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Function documentationTreasury and Risk Management in One Exposure from Operations

 

You can integrate forecasted cash from financial instruments into One Exposure from Operations. In this integration scenario, the source application Treasury and Risk Management and One Exposure run in the same system (one-system scenario).

Forecasted cash contains the following information from the financial instrument:

  • Reference to the business transaction and the flow in TRM

  • Company

  • Business Partner (filled with the counterparty of the transaction from transaction management and with the issuer for business transactions from security account positions, such as interests of bonds)

  • Specific TRM parameters:

    • Product Type

    • Transaction Type

    • Transaction Activity Category

    • Security ID Number

    • Securities Account

    • Portfolio

    • Internal Reference

    • Characteristics

    • Assignment

  • House bank account and BAM account

Date and Amount

The forecast transaction date is determined based on the transaction payment date.

The forecast transaction amount is determined based on the transaction payment amount.

Certainty Level

One Exposure derives cash forecasts for items representing financial instruments. It stores this information with the following certainty levels:

Certainty Level

Description

Meaning

TRM_O

Optional Financial Instrument

Cash forecast from an option in TRM

TRM_D

Financial Instrument

Cash forecast from all other TRM instruments

Example Example

For example, you enter an option with an underlying foreign exchange transaction. The forecasted cash flows for the foreign exchange transaction have certainty level TRM_O. After the option is exercised, the forecasted cash of the foreign exchange transaction has certainty level TRM_D.

End of the example.

Flow Type

The system uses the following flow types for forecasts in One Exposure:

Default Flow Types

900100 - Incoming Bank Cash (TRM)

900101 - Outgoing Bank Cash (TRM)

Planning Group

If the cash flow from TRM has no house bank account, the system tries to determine a planning group instead. To do so, it takes the business partner (for example the counterparty in a money market transaction), reads the corresponding customer (from database table CVI_CUST_LINK), and takes the planning group from the corresponding company-code-dependent data (database table KNB1). If no customer exists for this business partner, or if the customer has no planning group assigned to the given company code, the cash flow is updated with an empty planning group. The planning group is then also empty in cash management.

Activities

IMG Customizing Activities

  • Activate Individual Source Applications and Activate Multiple Source Applications

    You can activate the source application TRM - Treasury and Risk Management in this Customizing activity. Data coming from TRM is only updated in One Exposure if the application is activated and successfully initialized.

  • Define Queries for Liquidity Item Derivation

    This offers the possibility to enter derivation rules for data coming from Treasury and Risk Management. The liquidity item derivation is based on a subset of information available in One Exposure (origin X).

    For Foreign Exchange Transactions (product category 600), Foreign Exchange Options (product category 760), and Money Market Transactions (product categories 510 - 550), you can use the following flow types to derive separate liquidity items for purchase side, sale side, investment, repayment, interests, and fees.

    You use the following flow types for product categories 600 and 760:

    • 200200 - Increase FX Forward Purchase

    • 200201 - Increase FX Forward Sale

    • 200010 - Fee Receivable

    • 200011 - Fee Payable

    You use the following flow types for product categories 510 - 550:

    • 201000 - Fin. Instrument Receivable

    • 201001 - Fin. Instrument Payable

    • 200100 - Increase Investment

    • 200101 - Increase Borrowing

    • 200020 - Interest Receivable Increase

    • 200021 - Interest Payable Increase

    • 200010 - Fee Receivable

    • 200011 - Fee Payable

    For all other product categories you use the flow types 900100 and 900101 to define queries for liquidity item derivation.

    If no liquidity item can be determined, the system updates the flow with an empty liquidity item.

  • BAdI: TRM Integration into One Exposure

    You can use this BAdI to derive a liquidity item based on additional TRM-specific parameters if the source fields are not sufficient for a thorough liquidity item derivation. You can also use this BAdI to overwrite flow types in One Exposure that originate from the source application TRM.

  • Assign Planning Levels

    You can define the planning level for TRM by using this Customizing activity: Start of the navigation path Treasury and Risk Management Next navigation step Transaction Manager Next navigation step General Settings Next navigation step Link to Cash Management Next navigation step Assign Planning Levels End of the navigation path

    Customers upgrading from the classic cash management can use the existing settings for the planning level when integrating TRM into One Exposure.

  • Load Transaction Data from Source Applications into One Exposure from Operations Hub

    If you want to integrate transaction data that had already been created before the source application Treasury and Risk Management was activated, you use this Customizing activity.

  • Delete Data from One Exposure from Operations Hub

    If you want to use a new starting point within an implementation project, you can use this Customizing activity to delete all existing data or the source application TRM from One Exposure. You do this for each company code and source application.

More Information

The following cash management apps consume the information coming from TRM:

  • Cash Position

  • Cash Position Details

  • Check Cash Flow Items

  • Liquidity Forecast

  • Liquidity Forecast Details

  • Develop Liquidity Plans

  • Liquidity Plans

For further information, see One Exposure from Operations