Liquidity planning in the sense of Liquidity Planner is the medium term planning (usually covering one year) of incoming and outgoing payments (in other words actual cash flows) in the original currency.

In the operative R/3 system, the liquidity calculation gets actual data for the amount, the use and the origin of payments.


Example:


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In Procure to Pay Process, the Vendor sends an Invoice (1a), you pay it (2a) and the process is finished with the Bank Statment (3a).


Configuration


IMG: Financial Supply Chain Management -> Cash and Liquidity Management -> Liquidity Planner



1. Create Liquity Item


Tx: FLQC1


A liquidity item stands for the actual origin or use of a payment (for example, incoming payment from sales or payment for salary).

It represents a:


  • Expense or Revenue
  • Vendor / Customer (only GL Accounts)
  • Taxes (If you want to open taxes in a document)
  • Other GL Accounts (ie: GR/IR Account, clearing accounts, others


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2. Set Global Data for Company Code


Tx: FLQC2


In this step you define FSCM-LP parameters for the Client. It is not possible to configure by Company Code.


  • Liquidity Items to use when no position could be assigned.   (N.Assign.In.Pmt , N.Assign.Out.Pmt)
  • Liquidity Items for default Incoming and Outgoing Cash.              
                           When the Liquidity Item has been identified as Incoming or Outgoing but can’t reach the next level. It’s on the Bank Statement Level.
  • Posting Date.   Use Posting Date instead of Value Date for the calculation
  • 3rd Currency    Another Currency for Analysis


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3. Add additional Real Accounts (Bank Accounts)


Tx: FLQC4


Liquidity Planner Real Accounts are GL Accounts taken from T012K table (Tx FI12) 

In case you need to add/exclude Real Accounts form the Liquidity Planner Analysis, you have to add them here


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4. Activate Company Code


Tx: FLQC3


Activate the funcionality of Liquidity Planner in the Company Code.

You will need Cash Management and Forecast Number Range for the company code (tx OT20)


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5. Settings for FI Mechanisms


tx: FLQC13


Configure how Liquitiy Planner will reconstruct FI document chain (from Bank Statement to Invoice)


  • Part Reassign:   Consider partial payments or “part of the payment line item is reassigned in cases where the payment amount is not fully covered”
  • N:M Treatment:  If various actual positions (N – Bank) are related to variuos vendor/customer positions ( M ), the system can reconstruct the information with artificial possitions
  • Inc.Transfer:       Bank Incoming for N:M Treatment
  • Out.Transfer:      Bank Outcoming for N:M Treatment
  • Info Accts in Appl:    Information for Accounts is maintained in each systema (tx FLQINFACC)
  • Down Pmt no-End:   In Downpayments, the system still tries to go to he expense/income generated by the payment.
  • Eval. Intermed.Stat:  In GL Accounts with “Line item Management” (tx FS00), if you set the further indicator for the GL Account in tx FLQINFACC , the system continues searching for the clearing account (i.e: GR/IR Accounts)


  • Reduction of Document Cluster in FI:  You can add exits, for example display invoice tax or withdholding tax (Pre EHP7) . sap note 994316, 1091325, 1092506

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5.1 Settings for FI mechanism EhP7 with Business Function FIN_GL_DIR_CASHFLOW

tx: FLQC13F

In ECC 6 EhP7 a new BF is available to display taxes (Separate Tax) and brings the possibility to incorpore new fields in LP Analiisys –

Additional Fields in Liquidity Planner .

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6. Create Accounts with assignment information


tx: FLQINFACC


Configure Liquidity Positions by assignning  the corresponding GL Accounts. All GL Accounts (except Bank Accounts) are listed here; vendor,customer, tax, expenses, incomes, clearing, etc

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7. Create Liquidty Information


tx: FLQAD  – pre EhP7

tx: FLQAF   – EhP7 with BF FIN_GL_DIRCASHFLOW active


The last step is to create Liquity Information

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“Query Sequence” is a step analysis for the line item where you set up conditions which wil redirect the natural flow of the Liquidity Item to a new Liquidity Item choosed by you.

