1. Cash and Liquidity Management Scenario Overview
Click process chevrons for details
Processing Payables and Payments
Managing Petty Cash
Processing Receivables and Payments
Dunning
Managing Cash
Procure-to-Pay Scenarios (Stock/Non-Stock/Services)
Field Service and Repair
Expense and Reimbursement Management
Order-to-Cash Scenarios (Sell-from-Stock/Standardized Services/Project-Based Services)
Financial Closing
Customer Returns
Customer Returns
Scenario
Explorer
Scenario Description
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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.
Scenario/Processes
Business Value
Scenario Flow
Further Information
The following business roles are involved in this scenario:
Accounts Payable Accountant
Accounts Receivable Accountant

2. Cash and Liquidity Management Scenario Overview
Click process chevrons for details
Processing Payables and Payments
Managing Petty Cash
Processing Receivables and Payments
Dunning
Managing Cash
Procure-to-Pay Scenarios (Stock/Non-Stock/Services)
Field Service and Repair
Expense and Reimbursement Management
Order-to-Cash Scenarios (Sell-from-Stock/Standardized Services/Project-Based Services)
Financial Closing
Customer Returns
Customer Returns
Scenario
Explorer
Scenario Description
Open Legend
Open Legend
Legend
Close Legend
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.
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
Scenario/Processes
Business Value
Scenario Flow
Further Information
The following business roles are involved in this scenario:
Accounts Payable Accountant
Accounts Receivable Accountant
<Role Name>
<Role Name>
<Role Name>

3. Cash and Liquidity Management Process Details: Processing Payables and Payments
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Processing Payables and Payments X
Process a bank statement
Center chevron for main processes
Allocate a payment
Clear a payment
Managing Petty Cash
Processing Receivables and Payments
Dunning
Managing Cash i i i
Click here to display process variants
Scenario
Explorer
Process Description
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.
Performed by
Accounts Payable Accountant
Scenario/Processes
In the Work Centers
Payables
Payment Management
Liquidity Management
Business Value
Scenario Flow
Further Information
See also
Payment Allocation Quick Guide
Allocate a Payment Manually

4. Cash and Liquidity Management Process Details: Processing Payables and Payments
Click process chevrons for details
Processing Payables and Payments X
Process a bank statement
Center chevron for main processes
Allocate a payment
Clear a payment
Managing Petty Cash
Processing Receivables and Payments
Dunning
Managing Cash i i i
Click here to hide process variants
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
Process Description
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.
Performed by
Accounts Payable Accountant
Scenario/Processes
In the Work Centers
Payables
Payment Management
Liquidity Management
Business Value
Scenario Flow
Further Information
See also
Payment Allocation Quick Guide
Allocate a Payment Manually

5. Cash and Liquidity Management Process Details: Managing Petty Cash
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Managing Petty Cash X
Processing Payables and Payments
Create a cash receipt or disbursement
Processing Receivables and Payments
Dunning
Managing Cash i
Scenario
Explorer
Process Description
Further Information
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.
Performed by
Accounts Payable Accountant
Scenario/Processes
In the Work Centers
Payment Management
Business Value
Scenario Flow
Further Information
See also
Payment Allocation Quick Guide
Allocate a Payment Manually

6. Cash and Liquidity Management Process Details: Processing Receivables and Payments
Click process chevrons for details
Processing Receivables and Payments X
Processing Payables and Payments
Managing Petty Cash
Enter a remittance advice
Process a bank statement
Allocate a payment
Clear a payment
Dunning
Managing Cash i i i i
Click here to display process variants
Scenario
Explorer
Process Description
Further Information
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.
Performed by
Account Receivables Accountant
Scenario/Processes
Business Value
In the Work Centers
Receivables
Payment Management
Liquidity Management
Scenario Flow
Further Information
See also
Payment Allocation and Clearing

7. Cash and Liquidity Management Process Details: Processing Receivables and Payments
Click process chevrons for details
Processing Receivables and Payments X
Processing Payables and Payments
Managing Petty Cash
Enter a remittance advice
Process a bank statement
Allocate a payment
Clear a payment
Dunning
Managing Cash i i i i
Click here to hide process variants
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
Scenario
Explorer
Process Description i
Further Information
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.
Performed by
Account Receivables Accountant
Scenario/Processes
Business Value
In the Work Centers
Receivables
Payment Management
Liquidity Management
Scenario Flow
Further Information
See also
Quick Guide for Payment Allocation
Internally Initiated Manual Outgoing Payments

8. Cash and Liquidity Management Process Details: Dunning
Click process chevrons for details
Dunning X
Processing Payables and Payments
Managing Petty Cash
Processing Receivables and Payments
Create a dunning proposal
Process a dunning proposal
Release a dunning proposal
Managing Cash i i i
Scenario
Explorer
Process Description
Further Information
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.
Performed by
Account Receivables Accountant
Scenario/Processes
Business Value
In the Work Centers
Receivables
Payment Management
Liquidity Management
Scenario Flow
Further Information
See also
Create a Dunning Run
Quick Guide for Dunning Runs

9. Cash and Liquidity Management Process Details: Managing Cash
Click process chevrons for details
Managing Cash X
Processing Payables and Payments
Managing Petty Cash
Processing Receivables and Payments
Dunning
Show and analyze cash position
Create a liquidity status
Create planned items
Create a cash transfer
Process a bank statement
Allocate a payment i i i i i i
Scenario
Explorer
Process Description
Further Information
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
Scenario/Processes
Business Value
In the Work Centers
Liquidity Management
Payment Management
Scenario Flow
Further Information
See also
Monitoring Payment Allocation Processing
Payment Monitor Quick Guide

10. Cash and Liquidity Management Business Value
Collect
Consolidate
Analyze
Manage
Collect bank balances
Transaction details
Retrieve collections
Retrieve disbursements
Set cash position
Set liquidity forecasts
Analyze today’s cash balance
Analyze future cash balance
Transfer funds
Invest / borrow money
Optimize cash flow time lines
Scenario
Explorer
Overview
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.
Key Benefits
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/Processes
Business Value
Scenario Flow
Further Information

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

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

13. Cash and Liquidity Management Further Information
Scenario
Explorer
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