant Scenario Description The following business roles are involved in this scenario: Accounts Receivable Accountant The Cash and Liquidity Management business scenario enables financial professionals at midsize companies to quickly and efficiently meet cash flow deadlines and achieve better transparency in managing the company's liquidity position. It comprises cash flow information from payables and receivables and tax, as well as payment and liquidity management, and streamlines your daily cash management cycle by automatically collecting and aggregating this information. This scenario covers the cash flow management cycle from the actual liquidity snapshot to forecasting, and analyzes steps through to optimized cash flow from money transfers or other cash flow impacting strategies. Click process chevrons for details Procure-to-Pay Scenarios (Stock/Non-Stock/Services) Expense and Reimbursement Management Financial Closing Customer Returns Field Service and Repair Order-to-Cash Scenarios (Sell-from-Stock/Standardized Services/Project-Based Services) Customer Returns Scenario Explorer Scenario/Processes Business Value Scenario Flow Further Information

2. ©© 2013 SAP AG. All rights reserved. Cash and Liquidity Management Scenario Overview Open Legend Accounts Payable Accountant Scenario Description The following business roles are involved in this scenario: Accounts Receivable Accountant The Cash and Liquidity Management business scenario enables financial professionals at midsize companies to quickly and efficiently meet cash flow deadlines and achieve better transparency in managing the company's liquidity position. It comprises cash flow information from payables and receivables and tax, as well as payment and liquidity management, and streamlines your daily cash management cycle by automatically collecting and aggregating this information. This scenario covers the cash flow management cycle from the actual liquidity snapshot to forecasting, and analyzes steps through to optimized cash flow from money transfers or other cash flow impacting strategies. Click process chevrons for details Open Legend Legend Process mainly driven by the user Process mainly driven by the system Manual process not supported by the system Process that communicates with third- party software (mouse-over for details) Process with relevance to Financials Related scenario Info button with more information Close Legend Processing Payables and Payments Managing Petty Cash Processing Receivables and Payments Dunning Managing Cash Scenario Explorer Procure-to-Pay Scenarios (Stock/Non-Stock/Services) Expense and Reimbursement Management Financial Closing Customer Returns Field Service and Repair Order-to-Cash Scenarios (Sell-from-Stock/Standardized Services/Project-Based Services) Customer Returns Scenario/Processes Business Value Scenario Flow Further Information

3. ©© 2013 SAP AG. All rights reserved. Cash and Liquidity Management Process Details : Processing Payables and Payments Center chevron for main processes Click process chevrons for details Processing Payables and Payments Process a bank statement Allocate a payment Clear a payment Click here to display process variants X Scenario Explorer i ii Scenario/Processes Business Value Scenario Flow Further Information Process Description The Processing Payables and Payments business process enables the processing of outgoing payments initiated either internally by your company or externally by your suppliers. Payments can be made manually or automatically via a payment run in which the system proposes the open items for payment. You then release the payments and the system posts them to accounting. You create the payment medium, either manually or as part of an automatic run. The standard work center provides checks, outgoing bank transfers, credit memos, as well as other country-specific payment methods. Once the payments have been debited from the bank account, the bank statement is entered in the system, in which it is uploaded electronically or entered manually, before being confirmed. If payments are initiated externally, the bank statement provides the notification that a payment has been made. The payments are matched in the system to the open invoices before being cleared. Managing Petty Cash Processing Receivables and Payments Dunning Managing Cash Performed by Accounts Payable Accountant In the Work Centers Payables Payment Management Liquidity Management Further Information See also Payment Allocation Quick Guide Allocate a Payment Manually

4. ©© 2013 SAP AG. All rights reserved. Cash and Liquidity Management Process Details : Processing Payables and Payments Click process chevrons for details Processing Payments Automatically Processing Payments Manually with Bills of Exchange Processing Payments Manually with Open Item Clearing Processing Payments with Petty Cash i i i i Scenario Explorer Scenario/Processes Business Value Scenario Flow Further Information The Processing Payables and Payments business process enables the processing of outgoing payments initiated either internally by your company or externally by your suppliers. Payments can be made manually or automatically via a payment run in which the system proposes the open items for payment. You then release the payments and the system posts them to accounting. You create the payment medium, either manually or as part of an automatic run. The standard work center provides checks, outgoing bank transfers, credit memos, as well as other country-specific payment methods. Once the payments have been debited from the bank account, the bank statement is entered in the system, in which it is uploaded electronically or entered manually, before being confirmed. If payments are initiated externally, the bank statement provides the notification that a payment has been made. The payments are matched in the system to the open invoices before being cleared. Process Description Center chevron for main processes Processing Payables and Payments Process a bank statement Allocate a payment Clear a payment Click here to hide process variants i ii Managing Petty Cash Processing Receivables and Payments Dunning Managing Cash Performed by Accounts Payable Accountant In the Work Centers Payables Payment Management Liquidity Management See also Payment Allocation Quick Guide Allocate a Payment Manually Further Information X

