(K03) - Treasury and Risk Management:

Foreign Exchange Instruments

Process Diagrams

© 2014 SAP AG. All rights reserved. 2

(K03) - Treasury and Risk Management:

Foreign Exchange Instruments – Without Options (page 1)

Cash Manager

SAP ERP

(K01) Treasury and Risk

Management: Money Market

Instruments

Analyze Liquidity Forecast

C

Analyze daily cash position

B

Trader Back Office

Send outgoing MT300 message

3

Import incoming MT300 message

4

Match correspondence objects and settlement

status

5

Check matching

F

Next Page

Import Market Data

1A

Create Foreign Exchange contract

E

Check limit utilization report

D

Check Correspondence Monitor

F

Generate limit utilizations

2

1

Risk Controller

Send confirmation email

6

Check Correspondence Monitor

F

Find deal and match detail details

F

Set settlement status

5

(K03) Treasury and Risk

Management:Foreign

Exchange Instruments –Options only

Receive incoming confirmation

1

(K01) Treasury and Risk

Management: Money Market

Instruments

© 2014 SAP AG. All rights reserved. 3

(K03) - Treasury and Risk Management:

Foreign Exchange Instruments – Without Options (page 2)

Cash Manager

SAP ERP

Trader Back Office Accountant Risk Controller

Previous Page

Next Page

2

Calculate or maintain fair value of transaction

7H

Perform key date valuation

8I

Monitor Trade Repository Messages

G

© 2014 SAP AG. All rights reserved. 4

(K03) - Treasury and Risk Management:

Foreign Exchange Instruments – Without Options (page 3)

Previous Page

3

Post to general ledger

9K

Post realized profit and loss

M

Fix rate

J

For NDF only

SAP ERP

Back Office Accountant Risk Controller

Generate payment request for mature

transaction

9K

Process payment request

L

Bank initiated payment

Not-NDF

Send confirmation email

6

Check Correspondence Monitor

F

Find deal and match deal details

F

Set settlement status

5

Send outgoing MT300 message

3

Import incoming MT300 message

4

Match correspondence objects and settlement

status

5

Check matching

F

Check Correspondence Monitor

F

Receive incoming confirmation

Check subledger positions

O

Check subledger Cash Flow

N

Check Posting Journal

Q

Use Alert Monitor

P

4

Check limit utilization report

D

Run Threshold Calculation

Check Threshold Report

R

© 2014 SAP AG. All rights reserved. 5

(K03) - Treasury and Risk Management:

Foreign Exchange Instruments – Without Options -

Intercompany (page 1)

Cash Manager

SAP ERP

Trader Back Office

Create Foreign Exchange contract

E

Risk Controller

1

Create FX mirror deal

Next Page

Check Correspondence Monitor

F

Set deal to matched

F

Set settlement status

5

Send confirmation email to subsidiary

6

Check Transaction Management Collective

Processing Report

S

Set settlement status for subsidiary

S(K01) Treasury and Risk

Management: Money Market

Instruments

Analyze Liquidity Forecast

C

Analyze daily cash position

B

(K03) Treasury and Risk

Management:Foreign

Exchange Instruments –Options only

Import Market Data

1A

Generate limit utilizations

2

1

© 2014 SAP AG. All rights reserved. 6

(K03) - Treasury and Risk Management:

Foreign Exchange Instruments – Without Options –

Intercompany (page 2)

Cash Manager

SAP ERP

Trader Back Office Accountant Risk Controller

Previous Page

Monitor Trade Repository Messages

G

Next Page

2

Calculate or maintain fair value of transaction

7H

Perform key date valuation

8I

© 2014 SAP AG. All rights reserved. 7

(K03) - Treasury and Risk Management:

Foreign Exchange Instruments – Without Options –

Intercompany (page 3)

Previous Page

3

Post to general ledger

9K

Post realized profit and loss

M

Fix rate

J

For NDF only

SAP ERP

Back Office Accountant Risk Controller

Generate payment request for mature

transaction

9K

Process payment request

L

Not-NDF

Check Correspondence Monitor

F

Set deal to matched

F

Set settlement status

5

Send confirmation email to subsidiary

6

Check Transaction Management Collective

Processing Report

S

Set settlement status for subsidiary

S

Check subledger positions

O

Check subledger Cash Flow

N

Check Posting Journal

Q

Use Alert Monitor

P

4

Check limit utilization report

D

Run Threshold Calculation

Check Threshold Report

R

© 2014 SAP AG. All rights reserved. 8

(K03) - Treasury and Risk Management:

Foreign Exchange Instruments – Options Only (page 1)

