Is Liquidity Planning More Important Than Ever?

Short, Medium and Long-term Liquidity Planning with SAP Business Planning & Consolidation

Recent studies suggest that since the “Credit Crisis” [1], reliable cash forecasting is one of the main priorities for managers. It is therefore more important than ever to be equipped with a reliable and meaningful liquidity planning system. Not only is it to ensure the survival of a company, but also for the efficient control of cash, and the company’s credit rating. With the advent of Basel III, legal and reporting requirements for banking have increased, thus resulting in higher transparency on liquidity. A centralised, integrated, and always current planning tool, will help you to master your liquidity planning.

The "Easy-to-use" interfaces and intuitive operation of SAP BPC’s integrated workflows enable you to map your planning cycles for comprehensive liquidity management.

Liquidity Planning with SAP BPC - 6 important points

Liquidity planning in SAP BPC has allowed the use of MS Excel and connected it to a central database in SAP Netweaver. Intuitive web client functionality has been added to MS Excel, to simplify its use through Drag and Drop.

In addition to short-term planning that is available through ‘Liquidity Forecast’ in SAP Cash Management, Liquidity Planning in SAP BPC extends the planning horizon to include functionality for flexible medium and long term planning.

1. Liquidity planning - Considering all factors
Through integration with other planning modules, it is possible to have data feed from other planning scenarios into SAP BPC. Actual data can be uploaded from ERP, or ‘Liquidity Forecast’ (Cash Management), and plan data can be transferred from other planning forecasts that provide superior quality by liquidity planning.

2. Web 2.0 & MS Excel as operational business planning tools

SAP BPC Web Client allows you to work via a web browser, which means you can work anywhere, even on the go. With the MS Excel ‘Add-In’ the enhanced functionality of SAP BPC is also available. Data consistency is ensured through centralised data storage. Business Process Flows provide easy to use Work flow functionality to ensure that the right people participate for tasks when their input is needed.

With Ad-hoc Reporting and drag and drop functionality, you can easily create reports and forms (for input) for greater transparency.

3. The Liquidity Forecast - Everything at a glance

Reports evaluating liquidity forecasts provide a comprehensive view of the liquid health of your company and planning strategies. Integrated graphics help you visualise the findings.

4. Simulation

In an individualised simulation model you can create economic scenarios to analyse the impact on your liquidity and the finances of your company. There are several simulation scenarios available, e.g.  best and worst case scenarios.

5. Cash-Flow

Calculates Balance Sheet ratios based on actual values ​​as well as plan values. Graphical simulations of various scenarios are also possible.

6. Integration with ERP

Actual data can be loaded from SAP ERP by means of extractors (already existing) into SAP BPC, or via upload of flat files. This allows you to accurately compare forecast and actual data, thus offering the possibility to analyse and identify the reasons for data deviations.

Supports planning for all organisational units within ERP and offers flexible design options to enhance the data model.


Liquidity Planning with SAP BPC


Comparison SAP ERP vs. SAP BPC

  • rigid planning screen
  • intuitive Web Client
  • In practice, the planning process
    often takes place outside of SAP.
    Increased workload through
    manual tasks and may require additional programming.
  • Planning in Excel or Web with central data storage
  • ERP standard reporting functionality
  • Drag & Drop in Web or Excel reporting
  • short-term liquidity forecasting
  • medium to long-term liquidity forecasting through continous planning
  • integration of budget values (e.g. cost centre planning) in liquidity planning
  • flexible reporting of future payment obligations for the company
  • advanced planning capabilities for SAP's New GL


Single Point of Truth

More and more companies are faced with the challenge of managing complex corporate structures. Many have different accounting and legal requirements for its subsidiaries, different languages ​​and currencies that need to be reflected in their IT landscape. In practice, applications such as Excel and other decentralised tools are used to supply and compile data for strategic business management. This not only increases the amount of manual effort, but also the risk of error. With SAP BPC you are working with different tools based on a central database. This ensures consistent data quality for accurate and reliable analyses of your company’s financial situation, and allows you to plan properly for the future.

In Summary

  • Liquidity planning is an important pillar of comprehensive corporate planning and corporate management.
  • SAP BPC in conjunction with SAP ERP offers functionality for creating accurate plans and forecasts whereby, the time it takes to run trough your planning cycles are significantly reduced.
  • Aside from the added functionality that is installed with the add-in for MS Excel, all standard functionality remains at your disposal.
  • The workflow capabilities of Business Process Flows ensures the right people are available for the job and by tracking their status; you will have a better overview of your workforce.


[1] Source: Quelle: Deloitte: Lip Service, Rhetoric vs. reality in liquidity planning, 2011

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