Cash Accounting

and Cash Flow

Planning with SAP

Liquidity Planner
An integrated approach to analyzing liquidity
How to perform successful cash accounting in SAP R/3
In-depth details on exact cash ow planning using
SAP BW and SAP SEM
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www.sap-press.com 1
Cash Accounting and Cash Flow Planning with
SAP Liquidity Planner
Stephan Kerber, Dirk Warntje
Content
Introduction .............................................. 3
Structure of the Book ..................................... 3
Acknowledgments .......................................... 4
1 Business Overview .................................. 5
1.1 The Concept of Cash Accounting .......... 5
1.2 Tasks of Cash Accounting and
Liquidity Planning ................................. 6
1.3 Recipients and the Need for
Information .......................................... 7
1.4 Financial Accounting and
Cash Accounting ................................... 8
1.5 Differences to Cash Management ......... 9
1.6 Conclusion ........................................... 11
2 Case Scenario: Implementing Cash
Accounting and Liquidity Planning .... 13
2.1 Conclusion ........................................... 15
3 SAP Liquidity Planner: Liquidity
Analysis Using SAP Actual
Calculation ................................................. 17
3.1 Overall Process and System
Integration ............................................ 17
3.2 Technical Settings in SAP Actual
Calculation ........................................... 17
3.3 SAP Actual Calculation
(Cash Accounting) ................................ 19
Data Model and Master Data ............... 19
FunctionalityOverview ..................... 21
Customizing SAP Actual Calculation ... 21
Tools .................................................... 26
Tables ................................................... 27
3.4 Cash Accounting Processes ................... 28
Information Acquisition from
Assignment Mechanisms ...................... 28
Information Acquisition from
Bank Statement Information ................ 29
Information Acquisition from
Financial Accounting ............................ 31
Manual Assignment and Manual
Transfer Posting ................................... 36
Analysis Reports ................................... 36
3.5 Conclusion ........................................... 37
4 SAP Liquidity Planner: Liquidity
Planning and Reporting
Using SAP BW/SEM ............................... 39
4.1 Modeling in SAP BW/SEM .................... 40
SAP Business Content ......................... 40
Master Data ......................................... 45
Characteristics ..................................... 53
Planning Layout in
SAP SEM-BPS/BW-BPS ........................ 54
4.2 The Liquidity Planning Process .............. 63
4.3 Extracting Actual Data .......................... 64
4.4 Reporting in SAP BW ............................ 67
4.5 Conclusion ........................................... 69
5 Liquidity Planning and Reporting
Without SAP BW/SEM .......................... 71
5.1 Overview .............................................. 71
5.2 Customizing .......................................... 71
5.3 Master Data and Actual Data ................ 75
5.4 Planning ............................................... 76
5.5 Reporting ............................................. 77
5.6 Conclusion ........................................... 78
2 Galileo Press 2006. All rights reserved.
Content
6 Outlook ...................................................... 79
Appendix .................................................... 81
Lee Iacocca and Cash Flow ............................. 81
Indirect Cash Flow .......................................... 81
Plug-in ........................................................... 81
Case Scenario ................................................. 82
Bibliography .............................................. 83
Index ........................................................... 85
www.sap-press.com 3
Introduction
This book is about money. Where does money come
from and where does it go? Because liquidity is one of the
critical success factors for a company, it is integral to run-
ning a business. The most important aspects of liquidity
are the ability to ensure solvency and generate payment
surpluses. In this context, companies constantly try to an-
alyze and plan their cash ow. Unfortunately, established
applications such as Accounting or Cash Management
dont provide the necessary information on cash ow re-
quired by companies; however, SAP Liquidity Planner af-
fords you with the much needed relief in this area, as
shown by its rst implementations in both nationally and
internationally operating companies. The complex re-
quirements placed on a retrograde liquidity analysis, a
decentral planning tool, and an efcient reporting were
met by the use of SAP Liquidity Planner.
SAP Liquidity Planner is a component that consists of
two applications: Cash Accounting (SAP R/3 ) and Liquid-
ity Planning (prior to Release 3.5, it was part of SAP Stra-
tegic Enterprise Management (SAP SEM) , from SAP Busi-
ness Information Warehouse (SAP BW) Release 3.5 on-
wards, it has been included in BW). Cash accounting
determines the cash ow either based on an electronic
bank statement or data from nancial accounting. Liquid-
ity planning is carried out using the planning functionality
in SAP BW . Reporting is performed by SAP BW.
In the past, this component was part of Corporate Fi-
nance Management (CFM), and since the introduction of
mySAP Enterprise Resource Planning (mySAP ERP) in 2004,
it has been located in the Cash Management and Liquid-
ity Management area as part of Financial Supply Chain
Management (FSCM).
This SAP Press Essentials book outlines the concepts of
cash accounting and liquidity planning, as well as the re-
sulting requirements that a business software must be
able to meet. In this book, the authors demonstrate how
you can meet these requirements using SAP Liquidity
Planner and also, how you can implement this product.
Readers of this book should have a sound knowledge of
the accounting application in SAP R/3 as well as SAP BW
and SAP SEM.
Structure of the Book
Chapter 1 outlines the business principles and provides
clear denitions of the terms used in the context of cash
accounting and liquidity planning. In addition, the con-
cept of cash accounting is introduced, along with a de-
scription of its interdependencies with accounting. In the
nal sections of this chapter, we clearly distinguish SAP
Liquidity Planner from SAP Cash Management.
Chapter 2 describes a case study that is referred to and
further developed throughout the book. We use this ex-
ample to help you understand the functionality and the
technical concept of SAP Liquidity Planner, but it should
also serve as an aide to you in implementing this compo-
nent.
Chapter 3 and Chapter 4 contain a detailed description
of SAP Liquidity Planner. They provide an insightful intro-
duction to the two main areas of the product: Chapter 3
describes Cash Accounting (SAP R/3), while Chapter 4
deals with Liquidity Planning (SAP BW). In both chapters,
you will also nd detailed information on customizing
and the various functions of the application. Wherever
necessary, the case scenario is referred to, enhanced, and
completed.
Chapter 5 describes a workaround for simplied liquid-
ity planning and reporting in SAP R/3 without using SAP
BW.
Chapter 6 addresses possible developments and future
requirements of SAP Liquidity Planner. The Appendix con-
tains additional information.
www.sap-press.com 17
3 SAP Liquidity Planner: Liquidity Analysis Using
SAP Actual Calculation
In this chapter, we will describe the concept of SAP Li-
quidity Planner as well as its technical aspects and func-
tionalities. Based on the case scenario, customizing ac-
tivities and using the application will be described step-
by-step.
3.1 Overall Process and System Integration
SAP Liquidity Planner consists of two applications (see
Section 3.2 for technical requirements):