The “1st Derivation Step” generally considers the payment document (Vendor/Customer objects).

The “2nd Derivation Step” generally considers the invoice (G/L Account).

You have to define a query sequence (tx FLQQC5 or FLQQD5) which contains all queries for the corresponding step (tx FLQQC1 or FLQQD1).

The “Buffer Item” is the intermediate position for the payment and the invoice, in general Customer/Vendor reconciliation account

The “Exit Module” contains user exits for each step where you can add liquity item information ( Additional Fields in Liquidity Planner ).


You can use additional selection parameters to analyze the Liquidity Item.

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You can run in Test or with “Detail List” to analyze the liquidty item flow. In EhP7 you have a new radio button “Analysis List” to


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8. Display Liquidity Item Report


Tx: FLQREP  – Payments per Liquidity Item

      FLQLS      – Liquidity Calculations – Totals list

      FLQLI       – Liquidity Calculation: Line item List


These reports shows totals ( FLQREP, FLQLS ) or individual line items ( FLQLI )


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9. Correct manual positions


tx: FLQAM


Reassign manually the Liquidity Items detected by FLQAD/F to a new Liquidity Item.


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9 Comments

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  1. Jan Fanta

    Hi, pretty nice and simple explanation. I’m just bit missing how to maintain/create conditions and how to work with items with special indicator. But whatever, well done.

    Jan

    (0) 
    1. Gustavo Vazquez Post author

      Thanks for your comments. Good to hear it helped.=)

      Conditions are maintained with FLQQC1 (Vendor/Customer) and FLQQD1 (Expenses/Incomes).

      There are different types of conditions, based on Master Data (G/L Account, Vendor) or document (Header , Line Item).

      Supposed you have a Liquidity Item for “Maintenance Services” but your company has a special project to expand a section of a factory. You post expenses to the same account but this is posted to a WBS Element. You would like to separate WBS element from normal operations. You should use a query. 

      Try with t FLQQC7 or FLQQD7 and try if the query works.

      I worked with Sp.G/L Indicators through the G/L Account,

      Kind Regards

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      1. Jan Fanta

        Back to spec. gl indicator… You mean, you assign GLs for e.g. down payments direct without indicator?

        My problem exactly now is, that my qry just want not to work if I specify spec. gl indicator with GL but also with account type D/K/S. I’ve tried also different sequences of qrys.. It just not work.

        The only way I’m able to assign such items to liqui item is using dirct mapping using FLQINFACC.

        I’m just curious why it does not work by me with qry. 🙂

        In FLQC13 I marked partial reassignment, N:M, Info Accnt apply and order inf.

        Even I tried all possible combination, this combination works for me. But anyway, no assignment of DPs or other spec.ind. will follow if I will not specify them direct in FLQINFACC

        Do you have some experiences with that?

        Do you prefer to map reconciliation GLAs in FLQINFACC or rather use qry?

        I guess for recon. and so for spec. ind. GLAs will be always FLQINFACC better one, do you agree?

        Thank you a lot

        Jan

        (0) 
        1. Gustavo Vazquez Post author

          Hi Jan,

          You need the SpGL account in FLQINFACC to be recongnized by Liq. Planner and then you could use a query.

          I haven’t used a query as you suggested, with SpGl, it should work but no promises 🙂

          Kind regards

          (0) 
          1. Jan Fanta

            Hi Gustavo,

            thanks for confirmation 🙂

            Yes, with spec.GL.indicator it does not work properly. 😉

            Thank you again

            Jan

            (0) 
  2. Jain varghese

    Dear Gustavo,

    awesome blog ! thanks for sharing it.

    I have a question, Currently we are in 1503 SP5  version and need cash and liquidity management function however we are not opted for BPC system  licence. Could you please tell me whether this version will work for cash & liquidity without  BPC licence, I read somewhere its not possible to have cash & liquidity without BPC. Could you please share you thoughts.

    (0) 

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