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SAP In-House CashSolution Overview
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© SAP AG 2009. All rights reserved. / Page 2
Legal Disclaimer
This presentation is a preliminary version
and not subject to your license agreementor any other agreement with SAP.
This document contains only intended
strategies, developments, and functionalities
of the SAP® product and is not intended to
be binding upon SAP to any particular course of business, product strategy, and/or
development. Please note that this document
is subject to change and may be changed
by SAP at any time without notice.
SAP assumes no responsibility for errorsor omissions in this document.
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1. Introduction
2. Organizational Entities
3. Master Data In-House Cash Center
4. Business Processes
5. Periodic Activities
6. Integration with SAP Cash and Liquidity Management
7. Enterprise SOA
8. Deployment Options
9. Summary
Agenda
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Current Situation
Internal Bank
Internal
Bank
Region 1
Region 2
. . . with a high volume of internal and external payment transactions
Various and ever-changing multi-national corporate group structures . . .
Subsidiary
Subsidiary
Subsidiary
USA
Subsidiary
Subsidiary
Asia
Subsidiary
Head office
(Europe)
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SAP In-House Cash – What is it?
The SAP In-House Cash application allows diversified companies to optimize their intra-
group payment transactions by opening an in-house bank. An In-House Cash Center is a
virtual bank within the corporate group, with which each associated company has one account
or more. For the associated companies, the In-House Cash Center is just another house bank,
which they use primarily to process payables and receivables involving other group
companies. At the same time, you can set up accounts for external companies that are not
associated with the group. This allows them to be included in the netting process.
The In-House Cash Center is used to process all payments between company units, thuskeeping cash resources within the group and optimizing how they are applied. This saves on
the costs of external netting services and provides greater flexibility when you process
payment netting transactions.
The SAP in-House Cash application allows companies with a diversified organizational
structure to minimize the actual flow of cash and therefore reduce bank charges, interest
expenses, and losses resulting from delays in value-dating payments. It also helps to avoidmany of the disadvantages associated with external clearing solutions, such as
inflexible procedures with fixed dates and extra costs resulting from manual post processing.
By managing accounts centrally, you can assure your company’s ability to pay, optimize
credit management, minimize interest expenses, and maximize interest revenues.
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© SAP AG 2009. All rights reserved. / Page 6
Financial Excellence with
Treasury Applications from SAP
Treasury applications from SAP
SAP Treasury and Risk Management
Risk Analyzers
Transaction Manager MoneyMarket
ForeignExchange
Secu-rities
Com-modities
Deri-vatives
DebtMgmt
Manage Global
Financial Risks
Optimize Debt and
Investment Strategies
Manage Cash
and Liquidity
SAP Cash and Liquidity Management
Cash Management Liquidity Planning
Optimize Payments and
Bank Communication
SAP In-House Cash
SAP Bank Communication Management
Exposure Management Hedge Management
Credit Risk Analyzer Market Risk Analyzer Portfolio Analyzer
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1. Introduction
2. Organizational Entities
3. Master Data In-House Cash Center
4. Business Processes
5. Periodic Activities
6. Integration with SAP Cash and Liquidity Management
7. Enterprise SOA
8. Deployment Options9. Summary
Agenda
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Corporate Group
Functions and Tasks of the Organizational Entities Involved
SAP In-House Cash Organizational Entities –
Overview
Subsidiary 2
Subsidiary 1
Subsidiary 3
Head Office
In-House
Cash Center
Account
management
Financial
Accounting
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Corporate Group
Organizational Entities: Subsidiary
Subsidiary
Individual trading entity (e.g. subsidiary) with its own systems (e.g. R/3)
