Comprehensive and Detailed 150 to 250 words of Explanation From Positioning SAP Business Suite via SAP Financial Management Solutions documents:

The Treasury & Working Capital pillar is uniquely positioned to focus on the liquidity and financial health required to fund business operations and long-term growth. While Accounting & Financial Close records what has happened and FP&A plans for what will happen, Treasury Management ensures the company has the actual capital available to execute those plans. This involves managing cash positions, optimizing bank relations, and mitigating financial risks such as currency fluctuations or interest rate volatility.

Sustainable growth is supported through efficient working capital management, which minimizes the amount of capital tied up in the "Cash Conversion Cycle." By optimizing accounts receivable and accounts payable through SAP’s integrated tools, the CFO can free up internal cash flow to reinvest in the business without relying solely on external debt. Furthermore, modern SAP Treasury solutions include features for sustainable finance, helping organizations track and manage green bonds or ESG-linked loans. By providing real-time visibility into global cash across all entities, SAP Treasury & Working Capital enables the CFO to act as a strategic "Chief Value Officer," ensuring that the organization remains solvent, resilient, and ready to capitalize on new market opportunities.