Reap Benefits from One of SAP's Hidden Treasures: Liquidity Planner Actuals Determination

  • by Mary Loughran, Independent Consultant
  • July 24, 2017
Learn how SAP’s Liquidity Planner module for actuals determination works. Discover the advantages and uses of the module.
Learning Objectives

Reading this article, you’ll learn:

  • An overview of SAP’s Liquidity Planner functionality
  • The advantages of using SAP’s Liquidity Planner functionality
  • The process flow for Liquidity Planner
  • The primary transaction codes included in Liquidity Planner
Key Concept
SAP’s Liquidity Planner module for actuals answers questions such as how much cash came in related to customer receipts this week or how much was spent on payroll this month. Having quick, up-to-date access to this type of data is important for all organizations. Liquidity Planner reports on pure cash transactions.

Liquidity Planner is the SAP module that calculates cash actuals. Cash actuals are the uses and sources of cash. They include both revenue and expenditure actual cash posting data, and are in the form of liquidity items that map to company-specific buckets or categories. One of the main benefits of using Liquidity Planner for actuals determination is that it is very easy to set up in comparison to the benefits its reporting provides. I describe the Liquidity Planner for actuals determination functionality. See the “Key Terms” section if you are not familiar with the terminology in Liquidity Planner.

Note
Liquidity Planner originally supported both the determination of actuals and the tracking of planned data in Strategic Enterprise Management (SEM). The solution allowed SAP system users to do actual versus plan reporting. Through time, SAP has decommissioned the tracking of planned data in SEM, but the determination of actuals has always been supported with SAP ERP Central Component (ECC) standard functionality.

There is no additional licensing needed for the Liquidity Planner functionality within ECC, and the good news is Liquidity Planner has been repackaged by SAP as the Cash Flow Analysis report in the Liquidity Management component of SAP Cash Management powered by SAP HANA, and liquidity items are a main element in the Cash Operations component of SAP Cash Management powered by SAP HANA. (There is nothing to “activate” in ECC to use Liquidity Planner. There is some configuration required.)

Key Terms

Table 1 includes definitions of Liquidity Planner key terms.

Term Definition
Actuals The actuals are the uses and sources of cash. They include both revenue and expenditure actual cash posting data and are in the form of liquidity items that map to the general ledger (G/L) categories.
Assign Info Accounts (FLQINFACC) The Assign Info Accounts (transaction code FLQINFACC) table maps the final G/L account to a liquidity item. (By final G/L account, I mean the G/L account that is used to determine the liquidity item to be used for the posting. The final G/L account is the G/L account that drives the assignment.) If the further indicator is selected, the program does not stop on that liquidity item, but continues to try to derive a final liquidity item for the cash posting.
Liquidity items Liquidity items define the buckets or categories in which the cash flows are tracked for cash forecasting.
Initial liquidity items The initial liquidity items are INIT_IN and INIT_OUT. When the actuals determination program (FLQAD or FLQAF) is run, the SAP system reassigns the initial liquidity item to the final liquidity item based on the rules set up in the system.
Final liquidity item The liquidity items mapped to revenue and expense G/L accounts
Info accounts The G/L accounts that drive the liquidity item assignment
FLQAD FLQAD is the transaction code to the actuals determination program to analyze all cash postings in the specified date range. The analysis is done in transaction currency.
FLQAF FLQAD is the transaction code to the actuals determination program to analyze all cash postings in the specified date range. The analysis is done in local currency. In addition, FLQAF can populate the additional fields in the extension include FLQ_EXTENSION. (See SAP Note 1826731.) This allows users to track data elements such as cost centers, profit centers, and funds along with the liquidity items.
Actual accounts SAP refers to cash accounts as actual accounts. Liquidity Planner assumes all house bank accounts defined are cash accounts, as well as any accounts marked as other cash accounts using transaction code FLQC4 or by following configuration menu path Financial Supply Chain Management > Cash and Liquidity Management > Liquidity Planner > Basic Settings: Liquidity Calculation > Define Other Actual Accounts.

Table 1
Liquidity Planner key terms

Liquidity items describe the uses and sources of cash and are defined as part of the implementation configuration. How a company defines the liquidity items may depend on the company’s business, but here are a few examples:

  • Payroll
  • Overhead
  • Customer receipts
  • Prepaid expenses
  • Purchases of property and equipment
  • Proceeds from sales of investments
  • Purchases of investments
  • Bond payments

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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