Use

With spot transactions, internationally traded currencies are bought and sold for other currencies at the spot rate. Forward transactions, on the other hand, are traded on a certain date in the future with the relevant premiums and discounts for calculating the forward rate being specified.

Prerequisites

Before using the transaction management functions, you have to enter master data.

You have to create your business partners , assign corresponding roles to them, and maintain the transaction authorizations. To process foreign exchange transactions, you must have defined the banks authorized as business partners in the system with the corresponding payment details.

You have to set up the standing instructions (correspondence, payment details) and release the business partner.

You also have to make the following settings in Customizing:

Define the product types (if you do not want to use one of the standard product types delivered with the system, you can define your own product types). You create financial transactions and manage positions on the basis of product types. Foreign exchange is one example of a product type.

Define the transaction types. Transaction types determine the type of transactions that can be concluded with a particular product type. They also control the transaction and position management process. Example: Spot transaction.

Define the flow types. These describe the various changes to the cash flows. Example: Sell foreign exchange.

You must assign flow types to transaction types.

For more information, see the relevant section in the Implementation Guide.

Once you have made these settings, you can enter foreign exchange transactions in the system.

Features

For more detailed information, see Processing Spot/Forward Transactions and Creating Spot/Forward Transactions