SAP Treasury solutions (TR Module) are part of SAP Financial Supply Chain management and helps in managing and controlling the Treasury related processes. It provides the capabilities to strengthen the return on funds & improve cost-saving across the organization, optimize the working capital & utilize excess cash. It also provides audit controls and helps in reducing overall operational risks.

TR (Treasury)

SAP Treasury solutions (TR Module) are part of SAP Financial Supply Chain management and helps in managing and controlling the Treasury related processes. It provides the capabilities to strengthen the return on funds & improve cost-saving across the organization, optimize the working capital & utilize excess cash. It also provides audit controls and helps in reducing overall operational risks. Cash and liquidity management solutions from SAP enable to develop more timely and accurate forecasts and achieve better control over global cash balances.

Treasury applications from SAP, components of SAP ERP Financials, comprise a comprehensive suite of cash, liquidity, and financial risk management solutions. These applications provide the ability to conduct sophisticated risk scenario modeling – and execute strategies to mitigate the risks inherent in multinational operations and volatile financial markets.

Treasury applications from SAP also provide comprehensive cash and liquidity management capabilities – including cash forecasting, global cash management, and connectivity with banks via secure electronic payment networks. So organizations can obtain complete insight into global cash balances, real-time bank statement reconciliations, and straight-through payments processing. These applications enable more precise cash forecasting, liquidity management, and greater control over financial risk – resulting in reduced operating costs, risk, and banking fees. Complete integration with SAP ERP ensures the most accurate and up-to-date reporting and regulatory compliance.

Using treasury applications from SAP, treasury and cash managers gain insight and control over hedging transactions, pooling and allocating cash globally, and enabling straight-through-processing of banking, corporate treasury and financial accounting processes. The day-to-day treasury process in a company includes a number of transactions. This includes determining the current liquidity using bank account balances (cash position), determining open receivables and liabilities (liquidity forecast), manually entering planned cash flows (payment advice notes), through to clearing bank accounts. The main objective is to ensure liquidity for all due payment obligations. It is also important to control and monitor effectively the incoming and outgoing cash flows.

Treasury applications from SAP include the following:

SAP Cash and Liquidity Management

• Helps monitor and manage cash flow and liquidity
• Generates comprehensive and timely cash forecasts and plans
• Ensure the health of your commercial cash flows – SAP solutions help gain control of accounts receivable (AR) so the amount and timing of critical cash flows aren't compromised. For example, solutions for managing billing disputes can help significantly reduce days sales outstanding (DSO).
• Increase visibility into the sources and uses of cash – Cash management solutions gives deeper insight into cash balances, as well as the ability to more precisely match the sources and uses of cash. It improves forecasting to enable better decision making.
• Increase control over cash on hand – SAP software supports electronic bank interfaces, so reduces manual reconciliation processes and gain real-time insight into global cash positions. In addition, leverage features that support in-house banking, so companies can centralize their cash management functions and reduce the complexities of multiple banking relationships fragmented across geographies.

SAP In-House Cash

• Enables centralized control of banking balances, cash management, and payments
• Reduces costs of inter-unit payments, transfers, and bank fees

SAP Treasury and Risk Management

• Models risk scenarios and execute mitigation strategies
• Reduces organization's financial risk levels and ensures regulatory compliance

SAP Bank Communication Management

• Streamlines and optimizes corporate-to-bank communications
• Provides straight-through processing, improved payment control, and lower processing costs

SAP Integration Package for SWIFT

• Enables direct connection to SWIFTnet, the secure bank payments network
• Reduces complexity by providing a single point of connectivity to multiple banks

Following functions can be performed using the SAP Treasury Module:

• Cash Management
• Manual Check Deposit
• Manual Bank Statement
• Electronic Bank Statement
• Creating Fixed-Term Deposits Invested
• Forward Rate Agreement (FRA)
• Trading with Fixed-Interest Rate Bonds
• Trading in Stocks
• Creating and Trading Variable Rate Bonds
• Cross-Currency Interest Rate Swap

SAP TR (Treasury) has the following sub modules:

• Cash Management (TR - CM)
• Loans Management (TR - LM)
• Market Risk Management (TR - MRM)
• Treasury Management (TR - TM)
• Funds Management (TR - FM)
• Information System