SAP Treasury and Risk Management
SAP Treasury and Risk Management is SAP’s ERP module (part of Financial Supply Chain Management, aka FSCM, in ECC6) supporting treasury operations and risk assessments. The activities covered by this module are rather specialized and must not be confused with sub-ledgers (customers and vendors) related activities such as payments and bank statements processing which are sometimes also referred to as treasury activities. While both types of activities involve generally the same business partners (banks), hence the confusion, the SAP Treasury and Risk Management activities are much more specialized and refer to Corporate Finance (and mainly Working Capital Management) while the more general bank related activities refer more to operations.
SAP Treasury and Risk Management (abbreviated SAP TRM) supports front-office (deals creation) and back-office (deals confirmation, payments …) functionalities through SAP Transaction Manager in a highly integrated way providing a high level of straight-through-processing. The tight integration with Financial Accounting means that the Treasury operations are always reflected immediately and accurately in accounting.
SAP Risk Management is integrated with SAP Treasury and enables market risk and credit risk management. The module is able to manage market risks of different natures like foreign exchange risks or interest risks. Regarding credit risk, SAP Risk Management can handle risks associated to counterparties (bankruptcy …) as well as settlement risks.
SAP Hedge Management offers the framework needed to reduce or eliminate (hedge) the market risks derived from the company’s exposure to market fluctuations. This module handles the complex treatment associated to account for hedging relationships according to IAS39 rules.
SAP Treasury system preparation
SAP Treasury Business Partners
SAP Treasury cash flows payment processing
Hedge Accounting operational procedure