This subsidiary holds one or more current accounts within the corporate group head office
(In-House Cash Center)
The subsidiary simply has to define new bank details (for the virtual bank) to the corporate
group head office (In-House Cash Center) as though it were a normal house bank
Subsidiary 2
Subsidiary 1
Subsidiary 3
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Corporate Group
Organizational Entities: Head Office
Head Office
The head office manages the current accounts for the corporate group subsidiaries withinthe IHC Center
The financial accounting department within the head office manages the IHC Center general
ledger accounts
Other components such as CO, MM, .... could be in use at the head office
Head Office
In-House
Cash Center
Account
management
Financial
Accounting
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Corporate Group
Organizational Entities: In-House Cash Center
In-House Cash Center (IHC Center)
The IHC Center is situated at the head office and can be a separate organizational entitywithin the head office
The IHC Center manages the subsidiaries IHC current accounts as a head office subledger
Represents a part of the company that processes internal corporate group and
cross-group payments
Head Office
In-House
Cash Center
Account
management
Financial
Accounting
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Corporate Group
Organizational Entities: Financial Accounting
Department
Financial Accounting Department
The general ledger accounts for the IHC Center subledger are set up here
It holds the IHC Center balances in summarized form
It creates the balance for the corporate group, taking account of IHC
The financial accounting department uses SAP-FI
Head Office
Financial
Accounting
In-House
Cash Center
Account
management
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Corporate Group
Summary
Subsidiary 2
Subsidiary 1
Subsidiary 3
Organizational entities
Operative subsidiaries 1,2,3...
The IHC Center and the financial accounting department are situated within the head office
The IHC Center (manages the subsidiary current accounts)
The financial accounting department manages the chart of accounts and the general
ledger balances
Head Office
In-House
Cash Center
Account
management
Financial
Accounting
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1. Introduction
2. Organizational Entities
3. Master Data In-House Cash Center
4. Business Processes
5. Periodic Activities
6. Integration with SAP Cash and Liquidity Management
7. Enterprise SOA
8. Deployment Options9. Summary
Agenda
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Master Data in SAP In-House Cash Center
Bank area is a central, self-contained organizational unit that manages and processes all the
accounts for an in-house cash center. There is a bank area for each in-house cash center. If you want to use several in-house cash centers, you must set up several bank areas.
Business Partners can be an affiliated company, an external business partner, another bank,
the head office, another in-house cash center, or an internal organizational entity. Each
business partner can have more than one role. The solution recognizes standard roles, such
as account holder, authorized drawer, bank statement recipient, contact person, and account
maintenance office.
Product is a set of current account attributes. It is used as a template for defining fields,
conditions and limits, features and payment transaction operations. You first define products
and then crate accounts based on these products. A product configurator is available for
defining the products. The product configurator facilitates the definition of the business and
technical features of a product, its version creation and the layout of the functions on
the screen. Accounts are seen as characteristics of a product. You must create an account in SAP In-
House Cash for each participated affiliated company.
The available condition categories are divided into the condition group categories interest,
charge and value dates.
SAP has standard limit categories for overdraft limits, internal credit limits and external
credit limit
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Account Overview
Account A
+ 100
- 120
..
..
Limits
G/L Transfer
Subsidiary 1
- 20
+ 50..
..
Subsidiary 2
+ 100
- 50..
..
Headquarter
IHC
IHC Receiv. IHC Payab.
