Brochure EPROX LIQMANAGER EN...liquidity planning purposes is definitely preferable. However, in...

EPROXSOLUTIONS LIQMANAGER

EPROX LIQMANAGER Release 1.00

Germany

EPROXCONSULTING

Deutschland AG

P.O. Box 1211

D-64574 Gernsheim

[email protected]

www.eprox.de

+49 6258 905678

Switzerland

EPROXCONSULTING AG

Hinterbergstrasse 24

CH-6330 Cham

[email protected]

www.eprox.ch

+41 41 756 06 66


2 _________________________________________ Liquidity Management


Liquidity Management _____________________________________ 3

Contents

1 Basic Principles of Liquidity Planning __________ 6

1.1 Planning Methodology ___________________________ 6

1.2 Organizational Structure_________________________ 9

1.3 Defining the Planning Structure __________________ 11

2 Liquidity Management _____________________ 14

3 EPROX Liquidity Management _______________ 16

3.1 Planning Processes and Administration ____________ 18

3.2 Planning Structure ____________________________ 21

3.3 Time Pattern _________________________________ 24

3.4 Opening the Plan _____________________________ 25

3.5 Planning Example _____________________________ 26

3.6 Transferring Existing Actual and Planned Data _______ 27

3.7 Plan Data Entry _______________________________ 31

3.8 Transaction Planner ___________________________ 35

3.9 Liquidity Reporting ____________________________ 39

3.10 Analyzer Integration ___________________________ 44

4 Overview of Functionality __________________ 48

5 Authorization Concept _____________________ 54

6 IMG and Sample Customizing _______________ 56

7 Technical Information _____________________ 58



«Cash is a fact,

profit is an opinion.»

Alfred Rappaport



Going through a crisis teaches you the hard way. During periods of continuity, management decisions are oriented towards the activi-ties of competitors: developments in market share, earnings yields in com-parison to those of competitors, finding the right product mix for the future. Only radical changes in the economic environment force a change of focus to those factors which are existential and necessary for the survival of the busi-ness.

Strategies to improve profitability become secondary to the primary require-ment to maintain liquidity. Risks are no longer only measured by their impact on the profitability of the business but rather primarily by their impact on the

ability of the business to meet its financial commitments.

The majority of business bankruptcies result from the inability of companies to meet their payment obligations as they fall due. Liquidity changes from being a residual performance indicator in competition with yield to being the prime business objective.

Every crisis is followed by a period of stability. The fact remains, however, that continuity does not offer protection from one-off events causing severe disruption and that it is necessary for businesses to prepare themselves to be better able to cope with such events.

Liquidity planning and management are integrative processes covering the whole range from short-term funds disposition to long-term liquidity and capital requirement planning, from identification of variances from planned targets through to the execution of measures to counteract them. Hardly any part of a business makes decisions which are not are not reflected by changes in the liquidity situation.

It is, therefore, all the more remarkable that there are hardly any instru-ments to deal with the requirements of a central liquidity management func-tion: the actual planning tools that are available permit the input of abstract plan data without the necessary connectivity to ERP systems. The normal market standard for such tools is provided by simple Office-applications and data warehouse based concepts to display liquidity information – and these

lack control functionality and the ability to be integrated into the risk man-agement system.

As a firm of consultants with many years of experience in the devel-opment and implementation of SAP Financial Asset Management and Treasury & Risk Management applications, we can now present our own SAP-based solution to close this gap. EPROX LIQMANAGER is the result of intensive cooperation with clients who we have supported in

setting up their business planning and management processes. The generic and flexible structure of the solution ensures a high degree of functional coverage and flexibility to enable customization to meet the planning process requirements of individual businesses.

We began to develop EPROX LIQMANAGER a long time before the financial crisis started and we will continue its develop-ment for a long time thereafter. Liquidity continues to be a top business objective and its efficient generation remains a deci-sive competitive factor.

liquidity becomes the prime perfor-mance indicator

liquidity planning as an integrative process



1 Basic Principles of Liquidity Planning

Reliable planning information is the cornerstone for successful liquidity man-agement. The collection of data for planning purposes is normally a very complex, ongoing process which involves various organizational entities. Strict procedures covering operational processes and the structural organiza-tion as well as coordinated time planning and a methodological approach need to be in place in order to make consistent planning possible and thus ensure that the results are utilizable.

Whereas certain approaches to the collection of data for planning purposes have established themselves as being standard market solutions, organiza-tional questions and time planning aspects are closely tied to the company’s specific business structure and the market environment in which it finds itself. Thus, in organization structures which are set up hierarchically, tasks are undertaken by departments at both centralized and decentralized levels. Whereas long-term planning horizons are suitable in situations of stable business development, a dynamic market environment imposes short-term management requirements.

Planning Methodology

In defining a planning methodology, various dimensions can be differen-tiated; these may have a significant impact on the way in which the planning is carried out:

Data sources/data collection – what provides the basis for the information and which planning processes provide the basis for liquidity planning?

Timing aspects – how regularly is liquidity planning to be carried out, with what planning horizon and for which planning intervals?

Currency specific aspects – in which currencies is the planning data to be input?

standard market solutions vs.

business specifics



When gathering data, a basic distinction should be made between the direct (from operational planning) and indirect method (derived by calculating back from balance sheet and income statement). The indirect method normally provides an inadequate basis for the purposes of liquidity management: planning intervals and planning periods are normally oriented towards the budgeting requirements of the accounting department and are not normally

reconcilable to a value date perspective and do not provide data frequently enough to allow proper management. Additionally, the indirect planning takes place in the accounting currency and thus provides data that is inade-quate for foreign currency management purposes. Indirect data is often pro-vided for the intent of ex post calculations as part of the notes to the annual financial statements.

Direct vs. indirect planning

Direct planning approaches derive the information that is relevant for liquidi-ty planning purposes directly from sales volume and procurement plans. The planning categories used in such plans can therefore be transferred over into the required liquidity planning form and provide an improved level of plan-ning accuracy and transparency as regards the causative factors. It is also

often the case that currency-designated planning takes, which can then be sensibly integrated into the foreign currency management processes.

Balance sheet

Aktiva

Erfolgsrechnung

Aufwand Ertrag

Liabilities

Balance sheet

Aktiva

Erfolgsrechnung

Aufwand Ertrag

Liabilities

Investment planning

Absatz-Planung

Beschaffungs-Planung

�Märkte�Produkte�Kunden/ Lieferanten

�Währungen

Investment planning

Absatz-Planung

Beschaffungs-Planung

�Märkte�Produkte�Kunden/ Lieferanten

�Währungen

Liquidity planning

�betrieblicher Geldfluss

�Geldfluss aus Investitions-tätigkeit

�Geldfluss aus Finanzierungs-tätigkeit

Kreditlinien

Contingent liab.

