AC215 Cash Budget Management

AC215

R/3 System Release 46D 05.02.2001

 AC215 Cash Budget Management

AC215

Cash Budget
Management
 SAP AG 1999

R/3

Release 4.6B

July 2000

5003 9284
 Copyright

Copyright 2000 SAP AG. All rights reserved.

Neither this training manual nor any part thereof may
be copied or reproduced in any form or by any means,
or translated into another language, without the prior
consent of SAP AG. The information contained in this
document is subject to change and supplement without prior
notice.

All rights reserved.

 SAP AG 1999

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Treasury

Level 2 Level 3
AC815 5 days
Loans Management for
Financial Services
AC816 3 days
AC030 3 days AC810 3 days Loans Management for
Corporates
Basic Functions in
Treasury Overview Treasury Management AC820 4 days
Securities Management

AC825 3 days
Money Market, Foreign
Exchange and Derivatives

AC830 3 days
Market Risk Management
AC805 3 days
AC010 5 days Cash Management
Financial Accounting
and Reporting AC215 1 day
Cash Budget
Management

 SAP AG 1999
Course Prerequisites

 Course AC 215 presupposes a knowledge of accounting.

 SAP AG 1999
 Target Group

 Participants:

Project team

People involved in
organization

Decision makers
 Duration: 1 day

 SAP AG 1999

Notes to the user

The training materials are not teach-yourself programs. They complement the course instructor's
explanations. On the sheets, there is space for you to write down additional information.
Introduction

Contents

 Course outline
 Course objectives
 Course content
 Overview diagram
 Business scenario
 Implementation guide (IMG)

 SAP AG 1999
Course Outline

This course will prepare you to:

 Work with the Cash Budget Management

application component

 SAP AG 1999
Course Objectives

On completing the course, you will be able to:

 Explain how Cash Budget Management functions

 Make the settings needed to activate Cash Budget
Management
 Maintain master data and transaction data
 Enter financial budgets
 Navigate in the information system reports

 SAP AG 1999
Course Content

Preface

Unit 1 Introduction Unit 5 Configuration and

Organization
Unit 2 Overview
Unit 6 Planning
Unit 3 Master Data
Unit 7 Bank Transfers
Unit 4 Update and Integration
Unit 8 Information System

Exercises
Solutions

 SAP AG 1999
Course Overview Diagram

Introduction START

Overview

Master Data
xxxxx
xx

Update and Integration

Configuration and Organization

Customizing
Plan 1998

Planning

Payment Transfers

Information System
 SAP AG 1999
Business Scenario - 1

 Your business has implemented SAP R/3 FI and/or

MM and intends to implement Cash Budget
Management. You are a member of the
implementation team.
 As a member of the project team, you must make
important decisions on how Cash Budget
Management is to be configured. You must also
decide which data transfer variant to use, in line
with the Cash Budget Management objectives.

 SAP AG 1999
Business Scenario - 2

 The project team stipulates the expenditure and

revenue types and, with them, the degree of
detail used in Cash Budget Management.
 You decide to prescribe plan values for the
individual commitment items and periods, so
that you can monitor your financial flows.

 SAP AG 1999
Overview

Contents
 The Treasury Model
 Differences between Cash Management and Cash
Budget Management
 Business transactions in Cash Budget Management
 Functions in Cash Budget Management

 SAP AG 1999
Overview: Unit Objectives

At the conclusion of this unit, you will be able to:

 Explain the Treasury Model concept

 Enumerate the differences between Cash Budget

Management, Cash Management, and Funds
Management

 Explain how Cash Budget Management works

 Enumerate the business transactions that can be

carried out

 SAP AG 1999
Course Overview Diagram

Introduction

Overview

Master Data

Update and Integration

Configuration and Organization

Planning

Payment Transfers

Information System
 SAP AG 1999
 The Treasury Model

Cash
Concentration

Buy Sell
financial Payment Cash Payment financial
asset order order asset
Position

Forward Forward Option

Option exchange Forecast exchange Future
Future buying selling
(short term)

Purc. Vendor Pay- Forecast Pay- Invoice

order invoice ment ment
(medium term)

FI-
FI- Funds
FM TR
Financial Budgeting Liquidity
Management plan

 SAP AG 1999

Cash Budget Management, with its analysis of liqudity figures and plan figures, is closely linked
with Cash Management and Funds Management.

The task of Cash Budget Management (financial budgeting) is to:
- Identify impending funds shortages/surpluses promptly
- Control payment flows in light of the liquidity situation
 Differences Between Cash Management and CBM

Cash Management Cash Budget Management

Opening balance Opening balance

Revenues Revenues
Customer group X Sales revenues
Customer group Y Liquid. investmts
... Other
...
Expends Expends
Vendor group X Material
Vendor group Y Personnel
... Taxes
...

Closing balance Closing balance

 SAP AG 1999

Cash Management and Cash Budget Management consider different timeframes; while Cash
Management is concerned with short-term liquidity, Cash Budget Management looks at the medium
and long terms. This means that the two applications must classify revenues and expenditures
differently:; Cash Management classifies revenues and expenditures by vendor/customer group, in
order to assess the likelihood of payment flows being realized. Cash Budget Management classifies
revenues and expenditures by revenue and expenditure item, to enable you to plan future payment
flows.
 Cash Budget Management and Funds Management

Cash Budget Management Funds Management

Opening balance Organization
Bank
Cash Revenues Expenditures
Sales revenues Material
Revenues Liquid. investmts Personnel
Other
Sales revenues
Liquid. investmts
Other

Expends
Material
Personnel
Taxes

Closing balance Responsibility areas

Bank
Cash
 SAP AG 1999

While Cash Budget Management is concerned with the liquidity of your business, Funds
Management covers the payment flows in the individual responsibility areas.

