Risk Analyzers

In this article, I want to give a very brief outline on the Risk Analyzers and show the steps for configuring the credit risk and market risk analyzers and a very short one on the portfolio analyzer. I need to stress that I left SAP consulting quite sometime back to pursue other things and hence, this article will have its shortcomings. As usual, I hope that at least one person find this article helpful.

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Partly Paid Shares

In this, I make an attempt to explain / show the configuration required for recording of subsequent payments in case of partly paid shares.

Below, I show it through the creation of a new update type for the ‘part payment condition’ for partly paid shares which increases the value but not the quantity.

However, in sample customizing from SAP, an update type ‘SAM1002’ is already created and assigned to condition ‘Additional payment’ which can be used for partly paid shares. However, the ‘effect of update type on position component’ might be missing. In this case, the only thing to be done is to assign the ‘position change category’ 1011 to update type SAM1002 (step 9 below) and there is no need to create a new update type and all.

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Futures–Valuation of a Position in a Foreign Currency

In this, I try to make an attempt to explain the valuation logic for futures in SAP where the position currency is different from the valuation currency (read…..Local Currency). I am not sure whether I will succeed. But anyway here it goes….I must add here that the best book to learn SAP Treasury in my opinion is ‘SAP Treasury and Risk Management’ from SAP Press by ‘Jarre, Lovenich, Martin, Muller’. The book more importantly explains the ‘Why’, which in my opinion is what a lot of people ignore and instead try to learn and master only the ‘How’, which I think is fine when you consider that ‘In the land of the blind, the one-eyed man is king’. (Note: In some of the notes below, I have used phrases / sentences from the above mentioned book)

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SAP Process–Index Futures, Repo…….

In this, the following process are covered: Index Futures, Repos with Collateral Transfer, Interest Rate Swap, Forward Rate Adjustment (FRA) and OTC Forex European Currency option cycle where settlement is ‘Physical Exercise’

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SAP Process–Dividends, Interest on Bonds


This covers Dividends on Shares and Interest on Bonds including accrual of Bonds Interest.

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SAP Process–Corporate Actions

In these series, I try to cover the various process in SAP Treasury for recording of various Financial Instruments and its associated activities.

First it will have the process map and then the detailed process step instructions and finally a recording of the process being carried out in SAP.

As usual, I again hope that these might be useful to at least one person.

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SAP Exposure Management 2.0

In this article I try to show the new Exposure Management module – 2.0, which has been introduced in EHP4 by SAP. Please note that I have not done any actual implementation for any customer on this new Exposure management module 2.0. Whatever I am putting here is based on my notes, workings etc. during my learning. Please also note that Exposure Management 1.0 will still be available even after applying EHP4. Detailed write-up on Exposure Management 1 can be seen on the ‘GRC Expert’ article written by me. The link is GRC Article

Posted in SAP Treasury | Tagged | 8 Comments

Hedge Management

Below I try to explain the basic principles in Hedge Accounting and the process in SAP. Please note that Hedge Accounting and Financial Instruments under IFRS are undergoing changes including replacement of IAS39 and changes to Hedge Accounting and Disclosure requirements. Hence, this write-up may be read in this context. For further information on the changes and the timetable for implementation of these changes, please look up the IASB website. The work plan for IFRS can be found at the following link – IFRS Work Plan

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Concept of Asset Posting in SAP when Parallel Ledgers are implemented

In this I try to explain the concept in SAP for the Asset postings when parallel ledgers are implemented. Hope it is helpful to someone at least. I have made this into a YouTube video which can be viewed in the blog itself. You can select from the control the 720p HD format to view it in full screen.

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How to Upload Foreign Exchange Rates, Reference Interest Rates, Securities Prices into SAP using Excel

With this I am starting to put on blog the little I know about SAP especially the SAP Treasury module. I shall not always be putting detailed documents like the one below. I shall be happy if one person finds the information useful.
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Posted in SAP Treasury | 10 Comments