Introduction to SAP’s In-House Cash module

Espresso Tutorials

Fabian Bentz

191Excerpt from Guide to SAP In-House Cash (IHC) by Mary Loughran & Lennart B. Ullmann. 

The In-House Cash module is part of SAP’s broader Treasury offering. As shown in Figure 2.1, the IHC module falls under Payment Factory in the Payments and Bank Communications portion of the Treasury Management solution map.


Figure 2.1: SAP Treasury solution map

SAP’s IHC module supports the following processes, which are focused
on in this book:

  • centralized payments – also known as payments on behalf of (POBO)
  • intercompany payments
  • centralized receipts – also known as receivables on behalf of (ROBO) manual payments
  • end-of-day processing

First, a high-level description of the functionality of these five IHC processes is given. Next, the master data related to the IHC module is outlined in detail. This is followed by Chapter 5 which details each of the five IHC processes, showing screenshots in SAP as well as additional information about these processes. Chapter 6 walks through the accounting entries for the examples described in Chapter 5. Chapter 7 outlines the SAP configuration required for the company codes where the subsidiary has an account at the in-house bank. Chapter 8 describes the key configuration for the in-house bank. The next chapter shows how to resolve typical issues encountered when testing the IHC functionality. This book finishes up with a chapter on tips and guidance when encountering errors during implementation of the IHC module, as well as a listing of the IHC transaction codes.

There is an additional process known as cash pooling, which is also supported by the IHC module, but is not covered in further detail in this book. Cash pooling involves aggregating the balances of several bank accounts at an external bank. The IHB is notified of the movement of funds when the external bank statements are processed in SAP, at which time the IHB posts the cash movements to the participants’ current accounts. Cash pooling is supported by using the note to payee text in the external bank statements to determine the correct IHB current account.

Keep reading in  Guide to SAP In-House Cash (IHC) by Mary Loughran & Lennart B. Ullmann.

This book introduces business users, SAP support, and SAP consultants to the SAP In-House Cash (IHC) and In-House Bank (IHB) modules. Learn how to efficiently and effectively optimize payments in SAP. Walk through In-House Cash processes, key configuration, and transaction codes for corporate and shared service centers. Get a list of considerations you need to know before starting an IHC implementation and review required master data. Obtain tips and tricks on how to resolve specific errors and get a list of relevant transaction codes. By using a detailed example scenario, the author expertly brings readers up to speed on the fundamentals of SAP IHC and IHB.

– SAP payment management fundamentals and tools
– In-House Cash and In-House Bank functionality scenarios
– Useful transaction codes and reports
– Tips and tricks for resolving common errors

176Author Mary Loughran has been specializing in the SAP Financials area since 1997 and has worked with numerous clients throughout North America and Europe in the areas of Finance and Treasury. She was employed as a consultant with SAP America and was a designated expert within SAP America for Treasury before she left SAP in 2004. From 2004 to 2017, Mary was an independent consultant. In 2017, Mary returned to SAP America as a Principal Consultant. Mary’s expertise is in the areas of Treasury and Risk Management, In-House Cash, Liquidity Planner, Accounts Payable, payments from SAP in general, Cash Management, and Electronic Banking.

63Author Lennart B. Ullmann has been working in the Cash & Payment management area since 2003. During this time, he has worked as a consultant and project manager on many international SAP Financials projects. He is a specialist in the treasury areas of Payment Management and Bank Communication. Lennart has lived and worked in Germany and in the United States. In his current position, he is the Head of IT Finance for a German DAX company.