Introduction

Cash Management helps your organization to manage cash flows by processing all cash and bank transactions, gathering statistical information on customer payment behavior, and generating cash flow forecasts to analyze funding requirements.

Before you can use Cash Management, you must set up certain data that are maintained in Common, such as business partners and payment terms. In Cash Management you must maintain static data, such as parameter settings, bank accounts, and payment method.

Information used by all financial transactions, such as ledger accounts, dimension types and codes, transaction types, and periods, must be defined in the General Ledger. When transactions are completed or finalized in Accounts Receivable, Accounts Payable, and Cash Management, the General Ledger amounts are updated.

Cash Management provides the following functionality:

  • You can select open items that are due for payment in Accounts Payable and Cash Management produces bank orders, checks, or electronic payment files to settle these open items.
  • You can maintain and pay standing orders based on predefined schedules. Standing orders can be cost transactions or advance payments that later can be related to purchase invoices or ledger accounts.
  • You can produce direct debit orders in Cash Management, to select and settle open items in the Accounts Receivable that are due for settlement.
  • After you receive electronic bank statements, you can import and then match them against sales and purchase open items.
  • You can generate the 1099-MISC reports or files used in United States for certain type of payments made during the year.
  • You can generate the cash flow forecast based on purchase invoices, sales invoices, orders and statistical information to assess the liquidity position of the organization.
  • You can calculate statistics about the payment behavior of your pay-by business partner, such as average days overdue and average days for payment.