What is cash control in SAP PSM-FM - Funds Management?

SAP Term: cash control

• Component: PSM-FM

• Component Name: Funds Management

• Description: Availability control based on cash balances.

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• Key Concepts: 
  Cash control is a component of SAP Funds Management (PSM-FM) that helps organizations manage their cash flow. It enables users to monitor and control the flow of funds in and out of the organization, as well as to plan and forecast future cash needs. Cash control also provides users with the ability to set up payment rules and payment methods, as well as to track payments and reconcile accounts. 
  
  How to use it: 
  To use cash control, users must first set up payment rules and payment methods. Payment rules define how payments are made, such as when they are due, how much is due, and which accounts are used for payments. Payment methods define how payments are made, such as by check or electronic transfer. Once these rules and methods are set up, users can then monitor and control the flow of funds in and out of the organization. They can also plan and forecast future cash needs by setting up payment schedules and tracking payments. 
  
  Tips & Tricks: 
  When setting up payment rules and payment methods, it is important to ensure that they are accurate and up-to-date. This will help ensure that payments are made on time and that accounts are reconciled correctly. Additionally, it is important to regularly review the payment rules and methods to ensure that they are still relevant. 
  
  Related Information: 
  Cash control is closely related to other components of SAP Funds Management, such as budgeting, forecasting, liquidity management, and financial reporting. Additionally, cash control can be integrated with other SAP modules, such as Accounts Payable (FI-AP) and Accounts Receivable (FI-AR).