Pmnt clearing
(1) 200
FI – GL
(2) 540
(2) 540 (1) 200
Blocks
Reporting
Currency
conversion
Businesspartner
Conditions
Turnovers
No Post.dte Curr. AmntVal.dte
1 30.12.00 31.12.00 EUR 100.00 C
2 31.12.00 31.12.00 EUR 9.58 D
Bankstatements
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Condition Master Data
Head Office
D 4912132213 C
10.00 100.00
0.42
Charges
Account maintenance
10.00 USD
Interest
Credit interest 0.5%
Value date
Posting date +1 day
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Condition Group Category: Interest
Condition group category
Condition group
Conditon categoryDebit interest Credit interest
Overdraft
interest
Transaction
interest
Interest
0004
Interest of affiliated companies
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Condition Group Category: Charges
Condition group category
Condition group
Conditon category
Item
charges
Mailing
charges
Account
charges
Direct
charges
Charges
Periodic
charges
0004
Charges of affiliated companies
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Condition Group Category: Value Date
Condition group category
Condition group
Conditon category
Value date
0004
Value date of affiliated companies
Value dateValue date subject of
final payment
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1. Introduction
2. Organizational Entities
3. Master Data In-House Cash Center
4. Business Processes
5. Periodic Activities
6. Integration with SAP Cash and Liquidity Management
7. Enterprise SOA
8. Deployment Options9. Summary
Agenda
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Corporate Group
Process 1: Internal Payment
Example: “Subsidiary 1 makes a payment to Subsidiary 2”
Subsidiary 2
Subsidiary 1
Subsidiary 3
1Pmnt Program OP
2a
2b
Payment Bank Statement
Head Office
In-House
Cash Center
Account
management
Financial
Accounting
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Corporate Group
Process 1: Internal Payment
Subsidiary 2Subsidiary 1
Subsidiary 3
1Pmnt Program OP
2a
2b
Subsidiary 1:
Defines a new (virtual) house bank „IHC Center“ beforehand
Starts the standard payment program and generates a payment order
House bank: IHC Center
Payee: Vendor „Subsidiary 2“
Partner bank: IHC Center
When the IHC Center is in operation, it is possible to freely define the payment conditions
1
Head Office
In-House
Cash Center
Account
management
Financial
Accounting
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Corporate Group
Process 1: Internal Payment
Subsidiary 2Subsidiary 1
Subsidiary 3
1Pmnt Program OP
2a
2b
IHC-Center:
Debits the IHC current account of subsidiary 1
=> Receivable due from subsidiary 1
Creates a credit memo for the IHC current account of subsidiary 2
=> Payable due to subsidiary 2
Generates and sends bank statements to subsidiaries 1 and 2
The netting amount results from the account balance (based on the turnovers)
2
Head Office
In-House
Cash Center
Account
management
Financial
Accounting
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Corporate Group
Process 1: Internal Payment
Subsidiary 2
Subsidiary 1
Subsidiary 3
Pmnt Program OP
Subsidiaries 1 and 2:
Import the internal bank statements in the same way as the bank statements from external
house banks via the standard bank statement programs
At this point the system automatically clears the open items
Internal payments without involvement of banks
Head Office
In-House
Cash Center
Account
management
Financial
Accounting
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Subsequent Process: Internal Netting
Head Office
Subsidiary 1
- 20
+ 50
..
..
= + 30 = + 50 = - 80
In-House Cash Center
Subsidiary 2
+ 100
- 50
..
..
Subsidiary 3
- 100
+ 20
..
..
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Corporate Group
Process 2: Central Payments
Example: “Subsidiary 1 makes a payment to an external partner”
Subsidiary 2
Subsidiary 1
Subsidiary 3
1Pmnt Program OP
2
Payment Bank Statement
Head office
house
bank
67
Partner bank
External
business partner
Head Office
In-House
Cash Center
Account
management
Financial
Accounting
3
4 5
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Process 2: Central Payments
IHC Center
IHC Center forwards payment information to SAP-FI (Financial accounting)
Financial Accounting
A payment order (payment request) is created in SAP-FI on the basis of this payment
information
The payment order is either sent to the head office house bank immediately or at a later
point in time (collection of several payment orders = external netting)
Corporate Group
Subsidiary 2
Subsidiary 1
Subsidiary 3
1Pmnt Program OP
