sap liquidity planner

SAP Liquidity Planner

Doris MllgaardProduct Manager, SAP AG

SAP AG 2002, Title of Presentation, Speaker Name 2

Agenda SAP Liquidity Planner

Integration of Actual Data

Planning

111

2

Environment and Objectives

22

333

555 Summary

444 Reporting




Planning

111

2


22

333

555 Summary

444 Reporting


Cash Management

Cash position Liquidity forecast

Subledgers:- A/P- A/R- Purchase

orders- Orders

Bank accounts in currency:Account 1

:Account nTotal

Payment transactions in transit:- incoming - outgoing

Financial investments and borrowings

Cash Management

decision

Market information TRADING


... The Market Requirements

Value-based enterprise management is increasingly important Foresighted management of global cash flows & their related risks Increase on the efficiency of planning processes & monitoring targets

Modern-day liquidity planning requires A central planning tool with automatic data exchange Central reporting functions Decentralized access for data entry and for local evaluations Group-wide use irrespective of the existing system landscape Flexibility when defining the planning environment and its parameters An easy adaption to changes in the organizational structure and its

planning parameters


Liquidity Planner - Objectives

Supports the finance manager in identifying expected liquidity and foreign currency risks

Key features ofLiquidity Planner

Centralized system for handling plan datain a medium- and long-term liquidity planning

Centralized system for handling plan datain a medium- and long-term liquidity planning

Group-wide database in invoice currencyGroup-wide database in invoice currency

Immediate availability of informationto decision-makers

Immediate availability of informationto decision-makers

Easy-to-use front-end and evaluation tools Easy-to-use front-end and evaluation tools


Terms for Liquidity Planning

ACTUAL and COMMITMENT data in Cash Management Activities entered in the SAP System

(that is, concluded business transactions + commitment) Data structuring

Bank accounts Customers vendors Purchase orders orders

PLAN data in the Liquidity Planner Exclusively planned (expected) future cash flows All group subsidiaries In invoice currency


Processes in the SAP Liquidity Planner

Data warehouse

Group

Planning unit 1

Planning unit 2

Plan data

Planning unit 3

Actual data

Planning unit 1

Planning unit 2

Planning unit 3

Reporting


SAP Liquidity Planner Architecture -Overview

Front-end clients

OLAP database

BPS server

SAP BW

OLAP data buffer, master data buffer, field catalogue

Planning Framework

Planning levels, packets, methods and functions

Manual planning

Determining actual data in Liquidity Planner as Plug-In

Enteringplan data

SAP FinancialAccounting

Configuring the planning

Configuring the InfoCubeand the reports

ReportingConfiguring the extractors

1

2

3

4

5 Configuring thedetermination of actuals

Importing the bankstatements and postprocessing

Local SAP Systems




Planning

111

2


22

333

555 Summary

444 Reporting


Planning Process

z Centralized planning system with data storage on group level

z Decentralized user interface for planning unitsz Centralized/decentralized reporting

Reporting

Data Warehouse

Group

Planningunit 1

Planningunit 2

Plan data

Planningunit 3


Planning Structure

Definition of objectives of liquidity planning Objectives Means of achieving the objectives

Responsibilities within the planning process Individual tasks to be assigned to the employee responsible User roles, authorizations

Timing and procedures in the planning process

Data model


Header data

Clear assignment of plan datafor aggregation and evaluation

Planning unit

Currency

Key date (version)

Time line

Defining planning horizon and periods

For example: Next 12 months divided into months or quarters

Freely scalable

Liquidity items

Item-oriented structure of cash flows to be planned

Data Model

Time line

Header data

Data input

Liquidityitems


Liquidity Planner - Data Entry

Header Data

Timeline

Data Input

LiquidityItems


Data Model Liquidity items

Criteria for definition

Ability to plan

Which incoming and outgoing payments should be planned in the company?

Level of detail

How detailed should the planning be for these payments?

General validity

How do the liquidity items have to be structured in order to convey information that is meaningful to the group and to the individual planning unit?

Manageability

Which payments can be found again in the actuals and are therefore accessible for plan/actual comparisons?