5. ©© 2013 SAP AG. All rights reserved. Cash and Liquidity Management Process Details : Managing Petty Cash Scenario Explorer Click process chevrons for details Managing Petty Cash X Create a cash receipt or disbursement i Scenario/Processes Business Value Scenario Flow Further Information Process Description The Managing Petty Cash business process enables your company to enter all incoming and outgoing cash payments in the system. The petty cash fund always needs to contain sufficient cash for outgoing cash payments to be made. For this reason, it is possible to transfer cash between petty cash funds or between bank accounts and petty cash. Processing Receivables and Payments Dunning Managing Cash Processing Payables and Payments Performed by Accounts Payable Accountant In the Work Centers Payment Management Further Information See also Payment Allocation Quick Guide Allocate a Payment Manually

6. ©© 2013 SAP AG. All rights reserved. Cash and Liquidity Management Process Details : Processing Receivables and Payments Scenario Explorer Click process chevrons for details Processing Receivables and Payments Enter a remittance advice Process a bank statement Allocate a payment Clear a payment Click hereClick here to display process variants X Further Information Performed by Account Receivables Accountant In the Work Centers Receivables Payment Management Liquidity Management i i i i See also Payment Allocation and Clearing Process Description The Processing Receivables and Payments business process enables the processing of incoming payments, initiated either internally by your company or externally by your customers. The process uses country-specific payment methods. Payments can be made manually, or automatically via a payment run in which the system proposes open items for payment. You then release the payments and the system posts them to accounting. You create the payment medium, either manually or as part of an automatic run, using files for direct debit or credit card payments. It is also possible to upload credit card statements to pre-confirm payments. When the payments are credited to the company's bank account, the bank statement is entered in the system, either uploaded electronically or entered manually, before being confirmed. If payments are initiated externally by the customer, the bank statement provides notification of payment. The payments are matched in the system to the open invoices before being cleared. Scenario/Processes Business Value Scenario Flow Further Information Processing Payables and Payments Managing Petty Cash Dunning Managing Cash

7. ©© 2013 SAP AG. All rights reserved. Cash and Liquidity Management Process Details : Processing Receivables and Payments Scenario Explorer Click process chevrons for details The Processing Receivables and Payments business process enables the processing of incoming payments, initiated either internally by your company or externally by your customers. The process uses country-specific payment methods. Payments can be made manually, or automatically via a payment run in which the system proposes open items for payment. You then release the payments and the system posts them to accounting. You create the payment medium, either manually or as part of an automatic run, using files for direct debit or credit card payments. It is also possible to upload credit card statements to pre-confirm payments. When the payments are credited to the company's bank account, the bank statement is entered in the system, either uploaded electronically or entered manually, before being confirmed. If payments are initiated externally by the customer, the bank statement provides notification of payment. The payments are matched in the system to the open invoices before being cleared. Further Information See also Quick Guide for Payment Allocation Internally Initiated Manual Outgoing Payments Process Description Processing Externally-Initiated Payments by Incoming Check Processing Externally-Initiated Payments by Incoming Check with Lockbox Processing Externally-Initiated Payments by Multiple Incoming Checks Processing Incoming Payments by Bill of Exchange Processing Incoming Payments with Petty Cash Processing Internally-Initiated Payments by Credit Card Processing Internally-Initiated Payments by Direct Debit i i i i i i i Scenario/Processes Business Value Scenario Flow Further Information Processing Receivables and Payments Enter a remittance advice Process a bank statement Allocate a payment Clear a payment Click here Click here to hide process variants i i i i Processing Payables and Payments Managing Petty Cash Dunning Managing Cash Performed by Account Receivables Accountant In the Work Centers Receivables Payment Management Liquidity Management X

8. ©© 2013 SAP AG. All rights reserved. Dunning Cash and Liquidity Management Process Details : Dunning Scenario Explorer Create a dunning proposal Process a dunning proposal Release a dunning proposal X iii Click process chevrons for details Process Description The Dunning business process covers the automatic creation of dunning proposals. Your company can edit and release dunning proposals to send payment reminders or dunning notices to customers for overdue payments. See also Create a Dunning Run Quick Guide for Dunning Runs Scenario/Processes Business Value Scenario Flow Further Information Processing Payables and Payments Managing Petty Cash Processing Receivables and Payments Managing Cash Further Information Performed by Account Receivables Accountant In the Work Centers Receivables Payment Management Liquidity Management

