FSC120

Business Processes and

Configuration of In-House Cash
SAP ERP - Financials

Course Outline
Course Version: 98
Course Duration: 4 Day(s)
Publication Date: 2015
Publication Time:
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FSC120 Contents

Contents
Course Overview ....................................................................... v
Course Goals .........................................................................vi
Course Objectives ...................................................................vi

Unit 1: Introduction to FSCM and In-House Cash .............................. 1

Topics in Financial Supply Chain Management .................................. 1
Main Functions and Advantages of Using In-House Cash ..................... 1

Unit 2: Organizational Units in In-House Cash.................................. 2

Main Organizational Units Involved in In-House Cash .......................... 2
Functions of the In-House Cash Center .......................................... 2

Unit 3: Master Data in In-House Cash ............................................. 3

Business Partner and Other Central Data Objects in In-House Cash ........ 3
Accounts and Limits ................................................................. 3
Conditions and Condition Group Categories ..................................... 4

Unit 4: Business Processes in In-House Cash.................................. 5

Internal Payment Transactions using In-House Cash........................... 5
Central Payments with In-House Cash ........................................... 5
Central Incoming Payments ........................................................ 6
Cross-Bank-Area Payments ........................................................ 6
Local Payments with In-House Cash.............................................. 6
Provisional Payments in In-House Cash.......................................... 6
Use of Spreads in the In-House Bank............................................. 7

Unit 5: Periodic Processing – End-of-Day Transactions...................... 8

Main End-of-Day Transactions in In-House Cash ............................... 8
Cash Concentrations ................................................................ 8
Transferring Postings to the General Ledger..................................... 9

Unit 6: Integration with Other Components .................................... 10

Cash Management Integration ................................................... 10
Treasury Integration ............................................................... 10
Integration with Bank Communication Management .......................... 10

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FSC120 Contents

Unit 7: In-House Cash Configuration............................................. 11

Configuration of Basic Settings and Master Data...............................11
Configuration of Account Management ..........................................11
Configuration of Periodic Tasks .................................................. 12
ALE Configuration ................................................................. 12
Configuration of Financial Accounting........................................... 12

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FSC120 Course Overview

Course Overview
Course FSC120 looks at the In-House Cash area in detail, including some of the related
procedures and system settings.
This course replaces the previous courses CFM840 (In-House Cash) and FS120 (In-House
Cash).
The course will prepare you for using and configuring the most important processes offered by
In-House Cash. It will familiarize you with the most important organizational structures and
master data elements used in In-House Cash.
Main Business Scenario (1)
• You first want to gain an overview of the Financial Supply Chain Management (FSCM)
components.
• What are the goals and advantages of the SAP In-House Cash application?
• To find out about the basic structure and the preparations that need to be made, you want
to gain an overview of the organizational units involved and then maintain the master
data.
• You want to manage your intra-group and external payment transactions and the
corresponding risks as effectively as possible and, in doing so, secure a competitive
advantage.

Main Business Scenario (2)

• How can payment transactions within the group be automated efficiently?
• How can group payment transactions with third parties be automated?
• What is the procedure for central incoming payments?
• What settings need to be made in the application and in Customizing in order to use the
In-House Cash application effectively?

Target Audience
This course is intended for the following audiences:

• Anyone interested in learning about IHC Configuration and Business Process

Course Prerequisites
Required Knowledge
• Familiarity with basic financial accounting functions in SAP

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FSC120 Course Overview

Recommended Knowledge
• AC010 Business Processes in Financial Accounting
• AC805 Cash Management

Course Goals
This course will prepare the participant to:

• Use the core business processes and functions offered by In-House Cash
• Create the necessary master data and make the area-specific settings in Customizing

Course Objectives
After completing this course, the participant will be able to:

• Describe the organizational units used in the In-House Cash application

• Understand the Master data used in In-House Cash
• Automate intra-group payments and payments made to external partners and describe the
procedure for central incoming payments
• Explain the cross-bank area posting function
• Carry out special periodic activities
• Carry out basic area-specific Customizing

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FSC120 Course Outline

Unit 1
Introduction to FSCM and In-House Cash
Unit Overview
The In-House Cash solution is part of the Financial Supply Chain Management (FSCM). In
this unit an overview of the available functionality the FSCM area is presented.
This unit provides an introduction to the basic business functions addressed by In-House Cash
and the business benefits and advantages that can be realized with In-House Cash.

