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Before we decided to develop an SAP Cloud Platform application to help improve the trading and foreign exchange (FX) risk management experience for treasury departments, the following steps had to be taken to hedge your FX risk:

  1. Decide on an FX hedging policy and define the hedging area
  2. Identify and analyze the overall net open exposure amount of the company
  3. Trade the amount that is to be hedged based on the definition of the hedging area on an external trading platform
  4. Recreate the completed FX transaction that was carried out on the trading platform in the SAP S/4HANA system

And recreating the FX transaction traded on the external trading platform might also have included either manual efforts or additional project efforts due to implementation and mapping in an interface.

Now this has become a thing of the past with the general availability of the treasury management integration for trading platforms application. We have worked hard to develop this process to reduce the time-consuming manual effort that you need to expend when carrying out FX risk management processes.

Set Up and Configuration

Once you have set up the connection of the application with your SAP S/4HANA system and have configured the treasury management integration for trading platforms application, FX transactions that were traded on an external marketplace are now automatically transferred to your SAP system, thus reducing the number of manual process steps that you have to carry out.

Let’s take a quick look at what needs to be done to get the application up and running:

  1. Get an SAP Cloud Platform consumer account and configure destinations
  2. Install and configure the Cloud Connector (if SAP S/4HANA) or establish a communication arrangement (if SAP S/4HANA Cloud)
  3. Create the RFC destination (if SAP S/4HANA)
  4. Configure mapping in treasury management integration for trading platforms

As a user, you’re now all set to leverage the benefits of this application!

After the initial set up and configuration is done, the automatic transfer of the FX transactions to the SAP system happens behind the scenes. The net open exposure amount is updated in real-time in your SAP system once the application has sent the FX transaction information back.

Outlook

This initial release of the treasury management integration for trading platforms application was an important milestone for us. However, it is far from the end of the story – it’s the beginning of a great journey! We’re continuously working on enhancing the application and improving the user experience.

In the future, it is planned to trigger the trading process from within the SAP S/4HANA system. The user will be able to request an FX transaction to hedge their net open exposure amount. This request is then passed to the treasury management integration for trading platforms application for further processing before it is sent to the external trading platform.

So keep your eyes open for new release announcements.

Want to know more?

To get detailed insights on the treasury management integration for trading platforms application, just visit the SAP Help Portal.

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