C_S4FTR_2023 SAP Certified Associate - SAP S/4HANA Cloud Private Edition, Treasury Questions and Answers

The required configuration step when implementing self-initiated payments (SIP) in thebank account ledger is assign account symbol to payment methods. Self-initiated payments (SIP) are payments that are initiated by users directly in Bank Account Management without reference to an underlying transaction. The bank account ledger is a function that allows you to manage bank accounts and their attributes in SAP S/4HANA by using a subledger approach. The required configuration step when implementing self-initiated payments (SIP) in the bank account ledger is assign account symbol to payment methods, which allows you to link a payment method with an account symbol that represents a G/L account or a bank subaccount in the bank account ledger.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/f22248cc13f74872af15bd2eca741110.html

The use cases where a query sequence is required to derive liquidity items are: To derive liquidity items from G/L accounts, which means that the system uses the G/L account number and other criteria to assign a liquidity item to an accounting document. To derive liquidity items from the incoming bank statements, which means that the system uses the bank statement item type and other criteria to assign a liquidity item to a bank statement item. To derive liquidity items from various fields of the accounting document, which means that the system uses the fields such as business partner role, posting key, or document type to assign a liquidity item to an accounting document.Verified References: Query Sequence Overview, [Query Sequence Configuration Guide]

You can perform the task of automatically allocating funds from the global headquarters level down to the lower level subsidiaries in your planning sheet on SAP Analytics Cloud by using the allocating funds function. Allocating funds is a function that allows you to distribute amounts from a parent node to its child nodes based on predefined rules or ratios. You can use this function to allocate funds across different dimensions, such as company, currency, or account.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The Take Snapshot Balance Sheet FX Risk SAP Fiori app is used to capture the data for FX balance sheet hedging. The data that is captured with this app includes balance sheet exposures and market data. The balance sheet exposures are the open items that are exposed to foreign currency risk. The market data are the exchange rates that are used to value the exposures and calculate the FX gains or losses.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

You initiate the review process for bank accounts in the Review Bank Accounts app, where you can select the bank accounts that need to be reviewed and send them to the approvers. The approvers can then use the My Sent Requests - For Bank Accounts app to approve or reject the review requests. Verified References: Review Bank Accounts, My Sent Requests - For Bank Accounts

Payment requests are always grouped by payment currency in the collector of SAP Bank Communication Management, regardless of configuration. The payment currency is the currency in which the payment is made to the payee. The collector groups payment requests by payment currency to facilitate the creation of payment batches and payment media.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The cash pool type that is supported using the Manage Cash Pools SAP Fiori app is physical. A cash pool is a function that allows you to group bank accounts for cash concentration and optimize liquidity management. A physical cash pool is a type of cash pool that involves actual movement of funds between bank accounts, such as zero balancing or target balancing. You can use the Manage Cash Pools SAP Fiori app to create and maintain physical cash pools and their attributes, such as cash pool type, currency, or participating bank accounts.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/f22248cc13f74872af15bd2eca741110.html

You can apply pre converted currency data to the Actuals category for liquidity planning in SAP Analytics Cloud. This category represents the actual cash flows that have occurred in the past. You can use this data to compare with other categories, such as Forecast, Budget, or Planning, which represent the expected or planned cash flows for the future. Verified References: Liquidity Planning in SAP Analytics Cloud, Pre Converted Currency Data

You can use SAP Cash Application to improve the clearing automation for incoming payments. SAP Cash Application is a cloud-based service that uses machine learning to match incoming bank statement items with open receivables. It learns from past manual clearing actions and applies intelligent algorithms to propose matches with high accuracy. It also provides explanations for the proposed matches and allows users to confirm or reject them.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The market data that you can use to create scenarios in Market Risk Analyzer are security prices and yield curves. Market Risk Analyzer is a submodule of Financial Risk Management that allows you to perform market risk analysis for financial transactions and positions based on various scenarios and key figures. A scenario is a set of assumptions about future market conditions that affect the valuation of financial transactions and positions. The market data that you can use to create scenarios in Market Risk Analyzer are security prices, which define the market prices of securities; and yield curves, which define the relationship between interest rates and maturities of debt instruments.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The configuration steps that you must do to activate the single transaction check functionality are configure the automatic financial object integration, activate the integrated default risk limit check, and define at least one single-transaction-check product. The single transaction check functionality is a feature of Credit Risk Analyzer that allows you to check whether a financial transaction exceeds the predefined credit limit for a business partner before posting it. The configuration steps that you must do to activate the single transaction check functionality are configure the automatic financial object integration, which allows you to integrate financial transactions from source applications such as Treasury and Risk Management or Financial Accounting; activate the integrated default risk limit check, which allows you to perform online limit checks for financial transactions based on various criteria, such as rating, country, or industry; and define at least one single-transaction-check product, which defines the characteristics and settings for single transaction checks, such as product type, risk category, or limit type.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/f22248cc13f74872af15bd2eca741110.html

