Lessons Learned from the First Customer Implementation of SAP Cash Management Powered by SAP HANA

  • by Mary Loughran, Independent Consultant
  • Joe Stiebe, Managing Director, SymQ
  • July 20, 2016
With the numerous changes involved in an SAP HANA implementation, a detailed explanation is required to have a good understanding of what has changed from doing an implementation strictly in SAP ERP Central Component (ECC). Learn the different components and various deployment options for running SAP Cash Management on SAP HANA. This article includes details related to the first rollout to production of this functionality in North America.
Learning Objectives
After reading this article, you will learn:
•    What is included in SAP’s Cash Management powered by SAP HANA
•    Advantages of going with this new offering
•    Definition of new terminology
•    Explanation of new functionality
•    Data sources that feed SAP Cash Management
•    Possible variations of deployment options
•    Advantages of the different deployment options
•    Lessons learned by the first customer implementation of SAP Cash Management powered by SAP HANA
Key Concept
There are three components included in SAP Cash Management powered by SAP HANA: Cash Operations, Liquidity Management, and Bank Account Management. The Cash Operations and Liquidity Management components enhance existing SAP ERP Central Component (ECC) functionality with improvements both in functionality and the user interface (UI). The Bank Account Management component functionality is a newly built technology for SAP HANA.

To date, there is only one SAP customer in North America running SAP Cash Management powered by SAP HANA in production. With the rollout of SAP Cash Management powered by SAP HANA, there are a number of changes to the SAP landscape. Following are highlights and lessons learned from that first customer implementation of this functionality.

There are three components included in SAP Cash Management powered by SAP HANA: Cash Operations, Liquidity Management, and Bank Account Management. SAP Cash Management powered by SAP HANA integrates not only with accounting in SAP S/4HANA Finance but also with the solutions for SAP Treasury and Risk Management, SAP Bank Communication Management, and SAP In-House Cash.

The new SAP Cash Management on SAP HANA suite (SAP Cash Management powered by SAP HANA) is web based using Fiori technology running on the latest database and web technology. Therefore, the web browser replaces SAP GUI. A Launchpad (see Figure A in the “Key Terms” sidebar) serves as a starting point for the different apps or tiles. Each tile covers a business task. SAP delivers Fiori applications with all three components in SAP Cash Management powered by SAP HANA.

The SAP licensing described in this article is the following:

  • SAP NetWeaver 7.40 or later
  • SAP HANA licensing
  • SAP S/4HANA Finance, On-Premise Edition 1503
  • SAP Cash Management for Finance
  • SAP Integrated Business Planning for finance
  • Fiori Framework

To provide a little background on SAP terminology, SAP differentiates different time segments of managing cash – short-term, mid-term, and long-term planning. In terms of short-term planning, the solution that SAP provides differentiates between the cash position dimension and the short-term outlook dimension, which is called cash positioning. The next time horizon focuses on mid- and long-term planning. The Cash Operations component covers the cash positioning and short-term planning, and the Liquidity Management component covers the mid- to long-term planning. Historical cash postings are referred to as actuals. The terms mentioned here are shown with the associated time horizons in Figure 1.

Figure 1
SAP Cash Management terminology

The time horizon for the Cash Position and Liquidity Forecast varies for different customers based on their specific business and implementation. For example, for some customers the Cash Position may be one to three days, but for other customers, it may be one to five days. The same applies to the Liquidity Forecast time horizon.

Before going through the article, we recommend that you review the definitions in the “Key Terms” sidebar.

Mary Loughran

Mary Loughran has been specializing in the SAP Financials area since 1997 and has worked with numerous clients throughout North America and Europe in the areas of finance and treasury. She was employed as a consultant with SAP America and was a designated expert within SAP America for treasury before she left SAP in 2004. Mary’s expertise is in the areas of SAP Treasury and Risk Management, SAP In-House Cash, Liquidity Planner, Accounts Payable, payments from SAP in general, Cash Management, and Electronic Banking. Mary was an independent consultant from 2004 to 2016. 

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Joe Stiebe

Jochen (Joe) Stiebe has more than 17 years of experience in the area of Cash, Treasury, and Risk Management for industrial, trading and energy companies as well as for banks and asset management companies. His consulting focus lies both on the realization of SAP-based solutions and on designing and implementing alternative system designs in existing SAP system landscapes. As managing director he is responsible for all business segments of SymQ, which is an SAP consulting company within Hanse Orga Group.

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