TREASURY MODULE-Introduction: Trinadha Raju Rudra Raju, SAP May 28, 2018

TREASURY MODULE-Introduction
Trinadha Raju Rudra Raju, SAP

May 28th , 2018
INTERNAL
Partner logo
Agenda
Business Background
Usage
Customizing
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 2

Business Background
Treasury-Product types

Product types in Brief:

Market Risk Analyzer
Market Risk Analyzer is used to
calculate and assess different market
risks at single transaction level or at
portfolio level. A market risks refers to
the risk on a financial instrument that is
the result purely of changes to market
parameters ( for example, interest rates,
rates, commodities, indexes, currency
exchange rates and volatilities.

Credit Risk Analyzer
The Credit Risk Analyzer enables the

active control of default risks by
computation of attributable amounts and
specification of limits. Here only the
Counter Party risk is considered. The
risk of loss of value of a receivable due
to the degradation of credit standing of
the Business Partner.
Each and Every transaction in Treasury
will go check the Credit limit assigned to
the Business Partner.
You can assign limits in the
characteristics which include Company
code, Business Partner, Trader.

Portfolio Analyzer
The Portfolio Analyzer allows you to measure the profits from investments from different perspectives and using
different methods. The calculations are based on the structure of your portfolio in the portfolio hierarchy. You use
characteristics to define the tree-like structure. For example, you can choose the sector, country, trader,
department, or product type to define the hierarchy. In this way, you can organize your portfolio flexibly in
different aggregation levels and calculate rate of return key figures for each of these levels. With the reporting
functions, you can display results for each node that you have defined in the portfolio hierarchy. You can
drilldown to the data stored at the single transaction level.
To analyze data from different perspectives, such as from the view of the internal controller, dealer, or marketing
employee, you can define multiple portfolio hierarchies for a portfolio and use them in your analyses. The
Portfolio Analyzer creates versions of the portfolio hierarchy and of the calculations of rates of return and
benchmarks. This enables you to look at the figures on which past calculations were based at any time, and
reproduce and historize the results.

Usage
Transaction Manager
Treasury Process Overview
33rdrd Party
Party Front
Front Office
Office System
System // Marketplace
Marketplace
Interfaces (SOA / BAPI)
Transaction Manager
Front office: Money
Money Foreign
Foreign Deri-
Deri- Debt
Debt Secu-
Secu- Com-
Com-
Market
Market Exchange
Exchange vatives
vatives Mgmt
Mgmt rities
rities modities
modities
e.g. Deal Capture
Backoffice office:
e.g. Confirmation
Correspondence
External
External Position Management: e.g.
Position Management: e.g. Security
SecurityAccount
Account Management
Management // Quantity
Quantity Management
Management
Financial
Financial
Internal
Accounting
Accounting
Internal Position
Position Management:
Management: Valuation
ValuationArea
Area 1:
1: HGB
HGB Valuation
ValuationArea
Area 2:
2: IFRS
IFRS Valuation
ValuationArea
Area 2:
2: Intern
Intern
e.g. Treasury Subledger
Payments
Payments
e.g. Treasury Accounting Interface

Transaction Manager – Fully Integrated
Automatic
posting
Valuation
(parallel)
Automatic
creation of
correspondence
Automatic
accrual/
deferral

Transaction Manager
Transaction Manager Transaction Manager
The Transaction Manager is a powerful

Front Back Accounti instrument that executes efficient
Office Office ng liquidity, portfolio and risk management.
You have the option of carrying out
liquidity and risk analysis in the
Position Management Transaction Manager. Based on these
Market Data Management analyses and the current conditions on
the financial markets, you can make
Authorization Concept and
decisions about future investments and
Release borrowings.
Roles
Central Functions The Transaction Manager (Application
Area: FIN-FSCM-TRM-TM) is a
Information System component of SAP Treasury and Risk
Management.
Open System Interfaces

Transaction Manager
Transaction Manager Front Office / Trading
You can map financial transactions and

Front Back Accounti exercise rights in the Trading area.
Office Office ng The following functions are
available:
Position Management • Fast entry for the most common
transactions
Market Data Management • Order limit checks
Authorization Concept and • Date checks
• Expiration checks for options
Release • Price calculators (for example, cross
Roles rate, option price, and NPV
Central Functions calculators)
Information System

Front Office / Trading
FTR_CREATE is the central transaction which allows

you to create all kinds of financial transactions.

