SAPTRM&FM

7/27/2019 SAPTRM&FM

http://slidepdf.com/reader/full/saptrmfm 1/63

SAP AG

R

SAP AG

R/3 Treasury

R

7/27/2019 SAPTRM&FM


SAP AG

R

Overview of Treasury Functions

bank data

businesspartner

market data

CM

Financial Accounting

US$

DEM

MRMDownload

Market Risk Management: • interest/currency exposure•

mark-to-market valuation• risk analysis/simulation• value-at-risk

Cash Management: • electronic banking•

liquidity status• integrated operational

systems• control functions

Treasury/Loans Management • managing financial dealsand positions

• transfer to FinancialAccounting

• flexible reporting• datafeed interface

Logistics D

C D

C

100100

TM / LO

Forex

Money Market

Derivatives

SecuritiesLoans

7/27/2019 SAPTRM&FM


SAP AG

R

Market RiskManagement

TR-M

RM

Informationprocurement

Information system

SAP TREASURY

TreasuryManagement

CashManagement

TR-CMTR-TM

Liquidity/risk analysis

and simulation

Trading Back office

Controlandaudit

Transfer toFinancial

Accounting

Treasury Process

7/27/2019 SAPTRM&FM


SAP AG

R

Industries

1980

R/3 Launch

IS-IS/DARWIN projectfor Loans, Securities,Real Estate

today

R/2:Cash ManagementMoney Market, Forex,

Loans

R/3:Cash ManagementMoney Market, Forex, Derivatives, Securities, Loans,

Market Risk Management

Insurance companies

Mortgage banks

Corporates

19921993 1994

1996

Money Market, Forex, Derivativesproject

Market Risk Managementproject

Audit

Market release

7/27/2019 SAPTRM&FM


SAP AG

R

Countries

1980

R/3 Launch

IS-IS/DARWIN projectfor Loans, Securities,Real Estate

R/2:Cash ManagementMoney Market, Forex,

Loans

R/3:Cash ManagementMoney Market, Forex, Derivatives, Securities, Loans,

Market Risk Management

Germany, Austria, Switzerland

19921993 1994

1996

Money Market, Forex, Derivativesproject

Market Risk Managementproject

Audit

Market release

English-speaking countries

Other

today

7/27/2019 SAPTRM&FM


SAP AG

R

Customers

Trade and industry

Multinational corporations:

Broad range of functions across the whole treasury area

Various organizational structures, such as centralized/decentralized

treasury

Covers special national features, such as electronic banking formats

Customers: Shell, Daimler Benz, Petrofina, Burda, ......

Medium-sized companies

All functions available, regardless of company size

Uniform user interface simplifies training and usability

The Treasury workstation concept allows scaled integration into the

existing system environment using predefined interfaces

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SAP AG

R

Customers

Providers of financial services

Insurance companies

Management of securities, loans and real estate

Integrated portfolio and risk management

Customers: Munich Re, Schweizer Rente, Aachener Münchner, .....

Banks

Treasury master data used by SAP Banking

Treasury Management is used as a basis for managing loans given and

loans taken by mortgage banks (customer project)

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http://slidepdf.com/reader/full/saptrmfm 8/63 SAP AG

R1) % of all companies surveyedSource: Price Waterhouse Top 500 Survey (Germany)

Main Targets of Treasury

1 To ensure liquidity 95

2 To optimize financing costs 92

3 To optimize yields on financial assets 74

4 To hedge costs (e.g. against possibleexchange rate fluctuations) 61

5 To hedge sales (e.g. against possible

exchange rate fluctuations) 52

6 To contribute to profit through activemanagement of open positions 30

1)Priority Target %

1)

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R

1 To ensure liquidity

using SAPCash Management

TR-CM

Liquidity Management

Priority Target %

7/27/2019 SAPTRM&FM


R

TR-CMCash Management: Functions

Comprehensive analysis of liquidity situation

Data transfer from operative systems: Financials,Logistics and Treasury ManagementElectronic banking functions

Cash position: daily bank account balances by valuedate, payment advices

Cash concentration: concentrated bank accounts

Cash pooling: interest paid on bank accounts

Liquidity forecast: expected inflows/outflows from

customers and vendors, planned data

Monitoring value dates, payment advices, conditions,checks cashed, ...

