SAP TRM (Treasury

and Risk Management)

Configuration
Table Of Contents
1. ENTERPRISE STRUCTURES........................................................................................................................ 2
1.1 DEFINE COMPANY CODE DATA ................................................................................................................................... 2
1.2 DEFINE PORTFOLIO .................................................................................................................................................... 5
2. DEFINE BUSINESS PARTNER .................................................................................................................... 7
2.1 BUSINESS PARTNER ROLES...................................................................................................................................... 7
2.2 BUSINESS PARTNER ROLE GROUPING .................................................................................................................... 8
2.3 BUSINESS PARTNER ROLE GROUPING .................................................................................................................... 9
3. TRANSACTION MANAGER ...................................................................................................................... 12
3.1 DEFINE PRODUCT TYPES ........................................................................................................................................ 12
3.2 DEFINE TRANSACTION TYPES ................................................................................................................................ 14
3.3 DEFINE FLOW TYPES ............................................................................................................................................... 17
3.4 DEFINE DERIVED FLOWS ....................................................................................................................................... 19
3.5 DEFINE UPDATE TYPE ............................................................................................................................................ 21
3.6 DEFINE CONDITION TYPES ..................................................................................................................................... 23
3.7 ASSIGN GENERAL VALUATION CLASS ..................................................................................................................... 25
4. ACCOUNTING .............................................................................................................................................. 26
4.1 DEFINE VALUATION AREAS ..................................................................................................................................... 26
4.2 DEFINE ACCOUNTING CODES ................................................................................................................................. 27
4.3 ASSIGN ACCOUNTING CODES AND VALUATION AREAS ........................................................................................... 28
4.4 ASSIGN SETTING FOR POSITION MANAGEMENT .................................................................................................. 29
4.5 ASSIGN SETTING FOR POSITION MANAGEMENT .................................................................................................. 31
4.6 ASSIGN POSITION MANAGEMENT PROCEDURE .................................................................................................... 33
4.7 DEFINE ACCOUNT DETERMINATION ....................................................................................................................... 34
5. BASIC ANALYZER SETTING ..................................................................................................................... 37
5.1 AUTOMATIC INTEGRATION OF FINANCIAL OBJECTS IN TRANSACTION MASTER DATA ..................................... 37
5.2 CASH FLOW INDICATOR........................................................................................................................................... 39
6 . CREDIT RISK ANALYZER ........................................................................................................................ 40
6. 1 INTEGRATION LIMIT CHECK IN CFM .................................................................................................................... 40
6. 2 LIMIT MANAGEMENT ............................................................................................................................................. 41
6. 3 DEFINE LIMIT PRODUCT GROUP ........................................................................................................................... 45

[email protected] || www.ambikeya.com || +917746805189

1. Enterprise Structures

This chapter covers the requirements and the customization details of the TRM which includes
the creation of the additional data for the company code setting.

1.1 Define Company Code data

Menu Path IMG Treasury and Risk Management → Transaction

Manager→ General Setting → Organization→ Define
company code additional data

Purpose:-

In this step, we define company code configuration for Treasury and Risk Management
Transaction Code: - SPRO

[email protected] || www.ambikeya.com || +917746805189

[email protected] || www.ambikeya.com || +917746805189
[email protected] || www.ambikeya.com || +917746805189
1.2 Define Portfolio

Menu Path IMG Treasury and Risk Management → Transaction

Manager→ General Setting → Organization→ Define
Portfolio

Purpose:-

In this step, we define company Portfolio configuration for Treasury and Risk Management

[email protected] || www.ambikeya.com || +917746805189

For tsky we have created 3 portfolios as displayed in the below screen shot.

[email protected] || www.ambikeya.com || +917746805189

2. Define Business Partner

2.1 Business Partner Roles

Menu Path SPRO → TRM→ Basic Functions → SAP Business Partner for
Financial Services → General Settings → Business Partner
→ Basic Settings → Business Partner Roles → Define BP
Roles

Purpose:-

Typical business partners are banks, a central treasury department with which financial
transactions are concluded, or a customer who has several accounts at the bank.

[email protected] || www.ambikeya.com || +917746805189

Description and Configuration Values:-

BP Role Name
ZT01 TRM issuer
ZT02 TRM Counterparty
ZT03 TRM Depository Bank
ZT04 TRM Guarantor

2.2 Business Partner Role Grouping

Menu Path SPRO → TRM→ Basic Functions → SAP Business Partner for
Financial Services → General Settings → Business Partner
→ Basic Settings → Business Partner Roles → Define BP
Role Grouping

[email protected] || www.ambikeya.com || +917746805189

2.3 Business Partner Role Grouping

Menu Path SPRO → TRM→ Basic Functions → SAP Business Partner for
Financial Services → General Settings → Business Partner
→ Basic Settings → Business Partner Roles → Define
Number Range and Groupings

[email protected] || www.ambikeya.com || +917746805189

[email protected] || www.ambikeya.com || +917746805189
Description and Configuration Values:-

No. Range
11 004000000 and 004009999
12 004010000 and 004019999
13 004020000 and 004029999
14 004030000 and 004039999

[email protected] || www.ambikeya.com || +917746805189

3. Transaction Manager

3.1 Define Product Types

Menu Path SPRO → Financial Supply chain Management→ TRM→

Money Market→ Define Product Type

Here we will maintain the product types for Instruments.

