FX Exposure Management For SAP ERP
Kyriba delivers the industry’s most advanced currency risk management solutions with extensive business intelligence capabilities for easy identification and understanding of foreign exchange (FX) risk. We use extract toolkits to collect complete and accurate data from ERP systems and spreadsheets for in-depth visibility into exposures, reliable analysis and informed risk mitigation.
Table of Contents
- The Cloud-Based Business Model Advantage: Quick ROI and Low TCO
- The Kyriba SAP Extract Toolkit: Facilitating Set-up and Ongoing Data Aggregation
- Enrollment: A Simple Process
- Automated File Extraction, Encryption and Upload
- Supported Versions
The Cloud-Based Business Model Advantage: Quick ROI and Low TCO
By leveraging the Cloud-based business model, Kyriba creates two advantages: speed and low cost, without sacrificing the safety and security of your data. Kyriba is committed to keeping your confidential data safe and secure, and our processes and controls are audited annually.
The cloud-based model frees your IT personnel from the need to manage and maintain the product and updates typically associated with installed and licensed software products, and enables Kyriba to rapidly and continually add product innovations to the market.
Kyriba customers experience quick returns on their investment. Up and running quickly, we provide almost immediate visibility to exposure and risk data, and access to analytics and decision support capability. Confidence in your decisions allows you to take actions to manage risk, reduce costs and gain operational efficiency.
Kyriba’s cloud-based application also provides low total cost of ownership. Because Kyriba is hosted, it requires little or no redeployment during upgrades, and no IT development. You know the subscriptionbased outlay at the time of purchase; you also know that the cost of ownership will not spike due to upgrades, redeployment, or support during the subscription term.
The Kyriba SAP Extract Toolkit: Facilitating Set-up and Ongoing Data Aggregation
Using proprietary technologies, Kyriba aggregates raw General Ledger data from SAP, as well as other ERP systems, databases and spreadsheet data sources. To facilitate the process of data collection for initial enrollment and ongoing exposure management, Kyriba created an SAP Extract Toolkit, Kyriba Extract 3.0, which has been certified by the SAP® Integration and Certification Center (SAP ICC) as powered by the SAP NetWeaver® technology platform.
The Kyriba SAP Extract Toolkit consists of instructions on how to run native SAP utilities to retrieve account/ entity configuration information and a program that captures summary monetary asset and liability or revenue and expense balance data. After initial enrollment, only the general ledger report is used to periodically extract the balance data.
|DATA CATEGORY||FIELD / DETAILS REQUIRED|
|Entities||Company code, name and functional currencies|
|Accounts||Account code, description and account type (optional)|
|General Ledger Balances||Life-to-date balances showing current value at a specified point in General Ledger Balances time, or period balances, typically post-closing at period end|
|Hedge Information||Includes amounts, company codes and currencies|
During the enrollment process with Kyriba, certain information will be needed from SAP to assist with configuration of Kyriba in preparation for exposure analysis. This information is typically retrieved using the SAP Data Browser to gather information from the account definition tables, SKA1 and SKB1, as well as company information from the T001 tables. This is a one-time effort and Kyriba will provide documentation for the specific fields requested.
The Kyriba G/L Extract Program for SAP is a report written in ABAP and delivered via transport. The transport contains all the objects required to execute and run the program. The program does not create any database objects nor does it write or update any database tables or objects. The program will read balance data from the SAP general ledger, referencing account configurations to optimize performance, resulting in summary balances by company, account and document currency.
In a generalized use case, a functional user will navigate to the Kyriba program in SAP and select a variant or enter variant parameters to suit their situation. The program can be run in foreground or in background with output sent to the ALV or spooled for later download. Once the program has completed, an authorized user will download the result file in Excel format to their desktop, login to Kyriba and subsequently securely upload the file to their client staging area in preparation for exposure analysis.
To further maximize efficiency, frequency, time savings, error reduction, and security, while minimizing support required from IT, the extract process (both the execution of the extract query and the encryption and upload of the resulting files) can be automated. An automated extraction, encryption and upload process is particularly beneficial if you have multiple data source instances or systems.
For each instance of SAP, your IT team will deploy and maintain the Kyriba G/L Extract Program. The extract program is the only Kyriba software deployed and maintained in your environment.
Kyriba Application Security
Kyriba understands and appreciates the importance of keeping your highly-confidential f inancial data safe and secure, and simultaneously available to your authorized users on demand. We have passed the scrutiny of our discriminating customers and ensure that our standards for security and confidentiality are the maximum possible.
