Treasury and Risk Management on S/4HANA Central Finance
SAP TRM provides the treasury manager with an instant snapshot of cash effects and enables prompt distribution of cash to the strategic areas and different divisions of the company. At the same time, the manager can acquire cash in times of need from the most competent and inexpensive source. It is an integrated solution that helps in generating cash and simplifying operations. The integrated treasury and cash management process will provide additional benefits to the company’s finance function, leading to more accurate prediction of cash impact on the company.
So, having Treasury and Risk Management on every related system may have some downsides such as being more costly, master data conflicts, in this context, Central Finance offers the possibility to setup TRM on top of a harmonized dataset that’s updated in real – time.
All following TRM applications will be available with Central Finance capabilities :
- Transaction Manager (Money Market, Foreign Exchange, Derivatives, Debt Management, Securities, and Commodities)
- Risk Analyzers (Credit, Market, Portfolio)
- Exposure Management
- Hedge Management
SAP Master Data Governance Relation with Central Finance
SAP MDG is especially used for master data management in companies have lots of GL accounts, customer, vendor data etc. Managing all this data manually obviously needs huge effort to handle.
Central Finance also uses different master data from various source systems, at this point, if this mapping process is performed manually then this would be ineffective to get real – time data. Because of this reason, SAP MDG provides remarkable value for companies which has complex different systems.
Central Finance offers integration to Master Data Governance to access available mapping information there. You can map your different accounting entities (for example, account, profit center, or cost center) in your source systems to one common set of master data in the central system to establish a common central reporting structure.
Licenses to use SAP Central Finance:
- Central Finance –separate license
- SAP Landscape Transformation Replication Server – separate license
- SAP MDG attracts a Separate license. It is not mandatory but it is very much recommended as manual handling of mapping of master data is mammoth work.
Why Does SAP Recommends S/4HANA Central Finance
Most of the big companies prefer simple, agile and reliable financial tools to make decisions right time and this purpose might be difficult to handle due to structure of companies that generally have several systems as SAP or NON – SAP.
As a summary, SAP recommends SAP Central Finance solution for organizations to create value for their partners.