Liquidity planning

�betrieblicher Geldfluss

�Geldfluss aus Investitions-tätigkeit

�Geldfluss aus Finanzierungs-tätigkeit

Kreditlinien

Contingnetliab.

Balance sheet

Assets Liabilities

P&L

Loss Profit

t0

t1

t2

Liquidity planning

�Operational flows

� Investment flows

�Financial flows

Credit lines

Contingent liab.

Non-P&L relevant payments

+

Non-payment relevant P&L

-

Indirect planning Direct planning

Investment planning

Sales planning

Procurement planning

�Markets�Products�customers / vendors

�Currecies

direct and indirect planning



As previously mentioned, the demands on a planning system from a time perspective are extremely heterogeneous in nature. Planning periods may be daily (in international businesses, this is hardly possible from an organiza-tional perspective), weekly, monthly or quarterly. Plans with a long-term orientation (annual finance plans, capital requirement plans) may well be planned with less frequency. The time pattern, i.e. the structure of the plan-

ning intervals, is usually based on a maturity structure which provides for smaller intervals for short-term planning purposes and larger intervals for long-term planning purposes. The planning horizon may vary from a few weeks up to a number of years.

The resulting requirements which must be handled by the planning system are obvious: time patterns have to be set up so that they are flexible, it must be possible to plan at any required time and also, where necessary, to pre-pare parallel plans with separate planning objectives in mind.

In order to be able to estimate the possible impact of currency rate fluctua-tions on the payment equivalent (and thus profitability) the input of currency specific plan data is a risk management requirement. Such information is

required by the treasury in order to be able to plan suitable hedging strate-gies at an early enough stage. Subsequent itemization of liquidity flows planned only in local currency is a very static approach which does not pro-vide an adequate degree of planning accuracy. If planning information is already available in its original currency (e.g. based on supply or delivery agreements with defined payments), and if the operational planning is made for particular currency areas, then the direct transfer of such information for liquidity planning purposes is definitely preferable.

However, in order to be able to present information about liquidity flows for liquidity reporting purposes, then support is needed both to provide informa-tion both from an individual currency perspective (e.g. payments in USD, presented in USD) and on an aggregated basis (aggregation of all planned

currency movements to provide information in a single display currency).

timing aspects of the planning process

planning by currency type



Organizational Structure

The size and organizational structure of a business has an influence upon the allocation of tasks, skills and responsibilities during the planning process. Based on profitability considerations there is a basic trend towards managing liquidity centrally. Within corporate group structures, a liquidity planning instrument may be used for the purpose of actively managing cash flows between individual group companies, in order to reduce external financing requirements and to optimize financial results.

Cash flows within group structures

There may, however, be legal (e.g. currency export restrictions), technical

(limitations in inter-bank pooling arrangements) or sales volume-related (availability of local banking relationships for customers) considerations which argue against such measures. As a consequence, completely central approaches (central responsibility for classic in-house banking solutions) may only be achievable if overall conditions within the organization have been harmonized to a large extent.

At a minimum, the true planning process – i.e. the forecasted development of liquidity – requires knowledge of the local market and is as a rule, there-fore, a local responsibility. It may also prove necessary to allocate various tasks within a single legal entity. If business areas or divisions have been set up, which operate in different market sectors, then planning activities

are usually the responsibility of such separate entities and their results are only subsequently aggregated together at a higher level. The same prin-ciple applies to project-based planning, if the project volumes are substan-tial enough to justify a separate planning structure from that of the opera-tional business.

Subsidiary 1

C / V C / V C / V C / V C / V C / V C / V C / V C / V

Operational payments

C / V = customers / vendorsBank

Cash pooling

Holding

Treasury center

BankBankBank

Subsidiary 2 Subsidiary n

centralized/ decentralized liquidity

local liquidity requirements



A planning system should enable the flexible definition of the planning units, which may be at a lower level than that of the legal entity. Further-more it should enable the decentralized input of planning data whilst at the same time permitting centralized analysis and control of the planning process across the organization.

organizational set-up


Liquidity Management ____________________________________ 11

Defining the Planning Structure

In addition to the planning methodology and the organizational structure, the form and content of the planning process needs to be defined. It makes sense as regards the control over and management of planning data if the level of detail within the plan is oriented towards the reporting and com-parative analyses (e.g. plan/plan or plan/actual) and towards the simula-tion of alternative planning scenarios.

The planning structure usually follows a basic pattern, which uses the bal-ance of liquid assets as a starting point and then records both operational and non-operational cash inflows and outflows and thus determines the balance of liquid assets for each planning interval.

Within such aggregated planning categories, the level of detail at the dif-ferent planning levels may be freely defined and adjusted to meet the re-quirements of individual business environments. Even within one business organization, varying structures may be applied if the business units oper-ate in different fields of activity and responsibility. In this connection, how-ever, the overall requirement is still that the plans made by the respective organizational entities are capable of being aggregated into an overall busi-ness plan.

Cash flow categories (example)

Operational inflows

Operational outflows

Investment inflows

Inc. customer payments (region north)

Inc. customer payments (region south)

Inc. customer payments (region west)

Inc. customer payments (region east)

Incoming payments product group A

Incoming payments product group B

Incoming intercompany payments

Tax reimbursements

Other payments

Investment outflows

Financial inflows

Financial outflows

…

…

…

planning structure



In order to ensure that the input of plan data can be kept simple and transparent, it follows that within a uniform set of planning levels, specific structures are necessary, which are designed to meet the specific respec-tive business requirements. Although a high level of differentiation within planning levels permits a more accurate classification of payment sources and use of funds, this may have a negative influence on the overall clarity

of the planning process.

Special importance needs to be given to (contractually agreed) lines of credit that have been extended to the business; these are treated as part of available liquid assets or are given consideration for liquidity reporting purposes when internally defined minimum liquidity levels are displayed. On the other hand, committed credit lines (for example, to affiliated or associated companies) or contingent liabilities that may become cash-effective (pledges, guarantees) are usually reported separately.

tailoring the planning structure

credit lines and contingent liabilities



2 Liquidity Management Recorded plan data provides the basis for liquidity management. The out-put on from measures are taken may be the actual liquidity trend itself or the information gained from the risk management key figures based on the liquidity information. Examples of these reference key figures are the for-

eign currency exposure or value at risk.

Direct measures serve a number of different purposes and influence the operational activities and processes performed by the treasury to a varying extent. Indirect measures are oriented towards improving the planning system and serve the purpose of improving the foundation on which the planning is based:

Measures to improve planning quality: Information derived from plan/plan and plan/actual comparisons with feedback into the planning process and planning structures.

Measures to improve the basis on which controlling decisions are made: These include simulations based on

planning models or planned scenarios.

Direct measures taken serve the purpose of changing the liquidity situation in the short to long term:

Measures to improve operational liquidity: These include a range of operational measures and short-term investment and borrowing activities undertaken by the treasurer/ cash manager.

