Cash management (CM) SAP ERP Solutions For Apparel and Footwear


This document include: cash in Advance Accounting and cash Accouting in ERP SAP Solution for For Apparel and Footwear…

A.Cash in Advance Accounting

1. Receive and check

• Receive and check advance requests, refund requests, With advance request for purchasing, accountant will double check purchase price with price list from the suppliers.
• Collect the goods received notes, requisition for spare parts which approved by authorized person.
• Collect payment request, refund from advance which approved by head of department

cash in advance accounting SAP ERP Solutions For Apparel and Footwear

2. Reconcile data

• Reconcile data with inventory accounting and tax accounting
• Reconcile data with inventory accounting about goods receipt notes

3. Calculate interest for overdue advance.

Purchasing documents must be passed to accountant within 15 days from advance date. If overdue, the interest will be charged at 1.2% per month.
In case suppliers need more than 15 days to issue invoice to COMPANY, advance requests must have clearly explanation and get approval from line managers to avoid penalty.

4. Pay and refund advance through cash/banking accountant

Regularly, the advance request with the amount over $ ZZZ will be paid through the bank.

5. Book credit/debit entries

Book credit/debit entries for advance account into A/P sub-ledger

6. Prepare advance report

Reconcile advance/refund data with cash/banking accounting,Transfer data to the General Accountant
Issues and controls
When Purchasing document is entered into SAP, the purchasing price is automatically get from the source list (Suppliers’ price list). After PO is approved, an account can see it into system. So, he/she does not need manually check purchasing price.

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