Cash Pool and Cash Concentrations
Classic Cash and Liquidity Management offers functionality to do Cash Concentration as followings:
1. Define Cash Pool in Grouping in view V_T038
2. FF73 – Create Cash Concentration
Cash concentration based on cash pool defined in grouping and proposed transfer amounts are according to forecasted cash balance, same information in FF7A. And the output of cash concentration is to create one or several memo records (Payment Advices).
3. End user can choose to Post Payment Advices (FF.9) or Generate Payment Requests from Cash Management Advices (FF.D)
Afterwards, Payment Requests can be paid in payment run F111 and finish the following payment steps.
First of all, above process can still work in SAP S/4HANA for Cash Management.
Secondly, SAP S/4HANA Cash Management introduces new process to define cash pool and concentrate cash.
1. Create Cash Pool based on Bank Account Group in Bank Account Management, and as Master Data (in Fiori App: Manage Bank Accounts)
2. Create/Edit/Display/Delete Cash Pool and Launch Cash Concentration in one access point
3. More intuitive way to define cash pool
 Cash Pool Usage: information only, you can choose Both Direction, Cash Concentration, Cash Distribution or Statistic Group.
 Org Unit ID: system creates organization unit automatically based on bank account group, please find more details in the first tip.
 Target Account, leading bank account
 Payment Method for outgoing payments
 Selection of Source Accounts
 Planned Balance: target balance when performing cash concentration
 Minimum Transfer Amount: if planned transfer amount is less than this figure, bank transfer will not happen
4. End to end process for cash concentration in one page
 System will propose transfer amount based on defined criteria and forecasted closing balance (same as Cash Position Details), end user can adjust the amount
 Create Payment Request or requests, created payment requests are shown in the second half of screen for Open Payment Requests
[3, 4, 5, 6] Reverse or Release Payment Requests, and Execute F111 to pay the requests, and finally create bank payment medium file to finish the payment steps
Several further tips:
1. System will create organization unit (t-code PPOCE) based on Bank Account Group for all non-bank account nodes when clicking Create Cash Pool for the first time.
a. As company code is mandatory attribute for organization unit, system will pick the company codes of all bank accounts that belong to this parent node, which leads to the restriction that all bank accounts belonging to the same node shall belong to one company code, otherwise, organization unit cannot be created successfully.
b. Since organization unit creation only works when clicking Create Cash Pool for the first time, if after creating one cash pool, end user modifies the bank account group again, for example, adding one new parent node and bank accounts, this newly added node will not create organization unit, thus cannot be used in cash pool definition.
2. You can create more than one cash pools based on one bank account group, but one bank account cannot only be used as Target Account (Leading Account) in one cash pool.
3. Bank Account can be used as Source Account (Participating Account) in other cash pool even if it is used as Target Account in one cash pool.
4. Only one-level cash pool can be defined with one Target Account and multiple Source Accounts.
5. Customizing required: relevant configurations for payment request and payment run