The product types that are part of the Money Market submodule are commercial paper, current account-style instrument, and cash flow transaction. Money Market is a submodule of Transaction Manager that allows you to manage short-term financial transactions and positions with various instruments, such as deposits, loans, or commercial papers. The product types that are part of the Money Market submodule are commercial paper, which is a short-term debt instrument issued by corporations or banks; current account-style instrument, which is a deposit or loan instrument with variable interest rates and flexible repayment terms; and cash flow transaction, which is a generic instrument that allows you to enter any cash flow data without reference to an underlying transaction.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The new interest calculation types with the parallel interest conditions that are used to replace LIBOR with one of the risk-free rates (RFRs) are lookback interest calculation and average compound interest calculation. Lookback interest calculation is a method thatuses a fixed number of days as an offset between the interest period and the observation period for the RFRs. Average compound interest calculation is a method that uses a compounded average of the daily RFRs over the observation period to calculate the interest amount.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The type of risk that can be tracked by using Credit Risk Analyzer is settlement risk. Settlement risk is the risk that one party will fail to deliver the terms of a contract with another party at the time of settlement. Credit Risk Analyzer is a submodule of Financial Risk Management that allows you to manage credit risk for financial transactions and business partners. You can use Credit Risk Analyzer to track settlement risk by using online limit check or monitor risk exposure functions.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The financial account types that require rate type CLOSING when using currency conversion in a planning model are assets (AST) and liabilities (LEQ). A financial account type is a parameter that defines the nature of a financial transaction or position in the planning model, such as assets, liabilities, income, or expense. A rate type is a parameter that defines the exchange rate type that is used for currency conversion in the planning model, such as average rate or closing rate. The financial account types that require rate type CLOSING for currency conversion are assets (AST) and liabilities (LEQ), which represent balance sheet items that are converted at the closing rate of the period. References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The standing instructions for the counterparty role for a business partner include the partner bank item. The partner bank is the bank account of the counterparty that is used for settlement of financial transactions. The standing instructions define the default values and rules for processing financial transactions with a counterparty.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The position is the basis for valuation flows when working with security transactions. The position is the quantity of securities that are held in a portfolio at a given point in time. The valuation flows are the cash flows that are generated by valuing the position based on market data and valuation rules.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

Counterparty risk is one of the types of risk that can be analyzed using Credit Risk Analyzer. Counterparty risk describes the risk that a counterparty does not fulfill their contractual agreements, either partially or fully. Counterparty risk can be subdivided into credit risk and settlement risk. Credit risk is the risk that a counterparty defaults on their obligations before maturity. Settlement risk is the risk that a counterparty defaults on their obligations at maturity.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The settings that you need to specify for currency conversion when building a planning model in SAP Analytics Cloud are default currency and currency dimension. Default currency is a setting that defines the currency in which the model data is stored and displayed by default. Currency dimension is a setting that defines the dimension that contains the currency information for each record in the model. You can use these settings to enable currency conversion for your planning model and display the data in different currencies based on exchange rates.References:https://help.sap.com/viewer/00f68c2e08b941f081002fd3691d86a7/release/en-US/f22248cc13f74872af15bd2eca741110.html

The planned record update strategies that are available for variable interest rate security instruments are update with configured interest rate and zero update, assign 0. A planned record update strategy is a setting that determines the value to be used for displaying the variable interest rate flows that have not yet been adjusted in the cash flow. A variable interest rate security instrument is a type of security instrument that has an interest rate that changes periodically based on an underlying reference rate, such as LIBOR or SOFR. The planned record update strategies that are available for variable interest rate security instruments are update with configured interest rate, which uses a predefined interest rate for displaying variable interest rate flows; and zero update, assign 0, which assigns zero value for displaying variable interest rate flows.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/f22248cc13f74872af15bd2eca741110.html

The benefits that you can achieve when you use the results database for Market Risk Analyzer are: Separate the calculation of key figures from reporting, which means that you can store the calculated key figures in the results database and use them for reporting without recalculating them. Combine sensitivity per basis point and net present value in one report, which means that you can display both key figures in the same report and analyze the impact of interest rate changes on the market value of your portfolio.Verified References: [Results Database Overview], [Results Database Configuration Guide]