7/27/2019 SAPTRM&FM


R

Area-specificprocessing

Bankpostings

Subledger

accounts

Bankdata

Manualaccount

statement

SWIFT MT940

MultiCash

Lockbox

BACS

ETEBACCODA

FIDES

CSB43

ZENGINKYO

EU

EU

USA

UK

FBE

CH

E

JP

Czech. Rep.

SwedenCash position andliquidity forecast

Banks

Subledger

03/15

100

25

Electronic Banking

Link to payment program

Manual/automatic account statements

Various formats supported

Postings to G/L and customer/vendor accounts

Bank Polling

Processes current bank information

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R

Aim:

Monitoring bank account movements

comparing value dates

reconciling payment advice and

account or bank statement

cashed checks analysis

account interest

comparing bank conditions

Control Functions

Monitoring correct paymentsprocessing for planning

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R

Grouping:Banks 09/01 09/02 09/03

________________________________________BANKA 90 130 60BANKB 40- 20- 30-

:

Cash Position

Accounts: Subledger 09/01 09/02 09/03 ___________________________________________Account 1 10 30 10-Account 2 20 70 20-

Account 3 10 20- 50

Level: BANKA 09/01 09/02 09/03 _________________________________________F0 Subledger 40 80 20B2 Incoming checks 60 60 60

B1 Outgoing checks 10- 10- 20-

Current bank account balances/balances per value

date (bank postings, payment advices)

Accounts managed in local/foreign currencyPlanning horizon 0-5 days Documentation and audit functions

Current liquidity position on bank accounts

per specific date

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R

Status before concentration after concentration

Bank 1 1200 5Bank 2 100 5Bank 3 400 1337Bank 4 -350 3

1350 1350

Cash Concentration

Clearing proposal in accordance with selection

criteria

Interactive manual adjustmentCredit transfers and correspondence

Concentrated bank accounts

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R

Liquidity Forecast

France (E4)

Payer ofcash discount (E2)

Payer of net amount (E3)France(E4)

(E2)Bankcollection(E1)

Payer of netamount (E3)

FI =Posting/Sales

FW =Bill of exchange

XA = Blockingreason 'A'

(E5)

Groups:

- Customers with similar payment history- Customers of particular interest

Levels:- Balances specified according to level

Integrated data basis including customers, vendors

and planned items

Expected cash inflows/outflows over a planning

horizon of 1-24 weeks

Support for optimizing financial investment andborrowing

Monitoring liquidity situation

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R

Treasury Workstation

. . . . .R/2RF FD R/3FI CM

R/3CM FI

Analysis

CM

Liquidity

MRM

Market risks

TM

Financial transactions

Trading

Back office

FIFinancial Accounting

R/3Treasury

Workstation

FI-ALE FI-ALE

RFC TR-CM-ALE

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R

Company 2

Company code 2

External bank 2 External bank 2

External banks

External bank 2

Company 3

Company code 3

Central TreasuryCompany code 1

Company 4

Company code 4

Liquidity status

Company codes 2+3

Liquidity status

Company codes 1-4

internal financialtransactions

external financialtransactions

external financialtransactions

Corporate Group Evaluations

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R

Implementation Strategies

Support for efficient

liquidity management

Support for efficient

liquidity forecasting

Advantage:

RationalizationAdvantage:

Integration

TR-CM

FIMM

SD

extended forecast horizonvia link to the supply chain

automatic data transfer reduced transaction costs

7/27/2019 SAPTRM&FM


R

Automatic data transfer reduced transaction costs

Support for efficient liquidity

management

Advantage:

Rationalization

FI

TR-CM

Area-specificprocessing

Cashposition

Bankdata

Bankpostings

Sub-ledgers

Rationalization: Electronic Banking

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R

extended forecast horizonvia link to the supply chain

Support for efficient liquidity

forecasting

Advantage:

Integration

MM

SD

Integration

Goodsreceipt

Invoice

Payment

Accountstatement

Cash position

Payment afterarranged/forecast date

Value date based onbank statement

Order

Cash

Management

Delivery date andpayment conditions

updated paymenthistory

Liquidity forecast

TR-CM

Integration of Logistics

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R

Cash Position and Liquidity Forecast

Cash Position Liquidity Forecast

Bank accountsin currency:Account 1

:Account nTotal

Paymenttransactionsin transit:

- incoming- outgoing

Financialinvestmentsand

borrowings

Subledgers:- A/R- A/P

- Purchaseorders- Orders

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R

TRADINGCashmanagement

decision

Marketinformation

Cash Position and Liquidity Forecast


Bank accountsin currency:Account 1

:Account nTotal

Paymenttransactionsin transit:

- incoming- outgoing

Financialinvestmentsand

borrowings

Subledgers:- A/R- A/P

- Purchaseorders- Orders

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R

Cash Management Decision

Financials

G/Laccounts

Customers/vendors

Treasury

TR-TM

MM/S

D

Orders

Logistics

FIFI


Cashmanagement

decision

Marketinformation

TRADING

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R

Integration with other SAP modules

TR-TM

TR-CM

TR-TM TR-TM

FI

MM

SD

Financials

G/Laccounts

Customers/vendors

Treasury

TR-TM

MM/S

D

Orders

Logistics

FIFI

Cashmanagement

decision

Marketinformation


TRADING

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R

Treasury and Market Risk Management

Priority Target % 1 To ensure liquidity 95




5 To hedge sales (e.g. against possibleexchange rate fluctuations) 52


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R

Market RiskManagementImplementation ofSAP TreasuryManagement

Treasury and Market Risk Management

TR-TMTR-MRM

Priority Target

1 To ensure liquidity 95




5 To hedge sales (e.g. against possibleexchange rate fluctuations) 52


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SAP AG

R

Treasury Management: Functions TR-TM

Complete financial transaction and positionmanagement

Support of trading and back office functions

Functions to track, check and release transactions

Data transfer to Financial Accounting

(including accrual/deferral and valuation)

Flexible settings to accommodate company-specific transaction and position managementprocesses

Financial transactions assigned to portfolios ormanaged in securities accounts

Flexible reporting and portfolio analysis

Datafeed interface

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SAP AG

R

Selection of Product Types

Product types

Moneymarket

Securities Loans Forex

Fixed-termdeposits

Deposits atnotice

CommercialPaper

Stocks Subscript. rights Investment

certificates

Bonds Convertiblebonds

Warrant bonds Warrants

Mortgageloans

Borrower'snote loans

Policy loans

Forexspotdeals Forward

exchangedeals Foreign

exchangeswaps

Cap / Floor FRA Swaps

- Interest rate- Currency

- Cross currency int.rate OTC options / futures- Currency- Currency barrier- Interest rate- Stock Swaption, IRG

Hedginginstruments

Investment/Borrowinginstruments

Derivativeinstruments

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SAP AG

R

TargetsInformationprocurement

Assessmentof possiblesolutions

InstrumentsMethodsMeasurements

Identificationof appropriatefinancial

transactionsSimulationof alternativeresults

Selection of analternative

TradingBack office

AccountingReporting

Controlling

Processing /Control

Internal:- liquidity status- risk position

External:- market data

Analysis and Trading Process

Earnings/risktargets

Decision

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SAP AG

R

Trading

Transaction and Position Management Process

PostingsPayment activitiesReversalsAccruals/deferralsValuation

Create order/contractExercise/expirationGive noticeRolloversExercise rights

User authorizationLimit management

Backoffice

Release

Accounting

Settlement/ControlInterest rate adjustmentNettingReferencesConfirmation lettersSecurities account transfers

Corporate actions

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SAP AG

R

Trading Support

Company-specific organizational structuresrepresented in the system, internal and externaltransactions

Uniform trading screen with aids for data entry and

processing as well as fast entry templates Trader and user authorizations for financial

instruments and functions, change documents

Limit management

Standing instructions for specific business partners ororganizational units allow bank details and paymentdetails to be assigned to transactions automatically

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SAP AG

R

Trading Support

optional:

Order Contract

Business partnermanagement

Partner data

Marketdatabase

Market data

Standing Instructions

• Payment details• Correspondence• Derived flows

- Entry and editing functions - Valuation toolsstanding instructions NPV calculator

copying functions option price calculatorshortcuts and tree structures etc.fast entrycollective/fast processing

- Automatic checks - dealer slipworking days - limit managementtrader and business partner - change documents

authorization

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SAP AG

R

Basis for

updating Cash Management

updating FinancialAccounting via flexible

account determination

triggering payment

updating items

accrued/deferred interest

payment initiation

foreign currency valuation

yield calculation

Financial Transactions: Cash Flow

Amountinvested/borrowed

ACTUAL

PLANNEDCondition

Transaction

Investment 4/1/YY 1m DEM made

Interest 7/1/YY 10,000 DEM anticipated

Repayment 7/1/YY 1m DEM anticipated

Cash flow (example)

