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Author's profile photo Ankish Chaudhari

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

 

 

 

 

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      13 Comments
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      Author's profile photo Ravi Yadav
      Ravi Yadav

      Very informative article with real-time demonstration of the processes.

      Author's profile photo Aditiya Hakim
      Aditiya Hakim

      Thanks Anikesh for informative blog !

      I am trying to create the Cash Pool in the system (1809) but unable to see Create Cash Pool option, am I missing any SPRO setting or something else. Appreciate your help.....!

      Author's profile photo Ankish Chaudhari
      Ankish Chaudhari
      Blog Post Author

      Hi Aditiya, it should be the same for 1809. I am wondering whether you are missing some authorization for the creation of Cash Pool. Please check.

      Author's profile photo Alejandro Eduardo Guerra Benavente
      Alejandro Eduardo Guerra Benavente
      Hi Ankish, I encounter the same problem, do you know what role or authorization is required to access the options of creating and editing cash pooling?
      
      
      Thanks for your help!
      
      Author's profile photo Sarra Mamlouk
      Sarra Mamlouk

      Hi,

      I have the same problem with fiori 1809 I can’t create a cash pool!!

      please did you find the solution ???

      Author's profile photo Jasmit Singh Sarna
      Jasmit Singh Sarna

      Hello,

      I believe from 1809 onwards, we have a new fiori app “Manage Cash pools”  App ID F3266 for creating cash pools

      Regards

      Author's profile photo Mario Araujo
      Mario Araujo

      Hi,

      I also couldn’t see the button to create cash pool. I’m in version 1909 that has the app F3266 to manage cash pool, but I can’t get it to work.

      How did you manage to parameterize the creation of the cash pool?

      Many thanks. Best regards

      Author's profile photo Ankish Chaudhari
      Ankish Chaudhari
      Blog Post Author

      Hi Mario,

      My blog is based on version 1709, Cash Pool functionality has been changed from version 1809. As you mentioned, we now have a dedicated app (F3266) for the creation of Cash Pool.

      As per new functionality, we need to create a cash pool where we have to assign "Bank Account Balance Profile". This is a configuration where you maintain the planning levels to be considered for Cash concentration. In the previous versions, this flexibility was not available.

      Once you create the cash pool, it needs to be assigned in the "Manage Bank Accounts" app as header or subaccount. You also maintain other details like Payment method, target balance etc. Header account means a target account and subaccount means a source account.

      Finally, you run your cash concentration using separate app "Manage Cash Concentration". With this app, you can display the previous cash concentration or perform the new one.

      I hope this will help you to perform your Cash Pooling in 1909.

      Thanks, Ankish

      Author's profile photo Harish Pothuguntla
      Harish Pothuguntla

      Hello Ankish

      Could you please advise the steps for same process in SAP ECC 6.0 how it will be

      I am looking for that actually.

      Hope you understand.

       

      Harish Chowdary

       

      Author's profile photo Ankish Chaudhari
      Ankish Chaudhari
      Blog Post Author

      Hi Harish,

      I would suggest, you go through the ECC help page for Cash Concentration.

      https://help.sap.com/viewer/495b05f6dbb24b1da46e4027d3a28fef/6.18.15/en-US/1cb1ff512ec09b33e10000000a44538d.html

      Thanks, Ankish

      Author's profile photo Harish Pothuguntla
      Harish Pothuguntla

      Hello Ankish

       

      Could you please help me how to manage offsetting account in this process in SAP ECC 6.0

      I am looking for that actually.

       

      Harish.

      Author's profile photo Harish Pothuguntla
      Harish Pothuguntla

      Hello Ankish

      After transfer done to target account will system generates any Accounting document (Journal entry).?

       

      Harish.

      Author's profile photo Harish Pothuguntla
      Harish Pothuguntla

      Hello Ankish

      Is this the correct set up for Cash concentration or Cash Pool in SAP ECC 6.0

      Please advise. If any other setup required please suggest.


       

      Harish.