- SAP Managed Tags:
Solution Options
SAP’s Broad Portfolio for Treasury and Working Capital is depicted in the diagram below.
Of these, the ones listed under the RBA capabilities other than core TRM in SAP S/4HANA and the scope of this article are the following.
- SAP Multi-Bank Connectivity
- SAP Digital Payment Add-on
- SAP Market Rates Management
- SAP Trading Platform Integration
- SAP Broker Reconciliation for Commodity Derivatives (not listed above)
Characterization of the Solution Options
1. SAP Multi-Bank Connectivity (MBC)
The SAP MBC solution provides different options to connect corporate customers and banks. SAP MBC is a cloud based digital connection integrating payments processes between SAP S/4HANA and Financial Institutions. It supports direct member banks that are part of the SAP MBC ecosystem as well as banks that are not members. This is summarized in the below diagram.
SAP S/4HANA also provides overlapping capability with the SAP Bank Communication Management solution which also supports SWIFT integration. In line with the cloud-first strategy, SAP MBC is the leading solution to be discussed with customers.
2. SAP Digital Payment Add-on
The SAP Digital Payment Add-on allows for connecting Payment Service Providers (PSP)s to receive and account for payments against receivables. The add-on provides out of the box integration with all the major receivables generating modules such as Sales, Finance, Contract Accounting, BRIM, etc. in SAP S/4HANA. The scope of PSP support is available in here - PSP Scopes.
3. Market Rates Management
SAP Market Rates Management provides the capability to access and manage various types of market data such as currency exchange rates, etc. from SAP S/4HANA. There are multiple options available for the use of this solution.
- Get market rate data from Refinitiv and use them productively in your landscapes.
- Get up to ten types of market rates, including credit and basis spreads and volatilities, from a single download endpoint.
- Upload your own market rates by using the upload endpoint.
4. SAP Trading Platform Integration
SAP Trading Platform Integration enables the integration of SAP S/4HANA trading activities into trading platforms, covering both outbound trade requests and inbound process for trades.
5. SAP Broker Reconciliation for Commodity Derivatives
SAP Broker Reconciliation for Commodity Derivatives is SAP's cloud-based solution for reconciling exchange traded commodity derivatives with trading and clearing broker statements. The solution runs on SAP Business Technology Platform (SAP BTP).
The PAM currently shows that mainstream maintenance ends in 2024 with no successor product. Inclusion in target architecture should be subject to validation with product development.
Criteria to determine the most suitable Target Solution
The core capabilities for SAP S/4HANA Treasury and Risk Management (TRM) within SAP S/4HANA are complemented by the solutions discussed above based on the business requirement discussed against each of them. The target architecture will therefore consist of SAP S/4HANA TRM complemented by one more of these solutions as relevant.
Decision Tree
A classic decision tree is not proposed in this case as the target solution architecture components address different business needs within the capability and this has been explained with the solution characterization.
Summary
The key component of target architecture to support capabilities under Treasury Management requires an evaluation of specific business functions against the capabilities.
As an example, does the capability for Financial Service Provider Management require a solution to integrate with trading systems as well as handle market data feed? Also, the Market Rates Managment solution may also be relevant for customers that do not explicitly spell out the need for managing a service provider, such as for exchange rates import.
It is for this reason that this article looks at solutions across multiple capabilities under the ambit of Treasury Management.