Measures to improve strategic liquidity: These include adjustments of the investment activities or capital market oriented financing measures.

Measures to reduce financial risks: From a liquidity management perspective, these primarily focus on hedging transactions against fluctuations in the value of future foreign currency denominated liquidity.

In practice, neither operational business processes nor budgeted capital investment expenditure can be adjusted to liquidity requirements with the desired frequency. As a consequence, the measures taken to invest surplus funds or procure funding in the money or capital markets are of central importance.

quality of the planning system

management measures



Such measures, in addition to the mere input, management and evaluation of plan data, result in significantly higher requirements that need to be satisfied by an integrated liquidity management system:

Automatic support for plan/plan and plan/actual comparisons

Input, management and evaluation of plan simulations

Integration of planning data into the risk management systems

Simulation of short, medium and long term investment and borrowing activities (Transaction Planner) at the level of individual organizational entities (internal financial transactions) or at group level (external financial transactions)

Simulation of currency hedging transactions at the level of individual organizational entities (internal financial transactions) or at group level (external financial transactions).

Through a combination of various control measures – such as use of a num-ber of planning scenarios together with adjusted planned transactions – a complex set of rules is created which places rigorous demands on a consist data maintenance.

liquidity analyses

and liquidity simulation



3 EPROX Liquidity Management The newly developed EPROX LIQMANAGER is an integrated module used for liquidity planning and management. It has been technically integrated as a modification-free add-on to standard SAP and is linked into to the functions and data flows of SAP Cash Management (CM) and SAP Treasury

& Risk Management (TRM). From a business management perspective, the module provides a solution which supplements the existing liquidity status by adding planning functionality and also delivers information that is rele-vant for risk controlling.

A transaction planning functionality – with the direct display of its impact on liquidity – and a comprehensive liquidity reporting complete what the module has to offer.

Integration of EPROX LIQMANAGER into the SAP system

FI

• Bank accounts• IC current account• …

Liquidity planning

Transaction PlannerCM

Yield (ALM)

Generic transactions

TM

Financial objects

ALM

FX exposure

MRA

Value at Risk

Reporting

LIQMANAGER

integrated liquidity management

modular structure



Major features of EPROX LIQMANAGER include:

A central solution with decentralized access

Modular structure with the components

� Liquidity Planning (basic component), comprising:

· Data import (Cash Management, file upload, e.g. MS Excel)

· Plan administration (Cockpit)

· Plan data input

· Liquidity reporting

� Transaction Planner with the simulation of internal (automatic mirroring) and external financial transactions and their impact on liquidity

� Integration of Analyzer with transfer of liquidity-relevant information and planned transactions to the SAP TRM Analyzer

Technical realization within the SAP system

� Avoidance of system boundaries and associated interface problems

� Import of liquidity-relevant information from SAP Cash Management

� Import interface for upload of liquidity-relevant information via flat file (e.g. MS Excel)

� Utilization of existing SAP system elements and functionality

· Central configuration of currency translation and calendar functions

· SAP organizational elements (but: increased flexibility and level of detail within the planning)

· Reporting functionality (ALV, graphics, Office integration)

· Authorization concepts

� Integration (data export) into the SAP TRM Analyzer modules

· Creation of generic transactions from (simulated) planning data

· Creation of generic transactions from planned transactions

� Company-specific parameterization of the module through customizing settings

key functionality



Planning Processes and

Administration

One of the most difficult tasks in the liquidity planning process is ensuring the consistency of data used within the planning process. A non-timely delivery of information by individual business units or subsequent changes to existing data can cause inconsistencies, especially in cases where the planning of the business units involved contains interdependencies (e.g. cash transfers, internal financing transactions).

In order to allow a thorough analysis (plan/plan and plan/actual) and to meet internal or external audit requirements the entered planning data must be subject to version control procedures and needs to be archived. In addition, an activity log registers all changes made by the individual user at

any point in time.

In the EPROX LIQMANAGER a plan is set up in a clear hierarchical struc-ture. This allows both the entity to locally enter the planned data as well as the central cash management/treasury to open or manage the overall plan.

Based on a given planning structure the plan is opened centrally in the planning cockpit. Only after this has been carried out, is it possible for local business units to enter their planning information.

planning consistency

strict planning structures



In order to avoid the re-entry of data which has been entered in previous planning periods, roll-over and copy functions are available (see section 3.4). Furthermore, an interface for both the automatic import of data from SAP Cash Management (see section 3.6) as well as for the import of data via file-upload, e.g. from MS Excel, are supported.

The planning process

Subsequently, the planning information is updated by the persons with respective planning responsibility. Liquidity deficits or surpluses can be addressed by means of simulated financial transactions (Transaction Plan-ner – see section 3.8), the impacts on liquidity of which become imme-diately visible as soon as they have been captured.

Head office

Openplan

Roll-overplan

Updatebalances

Maintainplan data

Plan trans-

actions

Release plan

Roll-overplan

Update balances

Maintain plan data

Plan trans-

actions

Release plan

Block plan

Financialreporting

Riskreporting

Liquidityreporting

Planning entity

Liquidityreporting

strict planning processes



When all the planning activities have been completed, the local plan is re-leased by the person who has responsibility for the plan data. The status of the plan is now automatically changed and can be seen in the planning cockpit. After all units have released their data, the central can place a block on the data. The data is automatically blocked if the central function transfers the data to the SAP TRM Analyzer module so that it is available

for risk analysis evaluation.

Planning cockpit

This process effectively prevents any subsequent amendment of planning information without a corresponding correction of the transferred data.

Changes can only take place in a controlled manner by reversing the block or by creating a new (copied) and adjusted plan.

All process steps in EPROX LIQMANAGER are executed from the planning cockpit. In this connection, the authorization concept (see section 5) con-trols what functionality is available to each user. The user friendliness of the system is demonstrated by the fact that all information is current and that central access is available to all functionality.

The plan data can be evaluated at the level of the individual planning entity or at an overall level via a link in the plan data maintenance or directly via the liquidity reporting functionality.

release and blocking

of planning information

planning cockpit

Pla

nnin

g c

ockpit



Planning Structure

The definition of the planning structure includes two components: On the one hand, the organizational entities involved in the planning process are defined and assigned to a hierarchical structure, on the other, the economic levels which are used for the input and evaluation of planning data are set up.

The organizational structure ties in with the term «company code» as used

within SAP, but allows much deeper and finer structuring. The company code is the central element within the accounting system and is also a core organizational term used within the SAP Cash Management and Treasury & Risk Management modules. The relationship to the company code ensures that liquidity information that is held within the SAP system and which is transferred to the TRM Analyzer can be explicitly assigned. Any companies whose detailed records are not maintained in SAP can be assigned to a fictitious company code and their data can thus continue to be differentia-ted within EPROX LIQMANAGER through use of the organizational attribu-tes.

