To understand the usage and scenario coverage of scope ID MV and 4X8- Cash application

[Vishal_Prakash]

Hi,

SAP S4 HANA Cloud

We intend to understand the usage and scenario coverage of scope ID MV and 4X8- Cash application Automation using ML-AI.

We encounter multiple scenarios wherein the customer shares inadequate information- no invoice number/name/ identification thereby making it difficult to match it to the original invoice. Will this scenario see an improvement with the activation of the said scope IDs? We also have scenarios involving bank fees or forex leading to mismatch of amounts along with no identifier within the memo line. What would be the success rate of matching such cases using ML -AI?

We would also want to refer to documentation on 1MV and 4X8, The links mentioned below do not seem to load since the past few days.

https://learning.sap.com/learning-journeys/implement-sap-s-4hana-cloud-public-edition-for-treasury-m...

https://learning.sap.com/learning-journeys/implement-sap-s-4hana-cloud-public-edition-for-treasury-m...

Any leads appreciated. Thanks in advance.

Regards,

Vishal

[Edrilan_Berisha · Accepted solution]

Hi Vishal,

In general I think you should read also on the automatic bank statement processing: https://help.sap.com/docs/SAP_S4HANA_CLOUD/918bca53037f408f91a2295d04ac16bc/9929e3049c88402a8d56e437...

You'll find quite a lot of useful information there.

Now back to your question. So I think you first need to understand how AI works. It works basically just like a human. In other words, how would a human identify if a bank statement item which has no information in memo line at all is a bank charge?

Is it because you know how much the bank is going to charge you and it's always lets say 14.56 EUR? If so then you do not even need AI in this case, because you can (which is also part of that scope item 4X8) simply create a processing rule using our new rule framework:https://help.sap.com/docs/SAP_S4HANA_CLOUD/918bca53037f408f91a2295d04ac16bc/d6fe6526b26f46e59d9d1dd0...

You can easily create such a rule and automate it with the scope item 4X8. The rule would have as a condition the attribute "Amount" and as option "equal to" and the amount in the field "from".

So with this I can also now share that 4X8 is bundle of two functionalities or methods. One is using a "static" rule set which you define and these rules are always executed whenever a bank statement is imported.

The same rules can also be configured like that to find the open invoices. In a second step you then can schedule jobs to our AI engine SAP Cash Application. Which will - based on your historic data - give you proposals of matching invoices etc.

So no one will be able to give you a clear number how high the success rate will be. This depends on multiple factors, one includes how good is your historic data? The other one would be how much information is provided in the bank statement item. So it differs from item to item, from customer to customer. The most important point of course is the historic data. If in the past lets assume the suppliers or customers would always have a certain pattern and you manually cleared the items even though there was no further information provided. It can still perform pretty well, because it is based on historic knowledge which has dealt with such cases. But the most important factor is that your AI model is trained on such cases. Furthermore you can tweak the results by accepting also "lower confidence" proposals. 

So all in all it's simply impossible to give an accurate answer to this. I would suggest you contact your account executive who gets in contact with us and someone from us can have a closer look on your scenario.

Best,

Edrilan Berisha

SAP S/4HANA Cloud Financials Development

[Vishal_Prakash · Accepted solution]

Hi Edrilan-Berisha,

Good Day!

Thanks for the reply,

We want more details/documentation on the detailed working of Scope IDs 1MV and 4X8. Can you share any for reference?

We would also want to understand how this scope would help in scenarios where-

There is underpayments done by customers

Split payments on single invoice

Only customer name available in Memo

Discounts, bank charge and forex cases

Will these be catered to if the scopes are activated? or do we still have to rely on manual matching process?

Regards

Vishal Prakash

[Edrilan_Berisha · Accepted solution]

Hi Vishal, I already shared the documentation about bank statement processing with the rule framework (which is also part of 4X8). For Cash Application you find more information here: https://help.sap.com/docs/SAP_CASH_APPLICATION/53c7d0eb5a044148a110aa082c06325c/f8a8c50b6a2e4e4da3d7... . Now if you use a mixture of automated processing rules with Cash Application AI all your mentioned different scenarios will be easily covered. Yes Cash Application is also able to propose an invoice if only the name of the customer is mentioned in the memo line etc. Best, Edrilan Berisha

[Anita_Ahmadpour]

@Vishal_Prakash 

Hi Vishal, 

For more information on the 4X8 scope item, you can also have a look at the following docu: Integration with Advanced Bank Statement Automation (https://help.sap.com/docs/SAP_S4HANA_CLOUD/918bca53037f408f91a2295d04ac16bc/d5b70dead51d431aa5668df2... )

For more information on 1MV, I recommend you have a look at the product page of SAP Cash Application: https://help.sap.com/docs/SAP_CASH_APPLICATION?locale=en-US 

I hope, this helps.

Best regards,

Anita