SUMITOMO CHEMICAL ASIA PTE LTD FI – Cash Management FI Training September 2007 IBM Confidential

Agenda Introduction to SAP Cash Management Bank Master Data Maintenance Electronic Bank Statement Cash Position report Liquidity Forecast report Memo records CM SAP ECC 6 2 IBM Confidential 2

Introduction to SAP Cash Management Real-time integration with the General Ledger Integration with Accounts Receivable and Accounts Payable sub-module. Electronic Bank Statement Cash Position and Liquidity Forecast report.

Introduction to SAP Cash Management FI Cash Management Electronic Bank Statement Bank Master Records Liquidity Forecast Memo records Cash Position

Agenda Introduction to SAP Cash Management Bank Master Data Maintenance Electronic Bank Statement Cash Position report Liquidity Forecast report Memo records CM SAP ECC 6 5 5 IBM Confidential 5

Overseas Banks Bank Master Local Singapore banks Bank key should be the 7 digit code 4 digit bank code + 3 digit branch code E.g. bank key 7144004 7144 = Standard Chartered bank code 004 = Tampines Central branch code SWIFT code, bank name, branch name fields are optional fields. Overseas Banks For overseas banks, bank key will be the SWIFT code E.g. CHAUS33 JP Morgan Chase Bank in United States Bank name and branch name are mandatory fields. SWIFT code is optional field. 6

CM-01 Bank Master Maintenance

Agenda Introduction to SAP Cash Management Bank Master Data Maintenance Electronic Bank Statement Cash Position report Liquidity Forecast report Memo records CM SAP ECC 6 8 8 IBM Confidential 8

Electronic Bank Statement Upload MT940 HSBC bank file into SAP System finds a matching customer open item to be cleared (for payments made directly to SCA’s bank account) Amount and matching key (Quotation #) are equal Automatic postings Posting Area #1 Dr HSBC Bank Cr HSBC Bank Clearing Posting Area #2 Dr HSBC Bank Clearing Cr Customer

Electronic Bank Statement System does not find a matching customer open item (for payments made directly to SCA’s bank account) Automatic postings for Posting Area #1 Dr HSBC Bank Cr HSBC Bank Clearing Manual clearing of Customer open item via Reprocessing Bank Statement function for Posting Area #2 Dr HSBC Bank Clearing Cr Customer

Electronic Bank Statement Cheque received from customers NB: Take note that when SCA receive the cheque from the customers, the following postings will be done via Incoming Payment process (covered in AR BPP) Dr HSBC Bank Clearing Cr Customer When SCA cashes in the cheque, SCA’s electronic bank statement will reflect the entry and automatic postings as below will be generated during importing of electronic bank statement. Dr HSBC Bank Cr HSBC Bank Clearing

Electronic Bank Statement Automatic posting of bank charges, bank interest revenue, bank interest expense. Dr Bank Charges – Bank Cr HSBC Bank Dr HSBC Bank Cr Interest Income – Bank Dr Interest Expense – Bank NOTE: These postings are not made to HSBC Bank ‘Clearing’ account

CM-04 Electronic Bank Statement

Agenda Introduction to SAP Cash Management Bank Master Data Maintenance Electronic Bank Statement Cash Position report Liquidity Forecast report Memo records CM SAP ECC 6 14 14 IBM Confidential 14

Planning level The planning level is used to categorize different types of accounts or noted items into analysis groups which can then be displayed in the Cash Position and Liquidity Forecast reports The planning level explains the origin of the data and thus enables users to better estimate its reliability.

Level F0 for bank accounts SCA Planning levels Level F0 for bank accounts Level B1 for outgoing bank clearing accounts (SMBC Bank Clearing accounts) Level B9 for incoming bank clearing accounts (HSBC Bank Clearing account) Level F1 for Customer accounts Level V1 for Vendor accounts Level AB for payment advices that are confirmed (used when entering memo records)

A report to show the cash position of the company at any one time. Cash Position Report A report to show the cash position of the company at any one time. Includes all bank and bank clearing accounts.

CM-02 Cash Position report

Agenda Introduction to SAP Cash Management Bank Master Data Maintenance Electronic Bank Statement Cash Position report Liquidity Forecast report Memo records CM SAP ECC 6 19 19 IBM Confidential 19

A report to show the liquidity of the company at any point in time. Liquidity Forecast A report to show the liquidity of the company at any point in time. Includes all customer incoming payments and all vendors outgoing payments.

CM-03 Liquidity Forecast report

Agenda Introduction to SAP Cash Management Bank Master Data Maintenance Electronic Bank Statement Cash Position report Liquidity Forecast report Memo records CM SAP ECC 6 22 22 IBM Confidential 22

Planning level for memo records = AB Memo records are used to anticipate any outgoing or incoming payments that are not currently reflected in the bank and bank clearing accounts. Planning level for memo records = AB

Q&A / Exercise 24