The task of Funds Management is to safeguard the plan estimated values for revenues and
expenditures in individual responsibility areas. The values are fixed in the budget plan.
 Business Transactions in Cash Budget
Management

Expenditures

Purchase Down Bank

order payment clearing

Down pymt Invoice Outgoing

request receipt payment

Revenues

Down pymt Invoice Incoming

request issued payment

Down Bank
payment clearing

 SAP AG 1999

In addition to payment obligations based on payment transactions entered in the FI Financial

Accounting system, the Cash Budget Management system also reproduces payment obligations
entered in the feeder systems. These include purchase orders from Materials Management (MM).
This makes it possible to monitor and control payment flows well before they actually take place.
How Cash Budget Management Works

Vendor Expenditure
100 - 100

Commitment Item Op.balance Revenues Expenditures Clsg balance

2111 Sales revs

1111 Mat.issue 200- 100- 100-

Total 200- 100- 300-

 SAP AG 1999

Transactions posted in the feeder systems are recorded in Cash Budget Management as items
affecting liquidity. You can configure the display to meet your specific information
requirements.

You use Cash Budget Management reporting to do this.
 Cross-Company Code Cash Budget Management
and Currencies

FM area
USD
Cash Budget Management

Company code 1000 Company code 2000

DEM GBP
Balance sheet P+L Balance sheet P+L

 SAP AG 1999

You combine a number of company codes in one financial management (FM) area, for the purpose
of carrying out cash budget management over several company codes at once.

The company codes can have different currencies. The FM area currency need not be the same as
any of these.
Overview: Unit Summary

 Cash Budget Management is part of the Treasury

Model.
 It functions as a medium-term liquidity forecast and
financial budgeting tool.
 Transactions posted in the feeder systems are recorded
in Cash Budget Management as items affecting
liquidity.
 The organizational unit in Cash Budget Management is
called the financial management area (FM area).

 SAP AG 1999
Master Data

Contents
 Commitment item categories
 Item categories and functional split
 Financial transactions
 Hierarchy maintenance
 Commitment item and G/L account
 Rules of thumb for assignment

 SAP AG 1999
Master Data: Unit Objectives

At the conclusion of this unit, you will be able to:

 Maintain commitment items

 Create commitment item hierarchies
 Recognize the importance of item categories
and financial transactions
 Assign commitment items to G/L accounts
 Enumerate the rules of thumb for assignment

 SAP AG 1999
Course Overview Diagram

Introduction

Overview

Master Data

Update and Integration

Configuration and Organization

Planning

Payment Transfers

Information System
 SAP AG 1999
Commitment Item Categories

Optional:
Summarization Item

Summarization: 11
Financial trans: 30
Change history
Item category: 3
Required:
Account Asst Item
Change documents
Expenditures: 111
Financial trans:
trans: 30
Item category: 3 Long text

G/L acct / Raw mats:

Acct asst item
 SAP AG 1999

There are two types of commitment item:

Summarization items, which enable you to display cash budget management data
hierarchically
Account assignment items, where you can carry out planning and make postings

Before you can use Cash Budget Management, you must create commitment items (account
assignment items). You can integrate them into a summarization hierarchy, by entering the
higher level summarization item in each commitment item when you create it.
Account assignment items must have the same financial transactions and item categories as the
summarization items above them.
Item Categories and Functional Split

Opening balance
Bank
Cash

Revenues
Item Category Sales revenues
Liquid. investmts
1 Balance Other

2 Revenue Expenditures
3 Expenditure Material
Personnel
Taxes

Closing balance
Bank
Cash

 SAP AG 1999

The item category regulates integration by balance, revenues, or expenditures, thereby fixing
the functional split in Cash Budget Management.
 Financial Transactions

30 Expenditure/revenue

40 Goods receipt/goods issue

50 Free

60 Payables/receivables

70 Free

80 Bank clearing

90 Payments

 SAP AG 1999

The financial transactions are prescribed: you cannot change them. The exceptions are financial
transactions 50 and 70. You can use these to create a differentiated payables/receivables display.
You can enter descriptions for the correspondiing value types, 53 for financial transaction 50 and 56
for financial transaction 70.
Hierarchy Maintenance Using SAP Network
Graphic

Display area

Revenues Raw materials Irrelevant

Raw materials Aux.mats

Aux.mats Op.supplies

Node area Navigation area

Commt Item Summarization

 SAP AG 1999

You can use the SAP Network Graphic to create commitment items in the hierarchy.
There are three working areas in the graphic:
The "Display area" shows the hierarchy in a graphical representation.
The "Node area" is where you determine whether you are processing a commitment item or a
summarization item.
You use the "Navigation area" to define the view in the display area.
Setting Up And Maintaining Commitment Item
Hierarchies

Display in hierarchy form

Summarization
Expenditures item

Summarization
Domestic Foreign
item

Acct asst
Expends 1 Expends 2 Expends 3 Expends 4 (commitment)
item

G/L account 1 G/L account 2 G/L account 3 G/L account 4

 SAP AG 1999

In the network graphic, you can maintain separate hierarchy trees for an FM area.

The relationships you define here also determine the relationships between objects in reporting.
The principle of immediate effect integration of the financial transaction and commitment item
category applies in every hierarchy. You determine how many levels the hierarchy has.

