C_S4FTR_2023 Questions and Answers

When defining payment methods, the payment ranking order is a setting that is made at country level. The payment ranking order determines the priority of payment methods for clearing open items within a country. The payment method with the lowest ranking order number has the highest priority and is selected first.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The monitoring rules for the intraday bank statements are assigned in two SAP Fiori apps: Manage Bank Accounts app and Define Monitoring Rules - Intraday Statements app. The Manage Bank Accounts app is used to assign the monitoring rule to a bank account. The Define Monitoring Rules - Intraday Statements app is used to define the conditions and actions for the monitoring rule.References: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The financial account types that require rate type CLOSING when using currency conversion in a planning model are assets (AST) and liabilities (LEQ). A financial account type is a parameter that defines the nature of a financial transaction or position in the planning model, such as assets, liabilities, income, or expense. A rate type is a parameter that defines the exchange rate type that is used for currency conversion in the planning model, such as average rate or closing rate. The financial account types that require rate type CLOSING for currency conversion are assets (AST) and liabilities (LEQ), which represent balance sheet items that are converted at the closing rate of the period. References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The fields of the input file that are part of the bank cash balance update when you maintain the connectivity path for remote bank accounts are value date and account ID. A connectivity path is a parameter that defines how data from remote systems or source applications are transferred into SAP S/4HANA for cash management purposes. A remote bank account is a bank account that resides in a non-SAP system or an SAP system other than SAP S/4HANA. A bank cash balance update is a function that allows you to update the cash balance of remote bank accounts based on an input file from external sources. The fields of the input file that are part of the bank cash balance update when you maintain the connectivity path for remote bank accounts are value date, which defines the date on which the cash balance is valid; and account ID, which defines the identification of the remote bank account. References: https://help.sap.com/viewer/product/SAP_S4HANA_FINANCE_FOR_CASH_MANAGEMENT/en-US

The use cases where a query sequence is required to derive liquidity items are: To derive liquidity items from G/L accounts, which means that the system uses the G/L account number and other criteria to assign a liquidity item to an accounting document. To derive liquidity items from the incoming bank statements, which means that the system uses the bank statement item type and other criteria to assign a liquidity item to a bank statement item. To derive liquidity items from various fields of the accounting document, which means that the system uses the fields such as business partner role, posting key, or document type to assign a liquidity item to an accounting document.Verified References: Query Sequence Overview, [Query Sequence Configuration Guide]

The cash management attributes that are defined in the G/L account master record are planning level and relevance to cash flow. The planning level defines the granularity of the cash flow forecast and liquidity planning based on the G/L account. The relevance to cash flow defines whether the G/L account is relevant for cash flow analysis or not.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The product categories that can activate parallel interest conditions for using the SOFR risk-free rate (RFR) are 040 - Bonds and 550 - Interest Rate Instrument. SOFR is one of the alternative risk-free rates (RFRs) that are replacing LIBOR as a benchmark interest rate for financial transactions. Parallel interest conditions are interest conditions that use different interest calculation methods or interest rates for the same financial transaction. You can activate parallel interest conditions for product categories 040 - Bonds and 550 - Interest Rate Instrument by using parallel shifts of yield curves or lookback interest calculation methods.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The source applications that use origin X when defining queries and query sequences are General Ledger Accounting (FI-GL) and Accounts Receivable (FI-AR). A query is a parameter that defines how liquidity items are derived from various data sources and fields based on certain conditions. A query sequence is a parameter that defines the order and conditions for deriving liquidity items based on various queries. A liquidity item is a parameter that represents an account dimension in the liquidity planning model. A source application is a system or component that provides cash flow data for liquidity planning purposes. An origin is a parameter that defines the source application from which cash flow data are derived. The source applications that use origin X when defining queries and query sequences are General Ledger Accounting (FI-GL), which provides cash flow data from G/L accounts; and Accounts Receivable (FI-AR), which provides cash flow data from customer invoices.References:https://help.sap.com/viewer/product/SAP_S4HANA_FINANCE_FOR_CASH_MANAGEMENT/en-US

Under IFRS, the effective portion of the gain or loss on a cash flow hedge is recognized in other comprehensive income (OCI). This is done to match the timing of the recognition of the gain or loss on the hedged item, which is also recognized in OCI. The non-effective portion of the gain or loss on the hedging instrument is recognized in profit or loss.

For fair value hedges, the entire change in fair value of the hedging instrument is recognized in profit or loss. This is because the hedged item is also recognized at fair value in profit or loss.

