Although tools such as SAP's Cash Management and Treasury are crucial in driving business growth, many businesses have yet to explore the full potential of such tools and their functionalities. Preliminary insights from SAPinsider’s upcoming Cash Management and Visibility research confirm that many organizations still use legacy SAP ERP systems with classic tools, SAP Cash Management and Treasury. The delay in migrating to SAP S/4HANA often results in organizations missing out on updated features in tools that are available only to SAP S/4HANA customers. Furthermore, the SAP community recently learned that on-premise customers may struggle to access new capabilities powered by advanced technologies, such as AI. To investigate and understand the challenges SAP customers face using the classic SAP Cash Management and its implications on their cash and treasury management optimization efforts, SAPinsider spoke with the SAP Treasury Lead from a notable North American Distributor.

Confronting Legacy System Challenges

A significant portion of SAP users cannot harness the full capabilities of SAP Cash Management and Treasury. Their reliance on external methods, such as PDF invoices in emails, spreadsheets, and traditional collections/payments processes, along with challenges associated with transitioning from customized legacy tools, often hampers the full-scale implementation of such tools. This is mainly seen in finance teams using classic SAP Cash Management on SAP ECC 6.0 or earlier versions awaiting the transition to SAP S/4HANA. The SAP Treasury Lead highlights, "Organizations are often dependent on legacy systems and ingrained processes they have relied on for years, which results in a reluctance to embrace change." However, the reluctance is not just about unfamiliarity. "There is a fear that the customized functionalities for specific business or industry needs might not find an equivalent in the newer platforms. Organizations are wary of losing these indispensable customizations," elaborates the SAP Treasury Lead.

Bridging the Gap: Strategies to Overcome Underutilization

So, how can businesses unlock the full potential of SAP's Cash Management and Treasury tools, and enjoy the benefits of a unified core accounting and treasury management system? The strategy lies in fostering collaboration, emphasizing adequate training, and zeroing in on system customization. "Before any implementation or migration occurs, the treasury team needs to be actively involved in the decision-making process. Their concerns and requirements must be addressed," advises the SAP Treasury Lead. This highlights the importance of actively involving the end-users of any system during integration and not just relying on the IT or finance departments. Change management is critical to adopting newer systems or workflows, as the SAP Treasury Lead advocates for "structured, in-depth training sessions tailored to familiarize the treasury team with the new system and its benefits."

The Overlooked Role of Treasury

One cannot overlook that, in many instances, the treasury team is not at the forefront of decision-making discussions with the IT and finance leaders. The SAP Treasury Lead highlights, "The actual treasury department, despite its central role in managing cash flows, investments, and hedging, usually are not the ones driving the implementation." This disconnect can result in a solution with “many modules and functionalities that are underused.”

Looking Forward

As businesses grow and technology evolves, maximizing SAP systems capabilities is more critical than ever. While conversations with SAP customers like these reveal existing challenges, they also pave the way for solutions. The emphasis remains clear: integration, training, and cross-functional collaboration are paramount. It is a reminder that "at the end of the day, the goal is to ensure smooth operations and make the best financial decisions for the organization," the SAP Treasury Lead concluded.

What does this mean for SAPinsiders?

Champion collaborative onboarding and training. One of the primary reasons for underutilization is the treasury team's unfamiliarity with the system. This stems from inadequate training, lack of awareness about the system's capabilities, or both. Organize comprehensive, role-specific training sessions and consider bringing in SAP experts or consultants to showcase advanced, treasury-centric features. Regularly update training agendas to ensure alignment with system updates and organizational changes. Assess customization needs regularly. Typically, legacy systems have experienced numerous iterations over the years and are often customized. Transitioning to SAP S/4HANA can sometimes seem like forfeiting these unique functionalities. However, the robust and adaptive nature of SAP S/4HANA allows for extensive customization. Collaborate with SAP specialists and partners to modify the platform to mirror the treasury's unique demands. This customization can include developing specific modules, dashboards, or reporting functionalities vital to the treasury department. Regularly review and iterate on these customizations to ensure their relevancy as organizational needs evolve. Prioritize inter-departmental collaboration and cross-functional teams. Treasury does not operate in isolation. Its functions and data needs often overlap with other departments like finance, operations, or sales. To truly optimize SAP ERP functionality, these inter-departmental processes must be seamlessly integrated. Initiate regular inter-departmental meetings to discuss challenges, requirements, and data needs. This can also be a platform to discuss any difficulties or resistance to using new functionality. By cultivating inter-departmental harmonization, organizations can ensure SAP's functionalities align with the interconnected requirements of various departments.