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SAP AG

R

Financial Transaction Architecture

Product type

Transaction type

Business partner

Transfer flow

Valuation flow

Accrual/deferral flow

Flows describingstructure characteristics

Paymentinformation

Postinginformation

Calculationbases

General info History

Conditions

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SAP AG

R

Sequence Defined using Processing Categories

Order expiration Termination

Contract settlement Exercise/expiration

settlement Knock-in/knock-out

settlement Termination settlement

Contract

Exercise/expiration Knock-in/knock-out

Termination

optional:

Order

with/withoutorder

Contract

Trading

Example: Derivatives

with/withoutsettlement

Back office

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SAP AG

R

Contract

Contract

Exercise/expiration

Contract

Alternativewithout settlement

with/without

order

Example: Currency optionContract Contract

Alternativewith settlement

Trading Backoffice

Example: Currency barrier option with

knock-in

Contract settlement

Knock-in settlement

Exercise/

expiration settlement

Contract

Knock-in

Exercise/expiration

Other Examples for Processing Categories

with/withoutorder

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SAP AG

R

Financial Transactions in Cash Management

51A

SAP AG

TB

0001

Assign Cash Management levels

Fixed-term deposit

Subledger time dep.

10 Contract

10/02 10/03 10/03 later10/05

Cash Management: Display Levels

Banks

Le Description

TB

. . . . . .

OB Curr. option

. . . . . .

DB Foreign exch.

Balance xxx,xxx xxx,xxx xxx,xxx xxx,xxxxxx,xxx

132,323 xxx,xxx xxx,xxx xxx,xxxxxx,xxx

. . . . . . . . . . . .. . .

. . . . . . . . . . . .. . .

xxx,xxx xxx,xxx xxx,xxx xxx,xxxxxx,xxx

xxx,xxx xxx,xxx xxx,xxx xxx,xxxxxx,xxx

Timedeposits

10/02 10/03 10/04 10/05 later

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SAP AG

R

Back Office Support

Check financial transactions upon settlement

Structure characteristics and allocation to portfolios/finance projects

Payment details

Collective processing and editing functions

Confirmation management / confirmation status Outgoing confirmations, option of generating S.W.I.F.T. files and link

to FX-Match via user exit

Enter and match incoming confirmations, evaluate overdue

counterconfirmations

Monitor limit utilization as part of end-of-dayprocessing

Netting of financial transactions (payment netting)

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SAP AG

R

Back Office Processing

Confirmation Confirmation

Correspondence

Back

office Accounting

Position

management

•Collective processing•Netting•References•Interest rate

adjustments•Securities acct

transfers•Corporate actions

•Confirmationmanagement(incoming/outgoing)

Payment details

Curr. Bank Acct

. . . . . . . . .

Processing

transactions

• Settlement/control• Payment details

7/27/2019 SAPTRM&FM


SAP AG

R

Correspondence

e.g. confirmation letter,SWIFT

Fax

e.g. dealing slip

External Internal

Confirmation Confirmation

7/27/2019 SAPTRM&FM


SAP AG

R

Transaction Settlement

Currency Payer/eePartnerbank ID

Pmntmeth.

Paymentactivity

Housebank

Acct IDPaymentdetails ID

Payment details

Account assignment reference

DB000001 Deutsche BankFixed-term deposit

G/L account: 113113

DEMUSD

DEM

COUNTERP.. . .

2

. . .

T

. . .

BANKBBANKB

. . .

X

. . .

GIROUSD

. . .

0101

02

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SAP AG

R

Business Partner - Payment DetailsFixed-term deposit in DEM at COUNTERPARTYForex purchase in USD

Our house bank: Bank B

Currency Payer/eePartnerbank ID

Pmntmeth.

Paymentactivity

Housebank

AcctID

Allocations Incoming Outgoing

Paymentdetails ID

0101

02

DEMUSD

DEM

COUNTERPARTY

. . .

2

. . .

T

. . .

BANKBBANKB

. . .

X

. . .

GIROUSD

. . .

Fixed-term dep.Deposit at notice

Money market

Forex

. . .

