on 09-25-2008 7:18 AM
Hi
My client operates a number of bank cash credit (CC) accounts.
Each bank grants a certain CC limit to them, (for example ICICI bank grants Rs 50 lakh CC), beyond which they cannot issue cheques.
They require this to be built into SAP, so that if the limit is reached no further posting of outgoing payments can be made from that bank account and the user gets a warning message.
Could anyone guide me on how i can configure this?
thanks
Roshan
Hi Roshan,
There is a module in SAP called In-House cash. Using this module will answer your question. Before I go further let me warn you that, implementing this module would be a 'Overkill' just to achieve your requirment (keeping a tab on the CC limits).
Let me explain what this module does.
1. In-House bank is a bank for internal purpose. So like you open a bank account with Bank of India/Bank of America, you open a bank account with the In-House bank.
2.You use this bank account no. (given by the Internal bank) to configure your House Bank (FI12) payment program(FBZP)
3. Internally in the In-House bank, you can set up limits (exactly the same limit you have with your bank BOI/BOA.)
4. So when you run you payment program it updates in-house cash with the outgoing payment automatically.
5. Now there are reports which will tell you whether you are within the limit or you have exceeded the limit.
The real purpose of using the In-house bank is:
1. to reduce the 'real' account with external banks like Bank of India.
2. Have an internal 'payment factory'. What this means is that you can centralize your payment function, in one location when you have multiple company codes which make separate payment to their vendors. This is also called Shared Service Center in some places.
3. All inter company transactions can be routed through the In-house bank. This enables you to do inter-company reconciliation easily at the end of each month. this will also help you to calculate interest on inter-company transactions.
4. You can do Cash Pooling of all your company codes and better utilize your cash.
There are many more benefits of IN-house cash. But as I said earlier, it will be a overkill to implement In-House cash if you are going to use it only to know whether you have exceeded the limits of CC accounts.
I am throwing this in this link so that you guys are aware of this module. This comes under FSCM (Financial supply chain management)
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question closed
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Hello Roshan
Such sorts of limits are placed in case of vendors / customers but not on G/L accounts.
However, somewhat similar things might be achieved through AVC (Availability Control) component of Budget Control System (BCS) which I do NOT advise to use.
More info may be found at: http://help.sap.com/erp2005_ehp_03/helpdata/EN/63/eeec0092069f448ebfc933a6cdc55d/frameset.htm
It is worth to note that situation makes even more complex when clearing accounts (which are most likely in use for bank reconciliation purpose) are used for bank accounts. I mean do you want to place limit on clearing account or main bank accounts.
I think manual monitoring is probably the option at least for the time being.
Ambadas
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Just for the sake of information, the balance in clearing account may not be the actual balance (lying at that point of time in the books of the banks), rather main bank accounts shows actual balance, provided electronic bank statements (EBS) are updated regularly.
Hence I do not think, this approach could supersede manual controls.
Hi
In the OBVCU settings you can enter the amount in the available bank amount for outgoing payments for the respective banks. Here is you enter 50 lakhs, the amount will be restricted to this amount. You can develop a program so that this amount is updated regularly based on the bank balance.
Hope it helps. You can try for a better solution if anyone provides you with one.
Karthik
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