You enter the commitment item - G/L account assignment in the company code section of the
G/L account.
Commitment Items and G/L Accounts

Financial Accounting Cash Budget Management

G/L account masters:
FM area: 1000
Revenues Commitment item: Revenues
Company code: 1000
Commitment item: Revenues
...
...
Raw mats
Raw materials
Company code: 1000
Commitment item: Raw mats
...

 SAP AG 1999

You define the commitment item in the company code part of the G/L account.

The commitment item field does not appear in the G/L account master unless you have assigned
the company code to the FM area and the field selection permits it.

When you post to this account, the system copies the commitment item to the document line,
where you can change it if necessary.
Rules of Thumb for Assigning Financial
Transactions - 1

Transaction
90 Define in bank accounts

80 In bank clearing accounts

70 50 For more complex postings, such as in

payroll

 SAP AG 1999
Rules of Thumb for Assigning Financial
Transactions - 2

Transaction
Payables/receivables: Define in
60 vendor/customer reconciliation accounts

Define in the GR/IR accounts

40

All expenditure/revenue accounts, asset

30
accounts, inventory accounts in materials
management, reconciliation accounts for
down payments

 SAP AG 1999
 Commitment Item Assignment Report Program

Commitment Item Assignment to G/L

G/L account Accounts

Company code

G/L acct with commitment item

G/L acct w/o commitment item

Commitment item
FM area

Commitment item w/o G/L acct

 SAP AG 1999

The assignment report program for G/L account supplies information on what assignments exist, or
are missing, between commitment items and G/L accounts.
Master Data: Unit Summary

 Summarization items offer a hierarchical

representation of the data in Cash Budget
Management. You must use
account assignment items for postings and planning.
 Item categories determine the functional
split in Cash Budget Management.
 You can create and change commitment items either
individually or in hierarchy maintenance.
 Commitment items form the link between
Financial Accounting and Cash Budget Management.

 SAP AG 1999
Master Data: Exercises

Unit: Master Data

Topic: Commitment Items

At the conclusion of these exercises, you will be able to:

• Create commitment items
• Move commitment items
• Assign commitment items to G/L accounts

The project team stipulates the expenditure/revenue types and,

hence, the degree of detail in Cash Budget Management.

1-1 In FM area FA##, create commitment item 1126## "Expenditure on Personnel

Training". Ensure that it is possible to post to this commitment item and enter a plan for
it.

1-2 Create a summarization item.

1-2-1 The "Expenditures" summarization item should include suitable output control
for financial transaction.
1-2-2 Assign account assignment items 1111, 1112, 1113, and 1126## to the
"Expenditures" summarization item.

1-3 Assign your commitment item 1126## to G/L account 449000.

Master Data: Solutions

Unit: Master Data

Topic: Commitment Items

1-1 Accounting -> Treasury –> Cash Budget Management -> Master Data -> Commitment
Item – Account Assignment -> Create

Field Name or Data Type Values

FM area FA##
Commitment item 1126##
Description Expenditures: Personnel
training
Financial transaction 30
Item category 3

1-2

1-2.1 Accounting -> Treasury –> Cash Budget Management -> Master Data ->
Commitment Item –> Summarization -> Create

Field Name or Data Type Values

FM area FA##
Commitment item Expends
Description Expends
Financial transaction 30
Item category 3

1-2.2 Accounting -> Treasury –> Cash Budget Management -> Master Data
Hierarchy -> Change

Choose subtrees:

1111, 1112,1113, 1126##, Expenditures

Select "Expenditures" => Edit -> Connect 1111, 1112, 1113, 1126##

1-3 Accounting -> Financial Accounting -> General Ledger -> Master Data -> Individual
Processing -> In Company Code
 Field Name or Data Type Values
Company code AC##
G/L account 449000
Create/Bank/Interest
Commitment item 1126##

Update and Integration

Contents
 Value types and financial transactions
 Update chain
 Update from Financial Accounting to Cash Budget
Management (integration)
 Carrying balances forward

 SAP AG 1999
Update and Integration
Unit Objectives

At the conclusion of this unit, you will be able to:

 Describe the technical link between Cash Budget

Management, FI, and MM
 Explain how business processes from FI and/or MM
are depicted in Cash Budget Management reporting

 SAP AG 1999
Course Overview Diagram

Introduction

Overview

Master Data
xxxxxxx

Update and Integration

Configuration and Organization

Planning

Payment Transfers

Information System
 SAP AG 1999
Value Types and Financial Transactions

Financial Accounting
Vendor Expenditure
100 - 100

Value type:
Invoice
Commitment Commitment
item item

Financial Financial
transaction: transaction:
60 > 30
Invoice Expenditure

 SAP AG 1999

One control parameter in the commitment item is the financial transaction.

Each posting made in FI addresses two general ledger accounts, meaning that it also addresses
two commitment items.

The higher financial transaction referencing the value types decides how the posting is reported.
Update Chain

Bank Accounts
Bank Expenditure
clearing payable
100
3 100 100 2 100 100
1 100

Financial trans Financial trans Chain Val.type

1 Invoice 60 30 60 30 54

2 Outgoing check 80 60 80 30 55

3 Bank posting 90 80 90 30 57

 SAP AG 1999

The value type determines how business transactions are displayed in reports.

Where technical document chains are created (in the above example with financial transaction
30), the line item is included too, from the invoice through to the payment.

