Cash Concentration 

Use

Before making a cash management planning decisions, it is often advisable to concentrate all your account balances in one target account.

Cash concentration is based on specified current accounts that are summarized under a group definition (for example BANK-IST-E).

Procedure

  1. Call up the transaction as follows:
    2.

    Menu Path

    In the Cash Management node choose: Planning ® Cash concentration ® Create

    Transaction Code

    FF73

  2. Enter the following data:
    3.

    Field

    Data

    Company code

    1000

    Planned date

    Today’s date

    Grouping

    BANK-IST-D

    Currency

    EUR

    Minimum balance

    10000

    Target account name

    DBGIRO

    Target company code

    1000

    Value date

    Today’s date

    Expiration date

    Today’s date

    Planning type

    CL

    Minimum amount

    5000

    Scaling

    3.0

  3. Choose Execute.

    4. On the Display Balances from Cash Concentration screen, you see the clearing proposal offered by the system that you can now edit.

  4. Choose Correction.

    5. You can enter values to change the minimum balance of all the accounts (with the exception of target account DBGIRO).

  5. Select the plan balance of CBGiro (or DRGiro) and change it from XX to 10.
  6. Choose .

    7. The system automatically adjusts the cash management final balance for CBGiro (or DRGiro).

  7. Choose Edit payment advices.

    8. On the Edit Payment Advice for Cash Concentration screen you can change the amounts as required.

    The planned amount proposed for CBGiro (or DRGiro) are then rounded.

  8. To do this, position your cursor in front of the digit to which you want to round off in the planned amount for CBGIRO (or DRGIRO), then Choose Round.
  9. Choose to generate the payment orders for the banks.
  10. In the Create Payment Advices dialog box, choose Yes.

    11. The concentration advices were created and can be seen in the cash position.

    By creating a concentration proposal you have cleared your general ledger accounts internally, after which you can inform the issuing banks by telephone of the payment orders. you can then print the payment instructions from the SAP R/3 System, and send them to the banks as paper documents

  11. Choose until the overview tree appears.