SAP FICO Advanced – Treasury
Treasury Process overview
The objective of the SAP Treasury module is to ensure efficient liquidity, portfolio, and risk management.
SAP Treasury is subdivided into the following three areas:
- Cash Management (CM) offers tools for efficient liquidity analysis.
- Transaction Management (TM) supports the management of financial transactions and positions.
- Market Risk Management (MRM) provides methods and procedures for assessing risk positions.
SAP Treasury product types
In the short-term area, money market transactions and forex transactions allow you to bridge liquidity deficits or surpluses. In the medium to long-term area, investments and borrowings are additionally represented by securities transactions and loan transactions.
n Derivative financial instruments, on the other hand, help you hedge against interest rate and currency risks.
The cash position reproduces the activity in your bank accounts for the next few days, and is the result of the entry, by value date, of all the payments in a given, short time horizon.
It is fed by three sources:
·FI postings to G/L accounts that are relevant to cash management
·Memo records entered manually
·Cash flows from business transactions managed with the Transaction Management component.