What is external exchange order in SAP FIN-FSCM-CMM - Financial Risk Management for Commodities?

SAP Term: external exchange order

• Component: FIN-FSCM-CMM

• Component Name: Financial Risk Management for Commodities

• Description: Order to a broker for the exchange of a commodity futures contract between two counterparties, being not in the same company

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• Key Concepts: 
  An external exchange order is a type of financial transaction in the SAP Financial Risk Management for Commodities (FIN-FSCM-CMM) component. It is used to manage the risk associated with commodity trading, such as foreign exchange, interest rate, and commodity price risk. The external exchange order allows a company to enter into a contract with an external party to buy or sell a commodity at a predetermined price. 
  
  How to use it: 
  The external exchange order is created in the SAP system and then sent to the external party for approval. Once approved, the order is executed and the transaction is completed. The external exchange order can be used to hedge against price fluctuations in the market or to take advantage of favorable market conditions. 
  
  Tips & Tricks: 
  When creating an external exchange order, it is important to ensure that all of the details are correct and that the terms of the contract are clearly stated. Additionally, it is important to monitor the market conditions closely and adjust the terms of the contract accordingly. 
  
  Related Information: 
  The external exchange order is part of the SAP Financial Risk Management for Commodities (FIN-FSCM-CMM) component. This component also includes features such as hedging, margin management, and portfolio management. Additionally, there are other components within SAP that can be used to manage financial risk, such as Treasury and Risk Management (TRM).