Below the level of the company code, EPROX LIQMANAGER provides three additional organizational levels. Thus each company code can be sub-

divided into divisions, business areas, projects or other organizational enti-ties. The planned data is entered and managed at the level of these organi-zational entities.

planning levels



The organizational entity is also an important selection criterion for analysis reporting purposes within EPROX LIQMANAGER. Through selection of one or more organizational entities, liquidity analyses may be performed for any desired grouping of entities. For purposes of integration with SAP TRM‘s Analyzer, the organizational entity information may be delivered to the export interface (see section 3.10) and can be transferred to a freely

definable analysis characteristic in the analysis structure. In this manner risk analyses performed using the Market Risk Analyzer or the Credit Risk Analyzer are also possible at the level of the organizational entity.

Organization structures in EPROX LIQMANAGER

The second component of the planning structure is the definition of econo-mical dimensions at the level of which the liquidity planning is carried out. The system also permits any desired level of granularity in this context and allows for hierarchical aggregation of the planning data.

The system differentiates between planning types – the level at which the

planning information is input or imported – and planning levels which allow planning types to be grouped. Above the planning levels, five further ag-gregation levels permit the definition of a flexible maintenance grid. In this manner, it is possible, for example, to differentiate at the highest level between cash inflows and outflows and at subsequent levels between oper-ating and non-operating transactions and at further levels between markets or products.

The planning types that are available for planning purposes are identical for all organizational entities. In this manner the possibility to aggregate infor-mation across all business units is assured.

CM MRA

Company code

Company code

Company code

LIQMANAGER

2nd level

3rd level

4th level

Org. entity

Characteristic

organizational entities

hierarchical planning grid



In this context, it is possible to define an individual grid (planning variant) for each separate organizational entity from the choice of planning type sets (planning level/planning type). This makes it possible to prevent plan-ning types that are irrelevant to a particular organizational entity from being included for the purpose of plan data input. For a purely selling com-pany, for example, it is not necessary to include the planning types for

materials procurement or financing transactions. In this manner, the trans-parency is increased for data input purposes and data input errors can be avoided.

Structure and assignment of the planning grid

Org. level 1

Org. level 1

Org. level 2

Org. level 2

Org. level 2

Org. level 2

Org. level 3

Org. level 3

Agg. level 1

Agg. level 1

Agg. level 2

Agg. level 2

Agg. level 2

Agg. level 2

Agg. level 3

Agg. level 3

Planning level 1

Planning type 2

Planning type 3

Planning level 2

Planning type 5

Planning level 3

Planning type 7

Planning type 8

Planning level 4

Planning type 10

Planning type 11

Planning level 5

Planning type 12

ComapnycodeCompany

codeCompany code

Planning variant3Planning

variant 2Planning variant 1

Planning type 9

……

…

…

…

…

……

Max. 5 aggregation levelsMax. 4 organizational levels

Planning type 6

Planning type 1

Planning type 4

tailoring the planning grid



Time Pattern

Depending on their nature, plans may be required for different planning horizons and time patterns. Within EPROX LIQMANAGER, these are freely definable and assignable to the planning process. If the chosen calendar grid changes over the planned period (for example, from a detailed daily basis for short-term planning purposes to a monthly or quarterly basis for medium to long term planning purposes), then the changed time intervals are separated into different entry tabs for purposes of improved clarity.

In customizing, the time patterns are defined as maturity structures. Ma-turity structures comprise sequences of time units (days, weeks, months, quarters, years) and interval steps (e.g. 10 days, 4 weeks, 3 months) which can be flexibly linked to one another. In this manner, it is possible to provide for the filling up of the break between a respective smaller time interval and the start of use of a larger time interval in order to avoid any broken periods (e.g. provide fill-up data for missing weeks to the month end and then commence the following interval period with the beginning of the next calendar month).

In customizing time patterns are aligned to the fiscal year that is defined for the organizational entities (at company code level). In this manner

fractional periods are avoided in cases where the fiscal year varies from the calendar year.

Depending on the planning currency, weekends and public holidays are determined by means of an SAP public holiday calendar and such days are blocked for manual input purposes in order to avoid invalid value dates.

flexible maturity structures



Opening the Plan

At the beginning of the process the general procedure is that the central office opens the plan for a defined key date. Only if the plan is opened in this manner are the local organizational entities, which are involved in the planning process, permitted to input planning data as of a planning date that is binding for everyone. In the planning cockpit, the new plan appears with a status of «in process».

Only one single plan may be active, i.e. open, at any appointed planning date for the purpose of the same planning process. If it proves necessary to retroactively change a planning status that has been previously com-pleted as of the same planning date, the previous completed plan is defined as different version and is replaced by the current plan. The new plan can then be built up either by re-inputting data or by copying and adjusting data from the previous plan version.

planning versions



Planning Example

The planning activities that are described below will be illustrated using a simple planning process as an example: Two companies (SAP company codes 2000 and 3000) are involved in the planning process; these two companies are assigned to a holding company (SAP company code 1000). One of the companies (DE, company code 2000) is organized into divisions (two divisions, no equivalent within SAP terminology). All flows that are at a trans-divisional level (e.g. personnel costs) are planned by a separate

planning entity. Cash transfers are made between the companies and in-ternal financing transactions are carried out between the companies and the holding company.

Overview of the planning example

Planning is made on a monthly basis, whereby the first month is planned in daily intervals, the following eleven months are planned in monthly inter-vals and the two remaining years are planned on a quarterly basis.

BranchDE

Holding

Treasury Center Third Party

Internal financial transactionsExternal financial transactions

Head Office

Cash transfersDivision 1

BranchCH

BankBank

Division 2



Transferring Existing Actual

and Planned Data

Planning data can be transferred into the current liquidity plan through different processes. In an ongoing planning process, already existent plans are used as a starting point and are then adapted by adding any missing information and new insights.

Using EPROX LIQMANAGER, it is possible to roll over existing plans to any chosen future date. Information that lies within the planned period is re-tained and taken over into the selected time pattern. Information for lapsed time periods that lie outside the planning period is deleted for the purposes of the new plan. The roll over process thereby also includes new planned

transactions and cash transfers (see section 3.8). If the date of contract closure or the value date lie outside the defined planning period as a result of the rolling process (and it can be assumed, therefore, that the planned transactions have been replaced by actual transactions), then these are also deleted. In contrast, new transactions whose date of closure still lies within the valid planning period are taken over into the new plan. As the described procedure is systematically applied to all organizational entities that are involved, the EPROX LIQMANAGER always ensures data consis-tency for interdependent plans.

