Transaction Manager (SAP Library - Transaction Manager)

Transaction Manager

Purpose

The Transaction Manager is a powerful instrument that executes efficient liquidity, portfolio and risk management. You have the option of carrying out liquidity and risk analysis in the Transaction Manager. Based on these analyses and the current conditions on the financial markets, you can make decisions about future investments and borrowings.

The Transaction Manager:

● helps you manage your financial transactions and positions. This involves trading, back office, and the connection to Financial Accounting.

● helps you utilize existing rationalization and enables you to automate typical processes.

● provides flexible reporting and evaluation structures for analyzing your financial transactions, positions, and portfolios.

● enables you to directly measure the effects of the financial transactions on the liquidity or interest rate risk, due to being integrated in Treasury and Risk Management.

The Transaction Manager can be used in companies, asset management areas, and in traditional Treasury departments.

Implementation Considerations

● To use the Transaction Manager functions, make the required settings in Customizing by choosing Treasury and Risk Management ® Transaction Manager.

● You make the settings for the Business Partner under Treasury and Risk Management ® SAP Business Partner for Financial Services.

● To make settings in Customizing for Market Data, choose Treasury and Risk Management ® Transaction Manager ® Basic Functions.

● There are various functions available to transfer your legacy data from source systems.

See also: Legacy Data Transfer

Integration

The Transaction Manager is a component of Structure link Treasury and Risk Management (TRM).

Note

You must migrate your dataset if you upgrade to a higher release up to Release Enterprise 1.10. For more information, see the Migration Guide for the Transaction Manager Version 1.1 on the SAP Help Portal. Choose Other Portals ® Quick Link SAP Solutions (in Education, Consulting, Solutions Areas and more) ® mySAP Business Suite ® mySAP ERP ® mySAP ERP in Detail ® mySAP ERP Financials in Detail ® Financial Supply Chain Management ® Media Library ®Documentation ® SAP Treasury and Risk Management.

Features

The Transaction Manager helps you realize the following corporate goals:

● Financial services for affiliated group companies.

● Activities on financial markets for investing liquid funds.

● Financing short-term and long-term investment projects.

● Hedging potential or existing risks.

The Transaction Manager follows the straight-through processing principle for entering different transaction types through to transfers to Financial Accounting. To achieve this goal, the front-end area has been regularly enhanced and functions and basic structures have been standardized for financial transactions (Money Market, Foreign Exchange, Derivatives, Securities) in the areas of confirmation, payment processing, accounting, and valuation procedures.

The Transaction and Position Management Process

Flexible Processes for Transaction and Position Management

You can configure the transaction and position management processes flexibly for each product type. You use rationalization to do this. At the same time, you can increase process security by implementing organizational requirements. The dual control principle, for example, is used as an important security measure to control releases.

Position Management

Position Management gives you a clear overview of your positions according to your individual evaluation criteria. It forms the basis for parallel position management according to different accounting principles, and for performance and benchmark evaluations in the Portfolio Analyzer.

Trading

You can map financial transactions and exercise rights in the Trading area. The following functions are available:

● Entering and evaluating offers (Competitive bids)

● Fast entry for the most common transactions

● Order limit checks

● Date checks

● Expiration and barrier checks for options

● Price calculators (for example, cross rate, option price, and NPV calculators)

For more information, see Trading

Back Office

The following options are available in the Back Office area:

● Managing account assignment information

● Creating payment details

● Correspondence functions (for example, automatic confirmations and counterconfirmations)

● Securities account transfers and processing corporate actions for your positions

For more information, see Back Office

Accounting

You can use the following functions in the Accounting area:

● Managing your positions in parallel (for example, according to HGB: German Commercial Code and US-GAAP)

● Automatic posting functions for transferring data to Financial Accounting

● Updating the general ledger in real time

● Flexible functions for processing payment transactions

● Valuation procedures and accrual/deferral procedures

● Complete documentation of business transactions

Authorization Concept and Release

You can use the authorization concept to separate your trading, back office, and accounting tasks. You assign user authorizations to the individual activities in the transaction and position management process and assign authorization profiles to each employee according to his or her organizational area. You use the authorization concept to define releases. The financial transaction can be checked, for example, by one or more employees before being transferred to accounting.

Roles

The roles represent the different functions and positions of your employees according to the specific organizational structure of your company. The SAP system gives you the option of defining an employee user menu with these roles. You can base your role definition and menu structure on the standard roles that are provided in the Transaction Manager.

For more information, see Structure link Roles in Treasury and Risk Management

Central Functions

The following central functions and tools are important in the Transaction Manager:

● Business partner and address management

● Financial mathematics

● Status-controlled transaction processing

● Real-time reporting

Cross-application functions of the business partner and information system provide you with a comprehensive overview of all business relationships. The use of standard organizational elements and their integration in the Transaction Manager allows you to map them in other SAP applications.

Market Data Entry

The SAP real-time datafeed is a universal, open interface that can be used to import data from any information provider or datafeed platform.

You can also import current and historical market data later using a file interface. In addition, you can transfer the market data from a spreadsheet or enter it manually.

The Market Data Management functions are available across Treasury and Risk Management. You can find functions for Market Data Management on the SAP Easy Access screen by choosing Treasury and Risk Management ® Basic Functions.

The 'Open System'

Standardized interfaces (Business Application Programming Interfaces – BAPIs) turn SAP applications into Open Systems. These interfaces allow the consistent exchange of data across system boundaries. The Transaction Manager provides you with BAPIs for creating, changing, displaying, reversing, and counterconfirming financial transactions.