Cash Concentration 

Use

In cash concentration the balances of various accounts are concentrated in one target bank account, for example the account offering the best conditions.

Activities

After adjusting the bank accounts and establishing conditions for financial planning, you can carry out your cash planning. The planning process results in overnight or time deposits or borrowing.

All accounts you plan to concentrate are linked together in a grouping structure. You can define various groupings for different cash concentrating procedures accordingly.

The system generates a proposal for concentrating cash based on your grouping. This proposal contains the day-end balance and the cash planning results, that is, the expected account transfers. You can correct the proposal at any stage.

Cash concentration results in account transfers for which payment advice notes are generated. The payment advice notes correct the bank balance based on the value date and can subsequently be converted to payment requests which are then paid by the enhanced payment program. Instead of being converted to payment requests, the payment advice notes can also be used to generate payment orders to banks. You should use a separate planning type for cash concentration in each case which you can use to limit the program to the relevant follow-up function.

In addition, you can set up a worklist for cash concentration across company codes. See Worklist.