Question #1
Your organization would like to use the review process for bank accounts.
In which SAP Fiori app do you initiate this process?
- A . My Sent Requests – For Bank Accounts
- B . Review Bank Accounts
- C . Manage Banks
- D . Manage Bank Accounts
Correct Answer: B
B
Explanation:
You initiate the review process for bank accounts in the Review Bank Accounts app, where you can select the bank accounts that need to be reviewed and send them to the approvers. The approvers can then use the My Sent Requests – For Bank Accounts app to approve or reject the review requests .
Verified Reference: Review Bank Accounts, My Sent Requests – For Bank Accounts
B
Explanation:
You initiate the review process for bank accounts in the Review Bank Accounts app, where you can select the bank accounts that need to be reviewed and send them to the approvers. The approvers can then use the My Sent Requests – For Bank Accounts app to approve or reject the review requests .
Verified Reference: Review Bank Accounts, My Sent Requests – For Bank Accounts
Question #2
You are configuring Market Risk Analyzer.
What do derivation strategies derive?
- A . The key figures to be stored in the results database
- B . The product types to be used for financial object integration
- C . The analysis structure characteristic values based on the trade
- D . The market data to be used when executing a Monte Carlo simulation
Correct Answer: C
C
Explanation:
Derivation strategies derive the analysis structure characteristic values based on the trade data. The analysis structure defines the characteristics and key figures that are used for market risk analysis.
The derivation strategies determine how the characteristic values are derived from the trade data or other sources.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
C
Explanation:
Derivation strategies derive the analysis structure characteristic values based on the trade data. The analysis structure defines the characteristics and key figures that are used for market risk analysis.
The derivation strategies determine how the characteristic values are derived from the trade data or other sources.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #3
When you execute the Automatic Payment Transactions for Payment Requests app, in which order are the steps executed?
- A . Enter payment parameters Run payment proposal Payment run C accounting entries Payment run C create payment medium
- B . Enter payment parameters Run payment proposal Payment run C create payment medium Payment run C accounting entries
- C . Run payment proposal Enter payment parameters Payment run C accounting entries Payment run C create payment medium
- D . Run payment proposal Enter payment parameters Payment run C create payment medium Payment run C accounting entries
Correct Answer: A
A
Explanation:
The Automatic Payment Transactions for Payment Requests app allows you to execute the payment run for payment requests in four steps: enter payment parameters, run payment proposal, payment run – accounting entries, and payment run – create payment medium. You can also monitor the status of each step and view the payment details.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
A
Explanation:
The Automatic Payment Transactions for Payment Requests app allows you to execute the payment run for payment requests in four steps: enter payment parameters, run payment proposal, payment run – accounting entries, and payment run – create payment medium. You can also monitor the status of each step and view the payment details.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #4
You implement SAP Bank Communication Management with payment approval.
After which process step will the payment medium be created?
- A . Payment run
- B . Final payment approval
- C . Payment merge execution
- D . Reservation for cross-payment run payment media
Correct Answer: C
C
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
C
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #5
You implement hedge management and hedge accounting.
Which of the following describes the hypothetical derivative?
- A . It is used to simulate accounting entries for hedging instruments.
- B . It is the link between the hedged item and hedging instrument.
- C . It is the representation of the hedging instrument.
- D . It is the representation of the hedged item.
Correct Answer: D
D
Explanation:
The hypothetical derivative is a representation of the hedged item that is used to measure the effectiveness of a hedging relationship. It is a hypothetical financial instrument that has terms and conditions that are identical to those of the actual hedging instrument, except for the notional amount and the maturity date.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
D
Explanation:
The hypothetical derivative is a representation of the hedged item that is used to measure the effectiveness of a hedging relationship. It is a hypothetical financial instrument that has terms and conditions that are identical to those of the actual hedging instrument, except for the notional amount and the maturity date.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #6
What are the available options when you configure the bank account revision process? Note : There are 3 correct answers to this question.