Time line

Header data

Data input

Liquidityitems


Revolving planningz Adjust or enter plan data in a

defined frequencyz Defining milestones within the

revolving planning processz You can choose your own planning

frequency

Time lineHeader data t 0

Data Input

Plan-position


Data Input

Plan-items


Data input

Liquidity items

Timing and Procedures in the Planning Process

Time

JAN FEB MAR APR ... SEP OCT NOV

Version

01/2000

03/2000

02/2000



z Only planned cash flows in invoice currencyz Copy and evaluation functionsz Text field for notes

Local plan data entry

Centralized aggregation

and evaluation


Data Entry via Browser


Hardware Architecture

Scenario 1 Scenario 2

Business Warehouse

SEM

Business Warehouse

LiquidityPlanner

SEM

LiquidityPlanner




Planning

111

2


22

333

555 Summary

444 Reporting



Objectives

Group-wide determination and assignment of all paid incoming and outgoing cash flows

Operative, financial and other cash flows stated according to the structure of liquidity items within the planning

Enabling immediate, automatic plan / actual comparisons

Support of further analyses(e.g. cash flow-oriented controlling)


Processes in the SAP Liquidity Planner

Planning unit 1

Planning unit 2

Planning data

Planning unit 3

Data warehouse

Group Actual data

Planning unit 1

Planning unit 2

Planning unit 3

Reporting



Integration of actuals for e.g. plan/actual comparisons

Liquidity Planner

Business Information Warehouse

Determination of actual dataaccording to the structure

of the liquidity items

SAP Accounting


Liquidity Planner - Process Flow

SAP BW

Enter plan datain SEM BPS

Enter plan datain SEM BPS

Reporting

Automatic assignment mechanisms

Result of assignment satisfying?

Postprocessing of parameters

noResults logs

Extractionyes

Actual data

Work evaluations

Import of account statements

Import of account statements


Assignment Mechanisms (1)

Assignment based on account statements one liquidity item for each account statement item purposes of the payment are taken from the notes

Such as amount, posting text, notes to payee, business transaction code, payer

Such as SWIFT MT 940: 54 fields

predefined assignment rules determine the corresponding liquidity item Assignment rules are freely definable

Result: All items are assigned, but not precisely in all cases


Assignment based on Account Statements -Example

Sample AGNew York---------------------------------------------------------------------------------------------------------------------------------------------------------------------------Post office ManhattanAccount holder: John SmithSort 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 30,000.0000002 09/24 09/24 Doc. 1500000285 004 - 3,300.0000003 09/24 09/24 AS 8899100 / X4711 DEBIT MEMO 005 - 386.16

WorldTEL GmbH 00004 09/24 09/24 Check 1500000282 001 - 600,0000005 09/24 09/24 Paid on 06/03/YY 051 10,700.00

Pmt no. 17100008111CAcct 3 %

00006 09/24 09/24 Paid on 06/12/YY 051 1,000,000,000.00-------------------------------------------------------------Total Debit 4,286.16Total Credit 1,000,040,700.00-------------------------------------------------------------

Ending balance 1,000,070,314.00Telephone costs WorldTEL


Assignment based on Account Statements -Settings


Assignment Mechanisms (2)

Assignment based on information from SAP Accounting Used where assignment based on account statements

is not accurate enough

Analysis of information in payment runs(for example, for combined payments)

Clearing entries evaluations of open items (for example, checks) Assignment logic, for example, by segmentation of customers/vendors

Possible to take flows on inter-company clearing accounts into consideration


Assignment based on SAP FI Information -Settings


Determination of Actual Data Expected Results

Blanket assignment

Accurate assignmentbased on informationfrom SAP Accounting

Scalable accuracy Blanket assignments Exact assignments

Completeness Complete assignment of all

account statement items

Capable of enhancements

Exact assignment based on

account statements

Precise the assignment mechanisms

High level ofdifferentiation




Planning

111

2


22

333

555 Summary

444 Reporting


Liquidity Planner - Reporting

Total

Country GER

Planning unit 1500

Country GER

Planning unit 1000

Country GER

GroupTreasury

Planning unit 3000

Country UK

Currency EUR


Principle of Multi-Dimensional ReportingV

e

r

s

i

o

n

03/2000

02/2000

01/2000

Planning unit

USAUK

FRA Currency

JPYUSD

EUR

z in SAP BW Business Explorer / Analyzer

z in SEM BPSData

output


Total Evaluation

System DemoOffline


Reporting - Comparison

Plan / Actual comparison Selection Region A Currency Euro Comparison period 06/2000 Planning version 06/2000

