Cash and Liquidity Management

LAZAR offers SAP’s Financials SAP Cash Management is an most helpful instrument to support the cash manager ideally in managing liquidity and currency risk in the most efficient way. Redundant data entry is entirely eliminated. All corporate sectors operate on a unique and consistent data basis which is used for different purposes – for example by the A/R accounts manager for controlling incoming payments, by the A/P accounts manager for controlling cashed checks or the cash manager for controlling bank transfers. At the same time, the cash manager is free to choose his focus on the accurate and up-to-date cash reports – across countries, currencies, subsidiaries or even across the whole group.

SAP Financials supports centralized as well as decentralized best practice solutions. No matter which of these two approaches a company prefers, the SAP system provides the opportunity to determine bank status and liquidity forecast on different levels of the group. If liquidity decisions are taken centrally on a corporate level, the actual and detailed information from SAP Cash Management provides a good basis to net liquidity gaps and surpluses of subsidiaries and establish a centralized, intercompany funding process. The same opportunities are given in risk management: The currency and interest rate exposures between subsidiaries can be net, leaving only the overall exposure for hedging. Another result is that transaction costs as well as spread costs of simultaneous investing and borrowing activity throughout the enterprise are saved.

Finally, a centralized cash management and treasury unit allows for a level of financial expertise that is less easily achieved using a decentralized system. This represents another critical factor for managing liquidity of high quality. Considering the requisites that global acting companies are facing and considering today’s speed of making business, a globally integrated view of actual cash and liquidity information is indispensable.

As a result of the high degree of automation within SAP Cash Management, only exception processing needs to be done manually. This principle treats with care the alertness of all involved parties who can now fully concentrate on the exceptions and special cases that arise during the post processing procedure. In addition, daily automatic processing implicates a better operational control, because unexpected transactions are promptly visible and mistakes can be removed straight away.

Even other corporate sectors profit from this solution. First of all, it takes over a central position within the Financial Supply Chain Management solution as it prepares and reports all cash flows and therefore constitutes an important reporting instrument. Second, a solid foundation is created for analysis within the SAP Financials Corporate Finance Management Solution – especially concerning the functionality for financial deals and risk management.

LAZAR Services will enable you to:

• Foresee management of global cash flows & their related risks
• Increase on the efficiency of planning processes & monitoring targets
• Define the planning environment and its parameters
• Easily adapt changes in the organizational structure and its planning parameters