Cash Concentration: At the end of each morning, you want to combine your various bank account balances

in one target account, thereby obtaining a clear overview of your company's liquidity. Having informed the
banks by telephone, you use the system to print your correspondence forms (revised as necessary) so that you
can send them to the banks too. You then need to make an advance concentration proposal posting, so that you
can use the bank statement the next day to make the postings to the current accounts.
Cash concentration involves moving the balances from various bank accounts to one target account, keeping
defined minimum balances in the source accounts. The system creates a concentration proposal based on the
grouping. The proposal contains the balance for the end of the day, and the planning result -that as, the likely
account transfers. You can correct the concentration proposal at any stage in the process. The result is printed
and takes the form of payment orders to the banks. Payment advices are also created. They are necessary for
the new bank balance at value date.

Figure 65: Cash Concentration: Overview

The grouping contains only those costs that are to be included in cash concentration. You can define different
groupings in cases where the concentration procedure is different.
You have the option of concentrating balances for a number of company codes at the same time. You do this
by means of a work list, which combines a number of company codes.
Cash concentration can be started as a report program, which means variants can be used.

Figure 66: Cash Concentration: Report

Procedure for running the report program:
Enterthecompany code or, if you are concentrating cash for more than one company code, the work
list.
In the Planned to field, enter the planning date up to which you want to concentrate balances.
Enter a grouping term in the Grouping field, thereby selecting particular accounts for concentration
(ACBANK-IST, for example).
Enter the cash management name for the account where the amounts are to be concentrated
(DBGIRO, for example) along with the target company code.
If required, use the Minimum Balance field to stipulate the minimum balance an account must have
before it is selected for cash concentration.
In the Planning Type field, enter a planning type assigned to cash concentration.
The plannable amount is the total of the cash management end balances, less any defined minimum balances
applicable. This need not be the case for the target account because the target account must not have a
negative balance. You can process the amounts.
Once you have processed the concentration proposal, you can create two payment advices for each payment
order. One advice is for the sender account and one is for the receiver.

Figure 67: Cash Concentration: Posting Processes

Confirm creation of the advices in the additional window. The system tells you that advices have been created,
and you return to the initial screen.
With the posting program, you can post payment advices created during cash concentration to the relevant
accounts. The program creates a batch input session for the postings and archives the payment advices.
The prerequisite for the posting is that an account for posting must be entered in the customizing table
(payment methods and minimum balances).
You can simulate the postings first. The simulation does not create a batch input session for the postings, nor
does it archive the payment advices. It does, however, output the list.
Statements for the account in question come the next day and clear the advance postings in the relevant
clearing accounts.

Figure 68: Cash Concentration and Payment Program

Payment requests are documents used to create payment media. They are usually generated automatically
when transactions due are posted. They are then regulated (individually or together) using F111, the payment
program for payment requests.

Figure 69: Payment Program Parameters

Field selection control enables you to regulate which input parameter fields are shown or hidden.
In customizing for bank accounting, you can use the global settings to stipulate which of the following fields
should appear and be ready for input when you enter payment parameters:
. Vendor accounts
. Customer accounts
. G/L accounts
. Created on
. Origin
You can use the origin indicator to determine for which application payments are to be generated. TR-CMBT for bank account carryovers.
Lesson: Customizing: Cash Concentration
When cash is concentrated, minimum balances should continue to be held in the accounts. This has to be
specified in Customizing. You also have to define the clearing account for the concentration proposal posting.

Figure 70: Concentration Specifications

To be able to use cash concentration, you must first enter some customizing settings.
You must enter at least one clearing account to which postings are made during cash concentration. You can
have separate clearing accounts for the debit and credit postings that arise when cash concentration payment
advices are posted (not required when payment requests are created).
You can concentrate amounts moving between banks by means of an intermediate account. The amounts do
not then flow directly to the target account, but to the interim account. They are then transferred from there to
the target account. This means that nobody can use the payment advice and accompanying payment order to
trace the account to which the amounts are finally posted. You define amounts for accounts when
configuring the system. By changing the minimum balances/planned balances and tolerances as you carry out
cash concentration, you can change the closing balances in your accounts. If the balance in an account is
within the tolerance limits, no transfer takes place. In addition, you can define payment advice amounts for
each account. In the application itself, you can specify a minimum payment advice amount cash concentration
initial screen. This applies to all the accounts involved in the concentration.

Figure 71: Concentration - Configuration Examples

Example 1: Concentration within a company code
Example 2: Concentration for a group
Example 3: Concentration within a company code, using an interim account

Figure 72: Cash Concentration . Correspondence

The system automatically generates confirmations for the payment orders issued.
To this end, you must create the appropriate form and assign it to the program.
The payment recipient can be printed on the form. This is particularly important in the case of payment
advices covering more than one company code.
Confirmations can be generated for the bank after you have confirmed that the payment advices have been
created.

Figure 73: Concentration Confirmation. Address and Account Number

The house bank and account key in the bank account master records are used to determine the bank
key, bank account number, and the accompanying address data.
In Customizing for bank accounting, you can use the global settings to stipulate which of the following fields
should appear and be ready for input when you enter payment parameters:
Vendor accounts
Customer accounts
G/L accounts
Created on
Origin
If you do not want to set any restrictions and always want to pay all items that are due, do not select
any of these fields.
Use the Customizing settings for the origin indicator to control the following when processing
payment transactions:
Whether the payment program should check the amounts planned. If you set this indicator, the
program does not check the amounts planned for payment requests.
Whether the account determination in the application or that in the payment program should be used
to determine the bank clearing account for payments. If you do not set this indicator, the account
determination function in the program is used to determine the bank clearing account. The result of the
Application account determination is ignored.
Whether the characteristics already defined for the origin should be used when payment requests with
different sources are being cleared. If you set this indicator, the payment program uses the characteristics for
this source when clearing payment requests with different sources.
The origins whose payment requests are allocated against each other must be assigned to each other. You do
this in Customizing for bank accounting.
You want to be able to include your new account in cash concentration and then carry out cash concentration.
1. In the SAP Reference IMG, add your new bank details (11##00) to the cash concentration table. Do not
concentrate cash via an interim account. Enter the planned balance/planned minimum (1,000/100) and the

clearing account (11##05) to which postings will be made when the payment requests generated during bank
cash concentration are converted to accounting documents.
If you have not yet created account 11##05, do so now.
a) Solution for completing the payment table.
Customizing: Treasury
SAP Reference IMG Financial Supply Chain Management Cash and Liquidity Management Cash
Management Business Transactions Cash Concentration Define Intermediate Account,
Clearing Accounts and Amounts
Copy an entry or enter your data. Choose New Entries.
Field Name or Data Type
Values
Company Code
AC##
Bank Account
11##00
Planned Balance/Planning 1000/ 100
Minimum
Clearing Account
11##05
Debit/Credit
The bank clearing account is created in the FI application component.