Create Financial Transaction: FTR_CREATE
When you process a transaction, you can use tab pages to

branch between the different entry screens for the general
transaction management functions.
Which tab pages are visible depends on your settings in the IMG
activity Define Field Selection. For example, different tab pages
can be displayed for Orders and Contracts. The Structure tab
page is displayed by default. The Define Field Selection activity
is in the Implementation Guide (IMG) of the Transaction Manager
under General Settings  Transaction Management.

You can use the Structure tab page to enter, process, and display the structural
characteristics of the individual financial transactions.
The structural characteristics for the transactions differ for the different types of
transactions. The details are covered in separate sections.

You can determine and query administrative data

for a financial transaction on this tab page.
● The transaction can be assigned to a particular

Portfolio.
● You can assign a Finance project key, which
can be used to group related transactions.
● If a third party bears the risk related to the
transaction, you enter this in the Guarantor field.
● You use the General Valuation Class to classify
transactions according to asset type (short-term
investments, for example).
● You can enter an Assignment to group different
transactions.
● You use the Reference field to create internal
references.
● You use the Characteristic field to indicate
individual transactions.

You can assign the transaction to an Authorization

group so that only users that have an authorization for
this authorization group are allowed to process the
transaction. You can determine that only selected
employees are allowed to process transactions related
to their department, for example. In this case, you
specify the relevant authorization group when creating
the transaction.

The concept of flow types allows

you to define other flows - such
as charges or commissions
(absolute or proportional) - for
the individual product types.
These other flows are created

with each transaction.
The flow types that are assigned
are displayed in the other flows
area as a default. You also still
enter the payment amount,
currency with the direction and
the payment date.

You enter the data that is

required for making transactions
with your business partner in the
payment details of a financial
transaction.
The system provides these

payment details by default using
standing instructions when you
create a transaction based on
the product type, transaction
type, and currency. Alternatively,
you can also determine the
payment details for the individual
transactions.

The cash flow for the transaction contains all the flows that result from the financial
transaction.
When you enter a transaction, you can use the cash flow function to check whether your
entries generate the flows you expect. You can also display more detailed information on the
flows (such as payment and posting data) using various layouts.
This tab page shows you the current

status of a financial transaction,
which results from the Customizing
settings for Correspondence, the
product-specific Activity category
and the processing category
assigned to the Transaction type.

Front Office / Trading
FTR_EDIT is an entry transaction to perform all kinds

of actions for financial transactions.

Edit Financial Transaction / FTR_EDIT
Not every functions can be

chosen for every product
type.

Edit Financial Transaction - Settlement
Use the function for settling financial transactions

to indicate a transaction that was processed in
the back-office area. When you save your
entries, the system changes the activity category
of the transaction.
Use the settlement check function to check and
add, if required, data for the financial transaction.
When you save a transaction, you fix it and mark
the transaction flows for posting.
You can clear the account after settlement.

Edit Financial Transaction - Reversal
When you reverse a transaction, you reset the most recent change
made to the transaction, which is identified by the system as an
activity.
· If postings are linked to the reversed activity, these are flagged for
reversal.
· The reversal function reverses the last active activity and
reactivates the previous activity.
· When you reverse a contract that has been settled, you carry out
the reversal in a contract that has not been settled and which you
must settle again (in the back office)
· Documents, which cannot be reversed automatically (for example,
if they have been cleared in FI), must be reversed manually. These
flows are automatically assigned a reversal indicator. If you work
with release management, you may have to release the flows
before you post or reverse them.

Edit Financial Transaction - History
The history function lists all previous activities for

the selected transaction.

Transaction Manager
Transaction Manager Back Office
The following options are available in

Front Back Accounti the Back Office area:
Office Office ng ● Managing account assignment
information
● Creating payment details
Position Management ● Correspondence functions (for
Market Data Management example, automatic confirmations and
counterconfirmations)
● Securities account transfers and
Release processing corporate actions for your
Roles positions
Central Functions
Information System

Transaction Manager
Transaction Manager Accounting

You can use the following functions in
the Accounting area:
Front Back Accounti ● Managing your positions in parallel
Office Office ng (for example, according to HGB:
German Commercial Code and US-
GAAP)
Position Management ● Automatic posting functions for
Market Data Management transferring data to Financial
Authorization Concept and Accounting
● Updating the general ledger in real
Release time
Roles ● Flexible functions for processing
Central Functions payment transactions
● Valuation procedures and
Information System accrual/deferral procedures
● Complete documentation of
Open System Interfaces business transactions

Transaction Manager
Position Management
Transaction Manager
Position Management gives you a clear
Front Back Accounti overview of your positions according to
Office Office ng your individual evaluation criteria. It
forms the basis for parallel position
management according to different
Position Management accounting principles, and for
performance and benchmark
Market Data Management
evaluations in the Portfolio Analyzer.
Release
Roles
Central Functions
Information System

Transaction Manager
Transaction Manager Market Data Entry

The SAP real-time datafeed is a
universal, open interface that can be
Front Back Accounti used to import data from any
Office Office ng information provider or datafeed
platform.
Position Management You can also import current and
Market Data Management historical market data later using a file
interface. In addition, you can transfer
the market data from a spreadsheet or
Release enter it manually.
Roles
The Market Data Management
Central Functions
functions are available across Treasury
Information System and Risk Management.