SAP Actual Calculation (SAP R/3)

3

SAP Business Information Warehouse (SAP BW) and

SAP Strategic Enterprise Management (SAP SEM)
The task of SAP Actual Calculation (cash accounting) is to
identify the cash ows in the operative systems according
to their source and application of funds and to document
them in terms of liquidity items. Extractors are then used
to extract the identied data into SAP BW where it is
made available for reporting. The results can be validated
using the analysis reports available in SAP R/3 . Figure 3.1
provides an overview of the architecture of SAP Liquidity
Planner.
SAP BW/SEM contains the planning functionality where
the planning values are recorded. This planning data is
automatically updated in SAP BW and can be used for
evaluation purposes in SAP BW Reporting (for example,
plan/plan comparison or plan/actual comparison ), just
like the actual data mentioned above. During planning,
different plan versions can be created for different fore-
casts using the version concept . Moreover, you can de-
ne rolling planning scenarios.
Liquidity Planning using SAP SEM/BW
Liquidity Planning using SAP SEM
BW Database
Extraction
R
E
P
O
R
T
Operative
R/3 System
Operative
R/3 System
Operative
R/3 System
Cash Accounting using SAP Actual Calculation
Figure 3.1 Overview of SAP Liquidity Planner
3.2 Technical Settings in SAP Actual Calcula-
tion
In this section, well describe the technical aspects and re-
quirements for using SAP Actual Calculation in cash ac-
counting. Since SAP Actual Calculation is not contained in
the R/3 standard version, it must be installed via a Plug-in
(PI) into the SAP R/3 system. The PI contains all applica-
tion and customizing functionalities for cash accounting as
well as extractors for transferring data into SAP BW. Since
PI 2001.1, these functionalities are available for release
status 4.5 B and higher. Depending on the release status
of your system, you must install one of the PIs listed be-
low. The following PIs were available in 2004:

Plug-in 2004_1_45B

Plug-in 2004_1_46B

Plug-in 2004_1_46C

Plug-in 2004_1_470

Plug-in 2004_1_500
SAP provides updated versions of the Plug-ins every year.
For more information on Plug-ins, you should refer to the
3 The concept of cash accounting is implemented with SAP Actual Calcu-
lation. Therefore, the terms cash accounting and actual calculation can
be used synonymously.
18 Galileo Press 2006. All rights reserved.
3 SAP Liquidity Planner: Liquidity Analysis Using SAP Actual Calculation
SAP Notes via the OSS under XX-PI. As of mySAP Enter-
prise Resource Planning (mySAP ERP) 2004, the compo-
nents of the PI are included in the package.
Case scenario : Check the technical settings and the
release status of your SAP R/3 system and install the
corresponding Plug-in.
Have the corresponding Plug-in installed in the R/3 sys-
tem by your SAP basis team and save the following set-
tings in the R/3 system:

Perform entries in Table TRWPR

Perform entry in Business Transaction Events

Initialize cash accounting tables

Throughout this section, we will describe step-by-step
how to perform the individual settings in SAP R/3.
First, you must make entries in Table TRWPR. To do
this, proceed as follows:
1. Call the table via Transaction SM31 (see Figure 3.2).
Figure 3.2 Table TRWPRInitial Screen
2. Click on the Maintain button. Now youre in Table
TRWPR.
3. Click on the New Entries button. This enables you to
make table entries (see Figure 3.3).
Figure 3.3 Entries in Table TRWPR
4. In Table TRWPR, make the necessary entries in the FI
component or in any other active component under
a sequence number that is greater than 45. Table 3.1
contains a list of these entries.
5. Save your entries as shown in Figure 3.4.
Activity Time Function Module
DOCUMENT POST FLQ_DOCUMENT_POST
DOCUMENT PROJECT FLQ_DOCUMENT_PROJECT
DOCUMENT POST FLQ_DOCUMENT_POST
DOCUMENT PROJECT FLQ_DOCUMENT_PROJECT
Table 3.1 Additional Entries in Table TRWPR
Figure 3.4 New Entries in Table TRWPR
Next, you must make the entry in the Business Transac-
tion Events . To do this, go to Customizing and proceed as
follows:
1. You can nd the business events via the following in
the customizing path: Financial Accounting Finan-
cial Accounting Global Settings Business Transac-
tion Events.
2. Using the menu path Settings P/S Modules of an
SAP Appl. you can access the table.
3. You can now use the New Entries button to make
your entry (see Figure 3.5).
4. Enter the function module listed in Table 3.2.
Publish/Subscribe Event Function Module
00001110 FLQ_DOCUMENT_CHANGE
Table 3.2 Entry in Business Transaction Events
5. Save your entry (see Figure 3.5).
www.sap-press.com 19
3.3 SAP Actual Calculation (Cash Accounting)
Figure 3.5 Entry in Business Transaction Events
To initialize the system tables in SAP Actual Calculation,
you must start the program RFLQ_INITTBL.
1. You can do this via System Services Reporting or
via Transaction se38.
2. Enter the report name RFLQ_INITTBL in the Program
eld (see Figure 3.6) and run the program by pressing
the F8 key.
Figure 3.6 ABAP Editor Initial Screen
3. Then start the report by pressing the F8 key again, or
by clicking on the button, which is identied in Fig-
ure 3.7 (see arrow).
Figure 3.7 Starting Report RFLQ_INITTBL
Case scenario : Make the settings described above.
Once you have done this, you have completed the
technical preparations necessary for using the cash ac-
counting functionality (SAP Actual Calculation).
3.3 SAP Actual Calculation (Cash Accounting )
This section contains a detailed description of Customiz-
ing and the application functions in SAP Actual Calcula-
tion. After describing the data model and the master
data, well provide an overview of the functions in SAP
Actual Calculation. This is followed by a section on cus-
tomizing SAP Actual Calculation. Finally, you will learn
how to use SAP Actual Calculation.
Data Model and Master Data
SAP Actual Calculation (cash accounting) determines the
cash ows that exist within a company code according to
their source, their application, and the time at which they
occurred and their amount, and it documents them in a
liquidity item (LI). The central master data of the applica-
tion consists of:

Company code

Liquidity item
Lets start with the company code. The actual data is de-
termined per company code. The planning units in liquid-
ity planning (SAP SEM/BW) correspond to the company
codes in cash accounting (SAP R/3).
Since the company codes are dened in nancial ac-
counting, you merely have to activate the company codes
that are relevant for cash accounting. When you activate
these company codes, the documents that are provided
by nancial accounting are updated online in default
items (see the following two sections, Functionality
Overview and Customizing SAP Actual Calculation). To ac-
tivate the company codes, proceed as follows:
1. You can call Customizing via Transaction FLQCUST.
The menu path is: Basic Settings Activate Com-
pany Code.
2. Click on the New Entries button to go into the sub-
sequent table and enter the company codes to be ac-
tivated in the Co column and one number range
per company code (N) (see Figure 3.8).
Figure 3.8 Activating Company Codes
3. Save the entry (F8).
The number range is required for manual transfer postings
between liquidity items within SAP Actual Calculation.
20 Galileo Press 2006. All rights reserved.
3 SAP Liquidity Planner: Liquidity Analysis Using SAP Actual Calculation
The number range object is called FD_IDENT and corre-
sponds to the one that is used for payment advice notes
in Cash Management. To differentiate manually entered
documents in SAP Actual Calculation and Cash Manage-
ment, we recommend that you use a separate number
range for Actual Calculation, for example, 99. You can
create a separate number range via Transaction OT20.
Case scenario : Create a number range. Activate the
company codes 1000, 2200, and 2600 with the cor-
responding number ranges.
We will now introduce you to the concept of the liquidity
item. Liquidity items can be freely dened, however, the
denition should reect the nancial evaluation and plan-
ning values. Furthermore, because these items are used
in both cash accounting and liquidity planning, the de-
nitions of the liquidity items should be the same for both
areas. Only then will you be able to carry out meaningful
plan/actual analyses as shown in Table 3.3.
Liquidity Item
Actual Data
Liquidity Item
Planning Data
1 Wages and salaries Wages and salaries
2 Auxiliary wages Auxiliary wages
3 Social insurance contribu-
tions
Social insurance contributions
Table 3.3 Structure of Plan/Actual Analyses Sample Evaluation
Of course, you can combine and summarize the actual
data in BW Reporting in any given way as shown in Table
3.4 (see also Section 4.4).
Actual Data Planning
Data
Report
1 Salaries $100 Personnel
$200
Personnel
$225
Personnel
$200
2 Auxiliary
wages $50
3 Social ins. $75
Table 3.4 Summarization of Plan/Actual Analyses Summarized
Evaluation
When you dene the liquidity items in SAP Actual Calcu-
lation (cash accounting), you must consider the planning
depth, the reason being that if your planning extends to
a level deeper than the lowest levelfrom which actual
data is retrieved from the R/3 systemit is virtually im-
possible to carry out meaningful plan/actual analyses.
When you dene the liquidity items (revenue and ex-
penditure items), you must consider the following
points:

Planability
Which revenue and expenditure items are to be
planned in your company?

Planning depth
Down to what level do you want to plan in your
company? Make sure there is an adequate relation-
ship between the planning depth and the benet of
the information gained!

