Bring Cash Forecasting into FI - You Can Do It in a Day

  • by Anna-marie Redpath , Independent SAP Consultant
  • October 15, 2002
Many sites do not initially implement the cash forecasting capability of Treasury's Cash Management module. Configuring it retroactively is easy to do and requires little knowledge of the Treasury module.


The cash-forecast functionality within Treasury’s Cash Management module provides the ability to track potential cash all along the pipeline from sale to order fulfillment to invoice to payment on the collection side, and from purchase order to invoice to payment on the disbursing side. All businesses do cash forecasting. However, many R/3 sites perform it off-line, probably due to a desire to keep the original implementation small.

Fortunately, bringing cash forecasting into FI retroactively is easy to do, especially if you already have an understanding of A/R, A/P, and the banking area. In this article, I’ll show you how. You probably already know much of the supporting configuration, and it requires little knowledge of the Treasury module.

Treasury’s Cash Management module lets you do the following to help your users (most likely the company treasurer) improve the accuracy of cash forecasts:

  • Indicate expected dates when cash goes in and out of a business.
  • Overlay at query time the observed patterns of cash flow by type of transaction.
  • Directly input "off system" information as "payment advices" in Treasury — for example, an estimate of customs duty tax due in two weeks for which no order or invoice is in the system. It can be integrated with the transactions that eventually occur.

Anna-marie Redpath

Anna-marie Redpath is an independent SAP consultant specializing in the Financial and Controlling modules of SAP R/3, as well as some Sales and Distribution, Materials Management, and Treasury areas. She has been working in the SAP field since starting with R/2 in January 1991 with Accenture in South Africa. She continued onto R/3 with Accenture in Australia and in New Zealand in a variety of forms, as project manager and later consulting occasionally back to Accenture. She has also consulted in Singapore and has conducted training for SAP in Australia and developed the Australian GST Training Course for SAP’s Sapient College. Anna-marie has developed a Web site,, which provides SAP configuration advice. She has a B.Sc (Honors) degree in Computer Science from the University of Natal in South Africa.

See more by this author


No comments have been submitted on this article. 

Please log in to post a comment.

To learn more about subscription access to premium content, click here.