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.

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.

You can maintain current market data (exchange rates, securities prices, reference interest rates, indexes etc.) in various ways:

  • Manually

  • Using a Market data file interface: You maintain the relevant data in an external application (such as Microsoft Excel), either manually or via a data provider, and then import the data into the system in a format compatible with SAP.

  • By transferring the market data to the system from a spreadsheet

  • Datafeed: You can use the datafeed connection to make real-time market data available in the system.

To access the market data management functions in the application menu, choose Treasury and Risk Management -> Basic Functions -> Market Data Management . Alternatively, you can access them in the Money Market area under Environment -> Market Data .

You access the Money Market component by choosing Start of the navigation path Accounting Next navigation step Treasury and Risk Management Next navigation step Transaction Manager Next navigation step Money Market. End of the navigation path

The following graphic shows how the above-mentioned components relate to each another:

Features

Trading

The trading area contains functions for entering money market transactions. It also enables you to also call up information on transactions or make changes at a later date. Collective processing functions are available to help you manage your transactions efficiently.

The product types in the Money Market area are:

  • Fixed-Term Deposits

  • Deposits at Notice

  • Commercial paper

  • Interest rate instruments

  • Cash flow transactions

  • Facilities

Back office

Once you have entered financial transactions in the trading area, you settle them in the back office. The back office area also contains functions for checking and changing the transactions. Transaction postprocessing primarily involves:

  • Adding any missing transaction data that is needed to process the transaction further

  • Preparing for posting and payment (for example, by checking the accounts used)

  • Generating correspondence in the form of internal or external confirmations.

The collective processing functions are also available in the back office. This area also includes functions for netting transactions and for entering and editing references .

Accounting

Once you have entered the transactions in the Trading area and checked them and added any missing details in the Back Office , you then need to process them for accounting purposes. The accounting area includes functions for transferring data to Financial Accounting, such as posting reports or position management postings. It also includes functions for parallel valuation.

Master Data Management

Financial transaction processing in the Transaction Manager is based on master data.

Information System

The information system provides a range of reports for analyzing your money market transactions. The Money Market Information System is part of the Transaction Manager Information System, which offers analyses and evaluations across the whole of the Treasury and Risk Management dataset.

The link to the SAP drilldown reporting tool and SAP Query also allows you to define your own reports in addition to those provided by SAP.

See also:

Information System

The following diagram represents the architecture of the financial transactions.