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Jain varghese
October 19, 2015 3 minute read

Exposure Management 2.0

6 Likes 2,942 Views 3 Comments

This article is to provide basic process of how exposure management work in SAP- Treasury.
For con guration please refer help.sap.com articles.

The new Exposure Management 2.0 enables you to manage exposure items for open commodity items and
open currency items. In the Hedge Accoun ng for Exposures, you can map the hedging of commodity price
risks using the corresponding hedging transac ons in the Transac on Manager.

1.FTREX1: Create Raw exposure

  In the below example I have created raw exposure for brass. In many cases, a commodity comprises
several other commodi es that bear the actual price risk. This is the case with brass for example. (FTREX7)
to map such a scenario in the system.

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2. FTREX2: select the ID and Initial release

Once released, the Position created based on split of the brass item.

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3. FTREX12: Please check the unhedged item.

4. THMEX: Create hedge plan

5. FTR_CREATE Create forward contract/deal for USD for hedging

relationship

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6. THMEX: Assigned hedging relationship

7 FTREX12, Please transfer the un hedge item from exposure to hedge

Management.

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Once transferred successfully, the amount will be reflect in Hedge item field. Please refer hedged and
unhedge field.

8. Please check OB08 setting for USD to EUR

9. THM80: Effective measurement calculation.

9. TBB1
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Tips: Exposure Activity Type The exposure activity type is a required entry when you create a raw exposure. Sub-
raw exposures created for a raw exposure take the value of the exposure values in line with what you enter here. The
exposure activity type specifies a number of key settings that determine how raw exposures behave and how their data is
stored.
Raw exposure
In exposure management, only the basic data relating to your operative business transactions is stored in a raw format
known in the system as a raw exposure. A raw exposure is a simple mapping of an operative business transaction.

Sub raw exposure

All information relating to financial risks is stored in sub raw exposures. Here, a distinction is made between foreign
currency risks and commodity price risks. Sub raw exposures form part of a raw exposure. A raw exposure can contain
several sub raw exposures.

Exposure position
Raw exposures, as a total, represent the financial risk associated with your operative transaction. The total risk position is
known as an exposure position, which comprises several sub raw exposures.

Differentiation and exposure transactions

Differentiation enables you to define how risks are divided. Here, the sub raw exposures are initially converted into a
temporary intermediate format. They then become exposure transactions and are used to create exposure positions.
Exposure position flow
Exposure transactions are used to create exposure position flows, which, in turn, create the exposure position. An exposure
Alert Moderator
position generally contains several exposure position flows.

Exposure position value

Assigned
The tags
exposure position value is the total value of the exposure position.flows for one exposure position on a particular key
date.

FIN Treasury |
PS:above example was created in IDES system for this post. Coming soon 2nd post in Exposure Management 2.0

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3 Comments

You must be Logged on to comment or reply to a post.

Jain Varghese | Post author

November 9, 2015 at 6:31 am

Hi, I have missed out to update the screenshot of TPM60 and TPM1. Please note this process will be
followed by step 8. Once you complete above process you can proceed with THM80 and thereafter.

OCI posting pro t and loss will be done base on TPM60 and TPM1.

Like(0)

Ignacio Kristof

July 24, 2019 at 4:48 pm

Blog simple and super clear. Nice work!

Like(0)

Jain varghese | Post author

September 2, 2019 at 6:47 am

Thank you !

Like(1)

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