Cash Manager

SAP ERP

Create Liquidity Forecast

C

Trader Back Office

Next Page

Create Foreign Exchange contract

E

Check limit utilization report

D

Risk Controller

Check Correspondence Monitor

F

Send confirmation email

6

(K03) Treasury and Risk

Management:Foreign

Exchange Instruments –w/o Options

Receive incoming confirmation

Find deal and match deal details

F

Set settlement status

5

Import Market Data

1A

Generate limit utilizations

2

1

© 2014 SAP AG. All rights reserved. 9

(K03) - Treasury and Risk Management:

Foreign Exchange Instruments – Options Only (page 2)

SAP ERP

Trader Back Office Accountant Risk Controller

Previous Page

Next Page

Post to general ledger

9K

2

Calculate or maintain fair value of transaction

7H

Perform key date valuation

8I

Bank initiated payment

Generate payment request

9K

Process payment request

L

Monitor Trade Repository Messages

G

© 2014 SAP AG. All rights reserved. 10

(K03) - Treasury and Risk Management:

Foreign Exchange Instruments – Options Only (page 3)

Previous Page3

Post realized profit and loss

M

SAP ERP

Trader Back Office Accountant Risk Controller

Decide to expire

S

Check subledger positions

O

Check subledger Cash Flow

N

Check Posting Journal

Q

Use Alert Monitor

P

4

Check limit utilization report

D

Decide to exercise option

S

Create FX Spot contract

Run Threshold Calculation

Check Threshold Report

R

Check Transaction Management Collective

Processing Report

S

2

© 2014 SAP AG. All rights reserved. 11

(K03) - Treasury and Risk Management:

Foreign Exchange Instruments – Icon Legends (1)

Transaction Menu Path

TBEX Accounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Money Market

Environment Market Data Spreadsheet

FF7A Accounting Financial Supply Chain Management Cash and Liquidity Management Cash Management Information System

Reports for Cash Management Liquidity Analyses Cash Position

FF7B Accounting Financial Supply Chain Management Cash and Liquidity Management Cash Management Information System

Reports for Cash Management Liquidity Analyses Liquidity Forecast

TBLB Accounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Information System

Reports Risk Settings Limit Management Limit Utilizations Overview: Selection Using All Characteristics

TX.1/TX10/

FTR_CREATE

Accounting Financial Supply Chain Management Treasury and Risk ManagementTransaction Manager Foreign Exchange

Trading

FTR_COMONI Accounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Money Market

Back Office Correspondence Correspondence Monitor

FTR_TARO_MONITOR Accounting Financial Supply Chain Management   Treasury and Risk Management Transaction Manager   Information System 

Reports Regulatory Reporting Trade Repository Reporting Monitor for Trade Repository Objects

TPM60 Accounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Money Market

Accounting Valuation Determine Net Present Values

TPM1 Accounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Money Market

Accounting Valuation Execute Valuation

TXV5 Accounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Foreign Exchange

Back Office Rate Fixing Manual Fixing

TBB1 Accounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Money Market

Accounting Posting Post Flows

F111 Accounting Financial Accounting Banks Outgoings Automatic Payment Payment Requests

TPM18 Accounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Money Market

Accounting Derived Business Transactions Post and Fix

TPM13 Accounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Money Market

Information System Position Trend Position Flow List

TPM12 Accounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Money Market

Information System Position Position List

FTR_ALERT Accounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Money Market

Information System Transaction Alert Monitor

TPM20 Accounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Money Market

Information System Accounting Posting Journal

FTR_THRESHOLD_DISP Accounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Information System

Reports Regulatory Reporting Clearing Threshold Reporting Clearing Threshold Report

FTR_00 Accounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Money Market

Back Office Collective Processing Transaction Management

Icon

© 2014 SAP AG. All rights reserved. 12

(K03) - Treasury and Risk Management:

Foreign Exchange Instruments - Icon Legends (2)

Icon Legend for Batch Jobs Icon Legend for Timer Events / Links

1

2

3

Icon Name

Daily

Period end has been reached

Transaction is mature

Daily reporting

Start here for creation of a FX Spot

contract spawned by a FX Option

Continue with complete sequence (FX

w/o Options page 1) for the FX Spot

contract

4

2

1

Name

TBEX

KLNACHT

TSW2 (RFTXM320)

FTR_IMPORT

FTR_COMONI

FTR_COMONI

TPM60

TPM1

TBB1

F111

TPM18

FTR_THRESHOLD_CALC

FTR_CREATE

FTR_00

Icon