Determinability of actual data

Determine to what extent you can evaluate the post-
ing data for cash accounting.
4

Recipients
Include all recipients of a cash accounting statement
(for example, accounting departments for cash ow
statements) and liquidity planning (for example, trea-
sury departments for liquidity analyses) at an early
stage.
Technically, the liquidity items consist of a ten-digit key
and a language-dependent short text and long text. You
can create liquidity items in Customizing of SAP Actual
Calculation. To do this, proceed as follows:
1. Use the following menu path: Basic Settings Edit
Liquidity Item.
2. Click on the New Entries button to access the table
and dene the liquidity item (see Figure 3.9).
Figure 3.9 Dening the Liquidity Item
3. Save your entry.
4 In many implementation projects, this represents a real challenge pri-
marily because of the quantity and complexity of the posting data.
www.sap-press.com 21
3.3 SAP Actual Calculation (Cash Accounting)
Case scenario : Enter the liquidity items listed under
Case Scenario in the Appendix into the table. You now
have dened the liquidity items.
FunctionalityOverview
SAP Actual Calculation (cash accounting) analyzes the
electronic or printed bank statement, or retrogradely the
posting data provided by accounting with regard to rev-
enues and expenditures, and documents the values in li-
quidity items. Wed like to further clarify this by using the
following two examples:

Electronic bank statement

Invoice for the rent

The electronic bank statement is read into the SAP system
where it is available any time, as shown in Figure 3.10.
Assignment Based on Account StatementsExample
Sample AG
New York
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Post office Manhattan
Account holder: John Smith
Sort code: 66010075 Account no.: 179097-756 Statement no.: 00051
Currency: USD Statement date: 09/24/2000
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
CNr Val.dte Pst dte Note to payee Posting text BTC Daybook no. Amount
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Beginning balance 33,900.00
---------------------------------------------
00001 09/24 09/24 CHECK DEPOSIT 070 30,000.00
00002 09/24 09/24 Doc. 1500000285 004 - 3,300.00
00003 09/24 09/24 AS 8899100 / X4711 DEBIT MEMO 005 - 386.16
WorldTEL GmbH
00004 09/24 09/24 Check 1500000282 001 - 600,00
00005 09/24 09/24 Paid on 06/03/YY 051 10,700.00
Pmt no. 17100008111
CAcct 3 %
00006 09/24 09/24 Paid on 06/12/YY 051 1,000,000,000.00
-------------------------------------------------------------
Total Debit 4,286.16
Total Credit 1,000,040,700.00
-------------------------------------------------------------
Ending balance 1,000,070,314.00
Telephone costs WorldTEL
Figure 3.10 Electronic Bank Statement
The assignment mechanism that reads out the electronic
bank statement evaluates this according to dened rules
(see the next section, Customizing SAP Actual Calculation)
and assigns the payment amount to a liquidity item. Such
a rule could look as follows: If the note to the payee reads
WorldTEL and the posting text says DEBIT MEMO,
the corresponding amount is to be documented in the
liquidity item Telephone.
Our second example is based on an incoming invoice
for the rent. The posted invoice (1a) is cleared through a
payment run. After that the amount can be found in a
bank subaccount for outgoing payments (2a). Up until
now no cash has left the company. Then the bank ac-
count is debited and the transaction is posted during
which the bank subaccount is cleared (3a). Only now has
cash left the company.
Starting with the bank account, SAP Actual Calculation
(cash accounting) traces the document chain back to the
source (in the example above this is the expense account)
and shows the outgoing cash amount of $100 in the li-
quidity item LI Rent.
Rent
1a 100
Vendor
100 1a 2a 100
Bank subaccount
100 2a 3a 100
Bank
100 3a
LI Rent
100
Retrograde
Determination
Posting
Transactions
Figure 3.11 PostingsRetrograde Determination
Based on the bank account information, cash accounting
determines the liquidity item via assignment reports that
are discussed in more detail further down in this section.
For the assignment mechanisms to become effective, the
documents in a document chain (in the example above:
the bank subaccount and the vendor account) must be
cleared. The linking elements between these accounts are
the clearing documents that enable you to determine the
liquidity item.
The main component of the process consists of the as-
signment mechanisms that can use both the data from
the electronic bank statement and the data from nancial
accounting . Both data sources can be used separately or
simultaneously. The cash accounting results are then ex-
tracted into SAP BW: Figure 3.12 illustrates the overall
process of cash accounting.
Customizing SAP Actual Calculation
You must dene additional settings in Customizing so
that you can use the functions in SAP Actual Calculation.
In this section, we will describe how you can perform the
following customizing activities:

Storing global data

Dening actual accounts

22 Galileo Press 2006. All rights reserved.
3 SAP Liquidity Planner: Liquidity Analysis Using SAP Actual Calculation

Installing assignment mechanisms

Dening query sequences

Allocating assignments from FI information

Dening query-relevant G/L accounts

At the beginning of Section 3.3, we mentioned that when
you activate a company code the documents are updated
online. This is the case whenever postings are made to a
bank account (see Figure 3.11) or to an actual account
(see the information in the following sections). These up-
dated documents are also referred to as actual docu-
ments.
5
At the time a document is updated, a default
item is assigned to each actual document. You can store
a maximum of four default items (see customizing item
Dene global data in Figure 3.13). The default item de-
termines whether the payment is an incoming or outgo-
ing payment, or if it is a bank transfer.
To store the global data, you should proceed as fol-
lows: Use the menu path Basic Settings Dene global
data or call Transaction FLQC2 (see Figure 3.13). Make
the following entries in the Liquidity Calculation Global
Settings tab:
1. Enter the default items for an incoming payment in
the eld N-Assign.In.Pmt (non-assigned incoming
payments). Then enter the default item for non-as-
signed outgoing payments in the eld N-Assign.
OutPmt.
2. In the Inc.Transfer and Outg. Transfer elds, you can
enter the item INIT_TRANS. As bank transferspost-
ings from bank to bankdont represent real cash
ows in the sense of cash accounting, these transac-
tions are shown in separate default items to make
things clearer. In the INIT_TRANS default item, a
bank transfer is shown with the value zero, since it is
the same amount that leaves one bank account and
arrives in the other account.
3. If the posting date is supposed to correspond to the
payment date, check the Posting Date eld in the
Store global data view. This setting ensures that in
cash accounting the payment date is updated to the
posting date. In cash accounting, the term date de-
scribes the payment date. The payment date is de-
rived from the value date shown in the account state-
ment as that point in time when the business trans-
action that affected the cash ow has taken place.
4. If you check the Business Area eld, the data in the
business area is also updated.
5. Save your entries.
Then, you can dene actual accounts . Cash accounting
considers all accounts that serve as a basis for the cre-
ation of actual documents, which is the beginning of the
cash ow. For instance, these accounts can be bank ac-
counts or cash accounts. For the remainder of the book,
well refer to them as actual accounts. Depending on the
algebraic sign that appears (debits () for incoming pay-
ments or credits (+) for outgoing payments), a line item
posted in these accounts appears in one of the two de-
fault items.
In cash accounting, all accounts that are dened as
house bank in Table T012K are automatically identied as
actual accounts. Thus, documents that are posted to
house bank are updated without having to make any en-
Figure 3.12 Overall Process of Cash Accounting
Figure 3.13 Customizing Storing Global Data
5 See SAP Note 412605.
www.sap-press.com 23
3.3 SAP Actual Calculation (Cash Accounting)
tries in the subsequent table. You only need to make an
entry there if you want to dene additional accounts as
actual accounts.
Case scenario: The IDES company wants to dene the
cash account 100000 that applies to all company
codes as an additional actual account.
To dene additional actual accounts, go to Customizing
and select Dene other actual accounts or use Transac-
tion FLQC4 (see Figure 3.14). Make the following set-
tings:
1. Enter the chart of accounts and under G/L account
no., enter account 100000, as shown in Figure 3.14.
Figure 3.14 Dening Other Actual Accounts
2. If you want to exclude an account that has been de-
ned as house bank in Table T012K from the status of
an actual account, enter the account into the table
and check the eld Not Actual.
3. Save the entry.
Now that we have completed the activities Store global
data and Dene actual accounts, lets consider the item
Install assignment mechanisms. In the Customizing area
Assignment , you can make the settings for the three as-
signment mechanisms that determine the liquidity item
in the application. These assignment mechanisms are:

