What is cash-basis accounting in SAP PSM-FM - Funds Management?

SAP Term: cash-basis accounting

• Component: PSM-FM

• Component Name: Funds Management

• Description: Basis of accounting that recognizes transactions and other events only when cash is received or paid.

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• Key Concepts: 
  Cash-basis accounting is a method of accounting where revenues and expenses are recorded when cash is received or paid out. This method of accounting is used in SAP Funds Management (PSM-FM) to track and manage the financial resources of an organization. 
  
  How to use it: 
  In SAP Funds Management, cash-basis accounting is used to record and track the financial resources of an organization. This includes tracking the cash flow of the organization, recording transactions, and managing the budget. The system also allows users to create reports and analyze data to gain insights into the financial health of the organization. 
  
  Tips & Tricks: 
  When using cash-basis accounting in SAP Funds Management, it is important to ensure that all transactions are accurately recorded and tracked. Additionally, it is important to regularly review reports and analyze data to ensure that the financial resources of the organization are being managed effectively. 
  
  Related Information: 
  Cash-basis accounting is just one of many methods of accounting used in SAP Funds Management. Other methods include accrual-basis accounting, activity-based costing, and cost allocation. Additionally, SAP Funds Management also provides tools for budgeting, forecasting, and reporting.