Rolling over and versioning plans

2010 2011 2012

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Act Plan 1

Act Plan 2

Roll over

Roll over

New plan

New plan

P1/P2

P1/P3

P2/P3

Plan/Plan comparison

VersioningAct Plan 3

copy and roll over previous planning



In addition to the possibility of rolling over plans, it is also possible to copy information from previous plans. This procedure is useful, for example, if further plan versions of a main plan are required in order to simulate the influence of various scenarios on the liquidity situation. In the process of making the copy, the system checks whether information has already been stored for a particular planning type in the target plan version (e.g. through

manual input). If this is the case, then it is possible to choose whether the data in the target plan should be overwritten, whether the data in the source plan should be ignored for this planning type, or whether the data in the source plan and the target plan should be aggregated.

In addition to the historical plan information, many of the business trans-actions used in SAP standard functionality cause the daily financial status and the liquidity forecast to be updated. Examples of this are order processing transactions in the logistics chain, transactions in sub-ledgers or import of electronic bank statements or financial transactions from SAP TRM. In cases where SAP Cash Management is used, such actual and plan-ning information is already automatically available. Relevant information

with respect to changes in the liquidity status is also supplied by manually planned items which are input as memo records for daily cash position purposes or which are loaded through the Excel-interface into SAP Cash Management.

EPROX LIQMANAGER accesses this information through a configurable interface and integrates it into the existing plan with the push of a button. During the process of the plan data maintenance, it is thereby possible at any time to update existing information without overwriting manually en-tered plan data (that is not affected by the import). In this manner it is possible, for example, to update completed plans (which have been pre-pared over a relatively long period of time) with information about current

bank balances just before the plans are authorized for release, so that these include correct opening balances. When information is imported from SAP Cash Management, it is possible to choose between the following al-ternatives:

only to update opening balances

only to update planning information (recorded future cash flows)

to update both opening balances and planning information.

data import via SAP Cash Management

or file interface

configurable interface



The assignment of payment flows and balances form Cash Management to the planning types in EPROX LIQMANAGER is carried out by means of flexible customizing. The choice as to which payment flows are transferred from Cash Management into the liquidity plan is controlled by use of the selection term grouping that is known to users of Cash Management. In addition to the functionality that is available in standard SAP, incoming and

outgoing payments for the same Cash Management planning level may be assigned to different planning types. In this manner, support is provided for the clear structuring of incoming and outgoing payments in the plan. For purposes of ease of identification, the imported planning record con-tains the Cash Management planning level as an attribute.

Link to SAP Cash Management

In contrast to manually recorded data – which at the time of input is auto-

matically subjected to working day check – forecast information from Cash Management is transferred, without exception, with its original value date assignment, in order to allow reconciliation and maintain data consistency with the ERP system. EPROX LIQMANAGER follows the approach that any corrections to imported data should always be made in the source system.

In order to be able to validate imported information at any time, the SAP Cash Management program can be started from the plan data maintenance

screen (see section 3.7) at the push of a button. In doing so, depending on which cell is selected in the data entry screen, all available information in the Cash Management selection can be accessed.

TM

SD/MM

MS EXCEL

CM

FI

-

+

Planning type outflow

Planning type inflow

Starting balances

Memo records

Flows

Balances

LIQMANAGER

flexible data transfer

transparent display

integrated SAP Cash Management start up



In our example, the central Treasury of the holding company opens a new plan for the month of April. The organizational entities can

now commence to enter their data.

The plans of the organizational entities are established by rolling over the previous month’s data. In the rolling process, lapsed plan-ning information (planning data, planned transactions) is deleted from the plan. The planning horizon is extended by a month (the pe-riodicity of the plan).

The current bank balances and planning information that are availa-ble in SAP Cash Management are subsequently imported and as-signed to their respective planning types. In the demonstrated case, both the holding company and the operational companies use SAP Cash Management. As there is no physical separation of bank ac-counts by division, the bank accounts are allocated to a trans-

divisional planning entity in which such trans-divisional planning data can be recorded.

Imported opening balances

The plan now contains all liquidity-related information that is availa-ble in the system from previous planning activities and from existing business transactions.

Im

porte

d o

penin

g b

ala

nces



Plan Data Entry

The plan data entry functionality provides the means to manually input, add-to or modify information that is relevant for liquidity purposes. The da-ta is entered by currency, whereby it is possible to change and input data for another currency at any time. It is possible to define a standard scaling factor for each currency in order to adjust the input display by a certain factor (e.g. 1,000 or 1,000,000). The scaling is automatically suggested but it can also be manually overwritten. The valid currencies per organiza-

tional entity are defined in customizing.

The input screen is clearly designed based on the time pattern that is used. If the time intervals change, for example from a daily to a monthly grid, then a new timescale is automatically generated for the change in interval. Any weekends and public holidays are automatically highlighted in the daily grid by reference to a currency-dependent public holiday calendar (SAP standard functionality) and are blocked for manual input. Data that is im-ported automatically, however, is taken over without changing the value date – in order to maintain comparability to the data source – independent of whether the data is assigned to a working day.

If input is made in daily intervals, then the value date is derived from the respective date and taken over into the planning record. For larger interval periods, a standard value date is predetermined in customizing, which can be set as required, for example in the middle or at the end of the interval. For the purposes of foreign currency planning, a value date that might be suitable, for example, is the date on which foreign currency hedging trans-actions are normally carried out.

foreign currency denoted, freely scaleable input

clear structure of plan data input

predetermined value date



Even if data is input into larger-scale time patterns, it is still possible to double-click on an input field and store more detailed information for the record. Individual records that are entered here may be assigned an alter-native value date – if known – which will then be used for all processes carried out in EPROX LIQMANAGER (rolling over, copying etc.).

In a designated text field, additional information can also be added to indi-

vidual records in order to provide details about their economical back-ground.

Plan data entry: summary planning and input of individual records

Plan data are always entered at the lowest hierarchical level, the so-called planning type (cf. section 3.2 with respect to structuring the plan). The planning structure is freely definable and may equally well be oriented towards both the general format of cash-flow statements as required by accounting standards and individually defined internal requirements.

single record and summary entry

Sum

mary p

lannin

g a

nd input of in

div

idual records



Auxiliary functions are available to support the input of recurring plan re-cords, for example in respect of contractually fixed payments or periodical personnel costs. With the aid of such functions, defined values can auto-matically be copied for defined intervals (taking the next possible value date into consideration) or distributed over a certain time period (value da-tes). For this purpose, it is irrelevant which time pattern has been defined

for planning purposes. Before the data is taken over into the plan, it can be displayed and changed, where necessary:

Copying and distributing planning records

Payments between organizational entities (cash transfers) are depicted using a function available within the Transaction Planner (cf. next section), so that the transfer is automatically mirrored in the partner organizational entity.

Special planning types can be defined in customizing which can be dis-played in the plan but which are only included in any balance derived from the plan data at the user’s option. Such special planning types may be used, for example, to display credit lines the amount of which may be rec-

orded and changed but which should not, however, influence the liquidity status. For reporting purposes, this opens up the possibility to either dis-play the liquidity flows without including the credit lines, or with the credit lines integrated, or in such a manner that the limit is used as a separate threshold value during the further course of the planning.

distribution and copy functions

cash transfers

display of credit lines

Copyin

g a

nd d

istr

ibuting p

lannin

g records



From within the plan data entry screen, it is possible to directly access EPROX LIQMANAGER’s reporting functions. A separate window is used to show how balances are changed based on the updated current status.

In our example, the plan for a division is displayed from month 2 to

month 12 (monthly intervals). A recurring monthly payment was dis-tributed in monthly intervals over the planned period using the copy function. For two months the proposed values were adjusted ma-nually.

integrated reporting



Transaction Planner

The Transaction Planner provides one of the most important control func-tions within EPROX LIQMANAGER. Using the Transaction Planner’s instru-ments, it is possible to schedule planned transactions in situations where excess liquidity is available or underfunding occurs.

The separation of planned transactions into internal and external instru-ments makes it possible to assign the payments that are generated to ei-

ther internal or external planning types. This ensures the correct display of the liquidity impacts both from the perspective of an individual organiza-tional entity and from the group perspective.

The automatic mirroring function represents a core functionality that is available to depict internal transactions between organizational entities which are included in the same planning process. An outgoing transaction with a specific counterparty (the corresponding organizational entity) can be mirrored as required in other organizational entities. In this manner it is possible to automatically depict multi-step transactions in which, for exam-ple, a transaction is entered into with a local treasury center, for which an identical transaction with the group treasury center is set up. This type of

mirroring not only simplifies the input process; it also automatically en-sures that a consistent view is obtained for payments and reported items throughout the overall plan. Transactions that are planned using the Trans-action Planner are the subject of stringent logic when copying and roll-over functions are used: if the planned starting date for a new transaction lies within the time pattern used for the target plan, then the relevant data both for the transaction and the mirrored transaction are taken over into the plan. If, however, the planned start date for the new transaction lies outside the time pattern used for the target plan, then the respective transactions are completely eliminated (this is based on the assumption that the planned transactions have in the meantime been transformed into real transactions which are considered in the plan through transfer of data

from Cash Management.)

liquidity management with the Transaction Planner

automatic mirroring of internal financial transactions



Hedging transactions covering open foreign exchange positions that result from the liquidity planning process can also be entered into Transaction Planner.

Example: foreign currency hedging within a group

When saving the entered transactions the liquidity is automatically updated with the cash flows thereof. The created records can now be seen in the

plan data entry screen and reporting.

Holding

Treasury Center

Subsidiary 2

Third Party

Internal hedging transactionsExternal hedging transactions

NOK

Division 1

Netting within the subsidiary

Subsidiary 3Subsidiary 1

Division 2

Division 3

Division 4

Division n

Subsidiary 4 Subsidiary n

BankBank

integrated FX management



In a manner that is similar to the product types and transaction types available in the SAP Transaction Manager, use of predetermined categories can be used as a basis to differentiate the planned transaction instruments at will (internal, external, short-term, long-term etc.). At present the fol-lowing (deterministic) instruments are supported:

Money market investments (for any term)

Loans (for any term)

FX forwards

Cash transfers between organizational entities (cash transfers such as dividend payments/profit distribution).

All cash flows deriving from planned transactions are automatically deter-mined on the basis of the defined terms and conditions and are updated in plan data entry screen.

During the data entry process, the system checks whether mirrored trans-actions result from the data entered. If the plan in which the mirrored transaction is to be recorded is blocked for processing, then the system produces a respective notification.

Transaction Planner

configurable financial instruments

Transaction P

lanner



The capture of planned transactions has been deliberately kept simple and convenient in order to reflect the planning character. The most important instruments, counterparties and currencies can be predefined for each or-ganizational entity in order to facilitate the maintenance of significant infor-mation with the aid of command buttons. The individual transactions are transferred automatically into a collective processing list and are clearly

displayed. From this collective processing list they can be easily selected and edited when necessary. If changes are made to transactions that have been mirrored, then the mirrored transactions are also automatically amen-ded. In this connection for reasons of consistency, the system will only per-mit the person who entered the original transaction to make the necessary changes.

In our example, after input of the plan data by the divisions and the

trans-divisional entity, company DE identifies a structural deficit that is mainly caused by repayment of a loan to the holding company. As a replacement measure, a new loan of a reduced amount is defined and captured using the Transaction Planner. Upon capture, the cash flows for the new transaction are generated; as soon as this data is saved, then plan data is updated. It is possible to display the liquidity trend at any time in graphical form by using the reporting functionality (see section 3.9).

simple and secure transaction input

Structural deficit due to loan repayment

Simulation of planned transaction

Liquidity after planned transaction simulation



Liquidity Reporting

The objective of liquidity reporting is the flexible numeric and graphical support of liquidity analyses as of any required reporting date. For this pur-pose, the data selection criteria and the report structure have been defined uniformly for all reports.

In general, three types of reports are supported by the liquidity reporting functionality:

Liquidity trends, which display the development in liquidity for a defined time period. In one display, it is possible to report up to five different trends based on any chosen selection criteria.

Plan/plan comparisons, which can compare any two chosen plans with overlapping time periods and determine differences down to a detailed level (planning types).

Plan/actual comparisons, which can determine actual information out of Cash Management at an aggregated level and compare this to any plan.

There are three display possibilities available to report results:

Graphical display only

Numerical display only (accumulated values and details)

Combined graphical and numerical (accumulated) display.

For the sake of improved clarity, display possibilities have been limited to a maximum of five simultaneous curves. The color scheme and type of graphic representation (line charts, bar charts etc.) can be predetermined as display variants in the selection screen. A free text field for each curve provides a flexible labeling in the legend of the display. The graphic repre-sentations can be transferred into MS-Office applications using simple copy functionality.

extensive reporting possibilities

flexible display possibilities

easy MS-Office integration



Reporting: liquidity trend (graph and accumulated values)

The lower area displays the accumulated numerical values for each graph and thus provides initial support to comprehend the liquidity trend.

Reporting: liquidity trend (graph only)

Liq

uid

ity trend (

graph a

nd a

ccum

ula

ted v

alu

es)

Liq

uid

ity trend (

graph o

nly

)



In the numerically displayed view, it is possible to drill down from the cu-mulative flows by double clicking on the value in order to view the detail underlying the displayed amount. In comparative reports (plan/plan or plan/actual) the differences between the compared curves are displayed. It is possible to drill right down to the level of the individual planning type in order to comprehend all the information that is relevant for a specific point

on the graph.

Reporting: detail view

It is possible to switch between the different views (graphical, numerical or combined) by clicking on the corresponding button.