The value categories most important for Cash Budget Management are:
51 Purchase order
54 Invoice
55 Bank clearing
57 Payment
Integration Betwen Financial Accounting and Cash
Budget Management

Financial Accounting Cash Budget Management

Database server
FM area = active

G/L account

Customers
Index Docs FMEP FMSU
Vendors

 SAP AG 1999

Where an FM area is activated, each accounting document leads to the following updates in
Cash Budget Management:
- Line item file ( FMEP )
- In totals : revenues/expenditures ( FMSU )
-
See the structure of the files in the repository.

If Cash Budget Management is not yet active, but the company code is already assigned to the
FM area and the commitment items are defined in the G/L account or you enter them when you
make a posting, the commitment item is included with the document and can be copied to Cash
Budget Management later.
 Carrying Balances Forward

Fiscal year 2000 Period 12 Fiscal year 2001 Period 12

Key Figure Actual data Key Figure Actual data

Opening balance 250,000 Opening balance 330,000

Revenues 150,000 Revenues

Expenditures 70,000 Expenditures
Closing balance 330,000 Closing balance

Carry balance
forward

 SAP AG 1999

The function for stipulating a fiscal year interval has been removed from the system for Release 4.6.
It is not possible to update all balance periods online. The closing balance must be carried forward at
the year end.
Activating Cash Budget Management

Accounting document
Company code XYZ

Cash Budget Management

activated
Yes No

Update to Cash Budget No update to Cash

Management Budget Management

 SAP AG 1999

If you already have Financial Accounting (FI) when you activate Cash Budget Management,
you can transfer the postings made up to then to Cash Budget Management collectively.
Update and Integration Unit Summary

 Financial transactions determine the value

type for the update.
 Data is recorded in Cash Budget Management in
line items and totals records.
 The closing balance for the last period in the
year must be carried forward to the next fiscal year.

 SAP AG 1999
Update and Integration: Exercises

Unit: Update and Integration

Topic: Integration with Financial Accounting

At the conclusion of these exercises, you will be able to:

Assign financial accounting documents with commitment items

The project team defines the integration between Financial

Accounting and Cash Budget Management.

1-1 Post a vendor invoice:

Field Name or Data Type Values

Company code AC##
Vendor T-f15A00
Invoice date Today's date
Amount 5000 UNI
Control indicator V0
G/L account 449000
Cost center T-F15A##

1-2 Display the document in financial accounting? Which commitment item appears as the
account assignment in the expenditure line?
Update and Integration: Solutions

Unit: Update and Integration

Topic: Integration with Financial Accounting

1-1 Accounting -> Financial Accounting -> Accounts Payable -> Document Entry ->
Invoice
Field Name or Data Type Values
Company code AC##
Vendor T-f15A00
Invoice date Today's date

Amount 5000 UNI

Control indicator V0
G/L account 449000
Cost center T-F15A##

1-2 Accounting – Financial Accounting – Accounts Payable – Document – Display

=> Double-click the expenditure line => "More" pushbutton
Configuration and Organization

Contents
 The organizational factor: FM area
 Update control
 Planning layout and plan version
 The steps involved in implementing Cash
Budget Management
 Different procedures for going live
 Taking over cash holdings
 Activating Cash Budget Management

 SAP AG 1999
Configuration and Organization:
Unit Objectives

At the conclusion of this unit, you will be able to:

 Carry out the configuration work needed to activate
Cash Budget Management in the system
 Enumerate the individual data transfer variants

 Explain how going live works

 SAP AG 1999
Course Overview Diagram

Introduction

Overview

Master Data

Update and Integration

Configuration and Organization

Customizing

Planning

Payment Transfers

Information System
 SAP AG 1999
Maintaining FM Areas

Reports:
Val. factors
Periods
Currencies

Currency: USD

FM area Fiscal year variant:

A7

Company code 1000 Company code 2000 Company code 3000

DEM GBP USD

 SAP AG 1999

The following are assigned to the FM area:

Plan profile
Report currency
Fiscal year variant (period apportionment)

You can combine as many company codes as you want in one FM area. Each of the company
codes can have a different currency and fiscal year variant.
 Defining Fiscal Year Variants

FMA Fiscal Year Variant

FA01 K4 Calendar year, 4 special periods

FA02 K3

Split over time

January February March

Opening balance 1000 1500
Revenues
Expenditures 1000 500
Closing balance 1000 1500

 SAP AG 1999

By assigning the fiscal year variant, you are stipulatíng how Cash Budget Management is to be
split over time.

You can plan and display the payment flows and cash holdings for any period(s) you wish. The
period split for each FM area is per the fiscal year variant.
 Update Control

No purchase orders
No parked documents
FM area ledger only
Bank lines as of posting date
Expenditure/revenue summarization
Clearing in batch RFFMRP18

 SAP AG 1999

No purchase orders: The system does not record a purchase order commitment.

No parked documents: The system does not record a commitment for parked documents.

FM area ledger only: Normally, Cash Budget Management records data in the local currencies of
all the company codes and FM areas concerned. If you activate this switch, data is recorded in the
FM area currency only, thereby ensuring that line items are not duplicated.

Bank lines as of posting date: In Cash Budget Management, payment and bank clearing are
recorded as of the value date. Set this switch to have this done as of the posting date instead.

Expenditure/revenue summarization: This switch affects the number of "technical update chains"
in Cash Budget Management. The number of line items is reduced because the system disregards
additional information, such as accounts.

