What is intercompany trading in SAP FIN-FSCM-TRM - Treasury and Risk Management?

SAP Term: intercompany trading

• Component: FIN-FSCM-TRM

• Component Name: Treasury and Risk Management

• Description: Simplifies the entry of foreign exchange transactions if the counterparty is an affiliated company. When you create a foreign exchange transaction spot exchange, forward exchange, foreign exchange swap, and non-deliverable forward transaction in the company code of the issuing company, mirror transactions are automatically generated in the company code of the receiving company.

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• Key Concepts: 
  Intercompany trading is a process in SAP Treasury and Risk Management (FIN-FSCM-TRM) that allows companies to trade with each other. This process involves the exchange of goods, services, or financial instruments between two or more companies. It is used to facilitate transactions between companies that are part of the same corporate group or have a business relationship. 
  
  How to use it: 
  In SAP Treasury and Risk Management, intercompany trading is managed through the Intercompany Trading (ICT) module. This module allows users to set up and manage intercompany trading relationships, define trading rules, and monitor and report on intercompany transactions. The ICT module also provides tools for managing risk associated with intercompany trading, such as currency risk and counterparty risk. 
  
  Tips & Tricks: 
  When setting up an intercompany trading relationship in SAP Treasury and Risk Management, it is important to ensure that all parties involved are aware of the terms of the agreement. This includes the type of goods or services being exchanged, the currency of the transaction, and any other relevant details. Additionally, it is important to ensure that all parties involved have access to the ICT module so that they can monitor and report on their transactions. 
  
  Related Information: 
  For more information on intercompany trading in SAP Treasury and Risk Management, please refer to the official SAP documentation at https://help.sap.com/viewer/product/FIN_FSCM_TRM/latest/en-US.