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In-House Cash –
Business Benefits
The SAP In-House Cash application (IHC)
allows diversified companies to optimize their intra-group payment
transactions by establishing an in-house bank. An In-House Cash Center
is a virtual bank within the corporate group, with which each affiliated
company has one or more accounts. For the affiliated companies, the
In-House Cash Center is just another house bank, which they use primarily
to process payables and receivables involving other group companies. At the
same time, you can set up accounts for external companies that are not
associated with the group. This allows them to be included in the netting
process.
The In-House Cash Center is used to
process all payments between company units, thus keeping cash resources
within the group and optimizing how they are applied. This saves on the
costs of external netting services and gives you greater flexibility when
you process payment netting transactions.
The SAP In-House Cash component allows
companies with a diversified organizational structure to minimize the
actual flow of cash and therefore reduce bank charges, interest expenses
and losses resulting from delays in value-dating payments. It also helps to
avoid many of the disadvantages associated with external clearing
solutions, such as inflexible procedures with fixed dates and extra costs
resulting from manual post processing. By managing accounts centrally, you
can assure your company's ability to pay, optimize credit management,
minimize interest expenses, and maximize interest revenues.
SAP In-House Cash (IHC) is a
solution for companies that operate globally to manage their intra-group
and external payment transactions more efficiently.
· IHC is set up at the group headquarters
· IHC is a virtual bank where subsidiaries
have current accounts
The In-House Cash Center is used
to process all payments between company units, thus keeping cash resources
within the group and optimizing how they are applied.
· Controls payment transactions on a regional and global level
· Processes internal payment transactions
on a cost-effective basis
· Reduces the amount of external bank
accounts needed
· Optimizes cross-border payment traffic
· Automates and standardizes business
processes
· Cash resources are kept within the group
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