Clearing in batch: Cash Budget Management data is recorded as part of the process of updating FI
documents. Evaluating the clearing information can take a long time. If you choose clearing in batch,
the time-consuming steps are postponed. The payment is first displayed in a clearing item and the
payment commitment remains in place.
Planning Layout

1 SAPTRCB FM area currency

2 SAPTRCB Fixed transaction currency
3 SAPTRCB Flexible transaction currency

Commt item Value/TCrcy Amt FMA Crcy ...

Assign planner profile

 SAP AG 1999

Three standard layouts are available for planning. They are linked with planner profiles.

You can define your own planning layouts and assign them to the planner profiles.
Defining Plan Versions

Plan values
Version 2

Version 1 Plan values

Version 0
Plan values
Revenues 1,000,000
Expenditure 500,000
.
.
.

 SAP AG 1999

You can create various plan version IDs.

- In the actual planning, you always store the plan values under a plan version.
Implementing Cash Budget Management - 1

Cash Budget Management

Not active Active

Incoming invoices: 100 Outgoing payment: 100

and clearing

Commitment item
Report
of
G/L account line Commitment item Expenditures
?
Material
Personnel
Taxes

 SAP AG 1999

Cash Budget Management was not yet active when you received the invoice, so the data was
not recorded in there.

When you pay, Cash Budget Management is active.

To update the "Material" expenditure item under the "Payments" factor in the report, the system
tries to determine the "Material" commitment item from the line item (FMEP) in the invoice.
As this is not possible (because there is no Cash Budget Management item), you must enter
commitment items for:
unassigned revenues/expenditures.
Implementing Cash Budget Management - 2

Cash Budget Management

Unassigned revenues: Transaction : 30
Item category : 2 (revenue item)
Unassigned expenditures: Transaction : 30
Item category : 3 (Expenditure item)

Cash Budget Management

Not active Active
Incoming invoice: 100 Outgoing payment: 100
and clearing

Report: Commitment item Expenditures

Unassigned expenditures 100
Material
Personnel
Taxes

Document line
 SAP AG 1999

You cannot activate the FM area until you have defined the following commitment items:
Unassigned revenues (transaction 30, item category 2)
Unassigned expenditures (transaction 30, item category 3)

When you post payments which clear invoices posted before the FM area was activated, the
payments are displayed under these commitment items.
Checking Company Codes

Fiscal year variant: A7 Currency: USD

Unassigned revenues
FM area Unassigned expenditures

Assignment

Company code 1000 Company code 2000 ...

Check

 SAP AG 1999

There is a checking facility which you can use before the production startup.
The system checks the company code to ensure that all the parameters required for Cash Budget
Management to run smoothly have been maintained.
If the parameters are incomplete, the system generates an error log.
Production Startup / Reorganization

 Transaction Data:
Actual / Plan
Totals + line items

Delete Purchase orders Invoices Funds reservation Payment transfer

 Master data in the test phase

Commitment item

Remove from G/L account(whole company code)Delete(whole FM area)

 SAP AG 1999

The following apply to all activities:

Back up your data first.
The FM area must be deactivated before you run the program.
Transaction data is deleted first, then master data.
At present, you cannot delete master data selectively, but must do so for the whole company
code/FM area.
Before you can delete the commitment items from the FM area, you must remove them from
the company code in all the G/L accounts.
Caution: Commitment items are also used in Funds Management and Project Cash
Management.
Data Transfer / Different Characteristic

Characteristic: Minimum Maximum

- +
Mean
Performance: Maximum Minimum
+ -
Transfer Financial accounting:
cash holdings Take over some or Take over
data all data
Take over data
from Materials Take over
Management (purc.orders) all data

Funds reservations
Payment transfers

Prod.startup only Production startup + reconstruction

 SAP AG 1999

The diagram shows not only the data transfer made on production startup, but also Cash Budget
Management reconstruction in a system which is already active.

You must carry out the activities in background processing and must deactivate the FM area
first. You must also ensure that no other activities can be carried out in the system while the
program is running.
Taking Over Cash Holdings/Production Startup

Current year 01.07. July 1 in current year

t
Financial Accounting Cash Budget Management active
Commitment item: Transfer
Bank Financial trans: 30

100 200 Long text 2

400
Report:
Cash Val.type Opening Revenues Expend Clsg
balance balance
500
Payments 800 800

Commitment item
transfer 800
 SAP AG 1999

Before you can transfer the cash holdings (cash/bank postings, (item category 1)) posted in
Financial Accounting to Cash Budget Management, you must define a commitment item for
them to flow into:
Financial transaction: 30 Post revenue, expense...
Item category: 2 (Revenues)

The transfer is a one-time process for each company code, as part of configuration.
The values taken over are stored as from the first period of the specified year.

The FM area must be deactivated before you make the transfer.
 Taking Over/Reconstructing Data from Materials
Management

Creating Line Items

•PO no.: 14000003 G/L acct: Expenditure
Raw materials

Commitment item

Program run:

Funds line item

 SAP AG 1999

Production Startup
The program reads the commitment item from the G/L account specified in the purchase order
and generates the appropriate line item.

Important:
- Always back up your data.
- Do not enter any documents while the reconstruction is running. The periods must be closed.
- Run the reconstruction in batch.
- Run program RFFMS180 first. This enters commitment items in unassigned MM documents.
Taking Over/Reconstructing Some Data from
Financial Accounting
Cash Budget Mgt
Not active Active / Reconstruct
Posting periods 1 2 3 4 5 6 7

First run From month: 1

To month: 3
Determine
cash holdings: X  Set only in first run

Second run From month: 4

To month: 6
Determine
cash holdings: _  Do not set in subsequent runs

 SAP AG 1999

Production Startup
-This procedure offers a step-by step method of setting up Cash Budget Management.
-In the process, the commitment items of the G/L accounts addressed in the posting lines
are determined.
-In using this procedure, you are opting not to take over all the commitments, but only
those from certain periods and cash holdings.

