SAP C_S4FTR_2021 SAP Certified Application Associate - Treasury with SAP S/4HANA (SAP S/4HANA 2021) Exam Practice Test

The settings that can be configured to generate outgoing correspondence are transaction type, product type, and processing category. Transaction type defines the business operation of a financial transaction, such as spot, forward, or swap. Product type defines the characteristics and attributes of a financial instrument, such as money market, foreign exchange, or securities. Processing category defines the business process steps for a financial transaction, such as valuation, settlement, or interest calculation. These settings determine the correspondence rules and templates that are used to create and send correspondence to counterparties or banks. Verified References: [Correspondence Overview], [Correspondence Configuration Guide]

You can use SAP Cash Application to improve the clearing automation for incoming payments. SAP Cash Application is a cloud-based service that uses machine learning to match incoming bank statement items with open receivables. It learns from past manual clearing actions and applies intelligent algorithms to propose matches with high accuracy. It also provides explanations for the proposed matches and allows users to confirm or reject them. References: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

You can maintain the minimum transfer amount for the cash pools in the Manage Cash Concentration SAP Fiori app. The minimum transfer amount is a parameter that defines the minimum amount that can be transferred between bank accounts within a cash pool. The Manage Cash Concentration app allows you to create and maintain cash pools and their parameters, such as target balance, transfer frequency, and minimum transfer amount. References: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en- US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The cash pool type that is supported using the Manage Cash Pools SAP Fiori app is physical. A cash pool is a function that allows you to group bank accounts for cash concentration and optimize liquidity management. A physical cash pool is a type of cash pool that involves actual movement of funds between bank accounts, such as zero balancing or target balancing. You can use the Manage Cash Pools SAP Fiori app to create and maintain physical cash pools and their attributes, such as cash pool type, currency, or participating bank accounts. References: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/f22248cc13f74872af15bd2eca741110.html

When defining a payment method, some of the settings that you can set are allowed origins of payments, document type for payment and clearing, and direction of payment method. A payment method is a code that defines the characteristics and processing rules for payments, such as bank transfer, check, or direct debit. The allowed origins of payments define the sources of payments that can use the payment method, such as invoices, down payments, or payment requests. The document type for payment and clearing define the document types that are used for posting payments and clearing open items when using the payment method. The direction of payment method defines whether the payment method is used for outgoing payments or incoming payments. References: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/f22248cc13f74872af15bd2eca741110.html

The Take Snapshot Balance Sheet FX Risk SAP Fiori app is used to capture the data for FX balance sheet hedging. The data that is captured with this app includes balance sheet exposures and market data. The balance sheet exposures are the open items that are exposed to foreign currency risk. The market data are the exchange rates that are used to value the exposures and calculate the FX gains or losses. References: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The G/L account type that must be set when working with the bank reconciliation ledger is bank sub account. Bank sub account is a special type of G/L account that is used to record the bank statement items that are not yet reconciled with the accounting documents. It allows you to perform bank reconciliation at a more granular level and track the status of each bank statement item. Verified References: [Bank Reconciliation Ledger Overview], [Bank Reconciliation Ledger Configuration Guide]

SAP Bank Communication Management with payment approval allows you to create and approve payment batches, merge payments into a single file, and send them to banks via SAP Multi-Bank Connectivity. The payment medium is created after the payment merge execution step, which combines payments from different sources into one file per bank and format. 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 correspondence settings that you can select for a business partner group are counter confirmation required and automatic correspondence. A business partner group is a grouping of business partners that have similar characteristics or attributes, such as country, currency, or rating. Correspondence settings are settings that define how communication with business partners is handled in Treasury and Risk Management module. The correspondence settings that you can select for a business partner group are counter confirmation required, which defines whether a counter confirmation document is required for financial transactions with business partners in the group; and automatic correspondence, which defines whether correspondence documents are generated automatically for financial transactions with business partners in the group. References: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/f22248cc13f74872af15bd2eca741110.html

Some factors to consider when using flow types in SAP Cash Management are the range of flow types and their function of distinguishing forecasted cash flows from confirmed cash flows. Flow types are codes that classify cash flows according to their source and direction. The flow types from 20 to 80 are forecasted cash flows that are derived from open items or planned transactions. They distinguish forecasted cash flows from confirmed cash flows that are derived from posted documents or bank statements and have flow types from 01 to 19. References: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

