September 2011

An Introduction to

SAP Treasury Applications

Managing Treasury Today
Global Treasury Survey 2010 conducted by PWC
Top Priorities are Liquidity and Cash Forecasting
2009 global survey of treasury professionals conducted by Deloitte
SAP AG 2009. All rights reserved. / Page 4
Treasury applications from SAP
SAP Treasury and Risk Management
Risk Analyzers
Transaction Manager

Money
Market
Foreign
Exchange
Secu-
rities
Com-
modities
Deri-
vatives
Debt
Mgmt
Manage Global
Financial Risks
Optimize Debt and
Investment Strategies
Manage Cash
and Liquidity
SAP Cash and Liquidity Management
Cash Management Liquidity Planning
Optimize Payments and
Bank Communication
SAP In-House Cash
SAP Bank Communication Management
Exposure Management Hedge Management
Credit Risk Analyzer Market Risk Analyzer Portfolio Analyzer
Treasury Applications from SAP
Financial Excellence
What business areas are covered by which SAP Treasury applications ?
S
A
P

T
M

S
A
P

M
R
A

S
A
P

C
R
A

S
A
P

P
A

S
A
P

C
M

S
A
P

L
A

C
o
n
c
e
p
t

S
A
P

I
H
C

S
A
P

B
C
M

FX management
IR management
Derivatives
Commodities
Asset Management
Hedge accounting
Accounting of financial instruments
Payment, SEPA, confirmations
Market Risk Management
Counterparty exposure
Performance measurement
What business areas are covered by which SAP Treasury applications ?
S
A
P

T
M

S
A
P

M
R
A

S
A
P

C
R
A

S
A
P

P
A

S
A
P

C
M

S
A
P

L
A

C
o
n
c
e
p
t

S
A
P

I
H
C

S
A
P

B
C
M

Cash position
Short term liquidity forecast
Medium term liquidity forecast
Long term liquidity forecast
Follow up on liquidity forecast
Netting
Payment factory
Cash pools
Bank connectivity
SEPA
Examples of the corporate customers have solutions within
the SAP Treasury solution suite
2
4
5
Cash Management
Bank Communication
Management
Liquidity Forecast
Internal Banking
Risk Analyzers
6
Treasury Management
3
The SAP Treasury Solution Suite
1
September 2011

An Introduction to

SAP Treasury Applications

THANK YOU
SAP AG 2009. All rights reserved. / Page 10
Cash and Liquidity Management Decisions Are Based on
Bank
accounts
In-House
cash banks
Bank
clearing
accounts
Payments
in transit
Treasury
Deals
Memo
records
Intra-day
bank
statements

Customer/Vendor-
open items
Blocked items
Down payment
requests ...
Disputes Earmarked
funds
Real estate

Purchase
requisitions
Purchase orders
Sales orders

Logistics Financials Industry
Solutions
Financials
Non-
SAP
Non-
SAP
Non-
SAP
Cash Position Liquidity Forecast
SAP Cash and Liquidity Management
Functions
2
4
5
Cash Management
Bank Communication
Management
Liquidity Forecast
Internal Banking
Risk Analyzers
6
Treasury Management
3
The SAP Treasury Solution Suite
1
Extraction
Reporting
Entry of planning
data in SAP
NetWeaver BI
Posting information
(debtor/creditor and G/L
account) from SAP FI
Entry of account
statements in SAP FI
Automatic
assignment
mechanisms
Result of
assignment
satisfying
Result
logs
Assign actual-
document to liquidity
item
yes
no
Post-
process
parameter
Actual Data
SAP Net
Weaver BI
Liquidity
Analysis
SAP Liquidity Planner
Functionality of Liquidity Analysis
One important thing to decide is what tool to use for liquidity planning SAPs
suggested architecture is shown here:
* Other third party tools can be used as well for planning on top
of SAP
Liquidity Planner
Data Entry via browser
Cash flows forecasted in invoice currency requires good data model
Cash flows aggregated while keeping the drill down functions
Different automatic planning functions included
2
4
5
Cash Management
Bank Communication
Management
Liquidity Forecast
Internal Banking
Risk Analyzers
6
Treasury Management
3
The SAP Treasury Solution Suite
1
Payment handling
AS-IS situation for many corporates
External Bank
External
Bank
Region 1
Region 2
. . . with a high volume of internal and external payment transactions
Various and ever-changing multi-national corporate group structures . . .
Subsidiary
Subsidiary
Subsidiary
USA
Subsidiary
Subsidiary
Asia
Subsidiary
Head office
(Europe)
SAP In House Cash
What is it
The SAP In-House Cash application allows to optimize their payment
transactions by opening an in-house bank.
The In-House Cash Center is a virtual bank within the corporate group,
with which each associated company has one account or more.
The In-House Cash Center is used to process all payments between
company units, thus keeping cash resources within the group and
optimizing how they are applied.
The SAP in-House Cash application allows to minimize the actual flow
of cash and therefore reduce bank charges, interest expenses, and
losses resulting from delays in value-dating payments.
By managing accounts centrally, you can assure your companys ability to
pay, minimize interest expenses, and maximize interest revenues.
Payment handling
TO-BE situation based on SAP IHC based payment processes