Transaction Manager
Transaction Manager Authorization Concept and

Release
You can use the authorization
Front Back Accounti concept to separate your trading,
Office Office ng back office, and accounting tasks.
You assign user authorizations to
the individual activities in the
Position Management transaction and position
Market Data Management management process and assign
Authorization Concept and authorization profiles to each
employee according to his or her
Release organizational area. You use the
Roles authorization concept to define
Central Functions releases. The financial transaction
can be checked, for example, by
Information System one or more employees before
being transferred to accounting.

Transaction Manager
Transaction Manager Roles
The roles represent the different

Front Back Accounti functions and positions of your
Office Office ng employees according to the specific
organizational structure of your
Position Management company. The SAP system gives you
the option of defining an employee user
Market Data Management menu with these roles. You can base
Authorization Concept and your role definition and menu structure
on the standard roles that are provided
Release in the Transaction Manager.
Roles
Central Functions
Information System

Transaction Manager
Transaction Manager Central Functions
The following central functions and tools

Front Back Accounti are important in the Transaction
Office Office ng Manager:
● Business partner and address
management
Position Management ● Financial mathematics
Market Data Management ● Status-controlled transaction
processing
Release
Roles
Central Functions
Information System

Transaction Manager
Transaction Manager Information System

The efficient information and reporting
system provides the following functions:
Front Back Accounti ● Central access to information
Office Office ng ● Direct and restricted data selection
● Linking reports
● Structuring and defining the data
Position Management hierarchy
Market Data Management ● Graphical evaluation and formatting of
results
● Drilldown navigation for viewing
Release detailed information
Roles ● Aggregated view of the total
Central Functions commitment of a business partner
● Reproduce the history of financial
Information System transactions, payment flows, and
activities in Financial Accounting
Open System Interfaces ● Deadline monitoring of financial
transactions
● Transfer of results to PC applications
Transaction Manager
Transaction Manager The 'Open System‘
Standardized interfaces (Business

Front Back Accounti Application Programming Interfaces –
Office Office ng BAPIs) turn SAP applications into
Open Systems. These interfaces allow
Position Management the consistent exchange of data
across system boundaries.
Market Data Management
Authorization Concept and The Transaction Manager provides
you with BAPIs for creating, changing,
Release displaying, reversing, and
Roles counterconfirming financial
Central Functions transactions.
Information System

Agenda
Business Background
Usage
Customizing

Customizing
Transaction Manager
The customizing for the transaction manager can be separated in to two parts.
There are general settings that have to be done once for the transaction manager
and there is customizing that is dependent on the product category e.g. Listed
Derivatives or OTC Derivatives.
In this part the general settings that have to be done will be explained. The settings for the
different financial commodity instruments are explained in separate parts.

IMG: Define Calculation Indicator
Define Calculation Indicator
In this step, you define your indicators

for calculating exchange rates

Define Calculation Indicator
The same rate types are defined for the translation of positive and negative amounts.
Example
Rate calculation indicator: 01
Rate type - DEBIT: M - Standard translation with middle rate
Rate type - CREDIT: M - Standard translation with middle rate

IMG: Define Company Code Additional Data
In this section you define additional data

for the company codes you use.

Define Company Code Additional Data
Requirements
You have already created the relevant FI company

codes.
You have activated Financial Assets Management
for all relevant FI company codes (checkbox
'Financial Assets Management' active).
You have already defined the calculation indicator
for exchange rate translation.

Details: Define Company Code Additional Data
1- General Settings
Enter the SWIFT code for the

company code here.
The SWIFT Code uniquely

identifies a bank throughout
1
the world and is used for
identifying banks in
international payment
transactions.

IMG: Define Portfolio
In this step you define possible

portfolios for specific company codes.
Portfolios are Business Divisions
defined a company code.

Define Portfolio
Company
1 n Portfolio
Code

IMG: Define Traders
In this step you define your traders for

each company code.

