SAP FX Risk

SAP FX Risk: An Overview and Key Considerations

What Is SAP FX Risk?

With SAP FX Risk Management, SAP customers can assess their organization’s exposure to foreign exchange (FX) and evaluate the hedging strategies used to mitigate FX risks. SAP FX Risk Management enables SAP ERP to help organizations monitor their FX exposure, hedge positions, record transactions, and provide alerts, utilizing SAP’s pre-built features. This includes automatically calculating SAP FX risk within the general ledger by recording the net amount of a transaction in the transactional currency.

SAP’s Balance Sheet FX Risk application helps organizations understand FX risks associated with functional and business processes in the Treasury & Risk Management (TRM) module for SAP ERP systems. The Balance Sheet FX Risk tile displays balance sheet FX risk measures absolute exposures, absolute hedges, and absolute net exposures, as well as hedge amount and exposure, and amounts to standardize the company codes in exhibit currency.

Key capabilities include:

Recording of foreign currency balances and transactions in the general ledger
Automating posting of foreign exchange rate fluctuations to relevant accounts
Generating balance sheet reports in different currencies
Keeping up with advanced communication with counterparties through the correspondence system.

Key Considerations for SAPinsiders

SAP FX Risk: An Overview and Key Considerations

What Is SAP FX Risk?

Key capabilities include:

Recording of foreign currency balances and transactions in the general ledger
Automating posting of foreign exchange rate fluctuations to relevant accounts
Generating balance sheet reports in different currencies
Keeping up with advanced communication with counterparties through the correspondence system.

Key Considerations for SAPinsiders

Evaluate partner solutions that can potentially extend the functionality of SAP FX Risk. Many SAP partners, such as Serrala, offer specialized FX risk management solutions that complement the capabilities of SAP ERP. Organizations with unique requirements to manage FX risk and its balance sheet impact, beyond the standard best practices offered by SAP, should leverage the expertise of solutions partners and third-party solution providers to implement FX risk management systems that align to specific business needs.

Consider automation of labor-intensive FX Risk management processes. Organizations can enable their treasury teams to work on higher-value tasks by leveraging SAP’s FX Risk Management to automate manually intensive procedures, such as management of FX instruments, confirmation of financial transactions, payments, and accounting activities.

Leverage SAP FX Risk Management capabilities to improve operational compliance. By automating the transfer of FX exposure values to the general ledger, treasury teams can quickly examine open items and balances in unfamiliar cash of your general ledger accounts. In addition, to make better operational and strategic decisions, organizations can benefit from comprehensive reporting and analysis tools in FX Risk Management for SAP S/4HANA Cloud, such as multi-currency accounting.

Governance, Risk, and Compliance: State of the Market 2022

Reading time: 1 mins

GRC teams are stretched, and their scope of responsibility continues to grow. In traditional areas of GRC, changing business models and regulations are creating new challenges. However, security threats have risen to the top as a driver for GRC strategy. GRC professionals are now tasked with playing a role in security risk assessment and threat…
- SAP Fraud Management
Is Your P2P at Risk for Fraud?

Reading time: 1 min

The impact of fraud on today’s businesses and organizations is staggering. While there can be dozens of potential tip-offs that a fraud scheme may be underway, this whitepaper addresses six of the most common that you should definitely have on your radar screen.
- SAP Data Migration
Reducing Risk, Cost and Complexity for Zurich Insurance

Reading time: 1 mins

To reduce costs and improve efficiency, Zurich Insurance Group embarked on a Finance Transformation Program that involved consolidating 23 legacy SAP systems into a single production instance. As a multi-year, multi-wave program Zurich needed a reusable migration solution and methodology for future waves. Read this case study to learn how Zurich Insurance leveraged automation, rebuilt…
- SAP Low Code Application Development
Using Low-Code to Navigate Cost and Risk, and Innovate Through Economic Uncertainty

February 22, 2023

Retrenchment. Cost-cutting. These are common enterprise reactions to economic uncertainty. But they do not offer a competitive edge when the recovery comes. Smart companies and leaders continue to invest intelligently during uncertain times. And one of the big ways you can leverage technology to support both efficiency and innovation is through low code solutions and…
- SAP Governance Risk and Compliance
- Premium
Why SAP GTS?

Reading time: 6 mins

As businesses expand and offer their products worldwide, trade compliance has become more crucial than ever. At the same time, international trade regulations are becoming more complex as countries formulate stricter regulations. Businesses need to equip themselves with systems and solutions to address and navigate complex global trade compliance rules and requirements accurately and efficiently.…
- SAP CyberSecurity
Secure your SAP environment – Improve Security and Reduce Operational Risks

April 06, 2023

SUSE solutions secure your SAP environment from the source – the platform’s core – to provide solutions built with a secure software supply chain. Along with SAP-specific features and industry-leading certifications, SUSE makes it a top priority to protect you from all security risks, including known and zero-day vulnerabilities.
- SAP Infrastructure
- Premium
How to Add Value and Mitigate Risk for an SAP Implementation

Click Here to View the Session Deck SAP implementation services give organizations the support they need to deploy SAP solutions that allow their company to grow successfully. Adding value and mitigating the risks of the implementation process will be shared in the lessons learned on SAP implementations. View this session deck to: Identify relevant areas...…
- SAP Governance Risk and Compliance
- Premium
Slash SAP Project Cost and Data Risk

Click Here to View the Session Deck Delphix Senior Product Manager Nick Mathison, for an exciting session on balancing data speed and privacy compliance to de-risk and accelerate all SAP projects while slashing cost.... Membership Required You must be a member to access this content.View Membership LevelsAlready a member? Log in here
- SAP Governance Risk and Compliance
- Premium
How Jabil Responds to Key GRC Drivers

Reading time: 4 mins

GRC teams must find more efficient ways to deal with the constantly shifting landscape in which they work. There are an increasing number of security threats, while the move to SAP S/4HANA provides a new set of responsibilities for them to contend with. Additionally, data privacy requirements and regulations are constantly changing across all regions…
- SAP Governance Risk and Compliance
- Premium
Case Study: How to Increase Risk Awareness, Control Adoption and Visibility – The Vestas Journey to Streamline Financial Compliance Processes

Click Here to View the Session Deck. When strengthening your organization’s risk awareness posture, you need to start with a solid internal control framework that can deal with accountability and timeliness issues. Hear how Vestas successfully streamlined their path to compliance. Explore what challenges they faced and how they eventually achieved their vision with controls...…