1.    What is Cash Management?

Cash management is a sub-module of Treasury that may be utilized as a planning tool for cash control and for reliable, up-to-date liquidity analysis of the company.

2.    Name and describe at least two functions of Cash Management.

Bank statements, manual planning, cash position, liquidity forecast

•    Cash concentration = allows companies to maximize their cash pooling strategy with various cash accounts
•    Cash budget management = identifies impending illiquidity or possible budget overshoots and controls payment flows taking account of profitability and liquidity

See others below or in the following chapters.

3.    Describe the differences between Cash  Position and Liquidity Forecast.

Cash position – reproduces the activity in bank accounts, forecasts daily liquidity or cash position in 0-5 days time frame. It receives data on bank accounts and clearing accounts .
The example of data flowing there is
•    Payments from a bank statement and payments from a payment program (FI)
•    Loans, transfers and deposits from TM
•    Manually planned items from CM

Liquidity forecast – reproduces the activity in sub-ledger accounts, projecting cash inflows and outflows in 1-24 weeks time frame. It receives data from AR, AP, FI, MM, SD, TM.
The example of data flowing there is
•    Invoices from FI or MM and SD (including parked documents),
•    Securities related receivables and payables from TM,
•    Down payment requests from FI,
•    Manually planned items from CM, etc.
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1.    Base on quantity, what are the three methods of old asset data transfer?  In what status does the company code have to be so that the transfer is possible?

1)    small quantity -     Create old asset manually (dialog transaction)
2)    large quantity -     Batch-input procedure (RAALTD01)
3)    very large quantity –      Direct data import (RAALTD11)

The company code must be set up to the status for old assets data takeover when no posting is possible.

2.    True or False?  With the old assets data transfer through any of the three methods, appropriate G/L accounts in Financial Accounting are updated.

False.  Balance reconciliation with the relevant G/L accounts must take place separately. G/L personnel can input these via FI or AA personnel can input them via the transfer balance screen in AA With up-to-date accounts in the already productive FI there is no need to update them.
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1.    True or False? – The Asset Accounting Information System is a hierarchical structure containing standard reports creating a report tree that cannot be changed.

False.  The standard reports provided by SAP can be copied and modified. Branches can be added or removed from a report tree.

2.    What is the asset value display used for?

Asset value display offers extensive possibilities for planned as well as already posted asset values. For example, it is possible to compare results from different depreciation areas, simulate asset values over time, view posted transactions, and execute reports.
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1.    What is periodic processing, and what is  it used for in Asset Accounting?

Periodic processing comprises the tasks that must be performed at periodic intervals.  Since only the values from one depreciation area can be automatically posted online in Financial Accounting, the changes to asset values (transactions) from other areas with automatic postings have to be posted periodically to the appropriate reconciliation accounts.

2.    What is the role of a depreciation area in handling different types of valuation? Why do we need to handle different types of valuation?

By using various depreciation areas that differ from each other in

•    kinds of depreciation (ordinary, special, unplanned  depreciation)
•    depreciation terms (depreciation method, useful life)
•    base values for depreciation calculation (APC, replacement value)

It is possible to perform different valuation and meet the calculation needs for specific purposes (e.g., balance sheet, cost accounting or taxes).
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1.    Define a transaction type.

During the life of an asset there are a number of changes that affect the value of the asset.  The FI-AA System recognizes a wide range of business transactions.  Transaction types make it possible to handle all of the necessary postings appropriately.

2.    It is possible that an asset acquisition is posted in two steps or in two different departments?  How do the two entries clear?

When the asset acquisition is posted in two steps or two different departments, you normally post to a clearing account.  Use a general ledger account with open item management to guarantee that this account can be cleared.  Either the FI department includes this clearing account in their periodic run of SAPF123 (Automatic clearing program) or the clearing account has to be cleared in an additional step (Menu path: Posting > Acquisition > External acquisition > Clearing offsetting entry).
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