SAP Introduction to Treasury Applications

8/10/2019 SAP Introduction to Treasury Applications

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September 2011

An Introduct ion to

SAP Treasu ry App l icat ions


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Managing Treasury Today

Global Treasury Survey 2010 conducted by PWC


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Top Priorities are Liquidity and Cash Forecasting

2009 global survey of treasury professionals conducted by Deloitte


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SAP AG 2009. All rights reserved. / Page 4

Treasury applications from SAP

SAP Treasury and Risk Management

Risk Analyzers

Transaction ManagerMoneyMarket

ForeignExchange

Secu-rities

Com-modities

Deri-vatives

DebtMgmt

Manage Global

Financial Risks

Optimize Debt and

Investment Strategies

Manage Cash

and Liquidity

SAP Cash and Liquidity Management

Cash Management Liquidity Planning

Optimize Payments and

Bank Communication

SAP In-House Cash

SAP Bank Communication Management

Exposure Management Hedge Management

Credit Risk Analyzer Market Risk Analyzer Portfolio Analyzer

Treasury Applications from SAP

Financial Excellence


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What business areas are covered by which SAP Treasury applications ?

S

APTM

S

APMRA

S

APCRA

S

APPA

S

APCM

S

APLA

C

oncept

S

APIHC

S

APBCM

FX management

IR management

Derivatives

Commodities

Asset Management

Hedge accounting

Accounting of financial instruments Payment, SEPA, confirmations

Market Risk Management

Counterparty exposure

Performance measurement


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What business areas are covered by which SAP Treasury applications ?

SAPTM

SAPMRA

SAPCRA

SAPPA

SAPCM

SAPLA

Concept

SAPIHC

SAPBCM

Cash position

Short term liquidity forecast

Medium term liquidity forecast

Long term liquidity forecast

Follow up on liquidity forecast

Netting

Payment factory

Cash pools

Bank connectivity

SEPA


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Examples of the corporate customers have solutions withinthe SAP Treasury solution suite


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4

5

Cash Management

Bank Communication

Management

Liquidity Forecast

Internal Banking

Risk Analyzers6

Treasury Management

3

The SAP Treasury Solution Suite

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10/28 SAP AG 2009. All rights reserved. / Page 10

Cash and Liquidity Management Decisions Are Based on

Bank

accounts

In-House

cash banks

Bank

clearing

accounts

Payments

in transit

Treasury

DealsMemo

records

Intra-day

bank

statements

Customer/Vendor-

open items

Blocked items

Down payment

requests ...

DisputesEarmarked

funds

Real estate

Purchase

requisitions

Purchase orders

Sales orders

LogisticsFinancialsIndustry

SolutionsFinancials

Non-

SAPNon-

SAP

Non-

SAP

Cash Position Liquidity Forecast

SAP Cash and Liquidity Management

Functions
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5

Cash Management

Bank Communication

Management

Liquidity Forecast

Internal Banking

Risk Analyzers6

Treasury Management

3


1


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Extraction

Reporting

Entry of planningdata in SAP

NetWeaver BI

Posting information

(debtor/creditor and G/L

account) from SAP FI

Entry of account

statements in SAP FI

Automatic

assignmentmechanisms

Result of

assignment

satisfying

Result

logs

Assign actual-

document to liquidity

item

yes

no

Post-

process

parameter

Actual Data

SAP Net

Weaver BI

LiquidityAnalysis

SAP Liquidity Planner

Functionality of Liquidity Analysis


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Liquidity Planner

Data Entry via browser

Cash flows forecasted in invoice currency requires good data model

Cash flows aggregated while keeping the drill down functions

Different automatic planning functions included


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4

5

Cash Management

Bank Communication

Management

Liquidity Forecast

Internal Banking

Risk Analyzers6

Treasury Management

3


1


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Payment handling

AS-IS situation for many corporates

External Bank

External

Bank

Region 1

Region 2

. . . with a high volume of internal and external payment transactions

Various and ever-changing multi-national corporate group structures . . .

Subsidiary

Subsidiary

Subsidiary

USA

Subsidiary

Subsidiary

Asia

Subsidiary

Head office

(Europe)


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SAP In House Cash

What is it

The SAP In-House Cash application allows to optimize their paymenttransactionsby opening an in-house bank.