01

01

01

Foreign exchange

01

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SAP AG

R

Transfer to Financial Accounting

Posting release option Flexible account determination at flow type level

Flows transferred to Financial Accounting

Direct posting to clearing accounts, clearing viaaccount statement

Make payments using the extended payment program:

Generate and process payment requests

Payment netting, flexible settings for payment methods

Range of posting evaluations

7/27/2019 SAPTRM&FM


SAP AG

R

Accounting


Fixed-term deposit 1 month 3.5%

FI interface

Sept 1st 1100 - Fixed-term deposit 1,000,000Oct 1st 1120 + Final repayment 1,000,000

Oct 1st 1200 + Nominal interest 3,750

Selection of transactionsand flows relevant forposting

7/27/2019 SAPTRM&FM


SAP AG

R

Posting : Account Determination

Fixed-term deposit 1 month 3.5% Acct assignment ref. DB000001

Fxd-term dep. acct 113113

Deposit

Final

repayment

D

1,000,000

C

1,000,000

Interest earned 273100

Nominal

interest

D C

3,750

Bank clearing acct 113100

FT deposit

Nominal int.

Final

repayment

D C

1,000,000

3,750

1,000,000

Debit Bal.sht Credit Bank

Debit Bank Credit Bal.sht

Debit Bank Credit Int. earned

Flow type

Posting details

1100 -

1120 +

1200 +

Sept 1st 1100 - Fixed-term deposit 1,000,000

Oct 1st 1120 + Final repayment 1,000,000

Oct 1st 1200 + Nominal interest 3,750Balance sheet account acc. toaccount assignment reference

7/27/2019 SAPTRM&FM


SAP AG

R

Posting using Clearing Accounts

fixed-term depositvia activity at

fixed-term deposit level

post flows toclearing account

change toclearing accounts

change tobank account level

TR-TM

clearing entryvia account statement

TR-TM

TR-CM

TR-CM

7/27/2019 SAPTRM&FM


SAP AG

R

Payment Transaction Handling

Fixed-term deposit

Account statement from

bank

... using clearing accounts

Fixed-term dep. account(Deuba)

House bank account(Deuba)

100 m 100 m

SAP

House bankDEUBA

fixed-termdeposit

Bank clearing account

100 m 100 m

7/27/2019 SAPTRM&FM


SAP AG

R

Posting using Payment Program

Paymentadvice

Banktransfer

Eurocheck

Check

Proposal data set

Print data set

Edit

proposal

Master

record

Payment

requests

Currentparameters

Paymentcontrol

Paymentsummary

Proposal run

Payment run

Print program

IDOC

Documents

7/27/2019 SAPTRM&FM


SAP AG

R

Payment Transaction Handling

1st fixed-term deposit

2nd fixed-term deposit

...using a clearing account for payment requests

Fixed-term dep. account(Citi)

House bank account(Deuba)

100 m 150 m

SAP

House bank

DEUBA

paymentorder

Payment requestclearing acct Bank clearing account

150 m 150 m

50 m

100 m

50 m

150 m

payment(trigger payment request run)

account statement from bank

Citi

payment

fixed-term deposit

7/27/2019 SAPTRM&FM


SAP AG

R

Cross-Application Reporting

Common reporting

structure

Data selection,definition oflayout

Individual

reporting

Journal Maturitylist

Revenuelist

7/27/2019 SAPTRM&FM


SAP AG

R

Drilldown reportingstructures

P A R T N E R

PRODUCT TYPE Borrowing/sale

1

PRODUCT TYPE

2

P A R T

N E R

CURRENCY

PRODUCT TYPE

CURRENCY

Company codeTraderProduct typePortfolioSecurities account

X

PartnerTransactionCurrencyAccount assignmentreference

X

X

Investm./purchaseX

P A R T

N E R

CURRENCY

Multidimensional Flexible Reporting

3

P A R T

N E R

PRODUCT TYPE

CURRENCY

Money marketForex

DerivativesSecurities

Loans

7/27/2019 SAPTRM&FM


SAP AG

R

Datafeed Architecture

SAP Bloomberg

Selectiverefresh

Request

Reques

t

Reply

Reply

RFC

R/3 Applications

FinanceIn-houseCash

Informationproviders

External

interfaceprogram

Datafeed

Server

Log

Datafeedserver

Marketdatabuffer

Translationtablez

OperativeSAP

tables

Treasury

7/27/2019 SAPTRM&FM


SAP AG

R

AnalysisAssessmentof possiblesolutions

Eliminaterisks

• Identify

suitablefinancialtransactions

•Simulatealternativeresults

Selection of an

alternative

Risk Management Process in R/3

TR-TM

SD

US$

DEM

Datafeed

TR-TMTR-CM

MM

TR-TM-MRM

TR-TM-MRM

TR-TM-MRM

Risk controllingTR-TM-MRM

•Trading•

Back office•Accounting•Reporting•Value at risk

Processing /Control

Informationprocurement

•Mark-to-market•

Sensitivities•Crashscenarios

TR-TM

• Internal:

