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

SAP Term: special delivery repo

• Component: FIN-FSCM-TRM

• Component Name: Treasury and Risk Management

• Description: A repurchase agreement transaction that can be made only with the Hungarian National Bank MNB, where MNB acts as the lender of cash and a bank is the borrower selling the security. The lender acquires ownership over the underlying security and can dispose of it freely, however, the security remains in the borrower's security account during the term of the transaction. In Hungary, the accounting treatment of special delivery repos is governed by the general rules applicable to loan transactions. Interest for the security is payable to the lender. During the term of the transaction, which cannot exceed one year, the lender has to post the special delivery repo transactions off-balance.

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• Key Concepts: 
  Special Delivery Repo is a type of financial transaction in SAP Treasury and Risk Management (FIN-FSCM-TRM). It is a short-term loan agreement between two parties, where one party (the borrower) sells securities to the other party (the lender) with an agreement to repurchase them at a later date. The lender earns interest on the loan, while the borrower gains access to short-term financing. 
  
  How to use it: 
  In SAP Treasury and Risk Management, Special Delivery Repo transactions are created in the Transaction Manager (TRM) module. The user must enter the details of the transaction, such as the amount of the loan, the interest rate, and the date of repayment. Once the transaction is created, it can be monitored and managed in TRM. 
  
  Tips & Tricks: 
  When creating a Special Delivery Repo transaction in SAP Treasury and Risk Management, it is important to ensure that all details are accurate and up-to-date. This will help to ensure that the transaction runs smoothly and that both parties are satisfied with the outcome. 
  
  Related Information: 
  For more information on Special Delivery Repo transactions in SAP Treasury and Risk Management, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed explanations of this type of financial transaction.