SAP Cash Management enables group treasury or the cash department to manage cash and liquidity centrally. This application delivers drill-down analysis into global bank balances and cash positions in real time, simplifying the work of finance professionals. It removes the need for system-hopping by facilitating dynamic liquidity forecasting, including cash flow analysis, and enabling treasurers to take immediate action with integrated bank account management. Managing cash flow is a matter of confidence and trust. With the launch of SAP Cash Management powered by SAP HANA, SAP shows the importance of real-time insight and intuitive design in a very sensitive area of finance. This application is part of an important, integrated set of treasury applications from SAP, wherein we deliver immediate in-memory-driven insight to the discerning CFO.
As a part of SAP Simple Finance, Its fully built on the SAP HANA platform, the new application integrates all treasury data on one platform and is the most recent innovative offering based on the simplified structure of the SAP ERP application to be made available. SAP Cash Management powered by SAP HANA can be implemented as a component of SAP Simple Finance, either on premise or in the cloud. Key functionality includes:
- Centralized cash management:The system continuously oversees bank risk while initiating bank transfers and payments and approving and monitoring payments, simplifying dozens of processes at once. With the Cash Operations functionality of SAP Cash Management powered by SAP HANA, cash managers easily and intuitively get a high-level overview and detailed insight into payments, enabling them to make decisions and take actions directly. The SAP Fiori launch pad for SAP Cash Management powered by SAP HANA includes two important KPIs for managing cash operations: Bank Statement Monitor, which shows the success rate of bank statement imports, and Cash Position Details, which indicate the amount of cash the organization has at a given point in time. The new cash management application monitors incoming bank statements and prepares a daily forecast of cash receipts, disbursements and expected closing balances, eliminating the need for batch reporting. With the two, the cash manager can see not only how much cash is on hand, but how up to date the information is based on the percentage of bank statements that have been successfully processed.
- Centralized bank account management and liquidity forecasting:SAP Cash Management powered by SAP HANA manages bank accounts from a single integrated platform, maintaining the approval process for bank account opening, adjustment and closing, and providing navigation to cash position and bank statement monitoring reports. Bank accounts are core assets that are owned and controlled by an organization’s cash or treasury department. However, with expanding and complex enterprises — including subsidiaries and merged companies, for example — it is difficult to have a complete view of all bank accounts. In addition, a planned update for liquidity forecasting is aimed to extend to integration of operational data and the availability of tools for optimizing cash investment and borrowing while safeguarding company liquidity. The Liquidity Management function in SAP Cash Management powered by SAP HANA looks into the short- and mid-term view based on booked system data, and supports the manual planning process for long-term planning. While the rolling liquidity forecast process is still manually driven, the manual processes can be streamlined and supported by the application and the ability of SAP HANA to handle large amounts of data at high speeds.
This application has the potential to improve planning accuracy and to optimize our processes in the treasury department. Strong cash management is critical when faced with reduced bank lending and other liquidity challenges. Businesses need cash to operate, and when it can’t be procured easily from the outside, it must be generated and conserved from within. SAP Cash Management powered by SAP HANA has the tools to help companies adapt to today’s market and evolve to meet organizations’ specific needs.