From bank statement information

From FI information

From invoices
For each assignment mechanism, query sequences are
dened that form the framework for the queries within
the application. You can restrict the query sequences to
specic company codes. We will now describe the three
assignment mechanisms and the corresponding query se-
quences. The tasks to be performed by queries and query
sequences are described in more detail in Section 3.4
(see Information Acquisition from Assignment Mechanisms
and Information Acquisition from Bank Statement Informa-
tion).
The mechanism From bank statement information eval-
uates the items shown in a manual or electronic bank
statement. You can nd the necessary customizing entries
under Assignment From Bank Statement (see Figure
3.15).
Figure 3.15 CustomizingAssignment From Bank Statement
In the next step, you must dene the query sequence
From Bank Statement. This query sequence is relevant
for the assignment mechanism From bank statement
information and is described in more detail.
1. Double-click on Dene Query Sequences (see Figure
3.15).
2. This will open the screen shown in Figure 3.16. Click
on the New Entries button to dene the query se-
quence and save your entry (see Figure 3.16).
3. Save the entry.
Figure 3.16 Query Sequence Bank Statement
Because you can dene query sequences for any mecha-
nism, the system identies the data that has been deter-
mined by a query sequence by its origin. In our example,
the identier B was set in the Orig column (see Figure
3.16).
In addition, it is advisable to assign query sequences to
bank accounts . Since it is common for several bank state-
ments with varied information from different banks to be
read into the system, it makes sense to dene a separate
query sequence for each bank or even for each bank
account. Each bank account can be uniquely identied by
a restriction to the company code, the house-bank ID,
and the house-bank-account ID.
24 Galileo Press 2006. All rights reserved.
3 SAP Liquidity Planner: Liquidity Analysis Using SAP Actual Calculation
You can make the assignment as follows:
1. Call Transaction FLQC6 in Customizing. Make the fol-
lowing settings:
2. Click on the New Entries button.
3. Complete the table by lling out the elds CoCd,
House bk, Acct ID and Seq. (see Figure 3.17). By
making these entries, you can ensure the direct rela-
tionship between a bank account and a query se-
quence.
4. Save your entries.
Figure 3.17 Query Sequence for Bank Account
The second mechanism well describe is the Assignment
from FI information . This Assignment From FI Informa-
tion analyzes both the subledger accounts and the G/L
accounts. You can nd the necessary customizing entries
under Assignment From FI Information (see Figure
3.18).
Figure 3.18 Customizing from FI Information
You can make the settings for the FI mechanisms in Cus-
tomizing in the Settings for FI Mechanisms tab; alterna-
tively, you can use Transaction FLQC13. Figure 3.19
shows the options available in this customizing tab.
In the upper part of the screen, you can make several
settings under First Step.
If you check the Part. Reassign. (partial reassignment )
eld, an assignment to a liquidity item occurs even if the
payment has been made only partially. The actual docu-
ment is divided temporarily and the partial amounts paid
are assigned to the determined liquidity item, whereas
the remaining amount stays in the original liquidity item.
If you dont check the Part. Reassign. eld, a complete
assignment will not take place until the payment and the
corresponding documents in the document chain have
been cleared entirely. Until that time, the complete
amount will remain in the original liquidity item.
Next, you can check the N:M Treatment eld (see Fig-
ure 3.19). In accounting, it is commonplace that several
bank statement postings (N) are cleared collectively with
a multitude of postings (M) in the bank subaccounts. This
is referred to as N:M Treatment. In this case, it isnt pos-
sible for the assignment mechanism to retrace the docu-
ment chains without any additional effort. Therefore, no
liquidity items can be determined. If you check the N:M
Treatment eld, a workaround is activated in order to
avoid this problem. This workaround enables you to re-
trace the document chains.
6
If you check the Info Accts in Appl. eld, the assign-
ment of the G/L accounts to liquidity items (see Dene
Query Relevant G/L Accounts) wont be carried out in
Customizing, but rather in the application (Transaction
FLQINFACC).
In the central part of the screen, you can see the set-
ting options under Second Step.
Figure 3.19 Customizing FI Settings
6 See SAP Note 791744.
www.sap-press.com 25
3.3 SAP Actual Calculation (Cash Accounting)
The setting Evaluation of Goods/Invoice Lines (Sec-
ond Step) is relevant only in the second step of the
mechanism From Invoices. However, we will describe
this function as you can make the entry now.
Goods invoices or invoices with a purchase order ref-
erence are usually posted via the GR/IR clearing account
(goods receipt/invoice receipt account). Because the GR/
IR account doesnt provide sufcient information for cash
accounting, you should create a reference to the expense
accounts and material stock accounts. You can do this in
the second step of the mechanism (see From Invoices in
Information Acquisition from Financial Accounting in Sec-
tion 3.4). However, since the GR/IR account is often
cleared with a large time delay and also, since many items
are often cleared with just one clearing document, you
