What is cash pooling in SAP PSM-FIO - Fiori UI for Public Sector Management?

SAP Term: cash pooling

• Component: PSM-FIO

• Component Name: Fiori UI for Public Sector Management

• Description: Supports the merging of funds cash into a single treasury fund for common monetary investments at local or state level of the US government. Cash receipts into a fund or cash paid from a fund are automatically swept from/into the treasury fund.

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• Key Concepts: 
  Cash pooling is a financial management technique used by companies to manage their cash flow. It involves the consolidation of multiple bank accounts into one account, allowing for more efficient management of funds. This technique is used to reduce costs associated with managing multiple accounts, as well as to increase liquidity and optimize cash flow. 
  
  How to use it: 
  The PSM-FIO Fiori UI for Public Sector Management provides a user-friendly interface for managing cash pooling. It allows users to view and manage their consolidated accounts, as well as set up automated payments and transfers between accounts. The UI also provides detailed reports on cash flow and liquidity, allowing users to make informed decisions about their finances. 
  
  Tips & Tricks: 
  When setting up cash pooling, it is important to ensure that all accounts are properly linked and that the correct account settings are in place. Additionally, it is important to monitor the accounts regularly to ensure that all transactions are accurate and up-to-date. 
  
  Related Information: 
  Cash pooling is a popular financial management technique used by many companies. Other similar techniques include zero-balance accounting and notional pooling. Additionally, there are various software solutions available that can help manage cash pooling more efficiently.