Lesson: Topics in Financial Supply Chain Management

Lesson Objectives
After completing this lesson, the participant will be able to:
• Analyze the main functions of FSCM products and their relation-
ship with In-House Cash

Lesson: Main Functions and Advantages of

Using In-House Cash
Lesson Objectives
After completing this lesson, the participant will be able to:
• Explain the objectives of In-House Cash
• List the advantages of In-House Cash

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FSC120 Course Outline

Unit 2
Organizational Units in In-House Cash
Unit Overview
In this unit the organizational units of In-House Cash like the bank area and the related
functionality are discussed.

Lesson: Main Organizational Units Involved

in In-House Cash
Lesson Objectives
After completing this lesson, the participant will be able to:
• List the organizational units involved and describe their roles

Lesson: Functions of the In-House Cash Center

Lesson Objectives
After completing this lesson, the participant will be able to:
• Summarize the basic functions of the In-House Cash Center and
the financial accounting system

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FSC120 Course Outline

Unit 3
Master Data in In-House Cash
Unit Overview
In this unit you will learn the function of various master data used in In-House Cash and how
to maintain this data. Master data is usually created once at the beginning and then provides
the framework for the transaction data. However, changes can be made later, if necessary.The
following type of data objects are discussed in this unit:
• Business partner
• Bank area
• Product
• Account
• Limits
• Conditions

Lesson: Business Partner and Other Central Data

Objects in In-House Cash
Lesson Objectives
After completing this lesson, the participant will be able to:
• Explain the principle of the central business partner and its use in In-House
Cash, including the role concept and In-House-Cash-related roles
• Define the bank area as the central organizational unit for any In-House Cash system
• Explain the use of products and application to In-House Cash accounts

Lesson: Accounts and Limits

Lesson Objectives
After completing this lesson, the participant will be able to:
• Explain the concept of current accounts in In-House Cash
• Describe the payment-related functions offered by In-House Cash accounts
• Describe the control function of the In-House Cash account for
several periodic processes
• Explain the reporting functions within the In-House Cash account
• Explain the limit functions in detail and maintain limits in In-House Cash accounts

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FSC120 Course Outline

Lesson: Conditions and Condition Group Categories

Lesson Objectives
After completing this lesson, the participant will be able to:
• Explain the concept of conditions in In-House Cash
• Describe the framework for entering conditions
• Explain the use of conditions for individual accounts or groups of accounts
• Define required condition groups and conditions for your spe-
cific business environment
• Enter conditions of different categories in In-House Cash

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FSC120 Course Outline

Unit 4
Business Processes in In-House Cash
Unit Overview
In this unit the different payment processes supported by the In-House Cash application are
explained in detail. This includes:
• Classical payment transaction processes handled by the In-House Cash solution, based
on the organizational units described earlier
• The use of clearing partners
• Cross-bank-area transactions
• Conversion of international payments into local payments
• Provisional posting of payment transactions
• The use of spreads for payment transactions in foreign currency

Lesson: Internal Payment Transactions using In-House Cash

Lesson Objectives
After completing this lesson, the participant will be able to:
• Explain the full process of internal payment processing
• List the required settings in the company codes of the subsidiaries for
house banks and bank statement processing
• Describe the data flow between subsidiary and in-house bank systems

Lesson: Central Payments with In-House Cash

Lesson Objectives
After completing this lesson, the participant will be able to:
• Describe the process of central payments to external recipients in In-House Cash
• Define a process for the handling of several kind of returns
• Explain when and how to use the payment program for payment requests

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FSC120 Course Outline

Lesson: Central Incoming Payments

Lesson Objectives
After completing this lesson, the participant will be able to:
• Describe the process of central incoming payment processing in In-House Cash
• Explain what kind of identification methods are available to de-
rive the payment recipient
• Describe how to set up a process for zero balancing cash pooling in In-House Cash

Lesson: Cross-Bank-Area Payments

Lesson Objectives
After completing this lesson, the participant will be able to:
• Explain when and how to use bank areas in the In-House Cash structure
• Describe the clearing partner concept in In-House Cash
• Define routes for cross-bank-area transactions

Lesson: Local Payments with In-House Cash

Lesson Objectives
After completing this lesson, the participant will be able to:
• Create a concept for your group to optimize payment routes using In-House Cash
• Explain how local subsidiaries might be used as clearing partners of the in-house bank
• Define how cross-border payments can be changed to local pay-
ments using In-House Cash

Lesson: Provisional Payments in In-House Cash

Lesson Objectives
After completing this lesson, the participant will be able to:
• Describe the difference between provisional and final posting of payment orders
• Decide what kind of business transactions in your company should
be posted provisionally
• Explain the impact of provisional postings on the P/L of the in-house bank