- A . Activate sequentially
- B . Activate via workflow
- C . Activate via two-factor authorization
- D . Activate directly
- E . Activate via dual control
Correct Answer: ABE
ABE
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
ABE
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #7
Which process steps are part of exposure management ? Note: There are 2 correct answers to this question.
- A . Link the hedging instrument to the exposure
- B . Perform an effectiveness test
- C . Create the raw exposures
- D . Release the raw exposures that could be hedged
Correct Answer: C D
C D
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
C D
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #8
You configure the SAP Business Workflow for Bank Account Management .
Which steps are required to set up this process ? Note: There are 3 correct answers to this question.
- A . Activate a workflow template
- B . Define approvers
- C . Change message control
- D . Define sensitive fields
- E . Define a release strategy
Correct Answer: A B E
A B E
Explanation:
To set up the SAP Business Workflow for Bank Account Management, you need to perform three steps: activate a workflow template, define approvers, and define a release strategy. The workflow template defines the process flow and the tasks for approving bank account changes. The approvers are the users who are responsible for reviewing and approving the bank account changes. The release strategy defines the conditions and rules for triggering the workflow and assigning the approvers.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
A B E
Explanation:
To set up the SAP Business Workflow for Bank Account Management, you need to perform three steps: activate a workflow template, define approvers, and define a release strategy. The workflow template defines the process flow and the tasks for approving bank account changes. The approvers are the users who are responsible for reviewing and approving the bank account changes. The release strategy defines the conditions and rules for triggering the workflow and assigning the approvers.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #9
You are implementing Market Risk Analyzer and need to enable specific evaluation type settings via product type .
What must you use?
- A . Valuation rules
- B . Valuation areas
- C . Valuation procedures
- D . Valuation classes
Correct Answer: A
A
Explanation:
Valuation rules are used to enable specific evaluation type settings via product type. Valuation rules define how financial transactions are valued for market risk analysis purposes. They specify which evaluation types, valuation procedures, valuation classes, and market data sources are used for each product type.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
A
Explanation:
Valuation rules are used to enable specific evaluation type settings via product type. Valuation rules define how financial transactions are valued for market risk analysis purposes. They specify which evaluation types, valuation procedures, valuation classes, and market data sources are used for each product type.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #10
Which of the following market data types can you import into the system ? Note: There are 3 correct answers to this question.
- A . Discount factors
- B . Forex swap rates
- C . Security prices
- D . Credit spreads
- E . Net present values
Correct Answer: ABC
ABC
Explanation:
Market data types are used to provide market information for valuing financial transactions and performing market risk analysis. Some of the market data types that can be imported into the system are discount factors, forex swap rates, and security prices. Discount factors are used to calculate present values of cash flows based on interest rates. Forex swap rates are used to calculate forward exchange rates based on spot rates and interest rate differentials. Security prices are used to value securities based on market quotations.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
ABC
Explanation:
Market data types are used to provide market information for valuing financial transactions and performing market risk analysis. Some of the market data types that can be imported into the system are discount factors, forex swap rates, and security prices. Discount factors are used to calculate present values of cash flows based on interest rates. Forex swap rates are used to calculate forward exchange rates based on spot rates and interest rate differentials. Security prices are used to value securities based on market quotations.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #11
You work with pre converted currency data for liquidity planning in SAP Analytics Cloud.
To which category can this data be applied?
- A . Forecast
- B . Budget
- C . Planning
- D . Actuals
Correct Answer: D
D
Explanation:
You can apply pre converted currency data to the Actuals category for liquidity planning in SAP Analytics Cloud. This category represents the actual cash flows that have occurred in the past. You can use this data to compare with other categories, such as Forecast, Budget, or Planning, which represent the expected or planned cash flows for the future .
Verified Reference: Liquidity Planning in SAP Analytics Cloud, Pre Converted Currency Data
D
Explanation:
You can apply pre converted currency data to the Actuals category for liquidity planning in SAP Analytics Cloud. This category represents the actual cash flows that have occurred in the past. You can use this data to compare with other categories, such as Forecast, Budget, or Planning, which represent the expected or planned cash flows for the future .
