What is contracted transaction in SAP FIN-FSCM-TRM - Treasury and Risk Management?

SAP Term: contracted transaction

• Component: FIN-FSCM-TRM

• Component Name: Treasury and Risk Management

• Description: A transaction which will take place in the future due to an enforceable legal contract.

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• Key Concepts: 
  A contracted transaction is a type of financial transaction that is agreed upon in advance between two parties. It is used to manage the risk associated with currency fluctuations, interest rate changes, and other market risks. It is a part of the SAP Treasury and Risk Management (FIN-FSCM-TRM) component. 
  
  How to use it: 
  Contracted transactions can be used to hedge against currency fluctuations, interest rate changes, and other market risks. They can also be used to manage liquidity and cash flow. The SAP Treasury and Risk Management component provides tools to help manage contracted transactions. 
  
  Tips & Tricks: 
  When setting up a contracted transaction, it is important to consider the terms of the agreement, such as the duration of the contract, the amount of money involved, and any fees or penalties associated with the transaction. It is also important to consider the potential risks associated with the transaction. 
  
  Related Information: 
  For more information on contracted transactions and how to use them in SAP Treasury and Risk Management, please refer to the official SAP documentation.