Some ways to get data to SAP Analytics Cloud are live connection and replication. Live connection is a method that allows you to connect to a data source without importing any data into SAP Analytics Cloud. You can access and analyze the data in real time without any latency or duplication. Replication is a method that allows you to import data from a data source into SAP Analytics Cloud. You can store and manipulate the data in SAP Analytics Cloud without affecting the original data source.References:https://help.sap.com/viewer/00f68c2e08b941f081002fd3691d86a7/release/en-US/3e0c46ebdbbb41e08dbbfdb10d329db0.html

The functions that the Manage Banks SAP Fiori app allows you to do are navigate to other SAP Fiori apps, such as Manage Bank Statements and Cash Flow Analyzer; and associate house banks, contact persons, and business partners with your banks. Manage Banks is aSAP Fiori app that allows you to create and maintain banks and their attributes in SAP S/4HANA by using a master data approach. The functions that the Manage Banks SAP Fiori app allows you to do are navigate to other SAP Fiori apps, such as Manage Bank Statements and Cash Flow Analyzer, which allow you to perform various cash management tasks related to bank statements and cash flows; and associate house banks, contact persons, and business partners with your banks, which allow you to define the relationships between banks and other entities involved in bank communication and transactions.References:https://help.sap.com/viewer/product/SAP_S4HANA_FINANCE_FOR_CASH_MANAGEMENT/en-US

The single transaction check is executed for a money market trade at two points when using Credit Risk Analyzer: when the trade is saved and when the check icon is clicked. The single transaction check is a function that checks whether a trade exceeds a predefined limit or not. The check is performed when the trade is saved to prevent unauthorized trades from being entered into the system. The check can also be performed manually by clicking the check icon before saving the trade to see the potential limit utilization.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The type of risk that can be tracked by using Credit Risk Analyzer is settlement risk. Settlement risk is the risk that one party will fail to deliver the terms of a contract with another party at the time of settlement. Credit Risk Analyzer is a submodule of Financial Risk Management that allows you to manage credit risk for financial transactions and business partners. You can use Credit Risk Analyzer to track settlement risk by using online limit check or monitor risk exposure functions.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The new interest calculation types with the parallel interest conditions that are used to replace LIBOR with one of the risk-free rates (RFRs) are lookback interest calculation and average compound interest calculation. Lookback interest calculation is a method thatuses a fixed number of days as an offset between the interest period and the observation period for the RFRs. Average compound interest calculation is a method that uses a compounded average of the daily RFRs over the observation period to calculate the interest amount.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The market data that you can use to create scenarios in Market Risk Analyzer are security prices and yield curves. Market Risk Analyzer is a submodule of Financial Risk Management that allows you to perform market risk analysis for financial transactions and positions based on various scenarios and key figures. A scenario is a set of assumptions about future market conditions that affect the valuation of financial transactions and positions. The market data that you can use to create scenarios in Market Risk Analyzer are security prices, which define the market prices of securities; and yield curves, which define the relationship between interest rates and maturities of debt instruments.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

You can use the Corporate Action (FWKB) function to post subscription rights for a capital increase. A capital increase is a corporate action that increases the number of shares issued by a company and offers existing shareholders the right to subscribe to new shares at a discount price. The Corporate Action (FWKB) function allows you to process various types of corporate actions for securities, such as dividends, splits, or capital increases.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

Exposure management is a process that allows you to identify and manage the financial risks arising from your business activities. The process steps are part of exposure management are: create the raw exposures, release the raw exposures that could be hedged, link the hedging instrument to the exposure, and perform an effectiveness test. The raw exposures are created from the financial transactions or positions that are exposed to market risks. The released exposures are the ones that are eligible for hedging and can be linked to a hedging instrument.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The parameters that are driven by the hedging profile when defining a hedging area for SAP Hedge Management application for foreign exchange (FX) and hedge accounting functionality are designation types and effectiveness test method. A hedging profile is a parameter that defines the characteristics and settings for hedge accounting in a hedging area. A hedging area is an organizational unit that groups together financial transactions that are hedged against specific risks. The parameters that are driven by the hedging profile are designation types, which define how hedged items and hedging instruments are designated for hedge accounting; and effectiveness test method, which defines how the effectiveness of hedge relationships is measured and documented.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/f22248cc13f74872af15bd2eca741110.html

The bank account revision process can be configured with three options: activate sequentially, activate via workflow, and activate via dual control. These options determine how the bank account changes are approved and activated by the reviewers. The activate sequentially option allows the reviewers to approve the changes in a predefined sequence. The activate via workflow option allows the reviewers to approve the changes in parallel or in a flexible sequence using SAP Business Workflow. The activate via dual control option allows the reviewers to approve the changes in parallel using a two-factor authorization method.References:https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html