Define Traders
Company
1 n Trader
Code

IMG: Define Field Selection
In this step you can set up the user

interface for transaction management
according to various criteria.
All the fields that are visible in the entry
screens are grouped according to
business criteria. For each field group,
you can define whether it should be
shown or hidden and whether the
entries should be required or optional.
You can also configure the various tabs
in the transaction entry screens (such as
administration or correspondence); you
can set the tabs to hidden, optional
entry or display only. However, you
cannot define tabs as mandatory.

IMG: Define Field Selection

IMG: Define Number Ranges for Linking Transactions
In this step, you can process the

number ranges for the various reference
categories.
The number ranges are created

automatically as soon as the first
reference for a reference category is
created.

IMG: Define Memo Book
In this step, you define which Text IDs

are to be created and which are relevant
in the respective clients.
You can enter texts directly relating to a

financial transaction that can also, for
example, be printed out on an internal
trading slip.

Define Memo Book
Customizing
FTR_CREATE

IMG: Change Message Control
In this step, you can decide how certain

system messages appear for the
correspondence function.

IMG: Currencies
Here different settings regarding

currencies can be made.

IMG: Status Management
The status management is not a

treasury specific functionality but is used
by different SAP components (Cross
Application Component)
The status management is a facility that

enables you to set the current
processing status of an object. Statuses
can be set by the system or the user.
The current status of an object (that is,
the combination of all statuses)
determines the actions that can be
performed for specific objects.

Status Management
Each status fulfills two functions:

• It informs you that a specific status has been set (for example, the
quotation was released).
• It specifies which step you can or cannot take next (for example,
release is allowed).
A status can be set or deleted automatically as the result of a

business activity. You use a status profile to do this. In Customizing for
the Transaction Manager, choose General Settings  Transaction
Management  Status Management  Define Status Profiles.

IMG: Distribution of Mirror Transaction
You can use the mirror transaction

function to avoid the double entry of
transactions that are concluded between
two companies (parent and subsidiary)
within a group. When you create a
transaction (with a business partner) in
one of the two company codes, another
transaction is automatically created with
opposing payment flows in the other
company code.
This mirror function is available in only
one direction. For example, the parent
company can place a fixed-term deposit
with its subsidiary, but not the other way
around.
For information on the settings you must

make in Customizing, see the
Implementation Guide

IMG: Authorization Management
Authorization Management
In this section, you determine which
functions users can execute in the SAP
System using the SAP authorization
concept.
To do so, you must define authorizations
and assign these profiles to individual users
via Profiles.
Authorizations are made for authorization
objects, which are predefined by SAP. You
can group authorizations belonging to a
specific area into a profile, and can also
group these profiles together into
composite profiles.
You can find more information about

authorizations required in the
Implementation Guide for the individual
applications.

IMG: Payment Management
This section contains the specific Customizing

functions for the payment program for payment
requests.
Apart from these settings, the payment program

for payment requests uses the same Customizing
settings as the standard payment program in
Financial Accounting.

Thank you.
Contact information:
Trinadha Raju Rudra Raju
Partner logo

TREASURY MODULE-Introduction: Trinadha Raju Rudra Raju, SAP May 28, 2018

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TREASURY MODULE-Introduction

Trinadha Raju Rudra Raju, SAP

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 2

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 5

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 6

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 7

The Credit Risk Analyzer enables the

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 8

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 9

Interfaces (SOA / BAPI)

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 12

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 13

Transaction Manager Transaction Manager

The Transaction Manager is a powerful

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 14

Transaction Manager Front Office / Trading

You can map financial transactions and

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 15

FTR_CREATE is the central transaction which allows

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 16

When you process a transaction, you can use tab pages to

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 17

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 18

You can determine and query administrative data

● The transaction can be assigned to a particular

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 19

You can assign the transaction to an Authorization

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 20

The concept of flow types allows

These other flows are created

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 21

You enter the data that is

The system provides these

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 22

This tab page shows you the current

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 24

FTR_EDIT is an entry transaction to perform all kinds

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 25

Not every functions can be

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 26

Use the function for settling financial transactions

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 27

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 28

The history function lists all previous activities for

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Transaction Manager Back Office

The following options are available in

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Transaction Manager Accounting

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 31

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 32

Transaction Manager Market Data Entry

Open System Interfaces

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 33

Transaction Manager Authorization Concept and

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 34

Transaction Manager Roles

The roles represent the different

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Transaction Manager Central Functions

The following central functions and tools

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Transaction Manager Information System