Data Reconstruction
-Deleting old transaction data
Before running the partial reconstruction for the first time, you must delete the old actual
data (line items).
Taking Over/Reconstructing All Data from
Financial Accounting

Cash Budget Mgt

Not active Active
Posting periods 1 2 3 4 5 6 7

FM area: FA00
Fiscal year: YYYY

Onetime run

To period: 06

 SAP AG 1999

The objectives of this procedure are the same as for the partial reconstruction.
- All the documents, up to the limit you specify, are taken over at one go.
- System performance might be a problem.

You can take over the materials data and the financial accounting data in one run. However, this
is not recommended for performance reasons.
Reconstructing Data from Funds Reservations and
Payment Transfers

Funds reservation/payment transfer

Reconstruct line items

 SAP AG 1999

If line items from the test phase were deleted during preparation for the production startup
(delete actual data)
or
if the values were changed in the FM documents, the relevant FM line items must be
reconstructed.
Activating Cash Budget Management

FM area
1000

Company code Company code Company code

1000 2000 3000

Activate Activate Activate

on April 15, 2000 on July 15, 2000 on December 15, 2000

 SAP AG 1999

You have the option of activating Cash Budget Management for individual company codes.
- Each company code must satisfy the following criteria before you can activate it:
The company code must be assigned to an FM area.
A fiscal year variant, currency key, and plan profile must be assigned to the FM area.
You have assigned a commitment item for unassigned revenues, and another for unassigned
expenditures, to the FM area.
- If any of these criteria is not met, you cannot activate the FM area. Read the error log to find out
what you must do if this happens.
Configuration and Organization: Unit Summary

 As well as the corporate structure settings, you

must also enter the basic Cash Budget
Management settings, and settings to control
planning, postings, and integration.
 When reorganizing Cash Budget Management, you
can delete master data and transaction data separately.
 Various options are available for the internal
data transfer.

 SAP AG 1999
Configuration and Organization: Exercises

Unit: Configuration and Organization

At the conclusion of these exercises, you will be able to:

- Make the basic Cash Budget Management settings
- Post documents in Cash Budget Management

The project team decides how the organizational structure will

look and on the basic settings in Cash Budget Management. The
aim is to activate Cash Budget Management.

1-1 Check the following basic settings:

1-1.1 Definition of FM area FA##

1-1.2 Assignment of company code AC##

1-1.3 Assignment of commitment items for unassigned revenues and expenditures

1-2 Define fiscal year variant for K4 for FM area FA##.

1-3 Post a vendor invoice.

1-4 Activate Cash Budget Management.

1-5 Display the commitment/actual line items in the Cash Budget Management information
system.
Configuration and Organization: Solutions

Unit: Configuration and Organization

1-1 Tools –> Accelerated ASAP –> Customizing –> Edit Project –> SAP Reference IMG:

-Enterprise Structure –> Definition –> Financial Accounting –> Maintain Financial
Management Area

- Enterprise Structure –> Assignment -> Financial Accounting –> Assign Company
Code to Financial Management Area

-Treasury –> Cash Budget Management and Financial Budgeting –> Integration –>
Define Commitment Item for Unassigned Revenues/Expenditures

1-2 Tools –> Accelerated ASAP –> Customizing –> Edit Project –> SAP Reference IMG:

- Treasury –> Cash Budget Management-> Basic Settings –> Fiscal Year Variant –>
Assign Fiscal Year Variant to FM Area

1-3 Tools –> Accelerated ASAP –> Customizing –> Edit Project –> SAP Reference IMG

- Treasury –> Cash Budget Management -> Integration –> R/3 Internal Data Transfer –
> FI Documents –> Take Over Part of Data

=> System –> Services –> Reporting

=> Goto –> Variants –> Create Variant "Group##"

Field Name or Data Type Values

FM area FA##
From Today's date
To Today's date
Determine Cash Holdings X
Clearing item 2411
=> Save variant
=> Execute program with variant

1-4 Tools –> Accelerated ASAP –> Customizing –> Edit Project –> SAP Reference IMG:

- Treasury –> Cash Budget Management-> Integration- Activate Cash Budget

Management
1-5 Accounting -> Treasury -> Cash Budget Management -> Information System ->
Report Selection -> Line Items -> Commitment/Actual Line Items

Planning

Contents
 Annual/period planning
 Planning layouts

 SAP AG 1999
Planning: Unit Objectives

At the conclusion of this unit, you will be able to:

 Enter plan data in the system

 Use planning layouts

 SAP AG 1999
Course Overview Diagram

Introduction

Overview

Master Data

Update and Integration

Configuration and Organization

Plan 1998

Planning

Payment Transfers

Information System
 SAP AG 1999
 Annual/Period Planning

Version 1

Commt item Currency Amount in FM area currency

1111 Expends 1 120,000

1122 Expends 2 130,000
1134 Expends 3 100,000
1135 Expends 4 132,000

January 10,000

February 10,000
...

 SAP AG 1999

You can only enter planning in account assignment items with financial transaction 30.

