SAP Note 24081 - Cash Management and Forecast: Meaning of expiration date

Symptom:

This note applies to R/2 and R/3:
The meaning of the expiration date for the memo records (payment advice notes and planned items) in cash management and forecast causes difficulties in understanding because in the display of the cash management position/liquidity forecast, the memo records do not disappear although the expiration date is exceeded.
In addition, the risks which are affiliated with the usage of the expiration date are explained.

Other terms

Expiration date, FF7A, FF7B, payment advice

Reason and Prerequisites

Logic of the expiration date

Solution

The expiration date for the memo records causes the following in cash position, liquidity forecast and also for cash concentration:
If today's date is earlier than or equal to the expiration date, the record is selected.
If today's date is later than the expiration date, the record is not selected.
For example, if the record expires tomorrow, it is selected and appears in the cumulative display as of the planning date and also remains in all the following amount columns, thus also on those days that are later than the expiration date. In the delta display, the amount appears only for the planned date.
If the record expired yesterday, it is not selected.
If the record expires tomorrow, why does it still appear in the display the day after tomorrow?
The reason is that it is assumed that a record which expires tomorrow is replaced by a posting the day after tomorrow, that is, a smooth transition from the memo record to the posting occurs.
Example:
Time deposit investment from 01/01/1995 to 02/01/1995, expiration date 02/01/1995
The system assumes that the due fixed-term deposits appears on the account statement of 02/02/1995 and is also included in cash management and forecast on 02/02/1995 via the posting.
The amount then appears in the cash management position either as a memo record (if today's date is 02/01/1995 or 01/31/1995, and so on) or the amount appears in the form of the posting (if today's date is 02/02/1995 or 02/03/1995, and so on).
The memo record must therefore be displayed until it is replaced by the posting and must therefore even still appear in the display if the display date is later than the expiration date because otherwise the amount would not remain without gaps.
Risks involved in the use of the expiration date:
If you use the expiration date you do not have to remove the memo records which were replaced by postings manually or automatically, but you risk that a too early or too late posting falsifies cash management and forecast.
If, in the above example, the posting already appears in the account statement of 02/01/1995, the amount exists twice in cash management and forecast on 02/02/1995 because it is not until 02/02/1995 that the memo record is no longer selected. In this case, you must archive the memo record manually or automatically just as it is to be done with the memo records without expiration date.
However, if the posting appears as late as in the account statement of 02/03/1995, the amount is missing in cash management and forecast on 02/02/1995 because the memo record is no longer selected and the posting is not available yet. In this case, it is of little use if the posting is made on 02/03/1995 to 02/01/1995 correctly dependent on value date because you planned using incorrect numbers on 02/02/1995.
Therefore, you should use the expiration date only if the date at which the posting appears on the account statement is known for sure. In this case, the expiration date is to be set a day before this date in order to ensure the continuous transition.

If the amount is to disappear from the display of the cash management position or liquidity forecast after the expiration date has expired, for example to illustrate a temporarily granted credit limit, you can achieve this by entering two payment advice notes:

• Define a new planning type for illustrating the credit limit.

• For example, if you want to illustrate a credit limit granted for the entire month of October, enter the first payment advice note as of October 01 and the offsetting payment advice note with negative amount as of November 01.

• If you use the expiration date for this planning type, both payment advice notes must have the same expiration date and in the above example, the date must be later than or equal to the last day of October.

• If you do not use any expiration date, the payment advice notes should be archived as soon as they are no longer required.

• If one of the two payment advice notes is changed, the other one must also be changed correspondingly.