IHC Overview

8/2/2019 IHC Overview

1/19

deeper

IBM Global Business Services

Copyright IBM Corporation 2008

IHC Overview presentation

June 2009


2/19



SAP In-House Cash: Overview

SAP In-House Cash provides payment-related services for a group of

affiliated companies

SAP In-House Cash supports:

- Central dispatching, routing, and processing of payments

- Creation of provided account statements to account holders

- Delivery of financial status to cash management

- Tracking of payment status


3/19



Audience

All the SAP functional consultant with FI exposure are the audience for

this IHC overview and payment process presentation.


4/19



What is IHC


5/19



Purpose and Availability

Purpose & Objectives

- Supports various and ever-changing corporate group structures

- Establishes global bank relationships and concentrates business with fewer banks

- Controls payment transactions on a regional and global level

- Processes internal payment transactions on a cost-effective basis with significant

transaction cost savings- Reduces the amount of external bank accounts needed

- Optimizes cross-border payment traffic

- Automates and standardizes business processes

- Keeps cash resources within the group

Availability

- SAP In-House Cash has been available since 1999 in Release 4.6C

- Starting with SAP R/3 Enterprise, In-House Cash is delivered as part of the Financial

Services extension


6/19



IHC Functions and Capabilities

The items shown here are master data and maintained by Treasury


7/19



CorporateGroup

Functions and Tasks of the OrganizationalEntities Involved

Subsidiary 3

Subsidiary 2

Subsidiary 1

Head Office

In-House CashCenter

Accountmanagement

FinancialAccounting

SAP In-House Cash Organizational Entities


8/19



CorporateGroup

Subsidiary Individual trading entity (e.g. subsidiary) with its own systems (e.g. R/3)

This subsidiary holds one or more current accounts within the corporate grouphead office (In-House Cash Center).

The subsidiary simply has to define new bank details (for the virtual bank) to the

corporate group head office (In-House Cash Center) as though it were a normal

house bank.

Subsidiary 3

Subsidiary 2

Subsidiary 1

Organizational Entities: Subsidiary


9/19



Head Office

The head office manages the current accounts for the corporate groupsubsidiaries within the IHC Center.

The financial accounting department within the head office manages the IHCCenter general ledger accounts.

Other components such as CO, MM, .... could be in use at the head office.

Head Office

In-House CashCenter

Accountmanagement

FinancialAccounting

CorporateGroup

Organizational Entities: Head Office


10/19



In-House Cash Center

The IHC Center is situated at the head office and can be a separateorganizational entity within the head office.

The IHC Center manages the subsidiaries IHC current accounts as a head officesubledger

Represents a part of the company that processes internal corporate group andcross-group payments.

CorporateGroup

Head Office

In-House CashCenter

Account

management

Financial

Accounting

Organizational Entities: IHC-Center


11/19



Financial Accounting Department

The general ledger accounts for the IHC Center subledger are set up here.

It creates the balance for the corporate group, taking account of IHC.

The financial accounting department uses SAP-FI.

CorporateGroup

Head Office

In-House CashCenter

Account

management

FinancialAccounting

Organizational Entities: Financial Accounting Dept.


12/19



Organizational entities:

Operative subsidiaries 1,2,3...

The IHC Center and the financial accounting department are situated withinthe head office

The IHC Center (manages the subsidiary current accounts)

The financial accounting department manages the chart of accounts and the

general ledger balances.

In-House CashCenter

Konten-

verwaltung

Finanz-buch-

haltung

CorporateGroup

Subsidiary 3

Subsidiary 2

Subsidiary 1

Head Office

In-House CashCenter

Account

management

FinancialAccounting

Summary


13/19



Payment Process 1: Intercompany within same IHC Center


14/19



Posting logic

Posting logic for intercompany payments within

the same IHC Center


15/19



Payment Process 2: Intercompany across IHC Centers


16/19



Posting logic

Posting logic for intercompany paymentsacross multiple IHC Centers


17/19



Payment Process 3: External vendor


18/19



Posting logic

Posting logic for external vendor payments(centralized through IHC Center)


19/19



END

IHC Overview

Documents

Transcript of IHC Overview