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Cash And liquidity Management in Retail Industry

Former Member
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151

Dear Experts...

how the open items in the reconciliation accounts for collection are taken into account the cash and liquidity management in company into retail business?

Normally the bulk of incoming cash is monitored by SD open items. In Retail this is not in SD receivables but in the reconciliation accounts per method of payment.

Can anyone explain how this is set up / what is needed to ensure these open items get reflected + what date is used as the payment date
for these open items?

Accepted Solutions (1)

Accepted Solutions (1)

former_member251898
Active Contributor
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Hi,

In addition to cash position report, you would then look to liquidity forecast report to reflect the open items in account receivable/account payable subledger from medium-term liquidity perspective. Liquidity forecast report also can integrate itself with SD open sales order as well as MM open PR/PO also.

The key component in Liquidity forecast is Cash Planning group, which is a field in Vendor/Customer master data at company code level. In terms of designing the planning group, you could implement the design of cash planning group as payment method for the customer/vendors. You will need to define the cash management grouping to define how to structure the report FF7A/FF7B.

For liquidity forecast report, the key date is "Cash planning date', a bit similar to due date, however, this date appears to take into account the early settlement cash discount, as well, so can be different from due date.

Hope that this helps you a bit.

cheers

taro

Former Member
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Thanks Taro for quick reply and it will help me for sure.

Also let me know what date is used to recognize the expected receivable for the open item?

or how it is derived?

former_member251898
Active Contributor
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Hi

Liquidity forecast should be based on the cash planning date to reflect the future expected cashflow.

for detailed explanation on this, you can refer to 24883 - CMF: Determination of value/planning date.

Hope that this helps

taro

Former Member
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Thanks Taro for your reply.

Answers (0)