Adoption Methods for SAP S/4HANA Finance for Cash Management

  • by Gaurav Aggarwal, Lead Consultant, SAP S/4HANA Finance, Infosys Limited
  • May 15, 2017
Various organizations have started their assessment journeys to embrace SAP S/4HANA and are curious to know the options for implementing various functionalities. Cash management is one such area. In recent SAP S/4HANA Finance versions SAP has made classical cash management obsolete and has come up with new functionality called SAP S/4HANA Finance for cash management. See how it affects organizations that are using cash management, planning to use cash management, or continuing without cash management.
Learning Objectives

By reading this article, you will learn:

  • What the various features in SAP S/4HANA Finance for cash management are
  • The options for configuring SAP S/4HANA Finance for cash management functionalities
  • The configuration details and licensing requirements
  • When SAP Fiori applications are needed to perform business transactions in SAP S/4HANA Finance
Key Concept

SAP S/4HANA Finance for cash management is an improved version of classical cash management. You can manage bank accounts in a harmonized way that is supported by workflows, perform cash operations with ease powered by SAP Fiori applications, and perform liquidity planning with one source of data to enable efficient working capital management and improved decision making.

Is managing and projecting cash flows a major challenge in your organization? Are you looking for ways to handle bank accounts more effectively in your SAP system? SAP S/4HANA Finance has simplified and reimagined the cash management and introduced a component called SAP S/4HANA Finance for cash management.

In this article, I compare various options for adopting the cash management features in SAP S/4HANA versions for cash management. I also list where SAP Fiori applications are necessary to perform business transactions in SAP S/4HANA Finance for cash management. For organizations continuing without cash management, SAP Bank Communication Management Lite is applicable as they can manage bank accounts using this without implementing cash management operations. I walk you through the various functions offered by SAP S/4HANA Finance for cash management, describe the prerequisites, and explain how to go about adopting cash management according to your organization’s need.

Note
I use the term SAP S/4HANA and SAP S/4HANA Finance interchangeably with the finance functions in SAP S/4HANA Enterprise Management (EM) version, unless I specifically mention otherwise in this article. Also SAP Cash Management has been renamed as SAP S/4HANA Finance for cash management.

Overview of the Functionalities Offered by SAP S/4HANA Finance for Cash Management

In a classical SAP ERP Central Component (ECC) system, the Cash and Liquidity Management component (CLM) is used to handle electronic bank statements, cash positions, liquidity management, and bank account management. In the SAP S/4HANA Finance system cash position, liquidity management, and bank account management have been shifted to the SAP S/4HANA Finance for cash management component and enhanced and reimagined with SAP S/4HANA capabilities.

Figure 1 shows the functionalities offered by SAP S/4HANA Finance for cash management.


Figure 1
Overview of functionalities offered by SAP S/4HANA Finance for cash management

Note
SAP S/4HANA Finance has pre-delivered various SAP Fiori applications to use to perform many cash management transactions and activities and to define key performance indicator (KPI) cockpits in the SAP Fiori platform. Even for activities such as bank account management, SAP Fiori applications are mandatory.

SAP S/4HANA Finance for cash management is also integrated with FI, SAP Treasury and Risk Management, SAP Bank Communication Management, Financial Services Network (FSN), and the In-House Cash components of the SAP system.

Gaurav Aggarwal

Gaurav Aggarwal is SAP S/4HANA lead consultant at Infosys Limited. He has more than 14 years of experience, including 11 years in SAP Finance. He has expertise in both SAP FI and Controlling (CO) with integration to other modules in manufacturing and process industries. He is a chartered accountant and SAP Certified Financial Consultant. He holds a bachelor’s degree in commerce and is a techno-functional expert with thorough knowledge of the necessary ABAP for functional experts. He is a veteran in G/L, AR, AP, banking, FA, Travel Management, and closing cockpit and has handled greenfield implementation, upgrades and conversions, rollouts, and support projects. 

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