The debt and investment management process helps you to secure short-term liquidity at the best interest rates, and manage your medium- to long-term debt and investments optimally. The functionality helps you to automate labor-intensive processes, such as confirmation of financial transactions and accounting postings, giving you more time to focus on value-added activities.
You can manage operational and accounting requirements. The process includes the products fixed-interest investments and borrowing, variable-interest investments and borrowing, commercial paper purchase and issue, deposit at notice and facilities.
Business benefits of the Debt and Investment Management process in SAP S/4HANA Cloud include the following:
- Review the financial status
- Automate the management of investments and borrowings, including creation of the financial transaction, confirmation of contracts with counterparties, payments, interest rate adjustments, and accounting
- Take better operational and strategic decisions using the comprehensive reporting and analysis tools
- Improve internal operational compliance, such as by setting counterparty limits
- Increase your focus on value-added activities instead of on manual procedures
Manage your financial investments and borrowings, like fixed or variable interest rate deposits, loans, commercial papers, or investment certificates. Straight-through processing of financial transactions from front office, middle office, back office, and accounting.
The debt and investment management process helps you to secure short-term liquidity at the best interest rates and manage your medium- to long-term debt and investments optimally. These functions help you to automate labor-intensive processes, such as the confirmation of financial transactions and accounting postings, giving you more time to focus on value-added activities. You can manage operational and accounting requirements.
Key process flows covered:
- Create and process financial transactions
- Automated correspondence (external and/or internal confirmations)
- Process payments including condition-based incoming payments such as dividends
- Transfer values to the general ledger
- Adjust interest rates and update planned records for securities
- Perform month-end accounting processes
- Monitor and report your treasury positions and financial transactions
The financial instruments from the Debt and Investment Management process are covered in SAP S/4HANA Cloud through several scope items.
Money Market transactions are covered with the Best Practice Scope item
- 1WV - Debt and Investment Management
- 1YI - Intercompany process for Debt and Investment Management
Derivatives, and in more detail Interest Rate Derivatives are covered in:
1X3 - Interest Rate Derivatives Management
When it comes to Securities, the two main components highlighted through the SAP Best Practice scope items are:
- 2UN - Money Market Mutual Fund Management
- 3WY - Bond Management
Through this learning asset, we only cover the Money Market Debt and Investment Management part. The other areas are described through their respective SAP Best Practice scope item.