Whether To Activate Project Cash Management

There is a need to implement PS Cash Management.
What are the prerequisites for the same? 
What are the things needed to be done? 
We need to get the Cash Flow i.e. Cash-In & Cash-Out Project wise.

Answer:

As per as my knowledge it is not advisable to activate the Project Cash Management. 

I have a doubt on this, that was why I have gone through the sap help on this.  It is also not suggested to activate the Project Cash management due to System Performance issue.  Please see the SAP suggestion on below.

Activate Project Cash Management in company code

In this step, you activate SAP Project Cash Management for particular company codes. If you have assigned a number of company codes to one FM area, you have the option of activating some of these company codes, while leaving others inactive.

Requirements

Before you can activate Project Cash Management for a company code, the following conditions must be met:

- An FM area must be assigned to the company code.
- There must be a currency key for the FM area.
- A number range must be maintained for activity "KAFM". 

Activity

Select the company codes which you want to activate, and save the table entries.

ADDITIONAL HINTS

- If you only want to activate Project Cash Management, do not activate Funds Management or Cash Budget Management in Treasury.

- If you have activated Project Cash Management, all the payment- relevant data (down payment requests, down payments, invoices, payments) is recorded, even - if it is not assigned to a project, network or order (CO/PP/PM order). This may adversely affect system performance. If you process large numbers of documents, check that Project Cash Management has been activated correctly.

See Also
Asset Value Date in Settlement

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