2
Head office
house bank67
Partner bank
External
business partner
3
4
Head Office
In-House
Cash Center
Account
management
Financial
Accounting
4 5
3
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Process 2: Central Payments
SAP-FI
Imports the bank statement via the standard bank statement programs
Head office house bank
Partner bank
Corporate Group
Subsidiary 2
Subsidiary 1
Subsidiary 3
1Pmnt Program OP
2
Head office
house bank67
Partner bank
External
business partner
5
6
7
Procedure is the same as for a „normal“
payment order to a house bank
Head Office
In-House
Cash Center
Account
management
Financial
Accounting
3
4 5
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Corporate Group
Process 3: External Incoming Payments
Via IHC
Example: “Partner pays subsidiary 1”
Subsidiary 2
Subsidiary 1
Subsidiary 3
1
5
Payment Bank Statement
Head office
house
bank
32
Partner bankPmnt Program OP
External
business partner
Head Office
In-House
Cash Center
Account
management
Financial
Accounting
4
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3
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Process 3: External Incoming Payments
via IHC
Corporate Group
Subsidiary 2
Subsidiary 1
Subsidiary 3
1
5
Head office
house bank32
Partner bankPmnt Program OP
External
business partner
SAP-FI
Imports the bank statement via the standard bank statement programs
Identifies items which are relevant for the IHC Center
Forwards the corresponding items to the IHC Center
IHC Center
Generates a credit memo for the IHC current account belonging to subsidiary 1
Creates and sends a bank statement to subsidiary 1
4
5
Head Office
In-House
Cash Center
Account
management
4
Financial
Accounting
P 3 E t l I i P t ith
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Corporate Group
Process 3: External Incoming Payments with
Zero Balancing
Each company has only one bank-link for the incoming payments e.g. receivables
Subsidiary 2
Subsidiary 1
Subsidiary 3
Pmnt Program OP
4a
Payment Bank Statement
Head office
house
bank
1
Zero Balancing
4b
4c
House bankSubsidiary 3
House bankSubsidiary 2
House bankSubsidiary 1
Head Office
In-House
Cash Center
Account
management
Financial
Accounting
3
2
P 4 I t l P t ith S l
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Process 4: Internal Payments with Several
IHC Centers
Subsidiary 2
Subsidiary 1
Subsidiary 3
Payment Bank Statement
1
2
Subsidiary 5
Subsidiary 4
Subsidiary 6
4
Head Office
In-House
Cash Center
Europe
Account
management
Financial
Accounting
Head Office
In-House
Cash Center
America
Account
management
Financial
Accounting
3
P 4 I t l P t ith S l
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Process 4: Internal Payments with Several
IHC Centers
SAP-FI
The incoming payment order from subsidiary 1 generates two payment orders,
one in the IHC Center America, and one in the IHC Center Europe
IHC Center A manages a current account for IHC Center E, and vice versa
Subsidiary 2
Subsidiary 1
Subsidiary 3
1
2
Subsidiary 5
Subsidiary 4
Subsidiary 6
4
Head Office
In-House
Cash Center
America
Account
management
Financial
Accounting
Head Office
In-HouseCash Center
Europe
Account
management
Financial
Accounting
3
P 5 C t l P t ith S l
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Process 5: Central Payments with Several
IHC Centers
Subsidiary 2
Subsidiary 1
Subsidiary 3
Payment Bank Statement
1
2
4
Head office
house
bank
5
Partner
bank
External
business
partner
Head Office
In-House
Cash Center
America
Account
management
Financial
Accounting
Head Office
In-HouseCash Center
Europe
Account
management
Financial
Accounting
3
P 6 L l P t
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Financial
Accounting
Account
management
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Process 6: Local Payments
Example: “A Subsidiary in Germany makes a payment to an
external partner in UK”
Subsidiary A
Germany
Pmnt Program OP
Payment Bank Statement
House bank67
3 5
Partner bank
External business
partner UK
In-House Bank
Germany
Subsidiary B
(UK)
1
4a
4b
2
of
Subsidiary C
P 6 L l P t
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Process 6: Local Payments
Example: “A Subsidiary in Germany makes a payment to an
external partner in UK”
Subsidiary
Germany
Pmnt Program OP
Payment Bank Statement
67
3 5
Partner bank
External business
partner UK
In-House
Bank Germany
1
4
2
Headquarter
IHC
House bank
Subsidiary UK
of
Subsidiary UK
Financial
Accounting
Account
management
Process 6: Local Payments
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Process 6: Local Payments
