Cash Position and Forecast Report in SAP

March 3, 2010 by mySAP
Filed under: Treasury Management

SAP Cash Management

The cash position report is used to reflect movements in bank accounts, while movements in the subledger accounts are represented using the liquidity forecast report.

SAP Cash Management is a subcomponent of SAP Financial Supply Chain Management. SAP Cash Management is integrated with a range of other SAP components. For example, the liquidity forecast – in a medium to long term liquidity trend – integrates expected incoming and outgoing payments in financial accounting, purchase and sales.

The Cash position and forecast enquiry is usually used by the Treasurer or whoever is responsible for ensuring that the company has adequate funds for expected outgoings.

The Cash Position input data is the known balances:

Postings in cash and bank accounts (any GL account relevant to cash management),the unreconciled entries in the GL bank clearing accounts (uncashed cheques etc)
Any memo records which may have been manually entered (planning advices) as relevant to a cash position
Cashflows from transactions managed in Treasury Management

The Cash Forecast input data is the summary of the expected financial incomings and outgoings in the subledgers:

Accounts receivable and Payable open items (as expected incoming and outgoing payments),
SD Sales Orders and MM Purchase Orders (also as expected incoming and outgoing payments),
Special GL transactions as required
Memo records (planning advices)
Planned payments of wages and salaries
Planned payables for taxes on sales and purchases

It is possible to use the one enquiry to cover both position and forecast. The configuration is the same. For simplicity I will often refer to cash forecast to cover both the cash position and forecast.