The In-House Cash Center is a virtual bank within the corporate group,with which each associated company has one account or more.

The In-House Cash Center is used to process all payments between

company units, thus keeping cash resources within the group andoptimizing how they are applied.

The SAP in-House Cash application allows to minimize the actual flowof cashand therefore reduce bank charges, interest expenses, and

lossesresulting from delays in value-dating payments.

By managing accounts centrally, you can assure your companys ability topay, minimize interest expenses, and maximize interest revenues.


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Payment handling

TO-BE situation based on SAP IHC based payment processes

Process 1: Internal payments

Process 2: Central external payments

Process 3: Central incoming payments

Process 4: Cross bank area payments

Process 5: Central external payments via local SAP FI

Process 6: Zero balancing postings to the IHB


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4

5

Cash Management

Bank Communication

Management

Liquidity Forecast

Internal Banking

Risk Analyzers6

Treasury Management

3


1


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A BCM solution can be setup with and without a payment factory (internal bank)

as an in between step for processing payments


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The payment process in SAP will be fully integrated with the Payment Monitor

from SAP BCM securing full visibility of the payment lifecycle


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Cash Management

Bank Communication

Management

Liquidity Forecast

Internal Banking

Risk Analyzers6

Treasury Management

3


1


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Managing Treasury and Risk Management at a glance

Credit Risk Analyzer

Utilization: Formulas, Credit

risk, Settlement risk

Limit management:

Limits freely definable,

Multidimensional limits

Market Risk Analyzer

Price calculator: NPV, Prices,

Sensitivities

Value at risk: Variance/covariance,

Historic, Monte Carlo Simulation

Simulate rates: What-if scenario,

Relative, Absolute

Portfolio Analyzer

Yield calculations:

Money weighted,

Time weighted,Modified Dietz method

Benchmarking:

Performance Indicators

xxxxxxxxxxxxxxxxxxxxxxxx

Front office:Position and deal reporting, Deal capture, Exercise, Dealer slip, Valuation tools,Online limit check

Back office:Standing instructions, Correspondence Monitor, Netting, Settlement, Rate fixing(interest, FX), References, Corporate actions, Process monitors

Accounting:Flexible accounting determination, Accounting according to many internationalaccounting standards

Spot

Forward

Swaps

Options

Futures

Foreign

Exchange Bonds

Bank loans

CommercialPaper

Facilities

Debt Mgmt Securities

Bonds Warrants Stocks Certificates

Repo Sec. lending

Derivatives

Cap Floor FRA Swaps

Options Futures

Money

Market Fixedterm

deposits Commercial

Paper

Repo

Commodities

Futures

Forwards

Traded Options

Swaps

OTC-Options

Transaction Manager

Hedge ManagementExposure ManagementCentralized Database to gather group and

version data and transfer to Hedge ManagementAdministration of hedge plans, exposures, hedge

items and hedging relationships

Risk Analyzers

Reporting tools:

SAP Query, ABAP List, Other

3rd-party providers, BI,

Business Objects Dashboards

and Xcelsius

Middle office:

Risk exposure,

Controlling,

Compliance

Management reports:

Positions, Performance, Ratios,

Compliance

Ad-hoc reporting:

Point & click, Unifieddatabases, Position, P&L,

Period, Cash Flow

Results database:

Portfolio Hierarchy, Drill-down,Historic results

Data export:

Excel, Flat files, BI

Reporting


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Cash Management

Bank Communication

Management

Liquidity Forecast

Internal Banking

Risk Analyzers6

Treasury Management

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TransactionManager

Business-partner

Money Market

Securities

Derivatives

Forex

Commodities

REPORTING:

Externally

maintained

transactions

General LedgerIntegration

Cash

Managem.

Analyzers

Market Risk

Analyzer

Portfolio

Analyzer

Credit Risk

Analyzer

Market Data

FX Rates

Yield Curves

Indices

Volatilities

SAP Modules in Treasury Analyzers


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4

5

Cash Management

Bank Communication

Management

Liquidity Forecast

Internal Banking

Risk Analyzers6

Treasury Management

3


1


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September 2011

An Introduct ion to

SAP Treasu ry App l icat ions

THANK YOU

Documents

SAP Introduction to Treasury Applications