Subsidiary
Germany
Pmnt Program OP
In-House
Bank Germany
Headquarter IHC
Subsidiary UK
Automatic identification of the external house bank that carries out the payment
depending on the recipient
Route
determination
Automatic validation regarding the liquidity on the current account of the subsidiariesLimit monitoring
Duplicate files, formal checks, currencies, posting date, value date, current accounts,
business partner Inbound checks
Principle of dual control also for automatic payments (IDocs)
Dual control
principle
Financial
Accounting
Account
management
Process 6: Local Payments
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Process 6: Local Payments
Example: “A Subsidiary in Germany makes a payment to an
external partner in UK”
Payment Bank Statement
Subsidiary
GermanyPmnt Program OP
67
3 5
Partner bankExternal business
partner UK
In-House
Bank Germany
14
2
Headquarter
IHC
House bank
Subsidiary UK
of
Subsidiary UK
Financial Accounting
Accountmanagement
Process 6: Local Payments
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Subsidiary Germany
has defined the Headquarter In-House Cash Center as(virtual) house bank
Runs the standard payment programm (F110) and creates a payment order
House bank: In-House Bank Germany
Recipient of the payment: Vendor „External business partner UK“
Process 6: Local Payments
1
Subsidiary
Germany
Pmnt Program OP
78
4 6
Partner bank
External business partner
UK
In-House
Bank Germany
1
5
3
Headquarter
IHC
House bank
Subsidiary UK
of Subsidiary UK
2
Financial
Accounting
Account
management
Process 6: Local Payments
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In-House Bank Germany
Modifies the payment order if necessary
Validation of limits
Validation whether the payment is internal or external, if external, which external house
bank is used
Validation whether the payment order should be posted finally, provisionally or be parked
Validation if dual-control principle is necessary to post the payment order
Process 6: Local Payments
2
Subsidiary
Germany
Pmnt Program OP
78
4 6
Partner bank
External business partner
UK
In-House
Bank Germany
1
5
3
Headquarter
IHC
House bank
Subsidiary UK
of Subsidiary UK
2
Financial
Accounting
Account
management
Process 6: Local Payments
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In-House Bank Germany
On the basis of the recipient of the payment the In-House Bank forwards the payment
informations to SAP FI of Subsidiary UK Debits current account of Subsidiary Germany
Credits current account of Subsidiary UK
Financial Accounting Subsidiary UK
The payment order is sent to the external house bank of Subsidiary UK, either
immediately or later, using the standard payment program F111
Process 6: Local Payments
3
Subsidiary
Germany
Pmnt Program OP
78
4 6
Partner bank
External business partner
UK
In-House
Bank Germany
1
5
3
Headquarter
IHC
House bank
Subsidiary UK
of Subsidiary UK
2
4
Financial
Accounting
Account
management
Process 6: Local Payments
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In-House Bank Germany
Generates and sends a bank statement to Aesculap and B.Braun UK
Financial Accounting Subsidiary UK
Imports external bank statement using the standard bank statement programs
House bank of Subsidiary UK
Partner bank
Process 6: Local Payments
5
Subsidiary
Germany
Pmnt Program OP
78
4 6
Partner bank
External business partner
UK
In-House
Bank Germany
1
5
3
Headquarter
IHC
House bank
Subsidiary UK
of Subsidiary UK
2
6
7
8
Procedure is the same as for a „normal“
payment order to a house bank
Financial
Accounting
Account
management
Process 6: Local Payments
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Process 6: Local Payments
Subsidiary
Germany
Vendor: EXTERN
External
bank partner
External
business partner
In-House BankB.Braun
1
Headquarter IHC
External
bank
Subsidiary
UK
Subsidiary UK
Debits account
Sub. Germany
Credits account
Sub. UK
PaymentProgram
(F111)
IDOC:
Payext
2
IDOC:
Payext
3 3
IDOC: Finsta
Financial
Accounting
SAP In-House Cash Currency Conversion
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Head Office
Corporate Group
Subsidiary 2
Subsidiary 3
Subsidiary 1
SAP In-House Cash Currency Conversion
Function
Pmnt Program OP
-100 YEN Acct 1
+100 YEN Acct 2
Payment order:
Currency Conversion Function
Converts the incoming payment items from the subsidiaries into account currency (manual conversion of payment items with IHC supported)
Enters the account currency and the reference transaction amount (e.g. for bank statement purposes) in theposting documents in IHC.