Verified Reference: Liquidity Planning in SAP Analytics Cloud, Pre Converted Currency Data
Question #12
Your company is performing FX balance sheet hedging .
What data is captured with the Take Snapshot Balance Sheet FX Risk SAP Fiori app ? Note: There are 2 correct answers to this question.
- A . Hedge quotas
- B . Balance sheet exposures
- C . Market data
- D . FX hedges
Correct Answer: B C
B C
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
B C
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #13
Which of the following must be configured to use Liquidity Planning ? Note: There are 2 correct answers to this question.
- A . SAP Liquidity Planner
- B . SAP Cloud Connector
- C . SAP S/4HANA on premise
- D . SAP Cash Application
Correct Answer: B C
B C
Explanation:
To use Liquidity Planning, you need to configure two components: SAP Cloud Connector and SAP S/4HANA on premise. SAP Cloud Connector is a software that connects your on-premise system to SAP Analytics Cloud securely and reliably. SAP S/4HANA on premise is the source system that provides the actual and plan data for liquidity planning.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
B C
Explanation:
To use Liquidity Planning, you need to configure two components: SAP Cloud Connector and SAP S/4HANA on premise. SAP Cloud Connector is a software that connects your on-premise system to SAP Analytics Cloud securely and reliably. SAP S/4HANA on premise is the source system that provides the actual and plan data for liquidity planning.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #14
Which item is part of the standing instructions for the counterparty role for a business partner?
- A . Trading partner
- B . Business partner type
- C . Partner bank
- D . Business partner relationships
Correct Answer: C
C
Explanation:
The standing instructions for the counterparty role for a business partner include the partner bank item. The partner bank is the bank account of the counterparty that is used for settlement of financial transactions. The standing instructions define the default values and rules for processing financial transactions with a counterparty.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
C
Explanation:
The standing instructions for the counterparty role for a business partner include the partner bank item. The partner bank is the bank account of the counterparty that is used for settlement of financial transactions. The standing instructions define the default values and rules for processing financial transactions with a counterparty.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #15
When defining payment methods, which setting is made at country level?
- A . Payment medium format
- B . Minimum payment amounts
- C . Account determination
- D . Payment ranking order
Correct Answer: D
D
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
D
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #16
Regardless of configuration, by which criterion are payment requests always grouped in the collector of SAP Bank Communication Management?
- A . Payment medium format
- B . Payment approver
- C . Payment currency
- D . House bank
Correct Answer: C
C
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
C
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #17
You are working with security transactions.
The position is the basis for which of the following?
- A . Valuation flows
- B . Correspondence
- C . Settlement of the trade
- D . Posting of a trade’s purchase cash flows
Correct Answer: A
A
Explanation:
The position is the basis for valuation flows when working with security transactions. The position is the quantity of securities that are held in a portfolio at a given point in time. The valuation flows are the cash flows that are generated by valuing the position based on market data and valuation rules.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
A
Explanation:
The position is the basis for valuation flows when working with security transactions. The position is the quantity of securities that are held in a portfolio at a given point in time. The valuation flows are the cash flows that are generated by valuing the position based on market data and valuation rules.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #18
You are creating dimensions for a liquidity planning model in SAP Analytics Cloud .
Which dimension types can you choose ? Note: There are 3 correct answers to this question.
- A . Currency
- B . Partner
- C . Organization
- D . Account
- E . Measure
Correct Answer: ACD
ACD
Explanation:
The dimension types that you can choose when creating dimensions for a liquidity planning model in SAP Analytics Cloud are: Currency, which defines the currency of the cash flows; Organization, which defines the organizational units that are responsible for the cash flows; Account, which defines the categories of cash inflows and outflows .