In general, liquidity curves can either be depicted in the original currency or as converted into a display currency. Currency conversion becomes an absolute necessity if the data shown in the curve has been aggregated from planning data in different currencies. A so-called standard currency is used for conversion of the plan currencies in such cases. The planned cur-rencies and the standard currency may be used in combination. For exam-ple, up to four main currencies may be displayed as original currency val-

ues (the display currency is inactive) whilst all remaining currencies are aggregated together and depicted as values in the standard currency.

drill down to detailed information

currency-specific reporting

Reporting: deta

il v

iew



The data selection allows the highest possible flexibility for the analysis of the liquidity. Various structural elements of EPROX LIQMANAGER are available in order to make selective reports:

Planning process

Planning variant

Planning scenario

Company code

Organizational entity

Planning types

All allowable values for the selected criterion are taken without any restric-tions in content. It is equally possible to report either individual planning types or aggregated values in any required plan for any required organiza-tional entity.

One example of the flexibility of this approach is the display of credit lines for reporting purposes. Due to the fact that these are defined using a spe-cial planning type, such a credit line can be included in the liquidity flows, can be shown as a separate curve to indicate a threshold value relating to

the liquidity flows or it can be completely ignored for reporting purposes.

flexible selection of data



In a manner analogous to the approach in standard SAP, the chosen set-tings and selections can be stored as layout and selection variants; either as user specific or generally available variants.

The time pattern that is used for reporting purposes can be defined inde-pendently of the time pattern that is used for plan data entry purposes.

Reporting: plan/plan comparison

layout and selection variants

Reporting: pla

n/pla

n c

om

paris

on


44 __________________________________________ Liquidity Management

Analyzer Integration

The portrayal of the liquidity trend, the plan/plan and plan/actual compari-sons in the liquidity reporting provides information concerning the status and development of liquidity as well as on the quality of the planning; the respective insights can be integrated into future planning processes.

In addition cash flows cause changes to both intercompany and external balance sheet positions and profit and loss; moreover, cash flows that are designated in foreign currency are subjected to risks of exchange rate fluc-

tuations. Liquidity management is not restricted to monitoring such liquidi-ty flows but is also concerned with identifying and managing the risks that are associated with them.

SAP Treasury & Risk Management’s Analyzer family provides a large num-ber of reporting options and extensive functionality to help businesses to quantify and manage such risks. EPROX LIQMANAGER provides the possi-bility to completely and structurally integrate data deriving from liquidity planning and the Transaction Planner with this analysis functionality.

With its so-called generic transactions, the Analyzer makes use of a stan-dardized interface through which external information can be included in

analysis reports. Depending upon the type of analysis required, these transactions need to meet certain requirements.

comprehensive analysis functionality

standardized link to Analyzer



The methodology adopted for many analysis reports requires cash flow information derived from plan data input. Examples of this are currency exposure analyses and value at risk calculations. For such applications, simple generic transactions are generated out of EPROX LIQMANAGER for each respective currency. In this context, using customizing settings, it is possible at the detailed planning type level to specify which cash flows are

to be included for risk analysis purposes. Both real plan data and simulated plan data can be transferred in parallel.

Analyzer integration: MRA results data base

When using the Transaction Planner, it is often helpful to distinguish cash flows deriving from operational plans from those deriving from financial transactions (e.g. hedging transactions). With this purpose in mind, for the Transaction Planner own generic transactions are generated, which are

similar to the real transactions that are generated by SAP TRM, but whose source is specifically referenced so that they are distinguishable. If the functionality is used, the planned transactions are filtered out of the cash flows deriving from entered plan data in order to prevent a redundant analysis.

use of generic trans-

actions for real and simulated planning data purposes

transfer of plan data and planned transactions

Analy

zer inte

gration: M

RA results d

ata

base



Complex analysis reports using SAP’s Asset Liability Management (ALM) functionality are also supported through integration with the Analyzer. In a typical Group structure with a corporate treasury center, and various com-panies which are integrated into a (or into a number of) cash pooling ar-rangement(s), the cash pooling process leads to changes in the intercom-pany current account balances between the companies. Often, interest is

charged on such current account balances, which may represent a signifi-cant portion of the company’s net interest result. In order to make an earn-ings forecast, it may be sensible from the perspective of both the company and the corporate treasury center to plan the interest deriving from such accounts based on liquidity flows. In this case, it is necessary to derive balances on the current accounts based on planned cash flows, which are then adjusted for each subsequent cash flow change.

Analyzer integration: liquidity balances in ALM

Through use of a maintenance table, both fixed and variable interest rates (with or without a spread), which are used for the calculation of the inter-est result (income/expense), can be assigned to various balance sheet positions. Variable interests are calculated using the Analyzer forward cal-culation methodology.

Analyzer integration: Asset Liability Management

CMstartingbalance

interest…

outgoing payment

incoming payment

+ credit interest

- debit interest

Asset Liability Management

Key date balance

Average balance

Liquidity

Interest income

asset liability

management

methodical consistency

Analy

zer inte

gration: ALM



4 Overview of Functionality Functional Area Functionality

Plan administration

Central planning cockpit for purposes of status management and process execution

Clearly defined set up and release process for plan data input

Automatic and manual blocking mechanisms for plans that are in process

An unlimited number of planning processes through (use of) definable organizational entities

Up to 999 planning scenarios for each planning process, e.g. for simulation purposes and actual data statements

Determination of the planning currency for each organizational entity

Assignment of fiscal years to each planning process for the purpose of setting up calendar grids

Own authorization objects enable the set up of an individual authorization concept



Functional Area Functionality

Planning structure

Flexible organizational structure with up to 4 hierarchy levels

Freely definable planning types for detailed plan data entry and analysis

Flexible definition of attributes for each planning type (displayed, hidden, changeable)

Up to 5 aggregation levels for the set up of a planning hierarchy

Flexible grouping of planning types/ planning levels and aggregation levels in planning variants

Freely allocable planning variants per organizational entity

Freely definable planning intervals for any required time pattern




Plan data entry

Interface for the import of liquidity information from SAP Cash Management

File interface for the import of liquidity information, for example,

via MS Excel

Context related skip into SAP Cash Management from the data entry screen

Rolling over of plans on any planning date

Optional blocking of standard plan for copying operations

Copying of any source plan into any target plan

Currency-specific input screens

Entry of summarized data or individual planning records

Automatic, currency-specific working day validation

Automatic copying and distribution of planning records

Easy skipping into Transaction Planner

Management of credit limits

Management of liquidity reserves




Liquidity reporting

Flexible liquidity trend depending on selectable criteria (specific or in combination):

� Planning processes

� Planning scenarios

� Planning key date

� Planning types

� Company codes

� Organizational entities

� Currencies

Display in original and display currency

Combined graphical and numerical display of planned flows

Numerical display of changes in balances and individual records

Use of flexible time patterns for presentation of data

Display of up to 5 trends in graphic form with selectable layout and color schemes