Region A P 06/2000 Actualsin EUR(1000's) PP 06/2000 06/2000 Absolute %A/R 12,200 11,500 700 6.09%A/P -11,500 -10,900 -600 5.50%Balance 700 600 100 16.67%

Derivation

Plan / Plan comparisons Current plan versus plan from previous month Current plan versus annual plan




Planning

111

2


22

333

555 Summary

444 Reporting


Liquidity Planner - Summary

Planning unit 1

Planningunit 2

Planningunit Y

PlanningPlanning

Decentralized data entry

Update as of ...

Update as of ...

Cash flow-related planning per liquidity item per periodper currency

Operationalactual data

Operationalactual data

Mapping&

assignment

Cashforecast

CashpositionSAP Systems


Features of the Liquidity Planner

The decision-makers have immediate access to the information they need on expected changes in the liquidity and foreign currency position

Central planning system Reduction in maintenance costs

Group-wide use using decentralized user interface

Easy-to-use front-end

Internet/Intranet scenario

Integration of actual datafrom SAP R/3 Systems


Other Possible Integration Scenarios

Liquidity Planner

Business Information Warehouse

Determination of actualdata according to thestructure of liquidity items

SAP Financials

Market Risk Analyzer

Plan data

Integration of plan data with operational data

for e.g. exposure analysisIntegration of actual data for e.g. plan/actual comparisons


Possible Integration of Plan Data

Liquidity Planner

Business InformationWarehouse

TR-MRM

Plan

Planned cash flows as underlyingfor determining expectedopen currency position

Expectedcurrency exposure

Plan data Closed hedgetransactionsOpen

position


Liquidity Planner Workplace

Localliquidity planning

Financing Hedging Investments

Total

Division X

Planning unit 1Land A

Planning unit 2Land B

GroupTreasury

Planning unit 3Land B

Land B

Group-wide aggregation and evaluation


Live Customers (inofficial)

Implement.- Istdaten- Planung partner ermittlung

GASAG Berlin Bearing Point X

Ferrovie dello Stato X

merckle ratiopharm Hanseorga X

AGIV real estate Stefan Kerber, SAP X

Woolworth M. Heesch, SAP X

BSH -- X


Further Implementation Projects

Lufthansa Lufthansa Systems

EADS (Toulouse), bauen Airbus

sterreichische Bundesbahnen

1 Projekt in Brasilien

1 Projekt in Indien

Dauer Implementierungsprojekt:

Istdatenermittlung: Im Falle nicht zu komplexer Strukturen und nicht zu vieler Buchungskreise schtzungsweise 20 Tage.

Planung: Dirk Braun fragen


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SAP Liquidity PlannerAgenda SAP Liquidity PlannerAgenda SAP Liquidity PlannerCash ManagementTerms for Liquidity PlanningSAP Liquidity Planner Architecture - OverviewAgenda SAP Liquidity PlannerPlanning StructureData ModelData Model Liquidity itemsTiming and Procedures in the Planning ProcessLiquidity Planner - Data EntryHardware ArchitectureAgenda SAP Liquidity PlannerIntegration of Actual DataIntegration of Actual DataAssignment Mechanisms (1)Assignment based on Account Statements - ExampleAssignment based on Account Statements - SettingsAssignment Mechanisms (2)Assignment based on SAP FI Information - SettingsDetermination of Actual Data Expected ResultsAgenda SAP Liquidity PlannerLiquidity Planner - ReportingPrinciple of Multi-Dimensional ReportingSystem DemoReporting - ComparisonAgenda SAP Liquidity PlannerOther Possible Integration ScenariosPossible Integration of Plan DataLive Customers (inofficial)Further Implementation ProjectsCopyright 2003 SAP AG. All Rights ReservedCopyright 2003 SAP AG. Alle Rechte vorbehaltenCorporate Colors for PPT

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