Generates an additional posting on currency position accounts.
Transaction
currency YEN
Account
Currency USD
Financial
Accounting
Local
currency
GBP
Account
management
Account
management Currency
Conversion
Function
Agenda
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1. Introduction
2. Organizational Entities
3. Master Data In-House Cash Center
4. Business Processes
5. Periodic Activities
6. Integration with SAP Cash and Liquidity Management
7. Enterprise SOA
8. Deployment Options9. Summary
Agenda
Periodic Activities
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Periodic Activities
Posting cut-off for payment transactions
Broken Promises to Pay
Account balancing
Cash Concentration
Interest accrual/deferral
Interest compensation
Balance sheet preparations
Set next account balancing date
Transfer to general ledger
Agenda
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1. Introduction
2. Organizational Entities
3. Master Data In-House Cash Center
4. Business Processes
5. Periodic Activities
6. Integration with SAP Cash and Liquidity Management
7. Enterprise SOA
8. Deployment Options9. Summary
Agenda
Full Integration of SAP Cash and Liquidity
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Full Integration of SAP Cash and Liquidity
Management
New transactions to support the integration of SAP
Cash and Liquidity Management: IHCCM1: To submit the IHC financial status to CM
IHCCM2: Online Analysis
Note: The updated accounts in SAP Cash and Liquidity
Management are not identical with the accounts in SAP General
Ledger. It should be avoided to use the same accounts in SAP
Cash and Liquidity Management as in SAP General Ledger.
Full Integration of SAP Cash and Liquidity
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Full Integration of SAP Cash and Liquidity
Management
The balances on the SAP In-House Cash current accounts are displayed in SAP
Cash and Liquidity Management
The following planning levels are used:
Account balances that are finally posted
Internal provisional turnovers
External provisional turnovers
Full Integration of SAP Cash and Liquidity
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Full Integration of SAP Cash and Liquidity
Management
A new online analysis report for SAP In-House Cash & Cash and Liquidity
Management is additionally available.
With the ABAP List Viewer (ALV) it is possible to define your own report variants
providing you with a high degree of flexibility.
Agenda
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1. Introduction
2. Organizational Entities
3. Master Data In-House Cash Center
4. Business Processes
5. Periodic Activities
6. Integration with SAP Cash and Liquidity Management
7. Enterprise SOA
8. Deployment Options9. Summary
Agenda
Enterprise SOA for SAP In-House Cash –
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Enterprise SOA for SAP In House Cash
Overview
SAP In-House Cash provides payment related services for a group of affiliated
companies: Central dispatching, routing and processing of payments (intra-group payments / external
payments / incoming payments)
tracking of payment status (e.g. to support secure reversal of payments)
account statements to account holders
financial status to cash management
Scenario is characterized by
multi-system / heterogeneous system landscape
huge number of connected subsidiaries possible
high volume information exchange / networking between the systems
Currently used interfaces are based on
IDoc
RFC
Payment Factories with Enterprise SOA
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Payment Factories with Enterprise SOA
A/P Accountant Cash Manager Treasury Manager
Procurement
SAP NetWeaver
Payment In-House CashBank
CommunicationManagement
BankConnection
SAP ERP Legacy Third-partyERP/Treasury Bank(s)
Transactions, security, identity, and messaging
managed by SAP NetWeaver leverage enterprise services
to orchestrate an end-to-end payment process
Enterprise Services
Software Component
Today’s Business Challenges for Payment
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Lack of cash flow transparency leads to high capital costs and value date losses
High number of bank connections creates high TCO and slows down reconciliation
processes
y g y
Factories
Manual handling of process exceptions
