Doubts in FI/CO

[Former Member]

Hello Experts,

I have some doubts in Treasury of FICO. Can some one explain me clearly.

1) What are the topics that come under Treasury?

2) What is Value Date in Cash Position?

3) What is Memo Records in Cash Position?

4) What is Check Deposit in Cash Management and how is it different from Lockbox?

Points will be awarded definitely........

Regards,

Sriram

[Former Member · Accepted solution]

Hi,

From ERP 2005 onward, Treasury is not part of FI. It is a part of FSCM- Financial Supply Chain Management and is called Treasury and Risk Management.

Till ERP2004, it was called Corporate Finance Management, and used to belong to FI.

Treasury and Risk Management consists of Transaction Manager (for Trading), Market Risk Analyzer, Credit Risk Analyzer and Portfolio Risk Analyzer .

[sridhar_muthekepalli3]

Hi:

The topics in Treasury are

Cash Management

Cash Budget Management

Market Data Management

The cash position provides bank balances by value date (bank transaction date), cash position covering the next few days, and control over outstanding (open item) checks.

As manual memo records are usually created during preparation of the liquidity status as a parallel or supplementary activity, this flow uses the liquidity analysis started in the previous section as a starting point for the creation of the memo record. Within the liquidity display you can branch at any time to memo record maintenance, regardless of the summarization level

In Cash Management Check Deposit explains how you determine the average period outstanding on your checks for each outgoing checks account and for each vendor by means of the outgoing checks account and report programs RFSRUE00 and RFSRUE10.

The basic operation of a lockbox system is fundamental to large businesses but is almost transparent to those without some knowledge of corporate treasury operations. The objective of a lockbox operation is to have the customer remit a payment check to a local post office box to minimize mail transit time. The checks are processed by the bank on a daily basis and the funds collected are usable by the receiving business much quicker than with the traditional process. The illustration below shows the basic operation of the lockbox and how SAP fits in.

Please let me know if you need more information.

Assign points if useful.

Regards

Sridhar M

[Former Member]

Hello,

Thanks for the reply.

Is check deposit a manual version of lockbox (I mean to say functionality)?

Regards,

Sriram

[sridhar_muthekepalli3]

Lockbox: The basic operation of a lockbox system is fundamental to large businesses but is almost transparent to those without some knowledge of corporate treasury operations. The objective of a lockbox operation is to have the customer remit a payment check to a local post office box to minimize mail transit time. The checks are processed by the bank on a daily basis and the funds collected are usable by the receiving business much quicker than with the traditional process.

The Process of manual check and lockbox are different in SAP.

Without SAP, The manual checks will be received by the cashier or Accounts receivable in the organization.

Without SAP, LockBox : A service offered by banks to companies in which the company receives payments by mail to a post office box and the bank picks up the payments several times a day, deposits them into the company's account, and notifies the company of the deposit. This enables the company to put the money to work as soon as it's received, but the amounts must be large in order for the value obtained to exceed the cost of the service.

Manual check is normally for few checks, where as lockbox is for huge checks.

How this clears your doubt.

Please let me know if you need more information.

Assign points if useful.

Regards

Sridhar M