Verified Reference: [Liquidity Planning Dimensions Overview], [Liquidity Planning Dimensions Configuration Guide]
ACD
Explanation:
The dimension types that you can choose when creating dimensions for a liquidity planning model in SAP Analytics Cloud are: Currency, which defines the currency of the cash flows; Organization, which defines the organizational units that are responsible for the cash flows; Account, which defines the categories of cash inflows and outflows .
Verified Reference: [Liquidity Planning Dimensions Overview], [Liquidity Planning Dimensions Configuration Guide]
Question #19
You are testing cross-currency swaps .
Which of the following are some of the characteristics of this product type ? Note: There are 2 correct answers to this question.
- A . Nominal amounts are not exchanged.
- B . Interest based on the nominal currency amount is exchanged.
- C . Nominal amounts are exchanged.
- D . Interest payment amounts are netted.
Correct Answer: B C
B C
Explanation:
Cross-currency swaps are financial transactions that involve the exchange of interest payments and principal amounts in different currencies.
Some of the characteristics of this product type are:
interest based on the nominal currency amount is exchanged and nominal amounts are exchanged.
The interest payments can be fixed or variable and are based on the nominal amount of each currency. The nominal amounts are exchanged at the start and end of the swap using agreed exchange rates.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
B C
Explanation:
Cross-currency swaps are financial transactions that involve the exchange of interest payments and principal amounts in different currencies.
Some of the characteristics of this product type are:
interest based on the nominal currency amount is exchanged and nominal amounts are exchanged.
The interest payments can be fixed or variable and are based on the nominal amount of each currency. The nominal amounts are exchanged at the start and end of the swap using agreed exchange rates.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #20
You configure SAP Bank Communication Management in SAP S/4HANA. You want to derive the payment approvers from Bank Account Management .
Which configuration option must be set to facilitate this process?
- A . Activate BRFplus Functions
- B . Enable Payment Approval
- C . Define Release Strategy
- D . Specify Digital Signature Method
Correct Answer: C
C
Explanation:
To derive the payment approvers from Bank Account Management when configuring SAP Bank Communication Management in SAP S/4HANA, you need to set the Define Release Strategy configuration option. This option allows you to define the conditions and rules for assigning payment approvers based on the bank account data, such as bank account ID, bank account owner, or bank account currency.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
C
Explanation:
To derive the payment approvers from Bank Account Management when configuring SAP Bank Communication Management in SAP S/4HANA, you need to set the Define Release Strategy configuration option. This option allows you to define the conditions and rules for assigning payment approvers based on the bank account data, such as bank account ID, bank account owner, or bank account currency.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #21
Where are the monitoring rules for the intraday bank statements assigned ? Note: There are 2 correct answers to this question.
- A . Manage Banks app
- B . Manage Bank Accounts app
- C . Define Monitoring Rules – Intraday Statements app
- D . Configuration of Bank Statements
Correct Answer: BC
BC
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
BC
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #22
You have customized the system for hedge accounting under IFRS.
During period-end activities, which of the following amounts of the hedging instrument (HI) does the system post to equity (OCI)?
- A . For cash flow hedges, the effective portion of the gain or loss of the HI
- B . For cash flow hedges, the non-effective portion of the gain or loss of the HI
- C . For fair value hedges, the effective portion of the change in fair value of the HI
- D . For fair value hedges, the non-effective portion of the change in fair value of the HI
Correct Answer: A
A
Explanation:
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.
A
Explanation:
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.
Question #23
In which SAP Fiori app can you maintain the minimum transfer amount for the cash pools?
- A . Manage Bank Accounts
- B . Cash Pool Transfer Report
- C . Manage Cash Pools
- D . Manage Cash Concentration
Correct Answer: D
D
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
D
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #24
You are implementing Credit Risk Analyzer .
Which of the following describes counterparty risk? Note: There are 2 correct answers to this question.
- A . It relates to a counterparty not fulfilling their contractual agreements.
- B . It is subdivided into credit risk and settlement risk.
- C . It is reportable in Market Risk Analyzer.
- D . It exists only during the settlement period of the trades.
