Editing Cash Concentration (SAP Library - Account Management (FS-AM))

Editing Cash Concentration

Use

On the Cash Concentration tab page, you specify the rules the system is to use for running the cash concentration for the master contract and all its due participant accounts that are to be processed.

On the Payment Details tab page, you specify the account that you want to use as the payment details account (root account) for your master contract. You also specify the payment method (for example, EFT or internal posting) the system is to use for processing the payment orders generated by the cash concentration for this account. The payment details account can also be an external account that is not managed in Account Management.

In the Run Data group box, you determine how the cash concentration run is to be carried out. You use Carryforward Rules to determine how the carryforward postings are to be made for the cash concentration, for example, based on key date-based balances, either posting date-based or value date-based. When you use the carryforward rule Key Date-Based: Posting Date-Based, you can account for risk amounts such as the SubFinPayt balance that is based on the execution day, or balances of prenotes that are relevant for posting control when you calculate the carryforward amounts, and thus block the risk on the participant account.

The Limit Check controls whether and to what extent a limit check is to be run, taking into account the account limits when carryforward postings are created by the cash concentration.

Prerequisites

The Cash Concentration feature attribute must be activated in the master contract product on which your master contract is based.

If the Cash Concentration feature attribute is set in the product as Changeable (open padlock), you need to activate Cash Concentration feature on the master contract on the Features tab page.

Procedure

...

1. In the Payment Details group box, enter the payment details account for the cash concentration and specify the medium for executing the payment orders.

2. In the Run Data group box, define the control parameters Carryforward Rule, Limit Check and Partial Execution.

Carryforward Rule

You define the carryforward rule at the master contract level, and this applies for the entire master contract and its participant accounts. You can no longer change the carryforward rule once you have assigned an account to an event in the master contract.

The following graphic provides an overview of the carryforward rules:

This graphic is explained in the accompanying text

The carryforward rule controls how the values that are to be posted are transferred. There are two different groups:

· Key date-related balance determination

Where carryforward rules use the key date for the balance calculation, the balances of the due participant accounts are analyzed for the posting date for end-of-day processing. Depending on the carryforward rule chosen, the balance is either value date-based or posting date-based.

In the carryforward rule Key Date-Based: Posting Date-Based, you can use the Calculate Carryforward field to control whether the balance of prenotes subject to posting control and the SubFinpayt balance that is specific to the execution date are to be included in the calculation of the transfer amount. In addition, the transfer amount can be restricted by the value date-based balance (value date capping) if there is a posting date-based excess of the maximum balance.

What characterizes the carryforward rules for key date-based balance calculation is that a maximum of one turnover (payment order) is generated during every cash concentration run for every relationship between the accounts of a hierarchy.

The posting date and value date of the posting orders are the same as the posting date for end-of-day processing.

· Non-key date-based balance determination

In the non-key date-based calculation, the daily balances or turnovers between two cash concentration runs are analyzed for the due participant accounts. For each of these balances, it is decided whether the participant account is to transfer funds, or if it is to receive funds.

In the non-key date-based calculation, the value date-exact balance calculation is different from the value date-exact balance calculation that is differentiated by posting day:

¡ Value date-exact:

The system calculates the value date-based balance for each day between (inclusive) the last cash concentration run (or the participation start of the account in the master contract) and the current cash concentration run for each due participant account. The start date from which the balances are determined in the first cash concentration run is the start date of the relationship. (This is set automatically when you assign the account to the hierarchy).

The posting date of the payment orders is the posting date of the end-of-day processing. The value date of the payment orders is set to the value date on which the balance is cleared.

¡ Value date-exact, differentiated by posting day:

The system calculates the value date-based debit and credit turnovers for each posting day between the last cash concentration run (or the participation start of the account in the master contract) and the current cash concentration run for each due participant account. Items with the same value date but with different posting dates are always posted in separate payment orders. Depending on the Post Payment Items for Debit and Credit Separately indicator, the debit and credit turnovers are posted together for a posting day that is to be cleared. The system transfer posts the value date-based debit and credit turnovers without changing the base amount. If you have changed the base amount between two cash concentration runs, the system makes an adjustment posting, where it sets the posting date, and value date as being the current date for end-of-day processing.

The posting date of the payment orders is the posting date of the end-of-day processing. The value date of the payment orders is set to the value date on which the balance is cleared.

Limit check / partial execution

This determines whether and how a limit check is to be carried out for all accounts in an account hierarchy during a cash concentration run. Depending on the Partial Execution indicator, the system responds differently to the result of the limit check. See the corresponding field help.