Money Market
Purpose
Money Market transactions are used for short to medium-term investments and for borrowing liquid funds.
Integration
The Money Market area is a sub component of the Transaction Manager and is closely integrated with other components. It is also closely linked to Cash Management.
You can implement cash management decisions in the Money Market area based on the liquidity surplus or deficit determined in Cash Management. The system records the impact transactions have on the liquidity of a company by value date, for each flow in Cash Management. To do this, the data from the Money Market is transferred to Cash Management automatically. This integration simplifies the work processes involved in transaction management from entering potential transactions through to the related accounting activities. The Money Market area comprises functions for period-based accrual/deferral, key date valuation and foreign currency valuation, and for disclosing profits and losses.
It is also closely linked to the Financial Accounting (FI) component since all the data that is relevant for posting in the Money Market area is automatically transferred to FI.
The following graphic shows how the above-mentioned components relate to each another:
Features
The product types in the Money Market area are:
The functions available support the trading activities involved in preparing and entering transactions, in addition to the back office activities such as monitoring, accounting, payment control and transaction analysis. Many steps in this process chain are automated but you can evaluate and monitor the status of a transaction at any time.
The following diagram represents the architecture of the financial transactions.
To access the Money Market functions:
Choose Accounting ® Corporate Finance Management
® Transaction Manager ® Money Market.The following sections give you an overview of the Money Market functions.