Unit 2 Treasury and Risk Management: Overviw (Business Partner…
Unit 2 Treasury and Risk Management: Overviw
Identifying processes in Treasury
From a strategic point of view, the
analysis and trading process
is the starting point for the various Treasury processes.
Once you have decided to complete certain financial transactions, you enter the trading processes for these transactions in
Treasury and Risk Management (TRM): Overview
you can optimize yields and cost structures
secure against market and credit risks
Market Risk Analyzer
interest rates, currency and stock risks
Credit Risk Analyzer
helps you assess
and includes an Online Limit Check
Comprehensive management of financial transactions and positions
Monitoring, checking, and releasing
Data transfer to financial accounting (including accrual/deferrals and valuations)
Trading and back office support
Flexible configuration of company-specific transaction and position management processes.
Assignment of financial transactions to portfolios or management in securities accounts.
Flexible reporting and portfolio analysis
Structuring financial transactions
Transaction and Position Management Process
In Trading, you create transactions and exercise rights
In Back Office, you settle transactions, that is, you check entered transactions and carry out position management-related processes, such as securities transfers.
In Accounting, you carry out all bookkeeping for relevant activities in the subledger and transfer posting information to the Financial Accounting general ledger.
Market Risk Management
controlling market risk
risk or performance figures
Valuations can be based on either real or simulated market prices
Credit Risk Management
The first release covers the specific risks related to your
company's financial transactions
Further releases will concentrate on
integrating the sales/accounts receivable area
. This will enable company management to recognize credit risks when they arise and avoid them.
A business partner is a person or legal entity with whom/which you have a business relationship.
The data you can maintain for a business partner is split into two areas
General role data
is centrally stored for all roles
Company code-dependent data
is data which only applies for the role category in the respective company code
map relationships on the Relationships tab page
you can choose from are predefined in the system and depend on the business partner classification.
the relationship categories by
defining different relationship types
Company Code-Dependent Business Partner Data: Standing Instructions
concluded with a business partner
Master agreements can be made according to
In order to make use of a business partner (BP), you must
Create the BP
Release the BP for use
Authorize the BP as a partner for specific financial transactions
You can assign transaction authorizations at the following levels
include all information required to conclude
, that is, you own (house bank)
data and, where applicable, business partner
Correspondence serves to
and match concluded financial transactions.
Correspondence that has been generated is stored in the financial transaction data.
You can choose - by determining any level from contract type to transaction type - whether correspondence with the business partner for a particular transaction should be in print, by fax, email, IDoc or Swift form.
These details must be specified if correspondence is to be exchanged with a business partner.
This includes information about when the confirmation was sent/received, the relevant activity, the user, the form used, and the output type of incoming or outgoing confirmation.
You can define correspondence as
internal correspondence types
(such as dealing slips) and
external correspondence types
(such as confirmations)
You can use derive flows in the
money market, foreign exchange, derivatives and securities areas
simplify calculation of taxation amounts
To generate derived flows, you must assign a derivation procedure to the relevant partner.
enable you to automatically generate and calculate certain
(which result from other financial flows).