Summary and Outlook

Contents:

Summary of SAP Liquidity Planner Outlook: further business requirements of SAP Liquidity Planner

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LP in FSCM: Objectives

At the conclusion of this unit, you will be able to:

Provide a summary of SAP Liquidity Planner Formulate future requirements for SAP Liquidity Planner

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Summary: MAP FSCM Solution

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The task of Treasury and Risk Management is to manage financial transactions and positions and provide methods and procedures for assessing risk positions. The task of Cash and Liquidity Management (note: SAP Liquidity Planner corresponds to Liquidity Management) is to provide functions for efficient short-, medium-, and long-term liquidity analysis, and planning.

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Summary: Interaction Between "Treasury" Components
Corporate Headquarter Treasury
Risk Management
Credit Risk Analyzer Market Risk Analyzer Portfolio Analyzer

Derivative

Foreign exchange

Money market

Loans

Security

Transaction Manager

In-House Cash Cash Management

Liquidity Planner

IHC

CM

Cash and Liquidity Management

LP IHC CM LP IHC CM LP

Unit 1

Data of transaction systems

Unit 2

Bank data

Unit 3

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The most important reporting tasks of Cash Management are to provide: A value date-dependent cash position A liquidity forecast The Reporting tasks of SAP Liquidity Planner are to provide: Retrograde liquidity analysis Liquidity planning

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Summary: How Cash Management and Liquidity Planner Differ
Cash Management
Opening balance

Liquidity Planner
Opening balance

Revenue
Customer group X Customer group Y ...

Revenue
Revenue from sales Interest earnings Other revenue

Expenditure
Vendor group X Vendor group Y ...

Expenditure
Personnel Materials Assets ...

Closing balance

Closing balance

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The key difference is that Cash Management shows the cash flows of the customer and vendor side in the liquidity forecast ("to whom" or "from whom"). The Liquidity Planner shows cash flows according to funds utilization or origin ("for what").

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Summary: SAP Liquidity Planner

SAP Liquidity Planner provides:

Retrograde determination of cash flows Determines their medium- to long-term planning

SAP Liquidity Planner (SAP Liquidity Management) consists of two components:

Actual Calculation in ERP Planning in BI

Reporting for actual and plan data is carried out in SAP Business Warehouse (BI).

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It is important to note that SAP Liquidity Planner comprises two components: Actual Calculation Planning and Reporting in BI

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Summary: System Architecture

BI
Planning Reporting

Database

Extraction

ERP
Operational ERP Operational ERP

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Actual data is determined in operational ERP systems through "actual" calculation. The results are extracted to BI and made available for reporting. Planning is carried out in BI and the data can also be used here for reporting. You can compile various reports in BI: plan-plan comparisons, plan-actual comparisons, variance analyses, and many more.

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Outlook: SAP Liquidity Planner
Business requirements:

Integration of commitments in cash accounting and liquidity planning, for example:

From MM, SD, FI, and Treasury Management

Display of external and internal cash flows Display of segment cash flows Display of profit center cash flows Integration in other business plans

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In the long term, it is expected that the SAP content of SAP Liquidity Planner will be enhanced.

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Literature

Geupert, F.: Cash Flow Accounting, Bamberg 2003 Kerber, S.; Warntje, D.: Cash Accounting and Cash Flow Planning with SAP Liquidity Planner, Bonn, 2005 (SAP Press) Kerber, S; Warntje, D.: Cash Accounting and Cash Flow Planning with SAP Liquidity Planner, Bonn, 2005 (SAP Press) Bieber, R; Kerber, S.: Cash Management mit dem FSCM, Bonn, 2006 (SAP Press)

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LP in FSCM: Summary

You are now able to:

Provide a summary of SAP Liquidity Planner Specify the future business requirements of SAP Liquidity Planner.

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