You can specify the requirement for automatic settlement on counter confirmation at the level of forex attributes when configuring a new foreign exchange product. Forex attributes are the attributes that define the characteristics and behavior of a foreign exchange product. One of the forex attributes is the settlement type, which determines whether the settlement is manual or automatic and whether it requires counter confirmation or not. References: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The options that you have to group a mass change request when workflows are enabled for Bank Account Management are bank country and company code. Bank Account Management is a function that allows you to create and maintain bank accounts and their attributes in SAP S/4HANA. A mass change request is a request that allows you to change multiple bank accounts at once by using workflows. You can group a mass change request by bank country or company code to assign different approvers or processors for each group. References: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The parameter that must be specified when defining a liquidity item is cash flow direction. A liquidity item is a parameter that represents an account dimension in the liquidity planning model. A liquidity item defines how cash flows are classified and aggregated in the liquidity plan according to various criteria, such as cash flow type, currency, or bank account. The parameter that must be specified when defining a liquidity item is cash flow direction, which defines whether the cash flow is an inflow or an outflow for the liquidity item. References: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html

The approval sequence that you will implement in Bank Account Management for creating a two-step approval process where all payment approver groups receive the workflow approval request at the same time is non-sequential approval pattern. Bank Account Management is a function that allows you to create and maintain bank accounts and their attributes in SAP S/4HANA. An approval sequence is a setting that defines the order and conditions for approving a bank account change request by using workflows. A non-sequential approval pattern is a type of approval sequence that allows multiple approver groups to approve a change request simultaneously without any dependency. References: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/f22248cc13f74872af15bd2eca741110.html

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 functional features that are provided with the basic cash management capability in SAP S/4HANA are manage memo records, monitor cash position, and manage liquidity items. The basic cash management capability in SAP S/4HANA is a function that allows you to perform basic cash management tasks without activating additional components or licenses. The functional features that are provided with the basic cash management capability in SAP S/4HANA are manage memo records, which allow you to enter manual cash flows that are not reflected in accounting documents; monitor cash position, which allow you to view and analyze the cash inflows and outflows for bank accounts; and manage liquidity items, which allow you to classify and aggregate cash flows according to various criteria, such as cash flow type, currency, or bank account. References: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/f22248cc13f74872af15bd2eca741110.html

The functions that are performed in Credit Risk Analyzer are online limit check and monitor risk exposure. Credit Risk Analyzer is a submodule of Financial Risk Management that allows you to manage credit risk for financial transactions and business partners. The functions that are performed in Credit Risk Analyzer are online limit check, which allows you to check whether a financial transaction or position exceeds the predefined credit limit for a business partner; and monitor risk exposure, which allows you to analyze and report the credit risk exposure for financial transactions and business partners based on various criteria, such as rating, country, or industry. 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

The planned record update strategies that are available for variable interest rate security instruments are update with configured interest rate and zero update, assign 0. A planned record update strategy is a setting that determines the value to be used for displaying the variable interest rate flows that have not yet been adjusted in the cash flow. A variable interest rate security instrument is a type of security instrument that has an interest rate that changes periodically based on an underlying reference rate, such as LIBOR or SOFR. The planned record update strategies that are available for variable interest rate security instruments are update with configured interest rate, which uses a predefined interest rate for displaying variable interest rate flows; and zero update, assign 0, which assigns zero value for displaying variable interest rate flows. References: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/f22248cc13f74872af15bd2eca741110.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 a SAP 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 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 types of hedging area are reference-based and risk-based. Reference-based hedging area means that the hedging area is defined by a reference object, such as a company code, a profit center, or a segment. Risk-based hedging area means that the hedging area is defined by a risk category, such as foreign currency risk, interest rate risk, or commodity price risk. Verified References: [Hedging Area Overview], [Hedging Area Configuration Guide]

Payment requests are always grouped by payment currency in the collector of SAP Bank Communication Management, regardless of configuration. The payment currency is the currency in which the payment is made to the payee. The collector groups payment requests by payment currency to facilitate the creation of payment batches and payment media. References: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html