Achieve efficient liquidity management in four steps

Stefan Blinkmann

June 24, 2020

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Corona has proven very disruptive. The effects on many companies’ business means that markets have changed fundamentally in just a short time. In the current crisis, the concern is to secure liquidityquickly and effectively and to reduce ongoing costs. CFOs and Managing Directors have to react quickly to avoid liquidity bottlenecks in the Corona era so that companies and employee can maintain their financial security and avoid financial woes. Among other things, a concern is to re-establish supply chains and re-align business processes – this is an enormous challenge that can only be mastered with the right tools.

“Stay healthy” is just as common a greeting today as “best regards!” Companies today would have to say “stay healthy and liquid.” For drastically sinking sales or perhaps even a complete lack of sales can quickly create liquidity problems. That’s why effective liquidity management is very important. An up-to-date overview of your financial situation can calm your nerves and make it easier to appear confident in credit negotiations. We at valantic specialize, among other things, in It-assisted liquidity management and we can help you guide your company into calmer waters.

Liquidity is the highest priority

A daily view of accurate cash flow figures provides calm and security in the current situation. And banks reward transparent figures as well. The concern is to always keep an eye on your goal, to guarantee payment capability, and based on reliable information, to take the right measures to improve liquidity.

Consistent and efficient liquidity management extends far beyond examining the status quo, however. For only sophisticated liquidity planning reduces the liquidity risk and at the same time, creates the basis for making adjustments to the company in the right direction.

We at valantic offer liquidity management in the SAP Analytics Cloud. For the liquidity-relevant data flows from the SAP ERP system or into SAP S/HANA. The plus points include a quick assessment without time-consuming developments and the exclusive use of standard SAP functions to map liquidity in the SAP Analytics Cloud (SAC). The goal is short to medium-term liquidity planning in a SAC interface for 10 to 90 days. Click here for information about liquidity management in the SAP Analytics Cloud.

Achieve efficient liquidity management in four steps

Efficient liquidity management is critical for detecting looming risks early on. You can reach your goal in four steps. Each step includes two half-days with remote sessions.

  • The first step is to determine what is the liquidity-relevant data. Using SAP Cash Management, automatic forecast data can be generated from SAP auxiliary book data. The enrichment of data for areas such as controlling and HR complete the database for a medium-term cash forecast.
  • The second step follows the set-up and involves setting up a SAP Analytics Cloud Tenant and the appropriate users and making the connection to your SAP ERP or S/4HANA system.
  • The third step is story training. Based on the data determined, a story is created for your liquidity management, with which the goal of transparent depiction serves as the basis for the analysis of your liquidity data. Important KPIs can be visualized using clear KPI dashboards.
  • The fourth and final step is the transfer of the SAC tenant including the documentation. As part of the handover, you will receive training and helpful tips.

valantic’s liquidity management offerings

Our solution is available in three packages: “Basic Package,” “Add-On,” and “Advanced Package”. The differences involve the scope of data acquisition to a long-term approach with the aspect of a migration to SAP S/4HANA. The set-up of the SAP Analytics Cloud ranges from a simple uploading of the files to a complete data warehouse integration. In the smallest package, the analysis includes data models for an analytic story, evaluations of the liquidity situation, and automatic forecasts. The medium-sized package enables customer-specific analyses, regression analyses, and KPI dashboards.

With the advanced package, we offer companies the opportunity to implement their individual requirements. This can include topics such as the migration of an SAP ERP solution to SAP S/4HANA, the integration of liquidity data into a data warehouse or an individual planning application with the SAP Analytics Cloud.

Thanks to the quick availability of reliable liquidity planning, CFOs and Managing Directors gain security and transparency in liquidity management. We work with them to define and implement as efficient a solution for their liquidity management as possible.

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