- risk position•External:-market data

TR-

7/27/2019 SAPTRM&FM


SAP AG

R

Risk Management TR-TMTR-

MRM

Market risk management

Selection of instruments

Authorization concept at user, businesspartner and trader level

Limit management (money market, forex)

Hedging strategies

Macro hedge

Portfolio hedge

Micro hedge (release not yet specified)

TR-

7/27/2019 SAPTRM&FM


SAP AG

R

Information procurement

Interest and currency exposure

Mark-to-market, effective interest

rate

Sensitivities, cash flow analyses

Value at risk

Assessment of possible solutions

Simulation

What-if analyses

Crash scenarios

Transform risk using Treasury Management

Mark Risk Management: FunctionsTR

MRM

Extensive risk valuation and control

7/27/2019 SAPTRM&FM


SAP AG

R

Market Risk Management: System Overview

Values(IRR, NPV, option

premium, exposure...)

Calculation

Reporting

(graphics, list,...)

Methods

Cash flowsMarket data

Scenariodatabase

Marketdatabase

Buffer

Portfolioformation

byselection

Fictitioustransactions

Actualposition

7/27/2019 SAPTRM&FM


SAP AG

R

Integrated Market Risk Management

Actual/scenariomarket data

Actual transactions

Control panel

Integrates allincoming data andresulting data

relevant for risk

ExposureHedging rate

Cash Management

Mark-to-market

valuation

Key ratios/

values

Data inf low Results

Fictitious cashflow update

7/27/2019 SAPTRM&FM


SAP AG

R

Analysis and Simulation

Market data:

Prices

Interest rates

Volatilities

Key values NPV

IRR

Effective rate

Exposure

Hedging rate

Cash flows

Transactions: Forward transactions,

options, swaps, caps/floors

Key values

based on simulatedmarket data and

simulated financial

transactions

TR-

7/27/2019 SAPTRM&FM


SAP AG

R

Evaluation methods

Evaluation

methods

Earnings/expense-oriented

Risk-oriented

Internal rate of return (IRR)

Yield calculation (AIBD, Braess- Fangmeyer, Moosmüller, US -

Treasury)

Effective rate (cut-off rate) for FXexposures

Mark-to-market valuation

Changes in net present value

FX and interest rateexposures

Sensitivities (delta, gamma,duration, convexity)

Value at risk for portfolios

TRMRM

7/27/2019 SAPTRM&FM


SAP AG

R

Hedging strategy based on values from Cash

Management

No direct link between the hedging transactionand the hedged instrument

Delivery date/pmnt conditions Payment history Update

Cash forecast C/F USD

CashFwdBal.

Hedging strategy Exposure analysis Instrument selection

Macro Hedge

Foreign exchange

C/F USD

Cash

Bal.

05/21

100 80 20

Purch-: ForwardCurr.: USDKey date 05/25/95Rate 1.5500

Amount 80

05/21

100

100

7/27/2019 SAPTRM&FM


SAP AG

R

Traderauthorization

Business Partner and Trader Authorization

Business partnerauthorizationTrader and busin ess partner

Authorization AuthorizationTreasury

Money Market

Fixed-term deposit

51 A Fixed-term deposit100 investment200 borrowing

Deposit at notice

51 B Deposit at notice100 investment200 borrowing

7/27/2019 SAPTRM&FM


SAP AG

R

Limit Management Limit update based on the following characteristics

(currently supported for money market and foreign exchange):

company code

trader

business partner

currency portfolio

limit product group

Example:

Limit utilization

Trader: Fuchs

Limit: 100 m

Utilization.: 10 m

Surplus/deficit 90 m

L1

Dres.900

Deuba1,000

L2

FTD400

FTD500

L3

700

L1

L1 : Partner

L2 : Partner / limit product group

L3 : Limit product group

O i f T F ti

7/27/2019 SAPTRM&FM


R

Overview of Treasury Functions

bank data

business

partner

market data

CM


US$

DEM

MRMDownload

Market Risk Management: • interest/currency exposure• mark-to-market valuation

• risk analysis/simulation• value-at-risk

Cash Management: • electronic banking• liquidity status• integrated operational

systems• control functions

Treasury/Loans Management • managing financial dealsand positions

• transfer to Financial

Accounting• flexible reporting• datafeed interface

Logistics D C D C

TM / LO

ForexMoney Market

Derivatives

Securities Loans