Optimize treasury (SAP TRM) with transaction manager included in SAP Financial Supply Chain Management

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SAP TRM-TM is a solution for financial instrument management, which allows real-time visibility of your investment, debt, foreign exchange, derivatives, and securities. It is part of SAP TRM (SAP Treasury Risk and Management), a solution that is designed for the automation of treasury and risk management processes.

It is a module included within SAP FSCM (Financial Supply Chain Management) and does not require an additional license, just activate the add-on in the system.

It is sometimes confused with SAP CML (Corporate Mortgage Loans), also called Loans, a sub-module for the banking industry that does have an additional cost in SAP licenses and is designed for a more extensive and complex debt management.

The SAP TRM solution is composed of a set of modules. Given the size and characteristics of the companies in Ibero-America, we have seen that the most used is the “Transaction Manager” module (SAP TRM-TM), which allows the management of different financial instruments of investment, debt, foreign exchange, derivatives, and securities, and which is also known as “extended treasury”:

What are the benefits of SAP TRM-TM for financial instrument management?

This SAP Solution allows:

• Give real-time visibility to the different financial instruments, being able to easily observe the amounts of investment, debt, accounts payable/receivable and related financial entities.
• Integrate investments and debt with core business processes such as accounting, expense/revenue analysis, accounts payable/receivable and treasury.
• Improve efficiency and productivity in treasury areas, automating processes and reducing management costs.
• Avoiding the use of Excel for the management of financial instruments, which implies gaining traceability and auditability, in addition to strengthening processes that capitalize on the organization’s know-how.

This module is useful for companies that manage various financial instruments, both investment and credit, and that wish to integrate this information into their business processes in the ERP. Among the financial instruments that the SAP TRM TM module can manage are:

Money market

• Fixed-term deposit
• Notice deposit
• Pacts
• Overnight
• Time deposit
• Bank loans
• Intercompany loans (asset/liability)
• Bonds
• Credit line
• Guarantee receipt/ticket
• Trade effect
• Simultaneous
• PDBC (Central Bank discount promissory note)

Divisas

• Buy/Sell foreign exchange (Spot)
• Forwards Physical Delivery/Compensation

Derivatives

• Swap CCS
• Swap IRS
• Swap commodities (not often used)

Securities

• Zero coupon bond
• Stock bonus
• Mutual funds
• TRM in SAP S/4HANA

With the arrival of SAP S/4HANA we have seen that the TRM module remains robust with few functional changes and with many applications in FIORI. For us, from a functional point of view, the most relevant aspect in SAP S/4HANA is the integration of TRM information in the new Cash Management, which allows Treasury information to be more complete. For example, this now makes it possible to show in the “Liquidity Forecast” reports all the maturities of loans and investments together with the maturities of payable and receivable accounts.

SAP Fiori is the new web platform where SAP provides a suite of applications for each of its modules. Likewise, for TRM it has a series of applications or APPs of the transactional and reporting type.

The idea is that the user can log in on any device and anywhere with internet and access their Treasury information.

At Novis we have experience implementing the operations manager (SAP TRM-TM) in companies that already had SAP FI-CO. Thanks to this, they were able to enhance the SAP ERP by consolidating financial-accounting information and improving treasury and risk management.

We also have TRM experience in SAP S/4HANA, as our clients have migrated to this application and we have seen that this module remains robust with few functional changes and with several apps that bring reporting and KPIs into the treasurer’s view.

We have also seen that as the business grows, these clients have sought to increase their ways of investing, using new instruments, or adding new forms of communication with financial institutions, for example, by automating the generation of letters or mailings. To support them, as the market generates new investment options, we do the corresponding evolutionary maintenance in their SAP TRM-TM.

Currently, we have a team of consultants with extensive experience in SAP TRM-TM and we provide support and maintenance services to several companies in various industries such as transportation services, government agencies, manufacturing and financial services companies.

Feedback/discussion with the author: Jenny Molina, Novis Assistant Manager of Financial Consulting, jenny.molina@noviscorp.com

For more information about our services, we invite the SAP community to contact us.