Cash and Liquidity Management

Best Practice Scenario: Cash and Liquidity Management

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 Flow details Cash and Liquidity Management


Details of Cash and Liquidity Management

Roles

  • Accounts Payable
  • Accounts Receivable

Business Value of Cash and Liquidity Management

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.

Cash and Liquidity Management Flow for Payables Cash and Liquidity Management Flow for Receivables

Key Benefits of Cash and Liquidity Management


  • 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.

Application

  • SAP Business ByDesign

Continue to review the other SAP Business ByDesign Business Processes.


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