SAP Treasury and Risk Management

1. Introduction ... 21


1.1 ... Welcome to SAP Treasury and Risk Management ... 21
1.2 ... Content and Structure of the Book ... 24
1.3 ... Overview of Financial Instruments ... 31
1.4 ... History of SAP Treasury and Risk Management ... 35
1.5 ... Enhancement Packages for SAP ERP 6.0 ... 38
1.6 ... Rapid Deployment Solution and SAP Treasury and Risk Management ... 48


2. Master Data ... 53


2.1 ... Central Customizing Settings ... 54
2.2 ... Commodity Master Data ... 60
2.3 ... Class Master Data ... 62
2.4 ... Business Partners ... 76
2.5 ... Organizational Elements ... 82


3. Transaction Management ... 87


3.1 ... Financial Transaction ... 88
3.2 ... Trading ... 125
3.3 ... Back-Office Processing ... 133
3.4 ... Operative Reporting ... 147
3.5 ... Product Categories ... 151
3.6 ... Architecture ... 165
3.7 ... Specific Topics ... 174


4. Correspondence ... 183


4.1 ... The Old Correspondence Functions ... 185
4.2 ... Migration ... 189
4.3 ... Basic Principles ... 190
4.4 ... Customizing and Master Data ... 196
4.5 ... Outbound Process ... 221
4.6 ... Inbound Process ... 230
4.7 ... Mapping ... 238
4.8 ... Matching ... 243
4.9 ... Alerts ... 247
4.10 ... Display ... 250
4.11 ... Correspondence Monitor ... 251
4.12 ... Enhancements (BAdIs) ... 258


5. Position Management ... 263


5.1 ... Basic Terms ... 264
5.2 ... External Position Management ... 272
5.3 ... Basic Principles of Internal Position Management ... 314
5.4 ... Processes of Internal Position Management ... 355
5.5 ... Sample Scenarios ... 411


6. Integration with Other Modules ... 419


6.1 ... Paying Valuation Area ... 420
6.2 ... Financial Accounting ... 421
6.3 ... Processing Payments ... 454
6.4 ... SAP Cash and Liquidity Management ... 466
6.5 ... Public Sector Management ... 469
6.6 ... Regulatory Reporting ... 475


7. Market Data ... 479


7.1 ... Foreign Exchange

Sönke Jarré trained as a banker before going on to study Computer Science at the University of Bremen, Germany. After completing his studies, he took up a post in the Treasury and Risk Management area of SAP AG in 2001, where he has since progressed to the role of Senior Developer. His area of expertise is transaction management and its interfaces, and he also supports Installed Base Maintenance and Support (IMS) for customer messages. Sönke's main areas of responsibility include development projects and application modeling in collaboration and cooperation with adjacent areas.

Dr. Reinhold Lövenich studied Physics at RWTH Aachen and Jülich Research Center. He was awarded a PhD degree by the University of Dortmund in 1999. After completing a research scholarship at the Lawrence Berkeley National Labo¬ratory in the U.S., he started work in the Treasury and Risk Management area of SAP AG in 2002. His main tasks as a Senior Developer are in the area of Position Management and its interfaces with adjacent SAP modules. Reinhold's work is influenced by his collaboration with development teams in other modules, and his previous maintenance work.

Dr. Andreas Martin studied Mathematics at the University of Kaiserslautern, Germany and the Univer¬sity of Warwick, England, and was awarded his doctorate degree by the Lud¬wig-Maximilians-Universität in Munich, Germany. While studying for his PhD, he worked as a researcher at the Institute for Biomathematics and Biometry at the GSF National Research Center for Environment and Health GmbH in Munich. He also spent a one-year research scholarship at the École Polytechnique Fédé¬rale de Lausanne in Switzerland. He has worked in the Financial Services Team for Installed Base Maintenance and Support (IMS) at SAP AG since 2003. It is his work at SAP that gives Andreas his knowledge of Treasury and Risk Management from the viewpoint of developers and users alike, and enables him to take a comprehensive view of architecture, ongoing