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

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

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 specify the requirement for automatic settlement on counter confirmation at the level of forex attributes when configuring a new foreign exchange product. Forex attributes are the attributes that define the characteristics and behavior of a foreign exchange product. One of the forex attributes is the settlement type, which determines whether the settlement is manual or automatic and whether it requires counter confirmation or not. References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

Some factors to consider when creating a house bank for your company code are the house bank name and the account ID. The house bank name can be freely defined and does not have to match the name of the bank. The account ID is a unique identifier for each account at a house bank and is used for posting and clearing transactions.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

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 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 account dimension in your liquidity planning model is liquidity item. A liquidity planning model is a function that allows you to create and maintain liquidity plans based on various data sources, such as Financial Accounting, Management Accounting, or Treasury. A liquidity item is a parameter that represents an account dimension in the liquidity planning model. A liquidity item defines how cash flows are classified andaggregated in the liquidity plan according to various criteria, such as cash flow type, currency, or bank account.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

Under IFRS, the effective portion of the gain or loss on a cash flow hedge is recognized in other comprehensive income (OCI). This is done to match the timing of the recognition of the gain or loss on the hedged item, which is also recognized in OCI. The non-effective portion of the gain or loss on the hedging instrument is recognized in profit or loss.

For fair value hedges, the entire change in fair value of the hedging instrument is recognized in profit or loss. This is because the hedged item is also recognized at fair value in profit or loss.

SAP Bank Communication Management with payment approval allows you to create and approve payment batches, merge payments into a single file, and send them to banks via SAP Multi-Bank Connectivity. The payment medium is created after the payment merge execution step, which combines payments from different sources into one file per bank and format.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 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 Transaction Manager flows that can be linked through netting are two foreign exchange flows and one money market flow, three derivative flows and one security flow, and two or more money market transaction flows. Netting is a process that allows you to offset the payment obligations between two or more business partners and reduce the number of payments. Netting can be applied to transactions that have the same payment date, currency, and bank details.Verified References: Netting Overview, Netting Configuration Guide

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

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 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

You can maintain the minimum transfer amount for the cash pools in the Manage Cash Concentration SAP Fiori app. The minimum transfer amount is a parameter that defines the minimum amount that can be transferred between bank accounts within a cash pool. The Manage Cash Concentration app allows you to create and maintain cash pools and their parameters, such as target balance, transfer frequency, and minimum transferamount.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en- US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

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 functions that are performed in Credit Risk Analyzer are online limit check and monitor risk exposure. Credit Risk Analyzer is a submodule of Financial Risk Management that allows you to manage credit risk for financial transactions and business partners. The functions that are performed in Credit Risk Analyzer are online limit check, which allows you to check whether a financial transaction or position exceeds the predefined credit limit for a business partner; and monitor risk exposure, which allows you to analyze and report the credit risk exposure for financial transactions and business partners based on various criteria, such as rating, country, or industry.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The elements that control account determination for Transaction Manager deals are update type, condition type, and account assignment reference. Update type defines the business meaning of a cash flow, such as principal payment, interest payment, or valuation result. Condition type defines the calculation rule for a cash flow, such as fixed rate, variable rate, or exchange rate. Account assignment reference defines the account assignment objects for a cash flow, such as company code, business area, or profit center.Verified References: [Account Determination Overview], [Account Determination Configuration Guide]

The product categories that can activate parallel interest conditions for using the SOFR risk-free rate (RFR) are 040 - Bonds and 550 - Interest Rate Instrument. SOFR is one of the alternative risk-free rates (RFRs) that are replacing LIBOR as a benchmark interest rate for financial transactions. Parallel interest conditions are interest conditions that use different interest calculation methods or interest rates for the same financial transaction. You can activate parallel interest conditions for product categories 040 - Bonds and 550 - Interest Rate Instrument by using parallel shifts of yield curves or lookback interest calculation methods.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html