That SAP Business ByDesign Business scenario cash and liquidity management enables financial experts in medium-sized companies to meet cash flow deadlines quickly and efficiently and to achieve greater transparency in the management of the liquidity status of their company. It contains cash flow information from the areas of receivables and payables, taxes as well as payment transactions and liquidity and optimizes your daily cash management cycle by automatically collecting and aggregating this information.

This scenario covers the cash flow management cycle from the snapshot of the actual liquidity through forecast and analysis steps to the optimized cash flow of transfers or other strategies that influence the cash flow.

The Process Payables and Payments business process enables you to process outgoing payments that have been initiated either internally by your company or externally by your suppliers.
Payments can be made manually or automatically during a payment run in which the system proposes open items for payment. You then release the payments and the system posts them to accounting. You create the payment medium either manually or as part of an automatic run. The standard work center provides checks, outgoing transfers and credit memos as well as other country-specific payment methods. As soon as the payments have been debited from the bank account, the bank statement is recorded in the system. It is uploaded electronically or entered manually and then confirmed. If payments are initiated externally, the bank statement informs you that a payment has been made. The payments are matched with the open invoices in the system before they are cleared.

The Manage Cash Register business process enables your company to enter all cash deposits and withdrawals into the system. The cash register must always contain enough means of payment for cash payments to be made. For this reason, it is possible to transfer means of payment between two cash registers or from a bank account to the cash register and vice versa.

The Process Receivables and Payments business process enables you to process incoming payments that were initiated either internally by your company or externally by your customers. Country-specific payment methods are used in this process.
Payments can be made manually or automatically during a payment run in which the system proposes open items for payment. You then release the payments and the system posts them to accounting. You create the payment medium manually or as part of an automatic run and use files for payments by direct debit or credit card. Credit card statements can also be uploaded to pre-confirm payments. When the payments are credited to the company’s account, the bank statement is either uploaded electronically to the system or entered manually before confirmation. If payments are initiated externally by the customer, the bank statement informs about the payment. The payments are matched with the open invoices in the system before they are cleared.

The dunning business process covers the automatic creation of dunning proposals. Your company can edit and approve dunning proposals in order to send payment reminders or reminders for overdue payments to customers.

The business process manage means of payment allows you to display the status of all payment processes in order to analyze the money stocks of your company and to determine the daily financial status in real time. This business process prepares information and creates planned positions that are processed as a liquidity forecast according to their expected value date. Your company can transfer funds between bank accounts if necessary. It is also possible to transfer funds from one company’s bank account to another company in your group.

Source: help.sap.com, as of March 2017