Setting up Cash Management

To set up Cash Management consists of the following steps:

1. Define CMG Parameters

   In the CMG Parameters (tfcmg0100s000) session, you must define the CMG parameters.

   You can define parameters for the following processes:

   • Payments
   • Direct debits
   • Various cash management options

   • The way in which LN handles such processes as:

     • Advance payments and receipts
     • The cash forecast
     • Electronic bank statements
     • Factoring
     • Trade notes
     • DAS 2 reporting
     • Cash application
2. Set up bank branches
   In the Bank Branches (tfcmg0511m000) session, define the bank branch details.
3. Set up the bank relations

   In the Bank Relation (tfcmg0110s000) session, define the bank relation. You must specify the bank relation code, bank branch code, currency and the account number of the bank.

   You can specify the transaction type to post the bank transactions for the selected bank relation.

   You can use the transaction type to do the following:

   • To post only the actual payments, and not anticipated payments.
   • For bank reconciliation of the anticipated documents attached to the bank relation.
   • To post remittance advice.

   If you use several bank relations, which bank you use can depend on several conditions. See: Bank distribution.

4. Payment methods and receipt methods

   In the Payment/Receipt Method (tfcmg0140s000) session, you must define payment methods and receipt methods. The payment methods and receipt methods define the sessions in which you enter transactions of the specific method, and the type and the format of the bank file or report that LN generates.

   See: Payment and receipt methods.

5. Payment authorization

   You can set up various types of payment authorization. See: Payment authorization in Cash Management – setup.

6. Electronic bank statements (EBS)

   You can set up electronic bank statements as described in Electronic bank statement processing – setup.

7. Transaction types for cash and bank transactions
   For cash transactions and bank transactions you must set up various transaction types. The main session and next sessions differ for each transaction type. See: Transaction entry sessions.