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Example Creating a Cash Concentration Hierarchy (Example) Locate the document in its SAP Library structure

Following is an example to explain the functions of cash concentration.

Creating a hierarchy

·         At the end of each month you wish to transfer the amount exceeding a balance of USD 2,000 from two salary accounts (of a married couple, for example) to a third investment account.

¡        To do this you create a hierarchy with the investment account as root account and the two salary accounts as subordinate accounts. Enter a maximum balance of 2,000 for each of the subordinate accounts.

·        On certain key dates you wish to completely transfer the balance of an account A to another account B.

¡        To do this you create a hierarchy with account B as root account and account A as subordinate account. Specify a maximum balance of 0 for the subordinate account A.

Process flow and result of a cash concentration run

This graphic is explained in the accompanying text

The carryforwards for cash concentration are as follows:

Account submitting

Account receiving

Transfer amount

1101

1107

1,000

1100

1101

1,000

After cash concentration, these accounts show the following balances:

Account

Balance

1100

-500,

1101

2,000 (= minimum balance)

1107

2,000 (= minimum balance)

1106

1,002 (> minimum balance due to minimum transfer amount)

 

 

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