Describing Market Data for Treasury and Risk Management (1XN)

With this process, you can manually enter the relevant market data or import market data from spreadsheets needed for the processes in Treasury and Risk Management.

This scope items helps you to provide current market data by either entering information manually or by importing data from a spreadsheet.

In addition to the market data types listed in the figure, Market Data Types for Manual Input, you can also assign attributes to an evaluation type, create reference entities for business partners, or maintain reference entities.

Use the Enter FX Spot Rates app to enter exchange rates that apply from a specified date (valid from).

When you post and clear documents, the system uses the exchange rates defined for rate type M to translate the currencies. There must be an entry in the system for this rate type.

The exchange rates apply for all company codes.

You can make new entries and/or delete existing entries. To do this, you can use the following input help functions: Copy As, Undo Change, and Position. The system displays the currency translation ratios.

It is also possible to use the Copy As function to copy an existing entry so that you only have to enter the Valid From date and the new exchange rate.

Use the Enter Swap Rates app to enter foreign exchange swap rates that apply from a specified date (Effective From field).

These entries can be proposed as default values when you enter a forward transaction. In addition, the system uses the swap rates defined here when you carry out a key date valuation for forward transactions.

When you post and clear documents, the system uses the exchange rates defined for rate type M to translate the currencies. There must be an entry in the system for this rate type.

The exchange rates apply for all company codes.

You can make new entries and/or delete existing entries. To do this, you can use the following input help functions: Copy As, Undo Change, and Position.

The system displays the currency translation ratios.

To enter interest rates manually, use the Enter Interest Rates app. The interest rates area is used when you, for example, determine a variable interest rate that is linked to one of these reference interest rates.

You can create new entries or change/delete existing entries. To do this, you can use the following input help functions: Copy As, Undo Change, and Position.

Make sure you have defined the reference interest rates in the app Manage Your Solution under Define Reference Interest Rates before starting to enter rates.

Volatility is a measure of risk that describes the extent to which a price parameter fluctuates over a particular time period, and as a result both the positive and negative deviation of market parameters from their expected value.

You can set a new value with the tile Enter Exchange Rate Volatilities.

Use the Enter Credit Spread app to enter credit spread values manually in the market data tables.

A credit spread value always relates to a reference entity, a credit spread ID, a quotation type, and a rate date.

Therefore, make sure that you have created reference entities.

Enter price information for your securities with the Enter Security Prices tile. It is possible to set the price date, the price type, and the rate.

The Enter Factor Values app helps you to assign a factor value per security class and factor type. You can also import the market data by a file upload.

Open the Import Market Data app. The Import Market Data screen displays.

Two new options have been added. The value 02 – Security Prices and 41 – Security Factors are now available for import.

Choose Download Template on the bottom right of the screen. The Download Template dialog displays several different upload categories.

There is the option to download with master data or without. If you choose without master data you will get an empty spreadsheet only containing the header info. Otherwise you download all information from the currency table of the SAP S/4HANA Cloud system.

Fill the spreadsheet with your currency data according to the header information needed.

From the overview, you see that in this case the download with master data was used. In this example, only the first two items are new and will be uploaded.

After picking your upload file for the upload, the system will give you an overview of the exchange rate validation.

You can display the exchange rate line according to their status. Here, the two lines are shown that were added to the sheet previously.

Select the Manage Your Solution app in order to get to the Configuration screen.

The task Configure Your Solution enables you to maintain certain processes.

Use the Self-Service Configuration User Interface to work on the task Define Reference Interest Rates. In this activity, you set up reference interest rates by configuring their attributes. You enter the concrete values of the reference interest rates under Enter Interest Rates.

When you create a new reference interest rate using New Entries, the detail screen appears immediately.

Define a reference interest rate as follows:

1. Enter a name for the reference interest rate. The name must not contain any spaces.

2. Enter a payment frequency and a compounding frequency.

3. In the Name of Reference Interest Rate area, enter a description (short text) and a long text for the reference interest rate.

4. In the Properties of Reference Interest Rate area, give the info on currency, interest calculation method, term, and time unit.