You can branch from annual planning to period planning.
 Planning Layout

Commt item Currency Amount in FM area currency

1111 Expends 1 UNI 120,000

1122 Expends 2 UNI 130,000
1134 Expends 3 UNI 100,000
Commt itemExpends 4 Currency Amount 132.000 Amount in
1135
in transaction crcy FM area crcy

1111 Expends 1 USD 120,000 240,000

1122 Expends 2 USD 130,000 260,000
1134 Expends 3 USD 100,000 200,000
1135 Expends 4 USD 132,000 264,000

 SAP AG 1999

You can use different layouts for your planning work. Three standard layouts are available. You can
define additional layouts yourself.

When carrying out planning, you can choose between "Free" and "Form-based" as the method of
input. If you choose free input, the system displays only the commitment items for which there is
already plan data in the database. In form-based input, all the commitment items are shown.
Planning: Unit Summary

 You can create different financial budget versions.

 You can only plan in account assignment versions
with financial transaction 30.
 You can branch from annual
planning to period planning.
 Three standard layouts areavailable for planning.

 SAP AG 1999
Planning: Exercises

Unit: Planning

At the conclusion of these exercises, you will be able to:

- Enter plan values
- View plan values in different planning layouts

You will plan cash flows, thereby making it possible to produce a

target/actual analysis based on expenditures and revenues.

1-1 Plan annual values for the fiscal year 200J for commitment items 1126## and 1111.
Use the form-based view.

1-2 Display the planning in planning layout "2SAPTRCB" (transaction currency).

1-3 In the Cash Budget Management information system, go to the index "Plan-period
comparison" and choose the "Plan/Actual/Commitment" report. Display your plan
values in it.
Planning: Solutions

Unit: Planning
Topic: Planning in Commitment Items

1-1 Accounting -> Treasury -> Cash Budget Management -> Financial Budgeting ->
Change
Field Name or Data Type Values
Layout 1SAPTRCBAC
Version 1
Period 1
Period Current period
Fiscal year 200J
Commitment item 1111
Commitment item 1126##

1-2 Accounting -> Treasury -> Cash Budget Management -> Financial Budgeting -
Change
=> Goto -> Next Layout

1-3 Accounting -> Treasury -> Cash Budget Management -> Information System ->
Plan/Period Comparison -> Plan/Actual/Commitment Report
Payment Transfers

Contents
 Payment transfers as a correction instrument
 Enhanced payment transfers

 SAP AG 1999
Payment Transfers: Unit Objectives

At the conclusion of this unit, you will be able to:

 Create document types

 Explain how payment transfers work
 Carry out payment transfers

 SAP AG 1999
Course Overview Diagram

Introduction

Overview

Master Data

Update and Integration

Configuration and Organization

Planning

Payment Transfers

Information System
 SAP AG 1999
 Document Types for Payment Transfers

FI-
FI-FM
Document category 002
Funds transfer

Doc.type FI-FM earmarked funds

Doc.type

Number range 02

 SAP AG 1999

Payment transfers are controlled using document types. You maintain these in Funds Management
customizing:

 SAP Reference IMG:

 Financial Accounting - Funds Management -Postings - Define Document Types
Payment Transfers as a Correction Instrument

Correction within Cash Budget Management

Financial Accounting
Invoice receipt Incorrect

Doc.type 100 ... Commitment item 1 ...

Cash Budget Management Correction

Payment transfer
Doc.type 50 ... Commitment item 2 ...
Reporting after the payment transfer

Commt item Op.balance Revenues Expends Clsg balance

1111 50
112600 50-
Total 0

 SAP AG 1999

You can use the payment transfer as a correction tool within Cash Budget Management.

Input follows the sender (incorrect commitment item) receiver (correct commitment item)
principle.

The transaction is displayed in reporting under "Payments".

Enhanced Payment Transfers

Doc.type Clearing items

Revenue commt Expenditure
item commt item

Clearing between revenues and expenditures

+ - Amount Commitment
. item

.
.
.

 SAP AG 1999

You use the enhanced payment transfers to make transfers between revenues and expenditures.
Before you can do this, you must define clearing items per document type for the revenue side
and the expenditure side.

You do this in Funds Management customizing.
Payment Transfers: Unit Summary

 Payment transfers act as correction tools,

following the sender-receiver principle.
 Payment transfers are controlled using
document types.
 The enhanced payment transfer is available for
clearing revenues and expenditures.

 SAP AG 1999
Information System

Contents
 Report selection
 ALV reports
 Master data indices
 Totals records
 Line items

 SAP AG 1999
Information System: Unit Objectives

At the conclusion of this unit, you will be able to:

 Explain the different views of Cash Budget

Management data
 Navigate in the individual reports
 Adapt reports

 SAP AG 1999
Course Overview Diagram

Introduction

Overview

How Cash Budget Management Works

Configuration

Master Data

Transaction Data

Planning

Information System
 SAP AG 1999
 Report Selection

ABAP List Viewer reports

Master data indices

Totals records

Line item reports

 SAP AG 1999

Cash Budget Management reporting is divided into master data reports, totals records, and line-item
reports.

You can see this subdivision in the report tree.
 Report Selection

ABAP List Viewer reports

Master data indices

Totals records

Line item reports

 SAP AG 1999

Cash Budget Management reporting is divided into master data reports, totals records, and line-item
reports.

