SAP CTRM: Streamlining Commodity Management

In today’s complex commodity market, efficient management is paramount. SAP Commodity Trade and Risk Management (CTRM) offers a comprehensive solution to streamline your commodity processes, from procurement to sales and risk management.

Core Functionalities

SAP CTRM empowers you to:

  • Manage Procurement and Sales: Seamlessly handle contracts, orders, and invoicing, including provisional and differential invoicing.
  • Leverage the Commodity Price Engine (CPE): Define complex pricing formulas based on market prices, exchange rates, quality, and delivery conditions.
  • Mitigate Commodity Risk: Identify and manage physical and financial commodity risks with integrated risk management tools.
  • Optimize Derivatives Trading: Execute derivative trades, including swaps, forwards, and options, and integrate them into your risk management framework.
  • Facilitate Broker Reconciliation: Automate broker statement reconciliation with SAP Broker Reconciliation for Commodity Derivatives.
  • Centralize Hedging: Support centralized hedging with listed derivatives using Derivative Order and Trade execution.

Innovations in SAP CTRM

SAP CTRM continues to evolve with exciting features:

  • Commodity Hedge Cockpit: Visualize and manage hedging strategies effectively.
  • Commodity Price Risk Hedge Accounting: Separate hedging programs, define hedge specifications, and automate hedge accounting.
  • Modelled Deals: Analyze hypothetical deals without impacting financial accounting.
  • Integrated Middle and Back Office: Streamline operations by centralizing back-office and accounting functions.
  • Trade Finance Integration: Leverage Letters of Credit and Guarantees to finance commodity transactions.
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