Here are some of the elements that built confidence for our customers:
- Strong encryption to protect sensitive G/L data both in motion and at rest
- Annual SSAE 18 Type 2 audits for the Kyriba application and company processes and controls
- ISO 27001 certification
- Internet firewalls and an additional level of access protection around the production databases
- Application layer separation from data with application-only access
- Role-level access and idle disconnect
- IP Whitelisting, guaranteeing client access from only specific Internet addresses
- Continual monitoring through port scans and network intrusion detection systems
- Complete audit trail in application and data back-up
- Application hosting with AWS and Microsoft Azure
- Full redundancy in daily operations for Internet connectivity, failover and load balancing
- Disaster recovery plan and capabilities provide for full redundancy and a production system recovery objective of 6 hours
- Annual third-party penetration testing and security audits
- Employee, contractor and data center personnel background checks
Enrollment: A Simple Process
The Kyriba Professional Services team will lead your IT and treasury staff through three simple, well-defined steps including set-up, resulting data validation, and an exposure presentation, to achieve ongoing, on-demand SAP data aggregation and Kyriba FX exposure management. A final step automates the file extraction, encryption and upload process. On average, it takes 8-10 hours of an IT generalist’s time per ERP system enrolled in the Kyriba service.
Typical enrollment resources include:
- An SAP Basis resource to install the program from the transport
- A developer or functional person with access to retrieve configuration data using the Data Browser
- A functional person who can run the program and verify balances with the Kyriba Professional Services team using native SAP general ledger reports.
|Set Up & Configuration||IT or Other Resources||Download Kyriba SAP Extract Toolkit; Run SAP utility to get configuration data; Execute test and live G/L Extract Program||10 Hours|
|Extract Result Validation||Treasury / Accounting Resource||Included Accounts and Sample Data Validation||2 Hours|
|Exposure Presentation||Treasury Resource||Demonstration of Kyriba and discussion of current and future workflow||2 Hours|
|Optional: Automated File Extraction & Upload||IT Resource||Configure standard utilities from Kyriba- provided scripts||2-4 Hours|
|Total Project Timeframe: 2 to 4 Weeks|
During Enrollment, your IT personnel will install the Kyriba SAP Extract Toolkit, run SAP utilities and execute the G/L Extract Program. The toolkit provides detailed instructions for IT, or other personnel with access rights, to run native SAP utilities to retrieve detailed account/entity configurations, a chart of accounts table and functional currency information. Next, you execute the Kyriba G/L Extract Program to produce a test exposure data set for validation. Once the data is validated, you may be asked to re-run the program to produce a final data set to be used for exposure management. This process generally requires approximately ten hours of IT time/effort.
During Query Result Validation, your treasury and/or accounting team members will review the sample data generated by the Kyriba G/L Extract Program to verify monetary asset and liability or revenue and expense account information. The Kyriba Professional Services team will produce a sample data set for your review to ensure the data is consistent with G/L balances in SAP. You may also provide data on outstanding hedges, and the validated balance and hedge data is uploaded to Kyriba to calculate FX exposure and support timely, data-driven risk mitigation and cost reduction decisions. This step requires approximately two hours of time/effort.
During Exposure Presentation, treasury and Kyriba Professional Services review your current workflow and systems landscape, progress to date, the future vision for the end state of rollout, and workflow and process improvements. A demonstration of the Kyriba software with your live exposure data and a discussion of how exposure visibility can help you optimize your risk management decisions complete the review. This process requires at least two hours of treasury time/effort.
Automated File Extraction, Encryption and Upload
Automated File Extraction, Encryption & Upload is supported through standard protocols HTTPS (e.g. via cURL) and SFTP (Secure FTP) for automating the transfer of files to a secure staging area within the Kyriba application. Kyriba has customized these protocols with syntax to enable users to transfer files to, and trigger processing within, the Kyriba application.
You can deploy scripts (samples provided by Kyriba) based on the needs of your environment, which retrieve the output generated by the Kyriba G/L Extract Program, and encrypt the file(s), before transferring them over 128-bit HTTPS or SFTP to Kyriba.
During your Kyriba enrollment, our Client Services team will supply scripts as part of the toolkit and work with you to configure them for your environment. The level of effort required to automate the file transfer is subject to the complexities of your environment but is typically measured in hours, not days. The process requires a Systems Administrator, Developer and/or DBA with privileges to create or modify shell scripts to automate the process or integrate with existing processes.
Benefits of Automated File Encryption and Transmission
- Data encrypted at rest and in motion
- Creation of a straight-through process from business systems/ERP to Kyriba
- Automates transfer of the extracted data files directly to Kyriba increasing efficiency and time savings, and reducing errors
- Enables more frequent processing and analysis cycles
- Allows coordinated transfer of files from multiple business systems
- Additional security through PGP encryption and IP Whitelisting
- Uses industry standard utilities and protocols: HTTPS file transfer and SFTP Less operational and IT overhead
SAP R/3 4.6c, 4.7
ECC 5.0, ECC 6.0
SAP, SAP ERP and SAP R/3 are the trademarks or registered trademarks of SAP AG in Germany and in several other countries. Other names may be trademarks of their respective owners.