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What is Position in Treasury? Why do we run TPM18 when we are already going to run TPM1?

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I've never quite understood what does position means in terms of say a FX deal.

Can someone please tell me what is the difference between TPM1 postings and TPM18 postings?

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adityahakim
Explorer
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TPM18 is for generating Derived flows whereas TPM1 is for Valuation. TPM18 can be made redundant if set-up like that i.e. in that case derived flows will be posted at the time of TBB1 itself. This link should clarify it further.

Generation/posting of derived flows | SAP Blogs

Cheers !

Adi...