No straight-through processing of payments
Lacking payment format standards increases integration complexity
A/P Accountant Cash Manager Treasury Manager
Processbank
statements
Processpaymentorders
Create bankstatements
Initiatepayment
run
Today’s IT Challenges for Payment Factories
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y g y
A/P Accountant Cash Manager Treasury Manager
High integration complexity in process set up across different systems
Usage of different kinds of integration types and usage of different technical or
business standards
Difficult to connect non-SAP systems to payment factory
Missing real-time information on payment status
Limitations of current IDoc-based interface technology (e.g., message capacity, IDoc)
High number of proprietary interfaces
IT Landscape
Legacy
System
Accounts
Payable
Bank
CommunicationBank
ConnectionTreasury
System
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Enterprise SOA – Process Efficiency
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Corporate
Payment
Factory
A/P Accountant Cash Manager
p y
Treasury Manager
SAP NetWeaver
SubsidiaryInitiate
payment
Procurement PaymentBank
CommunicationManagement
BankConnection
In-House Cash
Bank
Processin-housepayment
Process bank
statement
Createbank
statement
Receivepaymentinstruction
Createpaymentinstruction
Create bankstatement
Process bankstatement
straight-through
processing Enterprise Services
Enterprise SOA – Extension/Innovation
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SubsidiaryInitiate
payment
Process bank
statement
BankProcesspayment
instruction
Corporate
Payment
Factory
SWIFTForwardpaymentinstruction
A/P Accountant Cash Manager
p
Treasury Manager
SAP NetWeaver
Procurement PaymentBank
CommunicationManagement
BankConnection
In-House Cash
Createpaymentinstruction
Processin-housepayment
Createbank
statement
Forwardbank
statement
Send status
information
Process bankstatement
Trackpaymentlife cycle
Processpayment
instructionDirect multi-bank
connection via SWIFT
The Unique Value of Business Flexibility for
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Higher straight-through processing rates for payments
Increased Process
Efficiency/
Automation
Flexible service bundling with increased bank communicationmanagement capabilities
Better exception processing and increased security
Increased User
Productivity/
Collaboration
A/P Accountant Cash Manager
q y
Payment Factories
Treasury Manager
Procurement PaymentBank
CommunicationManagement
BankConnectionvia SWIFT
In-House Cash
Cash Manager Treasury Manager
ExtensibilityEfficiency/TransparencyUser Productivity
Increased cash flow transparency
Easier adaption of new payment standards andmulti-bank connectivity
Flexible Process
Innovation/
Extensibility
The Unique Value of IT Flexibility for
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Treasury Manager Cash Manager
Reduced integration complexity and lower TCO byservice-enabled application and integration standards
Ease of Integration
and Consolidation
Ease of using additional bank services (e.g. cash mgmt, EIPP)
Consolidated and harmonized real-time information across
different systems (e.g. on payment status)
Increased
Collaboration
and Visibility
y
Payment Factories
A/P Accountant
Ease of integrating new corporate affiliates and/or bank providers
Reduced maintenance costs by using global payment standards
Increased Flexibility
in Deployment and
Extensibility
Bank Clerk
A c c o u n t s
P a y a b l e
L e g a c y
S y s t e m
T r e a s u r y
S y s t e m
I n - H o u s e
C a s h
S W I F T
G a t e w a y
… B a n k x
Integration Deployment
Flexibility
Collaboration
Business Process Platform
B a n k x
B
a n k x
Payment Management
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Services in Detail
Service: Inbound Payment Order Request
Service Operation: Receive Payment Order Request
Technical Name: CollectivePaymentOrderRequest
Interface: CollectivePaymentOrderRequest_In
Package: EA_FINSERV
Description: This service is provided by SAP In-House Cash in order to receive paymentorders from affiliated companies
Service: Outbound Bank Account Statement Notification
Service Operation: Send Bank Statement
Technical Name: BankAccountStatementNotification
Interface: BankAccountStatementNotification_Out
Package: EA_FINSERV
