Create Out-of-the-Box Hedging Reports

  • by Kees van Westerop, Senior SAP Consultant, Kwest Consulting
  • July 15, 2006
See how to use Cash Management’s hedging report to track your foreign currency liquidity position without setting up the whole Cash Management module.
Key Concept

Cash Management is part of the Treasury module and has always been part of SAP R/3. Although it doesn’t have to be difficult to implement Cash Management, not many companies have activated it, either because they think it contains much more functionality than they really require or because they think it is too complicated.

To cover their foreign currency risks, most companies require a monthly or quarterly report showing their current and future foreign currency liquidity position. In an SAP environment such a report would contain information from the accounts payable (AP), accounts receivable (AR), Sales & Distribution (SD), and Materials Management (MM) modules, and possibly other modules as well. Because this requires cross-module reporting, no such report is standard except within the Cash Management module. However, many companies have not implemented Cash Management. The consequence is that instead, they create their own hedging report using ABAP or Microsoft Excel.

I’ll show you how you can use the standard Cash Management report to create an out-of-the-box hedging report without customizing the Cash Management module itself. What you need to do is activate Cash Management, transfer the existing sales and purchasing data using standard available tools, and run the report.

This method is effective with releases beginning with SAP R/3 4.7 and through all mySAP ERP Central Component (ECC) releases. I’m using screenprints from ECC 5.0 and data from the IDES database. In other SAP releases the screens may differ a little, but in principle it works the same.

Kees van Westerop

Kees van Westerop has been working as an SAP consultant for more than 25 years. He has an MBA degree in mathematics and a degree in finance. Kees has been concentrating on the financial modules, especially in general ledger accounting, cost center accounting, and consolidation. He also has a great deal of experience with rollouts of kernel systems and integrating finance and logistics.

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