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Author's profile photo Ina Verena Wehrmann

Ever thought about Machine Learning in Finance for Wholesale Distribution?

Today, Wholesale Distribution companies take often a rule-based approach to apply payments to cash to achieve automation, reflecting customer and country specifics. However,

  • rule set-up increases implementation costs
  • rule effectiveness declines over time.

The new “Cash Application” of SAP is a choice for Wholesale Distributors where automation can pay out quickly. The SAP Cash Application uses the SAP Leonardo Machine Learning capabilities.

Historical clearing information is sent from an S/4HANA Finance system to the Cash Application. The Cash Application uses a Mashine Learning business service (API) running on the SAP Cloud Platform. The business service consists of an algorithm which describes a model to derive matching criteria.

As part of daily business in your S/4HANA Finance system, new incoming payment and open invoice information is passed to the Cash Application. Proposals are returned to S/4HANA and those that meet the configurable confidence threshold are cleared automatically. When there are multiple proposals for a payment, they are suggested for review to the AR accountant within the standard Fiori app they use today. The model can be adapted or trained on a regular basis to ensure that changing behavior of the AR accountant is captured without on-going maintenance.

The machine learning platform evaluates historical clearings to determine the best model and learns from the accountant behavior.With the flexible adoption, the system can capture more details of a customer- and country-specific behavior, without the costs of manually defined detailed rules.

The SAP Cash Application is a hybrid scenario where the machine learning capability is delivered by SAP Leonardo ML Foundation (in SAP Cloud Platform). It runs for S/4 HANA Enterprise Management 1702 Public Cloud and requires FI-AR. It is also available for the first time with S/4 HANA Enterprise Management 1709.

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      Author's profile photo Kishore Marodia
      Kishore Marodia

      Hello Ina - headline was too catchy for the article 🙂 It would further help if you can detail some example and how CASH APP ML exactly works.. Looking forward to that

      Author's profile photo Ina Verena Wehrmann
      Ina Verena Wehrmann
      Blog Post Author


      Hi Kishore, what kind of details are you looking for? Would like to get a demo?


      Author's profile photo Former Member
      Former Member


      Hi Ina,


      Can you please share any Demo on how Cash Application works in new S/4 HANA 1709