Project Cash Management (SAP Library

Project Cash Management

Use

Project Cash Management enables you to look at project-related payment flows by supplying information on the timing of payments into and out of your project. It also plans and monitors the payment flow from the project point of view. Project Cash Management thus differs from Cash Budget Management and Cash Management in Treasury (TR), which monitor the payment flow for the whole business.

See: Differences Between Cash Management and Funds Management

The answers to the following questions are relevant to effective payment flow control in Project Cash Management.

How much do we have to pay? / How much do we expect to receive?
When do we have to pay? / When do we expect to receive payment?
To whom is payment to be made? / From whom will we receive payment?
In what currency will the payment be made/received?
To which project object (WBS element, activity, order for project) is the payment assigned?

Project Cash Management supplies financial information on when payments will actually occur. When recording payments in projects, the system takes account of the terms of payment. This is different from cost planning which only supplies cost accounting information on the costs and revenues expected for a project.

The graphic below clarifies how this process differs from the recording of cost and payments from postings in FI which are assigned to a project:

This graphic is explained in the accompanying text

Note

The system does not record taxes in Project Cash Management.

Prerequisites

Like the FI application component, Project Cash Management uses financial management areas (FM areas) and commitment items.

You must define these organizational units in the Implementation Guide and activate Project Cash Management in the company code.

See Organizational Units for Project Cash Management.

For detailed information on the required settings, see the IMG for Project System under Payments.

Features

Project Cash Management can monitor both planned and actual payment data. The following functions are available:

Manual Payment Planning in commitment items (by period and year) for the WBS element

Costing and recording planned payment flows by date, based on detailed project planning

Outgoing payments

The system calculates the planned payments out, based on data for externally processed activities and non-stock material components in the asynchronous network costing, and records them by date. Data for externally processed activities and non-stock material components is taken into account. If you have maintained an invoicing plan, the planned outgoing payments are recorded as of the dates in that plan.

Incoming payments

The planned incoming payments are recorded automatically. The system takes the appropriate data from the billing plan for the WBS element or sales order.

If the data is taken from the billing plan for the WBS element, the system records the planned payments as of the dates from the billing plan.

If the data is taken from the sales order to which a billing plan is assigned, the system records the planned payments as of the dates from the billing plan.

Manual Payment Planning in commitment items (by period and year) for the WBS element

Recording Actual and Commitment Payment Data

Payment commitments and payments from business transactions assigned to the project are automatically recorded in the project. In doing this, the system includes:

Payment commitments from purchase requisitions and purchase orders

If you have maintained a billing plan for the sales order, the planned payments are recorded as of the dates in that plan.

Payments from debit- and credit-side postings in FI
Manual payment transfers

Note

If you want to check down payments only in the project, you do not need to activate Project Cash Management. Down payments are recorded automatically if cost accounting is active. If Project Cash Management is not active, down payments are recorded under value type 12; if it is active, they are recorded under value type 61.

You can settle down payments as expenditures to assets under construction and display them as costs.

Interest Calculation for plan and actual payment data

Evaluation of payment data in the Project Cost/Revenue/Payment Information System

Old data transfer

If you implement Project Cash Management, you can make follow-up postings from MM and FI.

For more information, see the IMG for Project System under Payments ® Prepare for Going Live ® Data Transfer.