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?
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
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.
411 results
-
Premium
Impact20: Next Gen SAP Risk Management – Modernizing and Automating your Control Performance and Monitoring
Click Here to View the Session Deck. Post COVID and in current geopolitical climate, I see companies still struggling with labor shortages, supply chain disruptions and high transportation costs. On the other hand, new technology and real time systems integration lead to virtually instant transition execution and processing across different organizations and technology platforms. If...…
-
Opportunities and Risks of SAP Workloads in the Cloud
Protiviti’s Don Loden and John Livingood speak with SAPinsider on how SAP customers can find a balance between cloud’s innovation opportunities while managing cloud’s risks.
-
Save Costs At Your Own Risk
Our CEO Peter Wohlfarth explains why automating SAP data transfer is worth the investment, and how doing this process manually exposes your company to risk.
-
- Premium
How to Build a Resilient, Sustainable Supply Chain: Keys to Managing Risk and Enhance Compliance
Click Here to View the Session Deck. Spurred on by growing geopolitical conflict, intensifying cross-border enforcement, and a deteriorating climate picture, governments around the world are increasingly embedding mandatory transparency and sustainability rules into business regulations. The end goals include building a sustainable economy and society; protecting and revitalizing the global climate; removing denied parties...…
-
Extend SAP GRC Functionality to SAP Cloud & Non-SAP Applications
Assess your financial exposure, streamline GRC processes, and reduce governance costs with SAP Access Violation Management by Pathlock.
-
EY Mobility Pathway
Your employees need to travel tomorrow. Your systems need to adapt today. Global organizations invest significant resources in getting the right people in place, at the right time, all over the world.
-
How Customers are Saving 3,600 Hours a Year Automating their SAP® Depreciation Process
Trintech is helping organizations streamline their period-end close process by using innovative, disruptive technologies to automate close tasks within their ERP(s) such as SAP ECC, S/4HANA, Oracle EBS, saving time.
-
Finding the Missing Link for Continuous Compliance with Pathlock
In the past, SAP organizations relied on older identity access governance solutions across the application landscape. These solutions helped manage users, providing access to approved members of the organizations and recertifying those already in the system. Yet these point solutions can no longer keep pace with a rapidly evolving digital world and the need for…
-
Six ways to increase value and reduce risk from external talent and services
As companies face tight labor markets and skills shortages, they increasingly rely on external talent, with many organizations spending 5-15% of their workforce budget on contingent workers to enhance flexibility and competitiveness. Membership Required You must be a member to access this content.View Membership LevelsAlready a member? Log in here
-
LTIMindtree Launches ‘AI-Smart Underwriter’ Solution Powered by ServiceNow
LTIMindtree, in partnership with ServiceNow, has launched the AI-Smart Underwriter solution to enhance insurance underwriting by automating processes and providing data-driven insights, aiming to improve efficiency and profitability in the insurance industry.
Your request has been successfully sent