Optimize Your Corporate Payment Transactions with SAP In-House Cash

  • by Juergen Weiss, SEPA-Now Consulting
  • November 16, 2009
Find out about the main organizational units of SAP In-House Cash and understand the three core payment processes this component supports, including their differences. Learn the business configuration of the application and the functional differences that were introduced with SAP ERP. Follow the step-by-step technical implementation of Application Link Enabling to enable Intermediate Document communication within SAP In-House Cash.
Key Concept

SAP In-House Cash allows corporate cash and treasury management departments to set up a payment factory and to centralize their payment flows. One of the challenges is that the business processes of SAP In-House Cash span multiple financial components and require a broad set of business and technical skills. 

Maintaining corporate liquidity, securing sufficient capital cushions on the balance sheet, and saving operational costs are the primary goals for many cash management and treasury organizations. Global companies with multiple affiliates face challenges such as changing corporate structures, manual payment and reconciliation processes, high costs of cross-border payments, and high transaction volumes with multiple bank connections.

SAP In-House Cash can help you overcome these challenges by centralizing group cash flows and establishing an in-house bank. SAP In-House Cash helps you:

  • Reduce your transaction volume of payments by netting payment flows between your subsidiaries

  • Avoid value date losses by keeping cash flows within your company

  • Decrease the number of physical bank connection and banking fees by setting up subsidiaries as in-house bank accounts

  • Limit exchange rate risks by concentrating currency exposures of your affiliates within your group

  • Implement global and standardized business processes by using the standard payment and account statement programs in the SAP system

  • Get a faster overview of your liquidity position and achieve a higher degree of transparency of your cash flows

Little documentation is available from SAP and very few consultants are aware of or familiar with how SAP In-House Cash can help you solve these problems. I’ll look into this in detail, starting with organizational entities before moving on to the business processes.

Juergen Weiss

Juergen Weiss works in the functional area of SAP Financial Supply Chain Management. As part of SAP’s product management team, he was globally responsible for the Financial Supply Chain Management applications, including Electronic Bill Presentment and Payment, Dispute Management, Collections Management, Credit Management, Treasury and Risk Management, Bank Relationship Management, and In-House Cash as well as Accounts Payable and Receivable.

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