SAP Treasury & Financial Risk Management Features

Posted on Mar 31, 2025 in Physical Activity and Sports Sciences

Bank Account Management

Bank Account Settings

  • Assign signatories to different signatory groups.
  • Define payment approval limits for each signatory.
  • Assign validity periods to each signatory.
  • Activate workflow templates.
  • Define approvers.
  • Define release strategies.

Account Revision Activation

  • Activate directly.
  • Activate via workflow.
  • Activate via dual control.

Cash Management & Liquidity

Cash Manager Data Sources

  • Previous year’s actual data.
  • Plan data from the previous planning cycle.
  • Liquidity forecast data.

One Exposure from Operations Hub

  • Utilize house bank accounts.
  • Define account types.
  • Manage liquidity items.
  • Rebuild flow types in accounting documents.
  • Rebuild planning levels and planning groups in accounting documents.
  • Rebuild liquidity items in accounting documents.

Liquidity Item Derivation

  • Derive liquidity items from remote systems.
  • Derive liquidity items from source applications (e.g., Treasury and Risk Management).
  • Derive liquidity items from various fields of the accounting document.

Liquidity Planning Configuration

  • Add dimensions.
  • Define styles.
  • Add input tasks.

Memo Record Management

  • Field status definition.
  • Archiving category.
  • Number range definition.

SAP Cash Application Features

  • Payment advice extraction.
  • Payables line item matching.
  • Receivables line item matching.

S/4HANA Cash Management Functions

  • Manage memo records.
  • Manage liquidity items.
  • Monitor cash positions.
  • Display bank accounts.

S/4HANA Deployment Options

  • On-premise
  • Cloud
  • Hybrid

Treasury Operations & Payments

Multi-Bank Connectivity

  • Handle SWIFT payment files.
  • Process SWIFT payment status files.
  • Manage bank statement files.
  • Enable end-to-end integration for incoming and outgoing payment processes.
  • Support direct integration to banks.
  • Connect to multiple banks via real-time, batch, or manual upload/download.

Treasury Payment Processing

  • Handle payments to customers and vendors.
  • Manage payment requests.
  • Process Loans Management payments.
  • Execute bank-to-bank transfers.
  • Create free-form payments.
  • Manage SAP In-House Cash (IHC) payments.

Netting Capabilities

  • Net two money market flows and one foreign exchange flow.
  • Net five derivative flows and one security flow.
  • Net two or more money market transaction flows.
  • Net three derivative flows and one security flow.
  • Net two foreign exchange flows and one money market flow.

Outgoing Correspondence Configuration

  • Define by transaction type.
  • Define by activity category.
  • Define by processing category.

Financial Instruments & Trading

Money Market Instruments

  • Fixed Term Deposit
  • Commercial Paper
  • Deposit at Notice
  • Facilities
  • Current account-style instruments
  • Cash flow transactions

Money Market Activities

  • Change transactions.
  • Reverse transactions.
  • Add or create transactions.
  • Manage contracts.
  • Handle rollovers.
  • Process offers.

Money Market Identification

  • Product type
  • Company code
  • Security ID number

Contract Management

  • Foreign exchange swap.
  • Rollover of a foreign exchange forward.
  • Rollover of a money market deal.

Market Transaction Activities

  • Rollover
  • Interest rate adjustment
  • Contract settlement

Transaction Manager Settings

  • Account assignment reference
  • Valuation area
  • Portfolio

Treasury Position Attributes

  • Business area
  • Profit center
  • Internal order

Product Type Conditions

  • Accrued interest condition
  • Scaled interest condition
  • Final repayment condition

Current Account Style Instrument Conditions

  • Accrued interest condition
  • Final repayment condition
  • Increase/decrease amounts

Risk Management

Market Risk Analysis Methods

  • Variance/covariance approach
  • Historical simulation
  • Monte Carlo valuation

Credit Risk Analyzer Configuration

  • Activate the integrated default risk limit check.
  • Define at least one single-transaction-check product.
  • Configure automatic financial object integration.

Risk Cockpit Information

  • Exposures
  • Hedging instruments
  • Hedge requests
  • Hedge quota
  • Target quota
  • Amount to hedge

Hedge Accounting Activities

  • Create hedge data.
  • Perform exposure rollover.
  • Handle exposure premature settlement.

Hedge Management Archiving Prerequisites

  • A hedge plan must exist.
  • A hedged item needs to have been created.
  • The end date of the hedge plan and the reclassification dates of all related hedge items must fall before the key date for archiving.

Hedge Management Cockpit Views

  • Hedges
  • Hedging relationship
  • Exposures

Hedging Relationship Lifecycle

  • Inception
  • Ongoing life
  • End

SAP Specifics & Configuration

Clean Core Principles

  • Leverage standard Software Stack.
  • Ensure Business Process Flexibility.
  • Utilize Cloud Native Development.
  • Focus on Minimalism.
  • Design for Scalability.
  • Prioritize Maintainability.

Clean Core Benefits

  • Streamlined Operations
  • Cost Savings
  • Improved Decision Making
  • Enhanced Performance
  • Use of Cleansed Data
  • Improved System Reliability

Clean Core Implementation Steps

  • Preparing for a Clean Core Implementation.
  • Following Key Principles for Clean Core Implementation.
  • Overcoming Challenges and Ensuring Success.

Analytics Cloud Dimensions

  • Account
  • Currency
  • Organization

Business Partner Configuration

  • Product category
  • Product type
  • Transaction type

Business Workflow Setup

  • Activate workflow templates.
  • Define approvers.
  • Define sensitive fields.

GAAP Configuration

  • Define three valuation areas.
  • Define three valuation classes.
  • Define one general valuation class.

Planning Process Data Inputs

  • Actual data
  • Forecast data
  • Previous plans

Revision Process Activation

  • Activate sequentially.
  • Activate via dual control.
  • Activate via workflow.

SAP Fiori App Types

  • Factsheet apps
  • Analytical apps
  • Transactional apps

Tree Structure Components

  • Header
  • Element
  • Atom

Treasury and Risk Management (TRM) Components

  • Transaction Manager
  • Risk Analyzers
  • Hedge Management

Key TRM Stakeholder Questions

  • Cash Manager: How do I improve cash and liquidity forecasting and gain more accurate and timely insight into global cash balances?
  • Treasury Operations Manager: How do I ensure highly secure and quick payments and minimize external fees?
  • Financial Risk Manager: How do I pinpoint my financial risks and take more effective steps to mitigate them?

Market Data & Pricing

Market Data Types

  • Correlations
  • Exchange rates
  • Interest rates

Fee Condition Pricing Models

  • Unit pricing
  • Flat pricing
  • Tier pricing