Skip to Content

Archived discussions are read-only. Learn more about SAP Q&A

Use of Cash concentration

Dear SAP Gurus,

I am using Cash concentration ffunctioanlity. As per SAP help, this functionality helps to transfer the amount from source to target account. BUt this I can achieve using FI posting as well.

I am not able to understand added functionality for using this.

Can you adv me on this.

Thanks

Former Member
Former Member replied

Hi,

The cash concentration enables automatic transfer postings in a specific frequency in a master contract. These are based on carryforward rules and relationship attributes.

The aim of cash concentration is to keep the account balances of the participating accounts within a certain value range at defined times. A main account (root account) at the top of the account hierarchy absorbs the surplus balances of the other accounts or compensates for any insufficiencies on these accounts. You can, for example, specify that an account must always have a certain minimum balance or that the remaining balance on an account is always to be transferred to another account (for example, an investment account) at the end of every month.

Hope this helps.

Raghu

0 View this answer in context
Not what you were looking for? View more on this topic or Ask a question