Bank Account Management – Cash Pool

1.  Introduction

This run guide on Cash Pool functionality is based on SAP S/4 HANA 1709 FPS02 version.

 

2. Cash Pool

A cash pool is a structure involving several related bank accounts whose balances have been aggregated for the purposes of optimizing interest paid or received and improving liquidity management.

With SAP’s Bank Account Management, you can create cash pools based on a bank account group structure and use cash concentration to centrally manage your cash.

Following steps are discussed in detail in this blog:

• Create Bank Account Group
• Define Cash Pools
• Perform Cash Concentration
• Fiori App – Cash Flow Analyzer

2.1 Create Bank Account Group

Access Fiori App “Manage Bank Accounts”

Click on Maintain Hierarchy and Groups

Create Bank Account Group from the next screen

Enter the Bank Account Group Name. Create New node of Bank Account Group. You can create hierarchy if needed by creating sub nodes underneath.

You can also define the visibility of Bank Account Group. If any other user also need to have access to this bank account group, select Visible to defined users and add user names.

use the below mentioned icon to filter the bank accounts based on different characteristics.

There are different options to personalize the list.

You can filter from this screen based on different characteristics.

Add Bank Accounts to the Node and save.

2.2 Define Cash Pools

Go back to Bank Hierarchy app again and refresh the screen. Newly created Bank Account Group will appear:

Select all bank accounts and click on Create Cash pool

Enter Cash Pool Data

Search for Org unit ID. It is generated automatically:

Enter the details for Target Account and hit enter:

Now select the Source accounts and enter the planned balance if there is any. Also enter the Payment method:

Save

2.3 Perform Cash Concentration

Go to Bank Hierarchy App and select the Bank Account Group. Now click on Concentration under Cash pool:

Select the cash pool:

This will display the current balance and the balance after cash concentration.

Please note that the Balance Before displayed here is based on Current Cash Position in this bank account which can be viewed from Cash Flow Analyzer.

There is an option where we can click on Switch Input Amount Column which will allow to enter Balance After amount.

Now Select the bank accounts and click on Create Payment requests:

Now close the open dialog box and scroll down.

You have below options after creation of payment requests.

Click refresh and it will display the open payment requests:

Payment request is first released and then paid. We also have an option to reverse Payment Request if needed.

Select the Payment Requests and click Release. We get the below message:

Now again scroll down and click refresh. You will find the status is changed as released.

Again, select the payment requests and click on Pay. We get the below message now:

You can now close the dialog box and refresh the upper screen. Confirm the warning message.

Now you can see the revised balances.

2.4 Cash Flow Analyzer

Above Cash pool transactions can be easily displayed in Cash flow Analyzer app.

Open the app and click on Display Hierarchy:

Select your bank account group

It will display the new account balances after cash concentration:

3. References

More Details related to overall functionality of Cash and Liquidity Management can be found on SAP help page at the below link:

https://help.sap.com/viewer/ac319d8fa4ea4624b40a58d23e3c4627/1709%20002/en-US/e7d3a052c3ad224fe10000000a445394.html