You can see this subdivision in the report tree.
 ABAP List Viewer: Plan/Actual/Commitment Report

Display Fields List of Fields

Column Content Itm Lgth Total Column Content Lgth
Description 1 20 Item 8
Plan in FMA crcy 2 20 Commitment item 10
Actual data 3 20 Commt in FMA crcy 20
Variance 4 20

Key Figure Plan in FMA Crcy Act.data Variance

Opening balance 150,000

Revenues 150,000 200,000 50,000

Expenditures 70,000 100,000 30,000

Closing balance 250,000

 SAP AG 1999

The planned/actual commitment report is based on the ABAP List Viewer (ALV). You can change
the variant we deliver to suit your individual requirements.

The following ALVreports are available, in addition to the one above:
 Actual/commitment report with hierarchy
 Actual/commitment report
 Actual/commitment per company code
 12 period preview report, actual and plan


 Report Selection

ABAP List Viewer reports

Master data indices

Totals records

Line item reports

 SAP AG 1999

Cash Budget Management reporting is divided into master data reports, totals records, and line-item
reports.

You can see this subdivision in the report tree.
Master Data Indices

Master data index

Assignment:
Commitment items G/L accounts to
commitment items
Hierarchy Master data
G/L accounts:
Company code 1000
FM area 1000 FM area 1000 FM area 1000
Key date: Dec.31, 2000 Key date: Dec.31, 2000 Key date: Dec.31, 2000

Expenditure item FM Commt :.. Company G/L Commt

11 area item code acct item
111 1000 1 1000 1000 111
112 1000 11 1000 1001 112
113 1000 112 1000 1002 113
1000 113 ... ... ...
Master record ... ...
info
12

 SAP AG 1999

You can use these programs to check the master data values you have defined.
For example: Are commitment items defined in every G/L account?
 Totals Records

ABAP List Viewer reports

Master data indices

Totals records

Plan/actual comparison

Commitment/actual/balance

Line item report

 SAP AG 1999

Totals records are predefined drilldown reports which you can use to analyze business transactions
affecting liquidity from MM and FI from various viewpoints.
Report: Commitment/Actual - Financial Budget

Navigation
Company code
Period
Value type
Trans.currency

Commitment item Financial ...

Commt/Actual
Display in Budget

2111 Sales revs 1000 1200

1111 Exp.: Materials 800- 800-

112600 Exp.: Training 100- 150-

Total 100 250

 SAP AG 1999

When you access the plan/actual comparison, the system first displays a drilldown list, showing
a comparison of the financial budget with the commitment/actual values. You can then evaluate
this information per company code, value type, currency, or commitment item.

You can also use the report to compare financial budgeting with the actual payments or
payment obligations.
Report: Commitment/Actual/Balance

Navigation
Company code
Period
Value type
Trans.currency

Key Figure Opening balance Revenues Expends Closing bal.

1st quarter 0 100 100

2nd quarter 100 100

3rd quarter 100 100
4th quarter 100 100

 SAP AG 1999

Unlike the "Plan/actual comparison", the first display in the "Commitment/actual/balance"

reports first shows a detail list. The list analyzes the characteristics in detail. The drilldown is
reduced to show the data for an FM area for one year.

The detail list of the commitment/actual/balance report shows all the balances, revenues, and
expenditures for an FM area for one year.
 Report: Commitment/Actual/Balance - Drilldown
List

Navigation
Company code
Period
Value type
Trans.currency 1st Quarter
Commitment item
Display in Op.balance Revenues Expends Closing bal.

2111 Sales revs 1000 1200 2200

1111 Exp.: Materials 800- 800-
112600 Exp.: Training 100- 100-
Total 1000 1200 900- 1300

 SAP AG 1999

The drilldown list enables you to display various characteristics (such as company codes or
commitment items) per the opening balance, revenues, expenditures, and closing balance. Unlike the
detail list, however, you can look at more than one characteristic configuration at a time.
Line Item Report

ABAP List Viewer reports

Master data indices

Totals records

Line item report

Commitment/Actual -
Commitment Item

 SAP AG 1999
Line Item Report

Commitment/Actual Line Items: By Commitment Item

Date Doc.no. Item no. CoCd G/L Vendor/ Amount

account customer

FM area FA00 2500

112600 Exp: Training 1500

Invoice 1500
01/01/xx 1900009 2 AC00 160000 91200 1500

Purchase order 1000

03/02/xx 4500008 4 AC00 440500 91200 1000

 SAP AG 1999

You can use the commitment/actual line item report sorted by commitment item to list the line
items according to different criteria, such as company codes or value types.
Information System: Unit Summary

 Cash Budget Management reporting is

divided into specific ABAP List Viewer reports,
master data indices, totals records and
line item reports.

 SAP AG 1999
Information System: Exercises

Unit: Information System

Topic: ABAP List Viewer

At the conclusion of these exercises, you will be able to:

• Explain the different views of Cash Budget Management data
• Navigate in the individual reports
• Adapt reports

Process the reports and display variants SAP delivers so that they
meet your specific requirements.

1-1 Access the plan/actual/commitment report, then call up the field setup for the current
display variant.

1-2 Choose the field "Commitment/actual in FM area currency" for display, then store the
variant.

1-3 Access the report again and display your variant.

Information System: Solutions

Unit: Information System

1-1 Accounting -> Treasury -> Cash Budget Management -> Information System ->
Report Selection -> Line Items -> Commitment/Actual Line Items by
Commitment Item
=> Settings => Current Display Variant

1-2 Choose the "Commitment/Actual in FM area currency" => Include in view and
save variant.

1-3 Accounting -> Treasury -> Cash Budget Management -> Information System ->
Report Selection -> Line Items -> Commitment/Actual Line Items by
Commitment Item
=> Settings => Display Variant => Choose.