Simple export of graphically depicted trend and numerical plan

values into MS-Office applications

Display of credit lines as separate threshold values or integrated into liquidity flows

Detailed plan/plan comparisons for freely selectable planning periods

Plan/actual comparisons based on aggregated data




Transaction Planner

Simple capture of planned transactions:

� Money market investments/ borrowings

� Capital market transactions

� FX forwards

� Changes to balance sheet line items

Freely definable specification of instruments for the available categories

Automatic generation of cash flows and update of the plan

Automatic mirroring of internal transactions for any organizational level

Automatic mirroring of cash transfers




Analyzer connectivity

Integration into Analyzer including transfer of essential planning information:

� Company code

� Organizational entity (also below the level of the

company code as an attribute)

� Planning process

� Planning scenario

� Currency

� Possibility to derive other attributes using the financial object integration

Generation of generic transactions for planning data per organizational entity and currency

Generation of generic transactions from Transaction Planner with transfer of the following attributes:

� Company code

� Organizational entity

� Product type

� Transaction type

� Business partner

� Conditions

Representation of liquidity trend as position account for Asset Liability Management

Build up of additional balance sheet positions for Asset Liability Management

Fixed or variable interest rate calculation for account balances/ account balance evolution



5 Authorization Concept Due to the complete integration of EPROX LIQMANAGER with SAP stan-dard, all the concepts and methods are available to define user-specific SAP system authorization profiles.

EPROX LIQMANAGER has been set up with its own authorization objects, in order to specifically tailor the functions of liquidity planning and man-agement to the employees’ areas of responsibility.

Within the SAP system, an authorization consists of an authorization object and it's permitted activities based on a set of authorization field values. The following objects and fields are defined in EPROX LIQMANAGER:

Authorization object Authorization fields

Overall plan

Planning process

Planning scenario

Activities

� Create

� Change

� Display

� Cash Management import

� Export Analyzer

� Roll over/copy

authorization objects



Authorization object Authorization fields

Single plan

Planning process

Planning scenario

Company code

Organizational entity

Activities

� Change

� Display

� Cash Management import

� Export Analyzer

� Roll over/copy

The authorizations that have been created can be integrated into the re-spective user roles (SAP authorization profiles) and assigned to the user master record.

integration into authorization profiles



6 IMG and Sample Customizing In a similar manner to SAP standard, EPROX LIQMANAGER is delivered with an extensive number of sample settings. These preconfigured settings have been chosen so that they can be amended to meet individual re-quirements by simply copying and overwriting them as necessary. The

delivered settings comply with economical standards and have been com-plemented by expertise gained on numerous projects.

The sample-settings in EPROX LIQMANAGER use assignments to specific organizational units (company codes, organizational units) which may not be the same as they are in a productive system environment. When these customizing sample-settings are imported, the delivered settings can be transferred to existing company codes. Amendments and additions can be made using the normal tools that are available within the SAP standard through parameterization and table maintenance.

preconfiguration in accordance with

market standards



All settings in the Implementation Guide (IMG) are comprehensively docu-mented. The documentation for each setting comprises:

a description of the setting

the technical requirements necessary for the adjustment of settings

an explanation of the possible and permissible values and the possible enhancement of existing settings

a reference to any dependent settings

a description of the sample customizing

in some cases, examples of possible settings and alternative approaches.

The menu structure for the maintenance transactions is integrated into the SAP standard IMG and follows the normal logical sequence of the parame-terization of EPROX LIQMANAGER.

Implementation Guide

comprehensive system documentation

Im

ple

menta

tion G

uid

e



7 Technical Information The staff of EPROXSOLUTIONS is comprised of highly experienced SAP stan-dard application developers, who have gathered perennial expert know-ledge on numerous project-related development activities. EPROX LIQMA-NAGER offers a comprehensive solution in the area of liquidity planning and

management, which can be easily integrated technically into SAP standard.

EPROX LIQMANAGER functions modification-free and makes use of exist-ing SAP standard technology. In order to minimize the effort required when enhancement packages are activated or when release changes are made, minimal technical dependency to the standard has been achieved.

The development was realized on the basis of SAP NetWeaver and thus does not impose any additional requirements on IT staff or the IT infra-structure. Software maintenance and distribution comply with the SAP standard (for example, use of the transport management system, backups, client copies etc.) and are subject to the same security regulations as SAP

standard.

All development standards, such as multi-language support, performance, documentation etc. have been complied with in order to conform to SAP requirements. Exacting quality guidelines and intensive test phases ensure the high stability of the solution.

The solution has been created following a strict layered architecture:

User Interface layer: the UI-layer comprise all implementations of the user interface (e.g. SAP GUI). Since neither the application logic nor process are integrated in this layer, an independent enhancement or a replacement of the user interface are warranted (e.g. SAP Web Dynpro)

Process layer: the process layer covers the application processes and controls the interaction of the single layers. Integrated in this layer are, for example, the authorization management, the message management and the SAP-LUW-concept.

Application layer: the application layer contains application data from the overall and single plans amongst others. It is responsible

for the block-concept and the consistency and integrity of the application data.

Persistency layer: the persistency layer undertakes the loading and saving of the application data. The open-SQL-access is integrated in the persistency layer.

Central functions which are used by various applications (e.g. protocol and message management) have been implemented as GENERIC PARTS. Through the re-use in the various applications a high quality and maintenance friendliness is guaranteed.

modification-free add-on

no additional IT requirements

highest standards of development

strictly logical architecture



Layered model for the technical realization

In order to ensure an optimal runtime behavior, process performance as-pects were considered throughout the whole development process.

Focal points of the solution are the easy system navigation and the perso-nalization of the application. All important functions can be started from a central cockpit without having to change to complex menu paths. Depend-ing on the data basis and authorization profile, the respective user has only access to such functions as are within the scope of that specific user’s re-sponsibility.

EPROX LIQMANAGER is delivered by file as a transport request, which includes all necessary objects. Upgrades and corrections are also provided in the form of import files.

The delivered development objects are set up in compliance with EPROX conventions in the SAP customer namespace.

USER

INTERFACE LAYER

PROCESS

LAYER

APPLICATION

LAYER

PERSISTENCY

LAYER

LIQMANAGER CUSTOMIZING

GENERIC

PARTS

LIQ

MANAGER PARTS

FILE

MRA

TM

CM

PERSPACKAGE

APPL PACKAGE

UI PACKAGE

UI PACKAGE

APPLPACKAGE

PROCESSPACKAGE

PERSPACKAGE

LIQMANAGER SAP

optimal system performance

ease of navigation



Notes

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Transcript of Brochure EPROX LIQMANAGER EN...liquidity planning purposes is definitely preferable. However, in...