PSM, Cash-Basis Accounting and Cash Flow Reporting

PSM, Cash-Basis Accounting and Cash Flow Reporting

Use

Table 122: Technical Data

Technical name of the business function	PSM_FA_CASH
Type of Business Function	Enterprise Business Function
Available as of	SAP Enhancement Package 4 for SAP ERP 6.0
Technical Usage
ECC application component	Fund Accounting (PSM-FA)
Directly Dependent Business Function Requiring Activation in Addition	EA-PS (Enterprise Business Function)

You can use this business function by means of a separate cash ledger or cash flow reporting by an additional splitting characteristic in the accrual ledger. Both functions, Cash-Basis Accounting and Cash Flow Reporting, are integral parts of the new General Ledger (G/L).

Prerequisites

You have installed the following components as of the version mentioned:

Type of Component	Component	Is Needed Only for the Following Features
Software Component	EA-PS 604

Features

The business function offers the following features:

• Cash-Basis Accounting
  This solution fulfills the requirement for legal cash-basis accounting.
  • It is possible to establish cash-basis accounting by means of a separate cash ledger. The cash ledger is a complete, balanced set of accounts required by and maintained for cash-basis accounting. It realizes expenses and revenue only at the time cash is paid or received.
  • The cash ledger is a non-leading ledger in the new G/L environment. Cash-Basis Accounting in the sense of this solution always needs a leading accrual ledger.
  • Typically, the only accounts posted to in Cash-Basis Accounting are cash and P&L accounts.
  • It is possible to implement Cash-Basis Accounting at a date later than your implementation of the new G/L. This is called "subsequent implementation". Migration tools in support of this are available.
• Cash-Flow Reporting
  • Cash Flow Reporting provides information on the sources of cash raised during the period, the purpose for which cash was used, and the cash balance at the reporting date.
  • Reporting of the combination cash clearing accounts/source account is possible as well.
  • Cash Flow Reporting in terms of this solution is based on an accrual ledger and does not require an additional (cash) ledger. This improves system performance by reducing data volumes.
  • Enables reporting of cash flows by source account (such as expense, revenue, taxes, or inventory).