might encounter performance problems. To avoid these
potential problems, check the Order Informat. eld. If
you do, the GR/IR account is replaced by the purchase
order (PO) account (for POs with account assignment), or
by the material stock or expense account (for POs with-
out account assignment).
For POs without account assignment, the account de-
termination account can be derived in materials manage-
ment by using the standard transaction key BSX. If you
use a different key, you can enter it in the Account Key
eld.
In the bottom part of the screen (see Figure 3.19), you
can dene the Reduction of Document Cluster in FI.
Typically, a company doesnt always post all its posting
data in a linear manner (for example, transfer and retro-
active postings of accounts like transitory items) accord-
ing to cash accounting. Additionally, often many clearing
transactions are linked to other clearing transactions.
These two facts can both lead to substantial problems in
cash accounting. As a workaround, you can use your own
exit modules that can be dened during an implementa-
tion project.
In the customizing item Dene G/L Accounts Rele-
vant for Query (Transaction FLQC7) that follows, you can
assign all accounts that are relevant for the source and
application of funds (actual data) to the corresponding
liquidity items. These accounts represent the nal result
of the liquidity analysis . Accordingly, outgoing or incom-
ing cash is shown in the corresponding liquidity item.
This assignment constitutes the actual link between -
nancial accounting and cash accounting.
1. Go to the table Liquidity Calculation Accounts
with Assignment Information and enter the liquidity
items specied in the case scenario (see Figure 3.20).
2. Save the entry.
The Further eld has the function to consider all clearing
documents from G/L accounts during the determination
of document chains in the From Invoices mechanism.
We will describe this in more detail in the following sec-
tion using the GR/IR account.
Because the GR/IR account doesnt provide any infor-
mation that is relevant to cash accounting, you must es-
tablish a relationship with the downstream accounts. The
document chain that traces the application of the funds
begins with the bank account and leads you via the ven-
dor account and GR/IR account to the material stock ac-
count Raw Materials. For cash accounting, the material
stock account is the key source of information since it can
now assign the amount of the outgoing payment source-
related to the liquidity item, in this case, raw materi-
als.
Without the Further eld, the assignment mechanism
would trace only the document chains back to account
159999 because the corresponding liquidity item would
be found due to the assignment. Consequently, the value
would be shown in the liquidity item Tech. Pos. GR/IR.
However, as this assignment is not clear, the Further eld
is checked. If the eld is checked, the mechanism traces
the cash ow down to the account Raw Materials 1 and
Figure 3.20 Assigning Accounts to Liquidity Item s
26 Galileo Press 2006. All rights reserved.
3 SAP Liquidity Planner: Liquidity Analysis Using SAP Actual Calculation
then shows the amount in the liquidity item Raw Materi-
als. If you use the GR/IR account in your company, you
should check the eld, as shown in Figure 3.20 in ac-
count 159999.
Case scenario : Assign G/L accounts to the correspond-
ing liquidity items. Use the data provided in the
Appendix. Its important to know that you can assign
a G/L account to a liquidity item only once, and that
several G/L accounts can be assigned to one liquidity
item. For example, in Figure 3.20, the account 800002
could also have been assigned to LI 110000, but not
to both liquidity items.
Case scenario: Assign the liquidity item 310000 In-
coming payment from borrowing.
In the customizing item, Dene Query Sequences (Trans-
action FLQ8), you can dene the query sequences neces-
sary for the assignment mechanism From FI Information .
These sequences are marked as C by the system.
1. Click on the New Entries button (see Figure 3.21).
2. Make the entries shown in Figure 3.21.
3. Save the entry.
Figure 3.21 Dening the Query Sequence From FI Information
The third mechanism introduced in this section is called
From Invoices. From Invoices analyzes the posting data
from vendor and customer accounts as well as the G/L
accounts in two steps ( see Information Acquisition from
Financial Accounting in Section 3.4 ). In the rst step, the
mechanism traces the payments to the customer and
vendor accounts as well as to the query-relevant G/L ac-
counts. Starting with the customers and vendors, the
mechanism evaluates the expense and revenue lines of
the invoices in the second step.
In cash accounting, it is important that document
chains for G/L account postings and subledger account
postings (accounts receivable and accounts payable ac-
counting) are handled separately.
1. You can nd the necessary customizing activities un-
der the following menu path: Assignment From In-
voices (see Figure 3.22).
2. The customizing items Settings for FI Mechanisms
and G/L Accounts Relevant for Query are the same
as those in From FI Information. You dont need to
set them again.
3. Using the Customizing item Dene Query
Sequences, you can dene query sequences for the
second step of this mechanism. These sequences are
marked as D in the system. Since the process is
similar to Transaction FLQ8, we wont repeat it here.
Tools
Under the Tools node in Customizing, you will nd three
reports that support your cash accounting activities:

