SAP CFM IHC Module
SAP CFM IHC Module
Juergen Klingbeil
SAP Labs Inc.
1 Introduction
5 Value Proposition
1 Introduction
5 Value Proposition
(GartnerG2)
1 Introduction
5 Value Proposition
Parent
Plant U.S. XYZ INC. Plant Spain
Sales U.K. Sales Germany Sales Netherlands Sales Belgium Sales France
Physical payments
SAP AG 2001 In-House Cash - Romanov 8
Problem Scenario
Plant U.S.
Plant Spain
Plant U.K. Plant Hong Kong
Parent XYZ INC.
In-house bank
Plant Germany
Sales France
Sales Belgium
Sales U.K.
Sales Germany Sales Netherlands
Netting system
debt/investments
FX
derivatives
not integrated
Corporate
Corporate Headquarter
Headquarter –– Treasury
Analyzer
Credit Market Portfolio
Risk Risk
Analyzer Analyzer Analyzer
Transaction Manager
Data from
Bank
Subsidiary 1 operational data
systems
Subsidiary 2 Subsidiary 3
IHC is set up at the group headquarter
IHC is a virtual bank where the subsidiaries have current accounts
1 Introduction
5 Value Proposition
Account management
Interest calculation
Charges
Credit limits
Account statements
...
Cash concentration
The physical transfer of account balances to master
accounts according to minimum and maximum
balances
Interest Compensation
Pooling of accounts for the purpose of
determining the total balance as basis
for interest optimization
Account A
+ 100
- 120
Business partner ...
Blocks
...
...
No Post.dte Val.dte Curr. Amnt
Currency
... 1
2
30.12.00
31.12.00
31.12.00
31.12.00
EUR
EUR
100.00 C
9.58 D
Corporate
Head Office
Group
Subsidiary 3 In-House Cash Financial
Subsidiary 2
2b. Center Accounting
Subsidiary 1 Account
2a.
management
Pmnt Program OP
1.
external partner“
Corporate Head Office
Subsidiary 3 Group
In-House Cash Financial
Subsidiary 2
Center Accounting
Subsidiary 1
Account
2.
management 3.
Pmnt Program OP
1.
4.
5.
External
business 7. 6.
partner
Partner bank Head office
house bank
Payment Bank Statement
External
business
partner 2. 3.
Pmnt program OP
1. Partner bank Head office
house bank
Payment Bank Statement
Head Office
= + 30 = + 50 = - 80
Corporate
Head Office
Group
Subsidiary 3 In-House Cash Financial
Subsidiary 2 Center Accounting
Account
Subsidiary 1 management Local
Currency currency
Conversion GBP
Function
Pmnt Program OP
Payment order)
-100 YEN Acct 1 Transaction Account
+100 YEN Acct 2
currency currency
YEN USD
Currency Conversion Function
Converts the incoming payment items from the subsidiaries into account
currency (manual conversion of payment items with IHC supported)
Enters the account currency and the reference transaction amount (e.g. for
bank statement purposes) in the posting documents in IHC.
Generates an additional posting on currency position accounts.
Subsidiary 3
In-House Cash Financial
Subsidiary 2 Center America Accounting
Subsidiary 1 Account
2.
management
1.
3.
Subsidiary 6
In-House Cash Financial
Subsidiary 5 Center Europe Accounting
Subsidiary 4 Account
management
4.
Subsidiary 3
In-House Cash Financial
Subsidiary 2 Center America Accounting
Subsidiary 1 Account
2.
management
1.
3.
Acct.
Acct.1100
Settlement sequence
1100
relationship (Hierarchy level 1)
Acct.
Acct.1101
1101 Acct.
Acct.1103
1103 Acct.
Acct.1104
1104 Hierarchy
level 2
Acct.
Acct.1107
1107 Acct.
Acct.1106
1106
Hierarchy
level 3
Acct.
Acct.1109
1109 Hierarchy
level 4
Head Office
Head Office
... generated by
Subsidiary mirrordeals
covered in CFM
Transaction
Manager
1 Introduction
5 Value Proposition
Global Treasury
• global treasury policy
• capital market management
• interest rate risk management
• global currency exposure management
• multilateral netting
ALE
ALE / IDOC
I/C payment
ALE / IDOC
ALE / IDOC
CM data
TreasuryApostings Liquidity & FX
AL
E FI CM
ALE / IDOC
I/C payment CM data /I
D
EBS
Treasury postings O
C I/C Loan…
Orbian
Business Partner
Treasury Accountg
System System
Subsidiary AL
North America
E MR CR PA
Internet TM
PA Internet Non SAP
access LP
access
IHC
ALE
Subsidiary
E
Europe
AL
Internet
access
CM
SAP R/3 4.x
Orbian
Business Partner
SAP R/2
Corporate Headquarter
Treasury Accounting
System System
Subsidiary AL
North America
E
FI
Internet MR CR PA
PA Internet Non SAP
access TM access
IHC LP ALE
SAP R/3 4.6
Subsidiary
E
Asia / Pacific
AL
Internet
access
Subsidiaries
SAP R/3 4.x
CM Europe
Electronic
Outgoing payments Bank statement RFC bank statement
BAPI PAYRQ
1 Introduction
5 Value Proposition