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SAP has not yet rebuilt or provided simplifications in FSCM-IHC (In-house Cash) components and technically the classical functionalities of IHC continuous to run in S/4HANA environment but on HANA database.

In this blog, I am listing down some key impacts of S/4HANA simplifications on IHC component:

– Faster processing
It is now an established fact that HANA database improves the transactions/ reporting speed substantially. So even if IHC component is not changed much in S/4HANA, it will inherit the speed benefit when IHC is being implemented in S/4HANA landscape.

– Maintenance of house banks
IHC component uses virtual banks and creates the house bank for internal current accounts. Now such house banks and account IDs have to be maintained via fiori applications like “Manage Banks”, “Manage Bank Accounts” etc. as classical customization transaction FI12 has been obsolete in S/4HANA. You can also use NWBC instead of fiori apps for such house bank maintenance.

– Impact of being Business Partner as mandatory in S/4HANA
IHC case as such was already using business partners for interaction between subsidiary and IHC. For subsidiary, the IHC house banks mapping now need to be managed in vendors using business partners object.

– Fiori Applications applicability:
IHC component relevant transactions are still not innovated for fiori benefits. As of today, there are around 10 fiori apps like “Process Payment Orders – For In-House Cash” (Transaction IHC0). However, all of these are SAP GUI apps and thus look and feel is similar to SAP GUI transaction codes.

– Cash Pooling:
If you want to do the Cash Pooling/Cash Concentration, you can still do the classical way of transaction F9H6/ F9H4 in IHC component. Alternatively, it can also be done using the cash concentration feature in Bank Account Management component of SAP Cash Management using “Manage Bank Accounts – Bank Hierarchy View” app.

– Foundation for future innovations
Even if there are not much changes right now in IHC, getting this implemented in S/4HANA may ease out future innovations deployment.

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