What is delivery repo in SAP FIN-FSCM-TRM - Treasury and Risk Management?

SAP Term: delivery repo

• Component: FIN-FSCM-TRM

• Component Name: Treasury and Risk Management

• Description: A repurchase agreement in which the underlying security is transferred from the borrower's security account to the lender's security account. During the term of the transaction, the lender acquires ownership over the security and can dispose of it freely. In Hungary, the accounting treatment of delivery repos is governed by the general rules applicable to the sale of financial assets.

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• Key Concepts: 
  Delivery repo is a type of financial transaction in SAP Treasury and Risk Management (FIN-FSCM-TRM). It is a form of repurchase agreement, where one party sells securities to another party with the agreement to buy them back at a later date. The securities are held as collateral until the repurchase date. 
  
  How to use it: 
  In SAP, delivery repo transactions are created in the Repo/Reverse Repo Transaction Manager (TRM_REPO_TRANSACTION). The transaction manager allows users to enter details such as the security type, repurchase date, and interest rate. Once the transaction is created, it can be monitored and managed in the Repo/Reverse Repo Monitor (TRM_REPO_MONITOR). 
  
  Tips & Tricks: 
  When creating a delivery repo transaction in SAP, it is important to ensure that all details are entered correctly. This includes the security type, repurchase date, and interest rate. Additionally, users should ensure that the collateral is held securely until the repurchase date. 
  
  Related Information: 
  For more information on delivery repo transactions in SAP Treasury and Risk Management, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/FIN_FSCM_TRM/latest/en-US