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FSC120 Course Outline

Lesson: Use of Spreads in the In-House Bank

Lesson Objectives
After completing this lesson, the participant will be able to:
• Explain how the in-house bank could apply spreads to transactions in foreign currency
• Explain the use of primary and secondary exchange rate types in In-House Cash

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FSC120 Course Outline

Unit 5
Periodic Processing – End-of-Day
Transactions
Unit Overview
In this unit the processes used during the end-of-day processing are discussed. During the
end-of-day processing, which is typically executed in an inactive time period (for example,
overnight), many periodic and administrative tasks are performed. This includes:
• Generation and sending of bank statement to the In-House Cash account owners
• Generation of payment transactions from standing instructions
• Generation of balance notifications
• Calculation and posting of interest for the In-House Cash accounts
• Execution of internal cash concentration
• Generation of postings in the general ledger of the in-house bank company code

Lesson: Main End-of-Day Transactions in In-House Cash

Lesson Objectives
After completing this lesson, the participant will be able to:
• Give an overview of the periodic tasks
• Organize the process flow for end-of-day processing

Lesson: Cash Concentrations

Lesson Objectives
After completing this lesson, the participant will be able to:
• Perform cash concentration and set up account hierarchies

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FSC120 Course Outline

Lesson: Transferring Postings to the General Ledger

Lesson Objectives
After completing this lesson, the participant will be able to:
• Explain the procedure for the transfer to the general ledger, including
the logic and scope, as well as the posting system used and some of
the settings to be made in Customizing

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FSC120 Course Outline

Unit 6
Integration with Other Components
Unit Overview
This unit will show how SAP In-House Cash is integrated with some other SAP components in
the FSCM. This relates to the transfer of data into cash management, the import of payment
data from the treasury application and the processing of payment data from IHC in the bank
communication management.

Lesson: Cash Management Integration

Lesson Objectives
After completing this lesson, the participant will be able to:
• Describe how data from the In-House Cash can be used in Cash Management
• Explain how the cash management data is integrated with SAP Cash Management

Lesson: Treasury Integration

Lesson Objectives
After completing this lesson, the participant will be able to:
• Describe how SAP Treasury Management can be integrated with In-House Cash

Lesson: Integration with Bank Communication Management

Lesson Objectives
After completing this lesson, the participant will be able to:
• Explain how Bank Communication Management can be used in the
context of In-House Banking processes
• Explain the general functionality offered by the Bank Communication Management

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FSC120 Course Outline

Unit 7
In-House Cash Configuration
Unit Overview
In this unit we will discuss the configuration of SAP In-House Cash in detail. The unit follows
the structure of the IMG and will cover the following topics:
• Basic settings including Business Transaction Events (BTEs)
• Master data configuration, for example, account products and limits
• Configuration of the payment processes like, for example, definition of transaction types
• Configuration of periodic tasks like account definition for G/L transfers
• Configuration of the ALE interface
• Configuration of some required FI settings from the bank accounting area

Lesson: Configuration of Basic Settings and Master Data

Lesson Objectives
After completing this lesson, the participant will be able to:
• Configure the basic settings for In-House Cash
• Configure In-House Cash master data such as products, In-House
Cash accounts, limits, and conditions

Lesson: Configuration of Account Management

Lesson Objectives
After completing this lesson, the participant will be able to:
• Configure transaction types and clearing partners for the In-House
cash payment processes
• Configure the payment processes in In-House Cash based on the business
requirements developed for these processes
• Define routes and processing of payments to external business partners via
In-House Cash Centers and other clearing partners

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FSC120 Course Outline

Lesson: Configuration of Periodic Tasks

Lesson Objectives
After completing this lesson, the participant will be able to:
• Configure the general ledger transfer
• Define a process chain for the end-of-processing

Lesson: ALE Configuration

Lesson Objectives
After completing this lesson, the participant will be able to:
• Configure the partner profiles required for In-House Cash
• Explain the information flow provided by IDoc messages within In-House
Cash and between In-House Cash and other SAP components

Lesson: Configuration of Financial Accounting

Lesson Objectives
After completing this lesson, the participant will be able to:
• Configure the payment program for open items used in the subsidiaries to
send payment instructions to the in-house bank
• Configure the payment program for payment requests that the in-house bank and
its clearing partners use to send payment instructions to external banks
• Configure the processing of incoming bank statements

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