Description: This service is provided by SAP In-House Cash to transmit information
about turnovers of a bank account to the affiliated companies
Payment Management
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How to Activate a Service (1/2)
IMG Path: Transaction Type for Automatic Payments
(Prerequisite: Integration Directory and SLD maintained)
Create required entries for
inbound payment order
requests received by
XI interface
Payment Management
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How to Activate a Service (2/2)
Bank Accounts Change: Account Statements
(Prerequisite: Integration Directory and SLD maintained)
Advantages of Enterprise SOA
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Significant TCO reduction for heterogeneous system landscapes:
Fast and easy integration of non-SAP systems
Easy conversion of other payment formats
Business Connector no longer supported in the future
Alignment with future developments within Business Process Platform
Potential to overcome some limitations of current IDoc-messages Limited capacity of account statement FINSTA
No multiple payments (e.g. HR-payments) possible with current PAYEXT-Idoc
XI offers encryption and digital signatures
Potential to improve performance and throughput
Agenda
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1. Introduction
2. Organizational Entities
3. Master Data In-House Cash Center
4. Business Processes
5. Periodic Activities
6. Integration with SAP Cash and Liquidity Management
7. Enterprise SOA
8. Deployment Options9. Summary
Deployment Options
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One System Scenario Multiple Systems Scenario
SAP In-House Cash 6.0
(part of ECC 6.0)
SAP NetWeaver 2004s
(SAP Web AS 7.0 ABAP)
SAP ERP 6.0
(ECC 6.0)
SAP In-House Cash 6.0
(part of ECC 6.0)
SAP NetWeaver 2004s
(SAP Web AS 7.0 ABAP)
SAP ERP 6.0
(ECC 6.0)
RFC
SAP ERP 2004 (ECC 5.0)
or
SAP R/3 Enterprise
or
SAP R/3 4.6C
Agenda
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1. Introduction
2. Organizational Entities
3. Master Data In-House Cash Center
4. Business Processes
5. Periodic Activities
6. Integration with SAP Cash and Liquidity Management
7. Enterprise SOA
8. Deployment Options9. Summary
Business Benefits
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Reduce physical cash transfers by internal netting
Reduce number of bank accounts
Reduce administrative overhead
Minimize netting process times
Save bank fees for bank accounts and payment
transactions
Avoid cost for external cross-border payments
Reduce float and value date losses
Gain more interest keeping cash within the group
Reduce hedging deals concentrating exposure
within the group
Reduce hedging cost using economies of scale
Improve competitive position in external money
markets
Lower internal
cost
Lower external
cost
Quick Facts –
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© SAP AG 2009. All rights reserved. / Page 72© SAP 2008 / Page 72
Q
SAP In-House Cash
The SAP In-House Cash application is part of Treasury
Applications from SAP The application enables you to improve control over
cash and liquidity and gain greater efficiency by centrally
managing cash and payments on behalf of your
subsidiaries
The In-House Cash Center is used to process allpayments between company units, keeping cash
resources within the group and optimizing how they are
applied
The SAP In-House Cash application allows companies
with a diversified organizational structure to minimize the
actual flow of cash and therefore reduce bank charges,
interest expenses and losses resulting from delays in
value-dating payments
Further Information
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SAP Public Web
http://www.sap.com/treasury
SAP Service Marketplace (log-on required)
https://service.sap.com/erp-treasury
Documentation on SAP Help Portal
http://help.sap.com
(SAP ERP >> SAP ERP Central Component >> SAP ERP EHPs)
Training / SAP Education
http://www.sap.com/education
User Groups
http://www.asug.com
http://www.dsag.de http://www.sap.com/communities/usergroups.epxfor more
Contact
Your SAP Account and Consulting Engagement Manager
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Thank you!
Copyright 2009 SAP AG
All Ri ht R d
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