Swap is an exchange transaction based on the interest rate/currency.There are three basic types of swaps in SAP Treasury Management:
<b>Currency swap:</b> A combination of a cash transaction and an offsetting forward transaction
<b>Interest rate swap</b>: A swap transaction with a term of more than twelve months, based on varying interest rates in the same currency
<b>Cross-currency interest rate swap</b>: An exchange of payment flows, comprising interest payments and capital payments in different currencies
With the help of the Treasury Management component, a cash flow is generated for each side of the swap when a swap is created. The cash flow consists of interest and principal payments, which "flow" at particular <b>points</b> in time.
Through S_ALR_87008539 you input the agreed forward rate. This is, where you maintain the exchange rate for a particular exchange rate type, effective from date and between what currencies and the validity.
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