9. ©© 2013 SAP AG. All rights reserved. Managing Cash Cash and Liquidity Management Process Details : Managing Cash Scenario Explorer Show and analyze cash position Create a liquidity status Create planned items iii Click process chevrons for details Create a cash transfer Process a bank statement Allocate a payment iii In the Work Centers Liquidity Management Payment Management Process Description The Managing Cash business process allows you to view the status of all payment processes in order to analyze your company's cash balances and determine the cash position in real time. This business process prepares information and creates planned items that are processed as liquidity forecast according to their expected value date. If necessary, your company can transfer funds between bank accounts. It is also possible to transfer funds between bank accounts of different companies in your group. Performed by Accounts Payable/Accounts Receivable Accountant X See also Monitoring Payment Allocation Processing Payment Monitor Quick Guide Scenario/Processes Business Value Scenario Flow Further Information Processing Payables and Payments Managing Petty Cash Processing Receivables and Payments Dunning Further Information

10. ©© 2013 SAP AG. All rights reserved. Liquidity Management provides the analytical framework for efficient financial value chain management including tools for bank balance reporting, liquidity monitoring, and optimizing liquidity positions. Cash managers can easily determine, initiate, and execute required funds transfers to manage liquidity positions in terms of investing excess cash or funding liquidity shortages. Automated processes for collecting information about account balances and transactions from banks, as well as internal information on collections, disbursements, and other financial activities are spread across different business units within the company. Built-in analytics and reporting ensure a seamless consolidation of the liquidity information into today’s cash position as well as various forecast worksheets. Analytical tools support a comprehensive liquidity analysis, projecting cash shortages or surpluses for a variety of reporting criteria and timelines. Collect Collect bank balances Transaction details Retrieve collections Cash and Liquidity Management Business Value Scenario Explorer Business Value Scenario/Processes Retrieve disburseme nts Manage Transfer funds Invest / borrow money Optimize cash flow time lines Consolidate Set cash position Set liquidity forecasts Analyze Analyze today’s cash balance Analyze future cash balance Overview For financial professionals at midsize companies who want to quickly and efficiently meet cash flow deadlines and achieve better transparency to manage the company’s liquidity position, this scenario streamlines the daily cash management cycle. You can collect and aggregate liquidity information efficiently in a fast, streamlined, and automated fashion. SAP Business ByDesign helps efficiently manage Liquidity Management: from the actual liquidity snapshot, forecasting, and analyzing steps through to optimized cash flow from money transfers or other cash flow-impacting strategies. Scenario Flow Further Information Key Benefits

11. ©© 2013 SAP AG. All rights reserved. Cash and Liquidity Management Scenario Flow for Variant: Processing Payables and Payments Variants of the Scenario:  Processing Payables and Payments  Processing Receivables and Payments Processing Receivables and Payments Scenario Explorer Scenario/Processes Scenario Flow Petty Cash Automatic Payments Manual Payment with Open Item Clearing Payment by Petty Cash …. Processing Payables and Payments Expense and Reimbursement Management Procure-to-Pay Scenarios (Stock/Non-Stock/Services) Financial Closing Order-to-Cash (Drop Shipment) Customer Returns Managing Cash Payment Management Payables Payment Management Cash and Liquidity Scenario Flow Business Value Further Information Legend & Variants Work center in which process is performed Business document flow Process related to Financials Related scenarios Process mainly driven by the user Process variant1 Process variant 2 Work Center

12. ©© 2013 SAP AG. All rights reserved. Cash and Liquidity Management Scenario Flow for Variant: Processing Receivables and Payments Legend & Variants Work center in which process is performed Business document flow Process related to Financials Related scenarios Variants of the Scenario: Process mainly driven by the user Process variant1 Process variant 2 Scenario Explorer Work Center Internally initiated by direct debit Externally initiated payment by incoming check Externally initiated payment by incoming bank transfer Internally initiated by direct debit Account maintenance - Standard variant Field Service and Repair Order-to-Cash Scenarios (Sell-from-Stock/Standardized Services/ Project-Based Services/Drop Shipment) Customer Returns Managing Cash Processing Receivables and Payments DunningPetty Cash Payment Management Payment Management Receivables Cash and Liquidity  Processing Payables and Payments Processing Payables and Payments  Processing Receivables and Payments Scenario/Processes Scenario Flow Business Value Further Information

13. ©© 2013 SAP AG. All rights reserved. Further Information Cash and Liquidity Management Further Information Scenario Explorer Scenario Flow Forum Get in touch with experts to discuss your specific requirements. To enter the community, click here.*click here More Details SAP provides a complete product documentation, covering all aspects of the business scenario. For more details, click here.click here Self-Enablement Systems If you want to try out the business scenario, click here.*click here WIKI In addition to the product documentation, SAP provides Wikis that describe additional aspects of SAP Business ByDesign. To access the WIKI, click here.*click here Do you want to try it out?Do you need more information?Do you want to discuss with others? VV * Note that to access the links above you need to have a user in SAP Business Center. If you cannot access the page directly and if you are using Microsoft Internet Explorer®, please check http://support.microsoft.com/kb/890474.http://support.microsoft.com/kb/890474 Scenario/Processes Business Value