[email protected] || www.ambikeya.com || +917746805189

Description and Configuration Values:-

No. Range
51A TSKY- Fixed Term Deposit
53A TSKY- NCD
55D TSKY- Short Term Loan
55E TSKY- Long Term Loan
55G TSKY-Bill discounting
55H TSKY- Buyer’s Credit
55Y TSKY-Letter of Credit
55Z TSKY-Bank Guarantee
60C FX: Forward cover vendor
60D FX: Forward cover Loan

[email protected] || www.ambikeya.com || +917746805189

 02A TSKY-Mutual Fund
62A Interest rate swap (IRS)
62B Cross-curr.int.rate swap (CCS)

3.2 Define Transaction Types

Menu Path SPRO → Financial Supply chain Management→ TRM→
Money Market→ Define Transaction Type

[email protected] || www.ambikeya.com || +917746805189

Purpose:-

In this step, we define transaction types which helps to identify the what category of transaction
it is. For ex. Investment in FD, Sale/Borrowing in FD.

[email protected] || www.ambikeya.com || +917746805189

[email protected] || www.ambikeya.com || +917746805189
3.3 Define Flow types

Menu Path SPRO → Financial Supply chain Management→ TRM→

Money Market→ Define Flow Types

Purpose:-
Flows describe various events arising from creation, processing and conclusion of any
business transaction. These also form the basis for updating transactions in FI and Cash
Management

We will assign the Flow types to transaction types as shown in the below screen shot.

[email protected] || www.ambikeya.com || +917746805189

[email protected] || www.ambikeya.com || +917746805189
3.4 Define Derived Flows

Menu Path SPRO → Financial Supply chain Management→ TRM→

Money Market→ Define Flow Types → Derived Flows

[email protected] || www.ambikeya.com || +917746805189

[email protected] || www.ambikeya.com || +917746805189
3.5 Define Update Type

Menu Path SPRO → Financial Supply chain Management→ TRM→

Money Market→ Define Update Types

Purpose: - Update type essentially is a carrier for passing the necessary accounting entry for each
of the flows mapped in a TRM

[email protected] || www.ambikeya.com || +917746805189

[email protected] || www.ambikeya.com || +917746805189
3.6 Define Condition Types

Menu Path SPRO → Financial Supply chain Management→ TRM→

Money Market→ Define Condition Types

Purpose:- It specifies the treatment of the flows based on the parameters ( conditions)

Transaction Code - SPRO

[email protected] || www.ambikeya.com || +917746805189

The same need tobe assigned to Transaction types.

[email protected] || www.ambikeya.com || +917746805189

3.7 Assign General Valuation Class

Menu Path SPRO → Financial Supply chain Management→ TRM→

Money Market→ Assign General Valuation Classes

Here we will assign the General Valuation class with the reference to Company Code, Product type
and Transaction type.

[email protected] || www.ambikeya.com || +917746805189

4. Accounting

4.1 Define Valuation Areas

Menu Path IMG TRM→ General Setting → Accounting →

Organization→ Define Valuation Areas

[email protected] || www.ambikeya.com || +917746805189

4.2 Define Accounting Codes

Menu Path IMG TRM→ General Setting → Accounting →

Organization→ Define Accounting codes

[email protected] || www.ambikeya.com || +917746805189

4.3 Assign Accounting codes and valuation areas

Menu Path IMG TRM→ General Setting → Accounting →

Organization→ Assign Accounting codes and valuation
areas

[email protected] || www.ambikeya.com || +917746805189

4.4 Assign Setting for Position Management

Menu Path IMG TRM→ General Setting → Accounting →

Organization→ Setting for Position Management

[email protected] || www.ambikeya.com || +917746805189

[email protected] || www.ambikeya.com || +917746805189
4.5 Assign Setting for Position Management

Menu Path IMG TRM→ General Setting → Accounting →

Organization→ Setting for Position Management

[email protected] || www.ambikeya.com || +917746805189

[email protected] || www.ambikeya.com || +917746805189
4.6 Assign Position Management Procedure

Menu Path IMG TRM→ General Setting → Accounting →

Organization→ Define Position Management Procedure

[email protected] || www.ambikeya.com || +917746805189

4.7 Define Account determination

Menu Path IMG TRM→ General Setting → Accounting →

Organization→ Define Account determination

Here we will define the account assignment determination for TRM and Financial accounting.

[email protected] || www.ambikeya.com || +917746805189

[email protected] || www.ambikeya.com || +917746805189
[email protected] || www.ambikeya.com || +917746805189
5. Basic Analyzer Setting

5.1 Automatic Integration of Financial Objects in Transaction Master Data

Menu Path IMG TRM→ Basic Analyzer Setting → Automatic

Integration of Financial Objects in Transaction Master Data
→ Money Market

Description and Configuration Values:-

[email protected] || www.ambikeya.com || +917746805189

[email protected] || www.ambikeya.com || +917746805189
5.2 Cash Flow Indicator

Menu Path IMG TRM→ Basic Analyzer Setting → Valuation→ Cash

Flow Indicator → Transaction with flow types → Define
assignment Manually

[email protected] || www.ambikeya.com || +917746805189

6 . Credit Risk Analyzer

6. 1 Integration Limit Check in CFM

Menu Path IMG TRM→ Credit Risk Analyzer→ Integration Limit

Check in CFM

[email protected] || www.ambikeya.com || +917746805189

6. 2 Limit Management

Menu Path IMG TRM→ Credit Risk Analyzer→ Limit Management→

Define Limit Types

Here we have maintained two limit types for Tata sky Specific.

[email protected] || www.ambikeya.com || +917746805189

[email protected] || www.ambikeya.com || +917746805189
[email protected] || www.ambikeya.com || +917746805189
[email protected] || www.ambikeya.com || +917746805189
6. 3 Define Limit Product Group

Menu Path IMG TRM→ Credit Risk Analyzer→ Limit Management→

Define Limit Product Group

[email protected] || www.ambikeya.com || +917746805189

[email protected] || www.ambikeya.com || +917746805189
[email protected] || www.ambikeya.com || +917746805189