What is SAP Cash Management-Understand the difference between Basic and Advanced Cash Management
Cash Management
SAP Cash Management is a module within SAP S/4 HANA Finance that provides a real-time visibility into an organization’s cash position, bank balances, and short-term liquidity. It helps an organization to closely monitor, analyze and control cash flows and ultimately ensuring that the organization has sufficient liquidity available with them to meet financial obligations and optimize its working capital.
Cash Management is part of the SAP Treasury and Risk Management (TRM) module and closely integrated with other components such as Bank Account Management (BAM), Liquidity Management and Cash Operations.
In SAP S4 HANA, there are two different Cash Management Versions. Basic Cash Management Versions and Advance Cash Management.
Basic Cash Management
Basic Cash Management has the same scope that was earlier available in SAP ECC. Everything that was part of ECC 6.0 Basic Cash Management such as cash position and liquidity forecast is available in S4 HANA as well.
The Basic Cash Management offers three different functions:
- Bank Account Management: Define house banks, bank accounts, or house bank accounts, display bank accounts in list form. It can also replicate house bank, bank accounts and house bank accounts using IDOCs.
- Cash Operations: It offers cash position, liquidity forecast, Edit Memo Records and Display Memo Records functionality. Apart from this, SAP offers two Fiori tiles and transactions FF7AN and FF7BN for this purpose for liquidity and FF63 and FF65 for memo records.
- Additional Transactions from ECC: Basic Cash Management also offers payment advice note reconciliation using Transaction Codes like FF.7, FF/9, and FFA1. Apart from this, you can also initiate Bank to Bank Transfer using FRFT_B or FIBLFFP and Cash Concentration using FF73 or FF74 by using Basic Cash Management.
Advanced Cash Management
Advanced Cash Management also offers the same functions but with additional features/functionalities
- Bank Account Management: In Advance Cash Management, SAP can manage the complete life cycle of a Bank Account and Bank Account Master Data can be maintained by the respective business departments.
- Cash Operations: Along with the Basic Cash Management functionalities, Advance Cash Management can perform short-term financial statement analysis. SAP also offers a large number of Cash Management apps to perform various daily activities, Bank to Bank Transfer, Authorization and Reporting through BCM is now also part of Advanced Cash Management.
- Additional Transactions from ECC: Advance Cash Management also offers Medium and Long Term liquidity forecast with actual cash flow analysis and embedded liquidity planning (this will require SAP Analytics Cloud (SAC) license).
Basic vs Advanced Cash Management
Here's the key differences between Basic and Advanced Cash Management in SAP:
Features | Basic Cash Management | Advanced Cash Management |
|---|---|---|
Scope | It retains the same functionality as SAP ECC | Enhanced functionalities on top of basic scope |
License Requirement | No separate license required | Requires a separate license to access all functionalities |
Bank Account Management | Basic maintenance of house banks and accounts; also uses IDocs | Provides Full Bank Account Lifecycle Management (create, edit, close) with self-service by business users |
Cash Operations | Supports memo records, cash position, liquidity forecast (FF7AN, FF7BN, FF63, FF65) | Adds features like bank pools, bank payment approval, tracking, and cash flow analysis |
Liquidity Management | Basic short-term and day-level forecast and reporting | Includes medium-to-long-term forecast, actual cash flow analysis, and SAC integration (SAP Analytics Cloud) |
User Interface | Classic transactions (FF7, FF9, etc.) and basic Fiori apps | Rich set of Fiori apps for intuitive, real-time dashboarding |
Reporting Capabilities | Limited to predefined reports | Advanced reporting with embedded analytics and predictive planning |
CAMT File Support | Basic support (e.g., CAMT.053) | Additional support for CAMT.086 and more advanced formats |
Integration with BCM (Bank Communication Management) | Available with limited capabilities | Deeply integrated for bank-to-bank transfers, approvals, and tracking |
Liquidity Planning | Not embedded | Embedded with SAP Analytics Cloud (requires SAC license) |
How to Activate Advanced Cash Management?
As mentioned earlier, Advance Cash Management requires separate licensing from SAP. If Advance Cash Management license has been purchased, you can further activate the Advanced Cash Management using the below Navigation Path.
SPRO > IMG > Financial Supply Chain Management > Cash and Liquidity Management > General Settings > Define Basic Settings
