What is cash flow scenario in SAP FS-LRM - Liquidity and Risk Management?

SAP Term: cash flow scenario

• Component: FS-LRM

• Component Name: Liquidity and Risk Management

• Description: Specifies from which source system and source scenario cash flows are imported into the LRM system.

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• Key Concepts: 
  Cash flow scenario is a feature of the FS-LRM Liquidity and Risk Management component of SAP. It allows users to simulate and analyze the cash flow of their business in order to identify potential risks and opportunities. The cash flow scenario can be used to forecast future cash flows, analyze the impact of different scenarios on liquidity, and assess the impact of changes in interest rates or exchange rates. 
  
  How to use it: 
  To use the cash flow scenario feature, users must first define the parameters of their scenario. This includes setting up the time period, currency, and other relevant factors. Once these parameters are set, users can enter their expected cash flows into the system. The system will then generate a report that shows the expected cash flows over the specified time period. 
  
  Tips & Tricks: 
  When setting up a cash flow scenario, it is important to consider all potential sources of income and expenses. This includes not only regular income and expenses but also one-time events such as investments or sales of assets. Additionally, users should consider any potential changes in interest rates or exchange rates that could affect their cash flows. 
  
  Related Information: 
  The cash flow scenario feature is part of SAP’s FS-LRM Liquidity and Risk Management component. Other features of this component include liquidity planning, risk management, and financial planning. Additionally, SAP offers a range of other financial management solutions such as accounts receivable management, accounts payable management, and treasury management.