What is SAP TRM?

The SAP TRM module, which stands for Treasury and Risk Management in English, is a software that appears as Treasury and Risk Management in Turkish. The SAP TRM module allows for the management and execution of various treasury transactions used in financial units. The mentioned treasury transactions are exemplified below.
● Letter of Credit
● Guarantee Letter
● Loan
● Spot Foreign Exchange Transactions
● Commodity Transactions
● Deposits
● Bond Transactions

In today's business world, where competition is increasing, finding reliable financial data and tracking the laws before and after the finding process has become quite difficult. For this reason, individuals or institutions have started to turn to the SAP TRM module.

So, what is the reason for this trend?
The SAP TRM module, which is related to and develops financial networks, works in an integrated manner with the FI (Financial Accounting) and CO (Controlling) modules. The mentioned Financial Accounting is the module where accounting records categorized into General Ledger, Customer Accounts, Vendor Accounts, and Fixed Asset Accounting are kept and reported. On the other hand, Controlling is used for management decision-making and profit-loss tracking purposes and reports the resulting events. Due to the integrated operation with these two modules, there has been a significant shift towards the SAP TRM module because it reduces the workload observed in accounting and finance departments of institutions or organizations and monitors risk factors. As a result of this trend, the SAP TRM module has managed to present its scope in many places and has become an indispensable module for institutions and organizations.

What is the Purpose of Using the SAP TRM Module?

In the business world, where many factors and risks are present, the SAP TRM module has become one of the auxiliary choices for institutions and organizations, thanks to various reasons such as providing assistance in many matters and undertaking processes. The reasons in question are listed and clarified below.
● Provides highly reliable financial data.
● Enables cash flow forecasting.
● Allows the execution of liquidity and financial risk management.
● Provides a platform for long-term investments.
● Manages the monitoring and reporting of many financial products such as loans, bonds, guarantee letters, commodity transactions, deposits, etc., from the moment the contract is established. Additionally, related to the aforementioned products; interest, commission, withholding, and income-expense accruals are automatically accounted for within the necessary principles.
● Ensures that market risk analyses are more reliable.

Due to many benefits mentioned above, the SAP TRM module has a very high usage rate and offers institutions or organizations the opportunity to analyze and improve their business processes from a financial perspective. Thanks to these opportunities, institutions or organizations that have gained a position in the competitive market are starting to use the SAP TRM module or, if they have already started, they continue to do so due to these factors.

What Are the Advantages Provided by SAP TRM (Treasury and Risk Management)?

Before discussing the advantages provided by the SAP TRM module, which has various scopes such as financial risk management, debt and investment management, application extensions, and machine learning, it is important to understand the mentioned scopes.

Financial Risk Management = A set of activities aimed at creating economic value for firms by managing risk types such as credit risk, market risk, currency risk, sector risk, liquidity risk, etc., through various processes using financial instruments.

Debt and Investment Management = Debt management, which is influenced by the amount and composition of the debt, aims to finance budget deficits of institutions or organizations. Investment management, on the other hand, involves the asset management of various securities for the benefit of investors.

Application Extensions and Machine Learning = These create systems that learn from consumed data and perform performance optimization and are part of subsets of artificial intelligence.

Once these concepts are clarified, the advantages provided by Treasury and Risk Management become quite evident. The advantages in question are explained below.
● Conducts monitoring of relevant bank limits
● Records treasury-based transactions in the system
● Generates reports
● Identifies various strategies from a financial perspective
● Ensures that institutions or organizations have efficiency in terms of productivity and provides savings
● Analyzes possible risks (Risk Analysis)
● Automatically creates accounting entries with accrual records

The advantages provided by the SAP TRM module, as seen above, are not just short-term focused advantages. On the contrary, the module has long-term advantage opportunities and opens significant advantage doors for institutions or organizations with its various features.

What Are the SAP TRM Transaction Codes?

Before looking at what the SAP TRM transaction codes are, there is an important concept that needs to be understood: SAP transaction codes. SAP transaction codes, also known as T-Code, are codes defined for easy access to programs within SAP through interfaces. These codes are also represented in the SAP TRM module. Below are the most commonly used transaction codes within the SAP TRM module, along with their descriptions.

FBL1N= Vendor line items
ME21N= Create purchase order
ME23N= Display purchase order
FBL5N= Customer line items
VA02= Change sales order
FBL3N= General ledger account line items
VA01= Create sales order
F110= Automatic payment parameters
FS10N= Balance screen
FB01= Post document
KSB1= Cost centers: Actual line items
MIRO= Enter Invoice
FB1S= Clear general ledger account
ME22N= Change purchase order
MB51= Material document list
ME2L= Purchase orders by vendor
MD04= Display stock/requirements situation
VA03= Display sales order
MIGO= Goods movement
FB05= Post with clearing

With the transaction codes provided above, the SAP TRM module can be used practically.