What is liquidity item in SAP FIN-FSCM-TRM - Treasury and Risk Management?

SAP Term: liquidity item

• Component: FIN-FSCM-TRM

• Component Name: Treasury and Risk Management

• Description: A custom attribute for categorizing the origin and use of cash flows that acts as an analytical dimension in the cash flow statement and in reports on expected developments.

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• Key Concepts: 
  Liquidity item is a term used in SAP Treasury and Risk Management (FIN-FSCM-TRM) to refer to a financial instrument that can be used to manage liquidity. This includes cash, bank deposits, and other short-term investments. Liquidity items are used to manage cash flow and ensure that the company has enough funds available to meet its obligations.
  
  How to use it: 
  In SAP Treasury and Risk Management, liquidity items can be managed through the Cash and Liquidity Management (CLM) module. This module allows users to view their current liquidity position, create liquidity plans, and monitor their liquidity performance. Additionally, users can use the CLM module to manage their cash flow by setting up payment plans and forecasting future cash needs.
  
  Tips & Tricks: 
  When managing liquidity items in SAP Treasury and Risk Management, it is important to consider the risk associated with each item. For example, some liquidity items may be more volatile than others, so it is important to understand the risks associated with each item before investing in them. Additionally, it is important to monitor the performance of each item over time in order to ensure that it is meeting the company’s liquidity needs.
  
  Related Information: 
  In addition to managing liquidity items in SAP Treasury and Risk Management, users can also use the CLM module to manage foreign exchange (FX) transactions. The FX module allows users to view their current FX positions, create FX plans, and monitor their FX performance. Additionally, users can use the FX module to manage their currency exposure by setting up hedging strategies and forecasting future FX needs.