Delete Flow Data

Rebuild Flow Data

Analyze FI Assignments
Lets take a brief look at these reports.
Although the tables in cash accounting arent compre-
hensive (see the following section, Tables), you should
regularly delete transaction or ow data that is no longer
used. You can run the Delete Flow Data report (RFLQ_
DELETE) as follows:
1. Call the report via Transaction FLQC9.
2. Enter the restrictive information for the dataset to be
deleted in the individual elds (see Figure 3.23).
3. Run the report (F8).
You can restrict the deletion process to individual items
so that you only lose the assignment history. The totals
records can be excluded from the deletion process so
Figure 3.22 Customizing the Mechanism From Invoices
www.sap-press.com 27
3.3 SAP Actual Calculation (Cash Accounting)
that they remain in the table for future analysis. You
should always run the report in the background.
Now lets look at the Rebuild Flow Data report: You
can use the program RFLQ_REBUILD (Transaction
FLQC10) to retroactively transfer old posting documents
from nancial accounting into cash accounting. All post-
ings that refer to bank accounts and actual accounts are
updated as actual documents. As with online updates ,
the values of the documents are shown in the global de-
fault items. The assignment mechanisms process the re-
constructed documents in the same way as the directly
updated documents. You should run this report in the
background.
It is used whenever you need data from the previous
year or years for comparative analyses, or when you acti-
vate cash accounting during the course of the year for
which you need the entire year as a data basis.
The third report wed like to draw your attention to is
the Analyze FI Assignment report. This report (RFLQ_FI-
CHAIN) that you can call via Transaction FLQC14 sup-
ports you in understanding and implementing the assign-
ment mechanism From FI Information . Depending on
the selection criteria you have specied, the report lists
actual lines and the documents related to the actual lines
with or without liquidity items.
Tables
The most important tables in cash accounting are the to-
tals table and the line items table. In the following sec-
tions, well briey describe the structure of these tables
and the most important elds.
The most important elds of the totals table are (see
Figure 3.24):
BUKRS Company code
LQPOS Liquidity item
TWAER Transaction currency
LQDAY Payment date
ZBUKR Paying company code
LQTYPE Liquidity type
GSBER Business area
WRBTR Amount in local currency
DMBTR Amount in transaction currency
The most important elds of the line items table are (see
Figure 3.25):
ZBUKR Paying company code
BELNR Document number (of the
accounting document)
GJAHR Fiscal year
BUZEI Posting item
BUKRS Company code
GSBER Business area
LQPOS Liquidity item
LQORIG Source symbol of the assignment
mechanism
HKONT G/L account
LQDAY Payment date
TWAER Transaction currency
WRBTR Amount in local currency
DMBTR Amount in transaction currency
Figure 3.23 Deleting Flow Data
Figure 3.24 Totals Table in SAP Actual CalculationFLQSUM
Figure 3.25 Line Items Table FLQITEMFI
www.sap-press.com 85
Index
A
ABAP editor 19
ABAP report 28
Account-based integration 8
Accounting 8, 11
Accounts receivable and accounts
payable accounting 26
Account assignment type 9
Accrual accounting 5
Actual account 22, 23
Actual Calculation 14, 17, 19, 21, 27, 35
Actual data 14, 41, 64, 75, 76
Administrator Workbench 41, 64
Allocating assignments from FI informa-
tion 22
Analysis report 36
Application menu 28
Application of funds 9
Assignment 23
from FI information 24
mechanism 21, 23, 28
B
Bank account 23
Bank statement 23, 30, 31
item 29
Basic InfoCube 44
Buffer item 35
Business Area 22
Business Content 40, 41, 42
Business transaction code 30
Business Transaction Events 18
C
Case scenario 13, 15, 18, 19, 20, 21, 23,
26, 31, 34, 36, 45, 52, 54, 55, 56, 59
Cash flow 5, 6, 7, 10
accounting 5
statement 5, 7, 81
Cash account 15
Cash accounting 3, 5, 6, 8, 10, 14, 19,
22, 28, 75, 79
Cash Budget Management 5, 71, 72, 75,
77
Cash inflow 8, 13
Cash Management 5, 9, 10
Cash outflow 8, 13, 14
Characteristic 49, 50, 52, 53, 54, 56, 73
value 73
Chart of accounts 8
Clearing document 21, 28
Clearing transaction 25
Commitment item 72, 73, 74, 75, 76
Communications structure 51, 64
Company code 19, 72
Company structure 71, 76
Consistency check 37
Corporate accounting 13
Corporate Finance Management 28
Cost accounting 5
Creditworthiness 8
Crystal Reports 40
Customizing 18, 19, 21, 22, 24, 71
D
DataSource 40
Data flow 45, 51
Data model 19, 28, 36
Data target 40
Default item 19, 22
Defining
actual accounts 21
query-relevant G/L accounts 22
query sequences 22, 26
Deletion process 26
Determinability 20
Direct determination 9
Document chain 21, 24, 31
Document update 75
Drilldown report 78
E
Electronic bank statement 21
Element definition 73
External capital 6
Extraction 64, 66
Extractor 17
F
Financial accounting 8, 9, 19, 21, 31
Financial accounting-related liquidity 5
Financial management area 71, 72
Financing requirement 7
Fiscal year variant 72
FI Document Chains 37
Flow-of-funds analysis 5, 6, 7
Flow-of-funds planning 6
Flow data 26, 27
FM area 72, 75
From Bank Statement 23, 30
From Bank Statement Information 23, 29
From FI Information 24, 26, 27, 33, 34,
35, 37
From Invoices 26, 35
G
G/L account 26, 32
G/L accounts list 37
Global treasury 13, 14
GR/IR clearing account 25
H
Having an effect on liquidity 9
Having no effect on liquidity 9
86 Galileo Press 2006. All rights reserved.
Index
Hierarchy 52
House bank 22, 30
I
IAS 5
IDES 13
IDES system 15
Implementing SAP Liquidity Planner 13
Indirect cash flow statement 14
InfoCube 43, 44, 48, 52, 66
InfoObject 40, 43
InfoProvider 43
Information System 28, 36, 71
InfoSource 40, 64, 65
Insolvency 81
risk 6
Installing assignment mechanisms 22
Internal financing potential 6, 7
K
Key figure 57
L
Layout Builder 54
Lead column 73
structure 74
Line item 28
Line items table 27, 29, 36
Liquidity
analysis 25
forecast 10
item 15, 19, 20, 25, 30, 31, 32, 35
planning 3, 5, 6, 14, 39, 63, 71, 77
relationship 7
M
Manual transfer posting 19
Master data 19, 45, 46, 47, 49, 75
Modeling 40
Multi-planning area 54
MultiCube 41, 45
MultiProviders 43
mySAP ERP 71
N
N:M Treatment 24
Net cash flow 13
New Formula 68
Number range 19, 36
object 20
O
ODS object 43
Online update 27, 28, 32
Overall process 21
P
Partial reassignment 24
Plan/actual
analysis 14, 20
comparison 17, 71, 72
deviation 69
Planability 20
Planned data 14
Planning 76, 79
area 54, 55, 56, 61, 74
data 41, 44, 60
depth 20
function 54, 55, 61, 76
functionality 17
interval 53
layout 48, 53, 54, 59, 60, 73, 74
level 55, 56, 57
package 55, 58, 61
process 14, 15, 79
profile 74
screen 61
unit 53
value 74
workbench 55
Plan version 74, 75
Plug-in 17, 81
Posting data 25
Posting transaction 31
Profit 6
Q
Query 32, 40, 67, 68, 69
sequence 23, 30, 37
R
Rebuild 27
Recipients 20
Release status 17
Reporting 14, 40, 43, 71, 77
platform 14
Report Painter 73
Retrograde determination 21
S
SAP Actual Calculation see
Actual Calculation
SAP Business Content see
Business Content
SAP BW 14, 17, 39
SAP BW-BPS 54
SAP Liquidity Planner 6, 17, 39
SAP R/3 3, 14, 17, 65
SAP R/3 Enterprise 71
SAP SEM 3, 14, 17, 39
SAP SEM-BPS 48, 53, 54
Scheduler 66
Solvency 6, 7
Source of funds 9
Source symbol 36
Storing global data 21, 22
Strategic liquidity 7
System integration 17
System table 19
T
Test run 28
Tools 26
Totals list 37
Totals table 27, 31, 36, 71
Total cash flow 7
Transactional InfoCube 44
Transaction Events 18
Transfer posting 36
Transfer rule 65
Transfer structure 51, 65
Treasury 71, 72, 73, 74, 76, 77
U
Update rule 50
www.sap-press.com 87
Index
V
Variable 40
Version concept 17
W
Web Template 40