This demonstration showcases SAP’s capabilities in providing on-line real-time accurate information pertaining to the monitoring of an organization’s cash position and cash flow forecasting.
Kate, the Cash Manager, is responsible for monitoring the company’s liquidity at the corporate group level. She begins her day by accessing her dashboard that has been tailored to provide her information that she needs to be able to perform her specific role as cash manager. By selecting the first scene Review Cash Position, you can see the types of information that are being gathered based on transactions processed in the system.
This information is gathered from various sources and can be analyzed in the form of Key Performance Indicators – each shown as a ‘tile” on the dashboard. In the past it was necessary for Kate to run reports from different applications, pull the relevant information needed from these reports and prepare an analysis in order to obtain information needed for decision-making. As you can imagine this process is time-consuming so the information was dated and delayed the decision-making process.
In addition to financial information, Kate also has access to other information, such as World News. Selecting this tile Kate can review the latest news stories or she has the option to use the search function to filter her news by a specific topic. She enters “economics” in the search field to retrieve those news stories with this subject.
In reading the news article pertaining to the World Bank Meetings, it is explained that there may be a possible freeze of bank operations for the Bank of Cyprus. The immediate question then becomes: how much cash does our company have invested with the banks in Cyprus and which banks? Is there an impact to our company? If so, what is the financial risk?
Kate immediately looks at the current Cash Position by selecting the Cash Position tile of her dashboard. She is presented with an analysis of cash position by region. She selects the region Europe and the analysis Cash Position by Currency and Country. At this level of analysis she can clearly see that in the country of Cyprus the company has at risk 13M USD. Selecting this she can then choose to see at which banks this 13M USD resides so she selects the analysis Cash Position by Bank. She can see that the company has 1M USD invested at the Bank of Cyprus.
Based on this analysis Kate can then take action. She immediately sends an email to the CFO, Tom, as she knows it will be the first question on his mind when he sees this news item. She lets Tom know that there is exposure of approx. 1M USD with Cyprus. She can also share this information via SAP JAM with the other cash managers within the company by selecting the share function – communication without interruption – never having to leave her dashboard.
Selecting the HOME icon we return to the dashboard main screen. We can see that it updates automatically with the communication activity conducted by Kate. Selecting the Financial Cash Manager Group, Kate can see her JAM posting without having to leave her dashboard!
In addition to monitoring the company’s cash position, Kate is also responsible for monitoring the forecast of the company’s liquidity/cash flow. She selects the Liquidity Forecast tile from her dashboard. She can see the forecasted net cash flow for the next 7 days. She can see that there is a projected cash shortage.
She can also choose to see the Forecast by Structure. In this view, a comparison of the daily current account amount vs. other categories of money will assist her to not only see that there is a shortage of current account money for that day but also support her in her decision as to what kind of money she will use to fund the shortage (for example, Notice Deposit or Fix Term Deposit, etc.).
By selecting the Actions function she has the option to email this forecast to other colleagues for review/discussion.