SAP In-House Cash (FIN-FSCM-IHC)

Purpose

SAP In-House Cash is used for processing internal and external payment transactions within a group or company. By using SAP In-House Cash you can reduce the number of external bank accounts you hold and the volume of foreign payments you have to make. SAP In-House Cash is implemented at a central location within a group of companies, for example, in head office.

With SAP In-House Cash , you can process the following transactions:

  • Internal payments

  • Central payments

  • Local payments

  • Central incoming payments

The following graphic shows the flow of data within a group of companies that uses SAP In-House Cash in its head office.

Implementation Considerations

To use the In-House Cash functions, make the necessary system settings in the Implementation Guide (IMG) by choosing Start of the navigation path Financial Supply Chain Management Next navigation step In-House Cash. End of the navigation path

Make the following settings in the implementation guide (IMG) under Financial Accounting for the subsidiary companies and head office.

Note Note

This documentation refers to the new functions in SAP ERP2004. If under exceptional circumstances, you do not use these functions, you can refer to the documentation for previous release (SAP Enterprise 4.70) of SAP In-House Cash in the SAP Help Portal.

End of the note.

Integration

SAP In-House Cash is connected to the head office's Financial Accounting (FI) system, and uses its functions, such as the payment program. The affiliated companies also use Financial Accounting (FI) functions. For instance, they also use the payment program to clear open items. The IDocs generated as a result automatically forward payment orders to the in-house cash center. Electronic account statements for the house bank of the head office can be imported to Financial Accounting (FI), and the data is passed on to the in-house cash center. The affiliated companies also receive an account statement from the in-house cash center.

If you create an IHC financial status , you can forward this to SAP Cash Management .

Scope of Functions

The main component of SAP In-House Cash is the in-house cash center which processes payments between the various subsidiary companies. The in-house cash center is basically a virtual internal bank where subsidiaries hold current accounts. Current account processing depicts receivables and payables between the in-house cash center and affiliated subsidiary companies. It calculates the turnover and balances of the current accounts and forwards this information in summarized form to Financial Accounting (FI).

Note Note

You can decide to implement one or more in-house cash centers within your group of companies.

End of the note.

You can find the SAP In-House Cash functions on the SAP Easy Access screen under Start of the navigation path Accounting Next navigation step Financial Supply Chain Management Next navigation step In-House Cash End of the navigation path .

Example

The following graphic shows a group of companies, organized to enable both cross-bank-area and local payments:

  • Two companies use SAP In-House Cash and both serve as internal banks for a certain number of subsidiary companies.

  • They are also mutual clearing partners.

  • Subsidiaries 3 and 4 carry out local payments as clearing partners for other subsidiaries.

    International Group Structure