Correct Answer: AB
AB
Explanation:
Counterparty risk is one of the types of risk that can be analyzed using Credit Risk Analyzer. Counterparty risk describes the risk that a counterparty does not fulfill their contractual agreements, either partially or fully. Counterparty risk can be subdivided into credit risk and settlement risk. Credit risk is the risk that a counterparty defaults on their obligations before maturity. Settlement risk is the risk that a counterparty defaults on their obligations at maturity.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
AB
Explanation:
Counterparty risk is one of the types of risk that can be analyzed using Credit Risk Analyzer. Counterparty risk describes the risk that a counterparty does not fulfill their contractual agreements, either partially or fully. Counterparty risk can be subdivided into credit risk and settlement risk. Credit risk is the risk that a counterparty defaults on their obligations before maturity. Settlement risk is the risk that a counterparty defaults on their obligations at maturity.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #25
What are the key components included in the Hedge Management Cockpit ? Note: There are 3 correct answers to this question.
- A . Exposures
- B . Hedge requests
- C . Hedging scenarios
- D . Accounting principles
- E . Hedging instruments
Correct Answer: A B E
A B E
Explanation:
The Hedge Management Cockpit is a SAP Fiori app that provides an overview of hedge management activities and allows you to perform various tasks related to hedge accounting. The key components included in the Hedge Management Cockpit are exposures, hedge requests, and hedging instruments. Exposures are the financial transactions or positions that are exposed to market risks and can be hedged using hedging instruments. Hedge requests are the requests to hedge exposures using hedging instruments and create hedging relationships. Hedging instruments are the financial instruments that are used to hedge exposures and reduce market risks.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
A B E
Explanation:
The Hedge Management Cockpit is a SAP Fiori app that provides an overview of hedge management activities and allows you to perform various tasks related to hedge accounting. The key components included in the Hedge Management Cockpit are exposures, hedge requests, and hedging instruments. Exposures are the financial transactions or positions that are exposed to market risks and can be hedged using hedging instruments. Hedge requests are the requests to hedge exposures using hedging instruments and create hedging relationships. Hedging instruments are the financial instruments that are used to hedge exposures and reduce market risks.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #26
You configure a new foreign exchange product and want automatic settlement on counter confirmation.
At what level of configuration do you specify this requirement?
- A . Product type
- B . Activity category
- C . Transaction type
- D . Forex attributes
Correct Answer: D
D
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
D
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #27
Your company experiences low automatic reconciliation for incoming payments. You therefore decide to use machine learning to improve the clearing automation .
What do you use to support this kind of functionality?
- A . SAP digital payments add-on
- B . SAP S/4HANA Cloud for advanced payment management
- C . SAP Cash Application
- D . SAP Multi-Bank Connectivity
Correct Answer: C
C
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
C
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #28
You are in the process of replacing LIBOR with one of the risk-free rates (RFRs) .
What are the new interest calculation types with the parallel interest conditions ? Note: There are 2 correct answers to this question.
- A . Lookback interest calculation
- B . Average compound interest calculation
- C . Compound interest calculation
- D . Floating rate calculation
Correct Answer: AB
AB
Explanation:
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 that uses 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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
AB
Explanation:
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 that uses 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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #29
You are using Credit Risk Analyzer.
At what point is the single transaction check executed for a money market trade ? Note: There are 2 correct answers to this question.
- A . When the limit utilization analysis is executed
- B . When the trade is saved
- C . When settling the trade
- D . When the check icon is clicked
Correct Answer: BD
BD
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
BD
Explanation:
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.
Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020.002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html
Question #30
Which settings can be configured to generate outgoing correspondence ? Note: There are 3 correct answers to this question.
- A . Transaction type
- B . Product type
- C . Activity category
- D . House bank account
- E . Processing category
Correct Answer: ABE
ABE
Explanation:
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 Reference: [Correspondence Overview], [Correspondence Configuration Guide]
ABE
Explanation:
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 Reference: [Correspondence Overview], [Correspondence Configuration Guide]