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SAP Cash Management
SAP Cash Management is SAP’s financial module used to manage companies’ cash position and liquidity forecast.
This module relies heavily on the FI modules (General Ledger, Accounts Receivable and Payable) as main sources of information. It filters FI information to keep only cash relevant postings that it organizes and aggregates according to their cash flow characteristics.
SAP Cash Management distinguishes between the cash position and the liquidity forecast. Although this distinction seems to indicate a difference in planning term (cash position referring to short term planning and liquidity forecast referring to mid-term planning), there is actually a more subtile difference. From SAP terminology point of view, the cash position is updated only when the amount, the term, the currency AND the cash account that will be debited or credited are known. When the cash account is unknown, SAP updates the liquidity forecast.
This means that a movement on a bank account or a payment in transit account (represented by G/L accounts in the system) will update the cash position while an invoice on a customer account will affect only the liquidity forecast since the cash account that will be debited when the customer will pay his invoice is unknown as long as the payment has not occurred.