Financial Objects for Raw Exposures

The system now also supports the creation of financial objects (FO) for sub raw exposures (in addition to exposure positions). FOs can be created either for commodity price risks or for foreign exchange risks. The system can create multiple financial objects for the same raw exposure. The new granularity for the FO creation can be used, for example, in mark-to-market reporting, and this enables users to drill-down to source transactions and source documents.

Transactions

The following transactions, among others, use the new FO granularity:

Treasury and Risk Management Market Risk Analyzer Tools Reorganization Tools Financial Object Maintain Financial Object Edit Financial Object (JBRF0)
Tools Financial Object (JBDO)
Tools Reorganization Tools Financial Object Financial Object Integration

- Generate Financial Objects for Raw Exposures (AFO_AP_REXP_MMIG)

- Edit Financial Objects for Raw Exposures (AFO_AP_REXP_MUPD)

- Analyze Logs (AFO_FOI_PD)

Technical Details

Technical Name of Product Feature	COMMRM_REX_FO
Product feature is	New
Country Dependency	Valid for all countries
Software Component Version	EA-FINSERV 617
Application Component	FIN-FSCM-TRM (FIN-FSCM-TRM) FIN-FSCM-TRM-TM (Transaction Manager) FIN-FSCM-TRM-MR (Market Risk Analyzer) FIN-FSCM-TRM-CRM (Commodity Risk Management)
Availability	SAP Enhancement Package 7 (SP04) for SAP ERP 6.0
Required Business Function(s)	FIN_TRM_COMM_RM_4

Customizing

If documents for Logistics (such as purchase orders) need to be considered during FO creation, you need to have activated the Log2TRM integration. For this, make the settings under Transaction Manager Exposure Management 2.0 Integration with Logistics . The activity type used must be assigned to an approach category with variable prices. You find this setting under Transaction Manager General Settings Exposure Management 2.0 General Settings . Note: For stock exposures (with origin MATST), the creation of financial objects is not supported.
To enable FO data to be specified during the entry of transactional data, you need to activate the respective component. For this, choose Basic Analyzer Settings Automatic Integration of Financial Objects in Transaction Master Data Operative Exposures Activate/Deactivate Financial Object Integration (view CFAFOIACT_REXP).
For operating exposures, you can activate the FO integration within a company code both for commodity price risks and FX risks. Note: If, for a selected company code, you want to activate financial object integration only for selected risk categories (FX risk or commodity price risk), you need to set the Use for Risk Category indicator.
To prevent the same risk from being considered multiple times, you have to select the respective evaluation type. To do this, choose Treasury and Risk Management Basic Analyzer Settings Valuation Define and Set Up Evaluation Types , go to the Financial Object Selection tab and select an entry under FO for Operational Exposure.
To determine how the system transfers the financial object properties from the data fields of raw exposures or exposure positions, you need to have defined a derivation strategy for each analysis structure.
- For this, choose Treasury and Risk Management Automatic Integration of Financial Objects in Transaction Master Data Operating Exposures Define Derivation Strategy for Raw Exposures (view AFO_FOI_DER_REXP) or Define Derivation Strategy for Exposure Positions (view AFO_FOI_DER_EXP).
- For individual derivations, you can use the BAdI: Raw Exposures.
- With the BAdI: Relevance for Raw Exposures, you can explicitly exclude raw exposures or exposure positions from FO creation.