Process 1: Internal payments
Process 2: Central external payments
Process 3: Central incoming payments
Process 4: Cross bank area payments
Process 5: Central external payments via local SAP FI
Process 6: Zero balancing postings to the IHB

SAP AG 2009. All rights reserved.
Corporate Group
SAP In-House-Bank (IHB) Payment Processes
Process 1: Internal Netting
Subsidiary 2
Subsidiary 1
Subsidiary 3
1
Pmnt Program OP
2a
2b
Head Office
In-House
Cash Center

Account
management
Financial
Accounting


2
4
5
Cash Management
Bank Communication
Management
Liquidity Forecast
Internal Banking
Risk Analyzers
6
Treasury Management
3
The SAP Treasury Solution Suite
1
A BCM solution can be setup with and without a payment factory (internal bank)
as an in between step for processing payments
The payment process in SAP will be fully integrated with the Payment Monitor
from SAP BCM securing full visibility of the payment lifecycle
2
4
5
Cash Management
Bank Communication
Management
Liquidity Forecast
Internal Banking
Risk Analyzers
6
Treasury Management
3
The SAP Treasury Solution Suite
1
Managing Treasury and Risk Management at a glance
Credit Risk Analyzer

Utilization: Formulas, Credit
risk, Settlement risk
Limit management:
Limits freely definable,
Multidimensional limits

Market Risk Analyzer

Price calculator: NPV, Prices,
Sensitivities
Value at risk: Variance/covariance,
Historic, Monte Carlo Simulation
Simulate rates: What-if scenario,
Relative, Absolute



Portfolio Analyzer

Yield calculations:
Money weighted,
Time weighted,
Modified Dietz method
Benchmarking:
Performance Indicators
xxxxxxxxxxxxxxxxxxxxxxxx


Front office: Position and deal reporting, Deal capture, Exercise, Dealer slip, Valuation tools,
Online limit check
Back office: Standing instructions, Correspondence Monitor, Netting, Settlement, Rate fixing
(interest, FX), References, Corporate actions, Process monitors
Accounting: Flexible accounting determination, Accounting according to many international
accounting standards
Spot
Forward
Swaps
Options
Futures
Foreign
Exchange
Bonds
Bank loans
Commercial
Paper
Facilities
Debt Mgmt Securities
Bonds
Warrants
Stocks
Certificates
Repo
Sec. lending
Derivatives
Cap
Floor
FRA
Swaps
Options
Futures
Money
Market
Fixed term
deposits
Commercial
Paper
Repo
Commodities
Futures
Forwards
Traded Options
Swaps
OTC-Options
Transaction Manager
Hedge Management Exposure Management
Centralized Database to gather group and
version data and transfer to Hedge Management
Administration of hedge plans, exposures, hedge
items and hedging relationships
Risk Analyzers
Reporting tools:
SAP Query, ABAP List, Other
3
rd
-party providers, BI,
Business Objects Dashboards
and Xcelsius
Middle office:
Risk exposure, Controlling,
Compliance
Management reports:
Positions, Performance, Ratios,
Compliance
Ad-hoc reporting:
Point & click, Unified
databases, Position, P&L,
Period, Cash Flow
Results database:
Portfolio Hierarchy, Drill-down,
Historic results
Data export:
Excel, Flat files, BI
Reporting
2
4
5
Cash Management
Bank Communication
Management
Liquidity Forecast
Internal Banking
Risk Analyzers
6
Treasury Management
3
The SAP Treasury Solution Suite
1
Transaction
Manager
Business-
partner
Money Market
Securities
Derivatives
Forex
Commodities
REPORTING:
Externally
maintained
transactions
General Ledger
Integration
Cash
Managem.
Analyzers
Market Risk
Analyzer
Portfolio
Analyzer
Credit Risk
Analyzer
Market Data
FX Rates
Yield Curves
Indices
Volatilities
SAP Modules in Treasury Analyzers
2
4
5
Cash Management
Bank Communication
Management
Liquidity Forecast
Internal Banking
Risk Analyzers
6
Treasury Management
3
The SAP Treasury Solution Suite
1
September 2011

An Introduction to

SAP Treasury Applications

THANK YOU