
Foreign Currency Risk Management (1X1)
The foreign currency risk management enables you to gain an overview of the foreign exchange risk that your company is exposed to, as well as the hedging instruments that you used to mitigate that risk. You can review your balance sheet FX risk and determine your net open exposures (FX Risk).
Using the financial transactions provided for this process you can mitigate the FX risks.
The functionality helps you to automate labor-intensive processes, such as confirmation of financial transactions and accounting postings, giving you more time to focus on value-added activities. You can manage operational and accounting. The process includes the products FX spot transactions, FX Forward Transactions, swaps, nondeliverable forwards and FX options.
Key Process Steps Covered
- Create financial transactions
- Execute correspondence
- Execute payments
- Perform period-end valuation
- Fix nondeliverable forward
- Decide to exercise option
- Transfer values to general ledger
- Calculate and post realized profit and loss
- Perform analytical and operational reporting
Benefits
- Review balance sheet
- Determine net open exposure within the Hedge Management Cockpit
- Automate the management of foreign exchange instruments, including creation of financial transactions, confirmation of contract with counterparty, payments, and extensive accounting
- Make better operational and strategic decisions using the comprehensive reporting and analysis tools
- Improve internal operational compliance
Where is Foreign Currency Risk Management(1X1) being used?
This Scope item is used in the following way:
- As a support function of Treasury Management within Finance Scope Item Group
No Process Flow details available for scope item Foreign Currency Risk Management(1X1)-s4h-2021
Ref: Finance of SAP S4H-2021
Best Practices related to S/4HANA
- Best Practices of SAP S/4HANA On Premise *1
- Best Practices of SAP S/4HANA Cloud *2
- Best Practices of SAP Analytics Cloud *2
- Best Practices of Robotics Process Automation(RPA) with SAP Leonardo *2
*2) The Quarterly updates are released per Februari, May, August and November
Details of future releases can be found in the SAP Roadmap section of each product. Go to SAP Roadmap Product Finder.
Knowledge Center Scheer Nederland | The Process Experts Visit also the SAP Cloud ERP knowledge center of Scheer Netherlands. The following topics are covered: