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Treasury Management and Cash Management Baseline Configuration Design Document

Table Contents
1 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 Purpose of the document ........................................................................ 5 Key data Structures ................................................................................ 6 General Settings: ................................................................................. 6 Define Calculation Indicator .................................................................... 6 Define Company Code Additional Data ....................................................... 6 Define Portfolio ................................................................................... 6 Assign Calendar ................................................................................... 7 Define Leading Currency ........................................................................ 8 Define Valuation Areas .......................................................................... 8 Define Accounting Codes ........................................................................ 9 Assign Accounting Codes and Valuation Areas ............................................... 9

2.10 Initialization of Parallel Valuation Area ...................................................... 9 2.11 Define and Assign Valuation Classes (General Valuation Class) ......................... 10 2.12 Define and Assign Valuation Classes .......................................................... 10 2.13 Assignment of General Valuation Class to Specific Valuation Class .................... 10 2.14 Assign General Valuation Classes to Groups: ............................................... 12 2.15 Define Position Management Procedure ..................................................... 12 2.16 Assign Position Management Procedure ..................................................... 12 2.17 Define Update Types and Assign Usages ..................................................... 13 2.18 Define Accrual / Deferral ...................................................................... 14 2.19 Link to Other Accounting Components ....................................................... 14 2.20 Define Account Assignment Reference Determination (OTC Transactions) ........... 15 2.21 Indicate Update Types as Relevant to Posting: ............................................ 15 2.22 Define Account Determination ................................................................ 15 2.23 Define Account Determination ................................................................ 16 Money Market ............................................................................................ 18 2.24 Product Types .................................................................................... 18 2.24.1 Define Product Types ............................................................... 18 2.25 Transaction Types ............................................................................... 19 2.25.1 Define Number Ranges ............................................................. 19 2.25.2 Define Transaction Types .......................................................... 19 2.26 Flow Types ........................................................................................ 19 2.26.1 Define Flow Types .................................................................. 19 2.26.2 Assign Flow Types to Transaction Type ......................................... 20 2.27 Derived Flows .................................................................................... 21 2.27.1 Define Calculation Procedure for Derived Flows .............................. 21 2.27.2 Define Derivation Procedures and Rules ........................................ 21 2.28 Update Types ..................................................................................... 22 2.29 Define Update Types and Assign Usages ..................................................... 22 2.29.1 Assign Flow Types to Update Types .............................................. 23 2.30 Condition Types .................................................................................. 23 2.30.1 Define Condition Types ............................................................ 23 2.30.2 Assign Condition Types to Transaction Type ................................... 23 Foreign Exchange........................................................................................ 25 2

2.31 Product Types .................................................................................... 25 2.31.1 Define Product Types ............................................................... 25 2.32 Number Ranges................................................................................... 25 2.32.1 Define Number Ranges for Transaction ......................................... 25 2.32.2 Define Number Ranges for Underlying Transaction ........................... 25 2.32.3 Define Transaction Types .......................................................... 25 2.32.4 Assign Forex Attributes............................................................. 26 2.32.5 Assign Fixing Spreads ............................................................... 26 2.33 Flow Types ........................................................................................ 26 2.33.1 Define Flow Types .................................................................. 26 2.33.2 Assign Flow Types to Transaction Type ......................................... 26 2.34 Derived Flows .................................................................................... 27 2.34.1 Define Calculation Procedure for Derived Flows .............................. 27 2.34.2 Define Derivation Procedures and Rules ........................................ 27 2.35 Update Types ..................................................................................... 28 2.36 Define Update Types and Assign Usages ..................................................... 28 2.36.1 Assign Flow Types to Update Types .............................................. 28 Securities ................................................................................................. 29 2.37 Basic Settings ..................................................................................... 29 2.37.1 Define Currency Units .............................................................. 29 2.37.2 Define Exchange ..................................................................... 29 2.37.3 Define Security Price Types ....................................................... 29 2.38 Product Types .................................................................................... 29 2.38.1 Define Number Ranges for Security Classes .................................... 29 2.39 Condition Types .................................................................................. 29 2.39.1 Define Condition Types ............................................................ 29 2.39.2 Define Condition Groups ........................................................... 30 2.39.3 Assign Condition Types to Condition Groups ................................... 30 2.40 Define Product Types ........................................................................... 31 2.41 Assign Repayment Types to Product Types ................................................. 31 2.42 Define Company Code-Dependent Settings for the Product Type ...................... 31 2.43 Securities Account Management .............................................................. 32 2.43.1 Define Securities Account Categories ........................................... 32 2.43.2 Maintain Field Selection for Security Account Master Data ................. 33 2.43.3 Define Blocking Flags ............................................................... 33 2.44 Number Ranges................................................................................... 33 2.44.1 Define Number Ranges for Transaction ......................................... 33 2.44.2 Define Number Ranges for Underlying Transaction ........................... 33 2.45 Transaction types: ............................................................................... 34 2.46 Flow Types ........................................................................................ 34 2.46.1 Define Flow Types .................................................................. 34 2.46.2 Assign Flow Types to Transaction Type ......................................... 34 2.47 Derived Flows .................................................................................... 35 2.47.1 Define Calculation Procedure for Derived Flows .............................. 35 2.47.2 Define Derivation Procedures and Rules ........................................ 35 2.48 Update Types ..................................................................................... 36 2.49 Define Update Types and Assign Usages ..................................................... 36 2.49.1 Assign Flow Types to Update Types .............................................. 36 Hedge Management ..................................................................................... 37 2.50 Number Ranges................................................................................... 37 2.50.1 Define Number Ranges for Hedges ............................................... 37 3

2.50.2 Assign Hedge Number Ranges to a Company Code ............................ 37 2.50.3 Define Number Ranges for Hedging Relationships ............................. 37 2.50.4 Assign Hedging Relationship Number Ranges to a Company Code .......... 37 2.50.5 Define Number Ranges for Hedge Plans ......................................... 37 2.50.6 Assign Hedge Plan Number Ranges to a Company Code ...................... 38 2.50.7 Define Number Ranges for Transactions ........................................ 38 2.50.8 Assign Transaction Number Ranges to a Company code...................... 38 2.51 Valuation Area-Dependent Settings for Hedge Management ............................. 38 2.52 Settings for Automatic Creation of Hedge Management Data ........................... 38 Cash Management ....................................................................................... 39 2.53 Currencies......................................................................................... 39 2.54 Check rate Type ................................................................................. 39 2.55 Define Source Symbol ........................................................................... 39 2.56 Define Planning Level ........................................................................... 40 2.57 Define Planning Groups ......................................................................... 41 2.59 Maintain Structure ............................................................................... 42 2.60 Prepare production startup for Cash Management ........................................ 43 2.61 Activate company code ......................................................................... 43 2.62 Define Value Date Default ..................................................................... 43 2.63 Integration with other Modules. .............................................................. 43

1 Purpose of the document


This deliverable documents the guidelines and rationales for a packaged software configuration in order for it to meet the specific business and IT requirements defining the framework for the configuration activities of the application software into Project SAP. The focus of this document is on the SAP configuration (SAP parameters) and specifically on the key parameters. The software development of SAP will be addressed in the Application development standards during the design phase. These specifications represent the key component of the design of the standard software and must be followed by the release implementation teams.

2 Key data Structures


In the Key data structure determines the master data of the Organisation for implementing the SAP R/3 which has mentioned in the functional design document and the same would be incorporated in the detailed explanation, coding logic and naming conventions etc. 2.1 2.2 General Settings: Define Calculation Indicator FSCMTRM Transaction ManagerGeneral SettingOrganization Define Calculation Indicator SPRO

IMG Path Transaction

In this IMG activity we have to define the calculation indicator for calculating the exchange rates. In the standard SAP we have to define indicator M for standard translation at average rate. The Rates mentioned standard in SAP are: 2.3 Define Company Code Additional Data FSCMTRM Transaction ManagerGeneral SettingOrganization Define Company Code Additional Data. SPRO

IMG Path Transaction

In this IMG activity you have to define additional data for the company codes you use. General Settings Enter the SWIFT code for the company code here Settings for exchange rates: Enter the rate calculation indicator for your exchange rate translations in the current company code. The rate calculation indicator specifies the debit and credit rate categories and is only used in the securities and loans areas. Settings for the securities area: Specify whether or not short sales are permitted. Define a price type for security prices that you will use for evaluations. Settings for loans Enter the factory calendar that the system should use for this company code in loans management.You can specify the factory calendar that the system should use per default for each condition type and group when you enter a condition item. If you have not specified a factory calendar here per condition group for a condition type, the system uses the factory calendar that you have defined in this IMG activity for the company code. Company Code 1000 Rate calculation M Company Name Organization Ltd City Mumbai Chart of Accounts 1000 Currency INR

2.4

Define Portfolio

IMG Path

FSCM TRM Transaction Manager General Setting Organization Define Portfolio Transaction SPRO The portfolio is usually a concept used to group and to structure positions of financial instruments. In Treasury and Risk Management, the portfolio is also used for this purpose, although in two very different ways. One use of a portfolio is as a grouping concept for reporting transactions. You can create a portfolio for any transaction, activate it in most reports, and use it for your own reporting purposes. However, in this role it initially classifies transactions and not positions. In the securities area, the portfolio can have another role for securities positions. The position management function of the transaction Manager allows your accounting positions to be divided up in a flexible manner. You can specify that you want to distinguish between securities positions by portfolio. In this case, two purchases of the same security with different portfolios, for example, would give rise to different accounting positions, even if the purchases were made in the same securities account. The portfolio is therefore a differentiating characteristic of securities position.

Company Code 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

Portfolio BONDS PCKCR DEBEN FOREX HEDGE LOANS MUFUN VRINT FXDEP SUBLN BUYCR

Portfolio Fixed Interest Bonds Packing Credit Loans Non Convertible Debenture Foreign Exchange Instrument Hedge Instrument Gen. Loans Mutual Funds Instruments Variable Interest Instruments Fixed Deposits Loans to Subsidiaries Buyers / Suppliers Credit

2.5

Assign Calendar FSCMTRM Transaction ManagerGeneral Setting Transaction ManagementCurrencies->Assign Calendar SPRO

IMG Path Transaction

In this step, you assign a calendar to the various currencies. When you enter the transaction, the system performs a working day check to check all the flows that result from the transaction against the calendar defined here. Currency INR Factory Calendar OG

The Configuration for the Calendar Currency Code is as below:

2.6

Define Leading Currency

IMG Path Transaction

FSCMTRM Transaction ManagerGeneral Setting Transaction ManagementCurrencies->Define Leading Currency SPRO

In this step you define the leading currencies for the various currency pairs. The system uses these settings to determine the rate notation when you enter foreign exchange transactions and foreign exchange options. In addition, you can enter the number of days between conclusion of the Forex transaction and the value date in the Spot days field. Usually this is two working days. Depending on the currency, there may be deviations from this rule. You should only make an entry in this field if practices on the international Forex market follow a different rule to the usual two day rule. Example If you enter a Forex transaction amounting to 40,000 USD and enter 1.10 in the exchange rate field, the system can use the leading currency to calculate the amount in Euros. Leading currency EUR -> 40,000 USD / 1.10 EUR/USD = 36,363.64 EUR Leading currency USD -> 40,000 USD * 1.10 USD/EUR = 44,000.00 EUR Rate notation in Treasury: Notation: Leading currency/Following currency Interpretation: The rate expresses the amount in the following currency for one unit of the leading currency. The leading currency will be defined as per ORGN requirement is maintained as USD>INR.

2.7

Define Valuation Areas FSCMTRM Transaction ManagerGeneral SettingAccounting-> Organization->Define Valuation Area SPRO

IMG Path Transaction

In this IMG activity you define all valuation areas that you require. You define valuation area 001 that corresponds to the 'operative valuation area', and all other parallel valuation areas. The valuation area refers to an accounting principle within internal position management. Typical examples for an accounting principle are the German Commercial Code, the US GAAP and IFRS. The Operative Valuation Area is 001. The Operative and IFRS Valuation area will be configured form ORGN perspective. The positions in the operative valuation area (with exceptions) are managed and are valued using the operative valuation area functions. Valuation Area 001 002 003 Name of valuation area Operative Valuation Area - ORGN Parallel Valuation Area - IFRS Parallel Valuation Area Local GAAP

2.8

Define Accounting Codes FSCMTRM Transaction ManagerGeneral SettingAccounting-> Organization->Define Accounting Code SPRO

IMG Path Transaction

The accounting code is the central organizational unit in the parallel valuation areas. Each business transaction is assigned to a specific accounting code. The accounting code itself corresponds exactly to a company code (1:1 relationship). The assignment of accounting code to an FI Company Code is done here. Each business transaction is assigned to a specific accounting code. A.C 1000 A.C Description Organization Ltd - Accounting Code Co. Co 1000

2.9

Assign Accounting Codes and Valuation Areas FSCMTRM Transaction ManagerGeneral SettingAccounting-> Organization->Assign Accounting Codes and Valuation Areas SPRO

IMG Path Transaction

In this IMG activity you assign the valuation areas to accounting codes. You also make settings for the FI update and for valuation.
The valuation area is has to be assigned to the accounting codes. It is important here to

ensure that all valuation areas are assigned to an accounting code.


This assignment also specifies whether a posting to accounting is generated, or which

accounting principle is used. The key assignment to the correct ledger takes place in FI by means of the accounting principle. Each accounting code must also be assigned a currency to make it possible to determine whether there is a foreign exchange transaction or not. The Activity of Assignment of Accounting Code to Valuation Area will be performed here. The Posting to FI from TR will be enabled for Operative Valuation Area 001. The Assignment of Accounting Code is done for all Valuation Areas with respect ORGN. A.C 1000 1000 A.C Description Organization Ltd - Accounting Code Organization Ltd - Accounting Code Val. Area 001 002 Name of valuation area Operative Valuation Area Parallel Valuation Area - IFRS

2.10 Initialization of Parallel Valuation Area IMG Path Transaction FSCMTRM Transaction ManagerGeneral SettingAccounting-> Organization->Initialization of Parallel Valuation Area SPRO

In this IMG activity, you must initialize the parallel valuation areas on the basis of the existing transaction data before you can use the corresponding functions. You initialize the data once for a certain key date. 9

After all the settings have been made, the valuation areas are initialized. A separate

initialization has to be carried out for each financial transaction area (loans, OTC transactions, securities). If changes are carried out at a later time, it is only necessary to carry out a new initialization if the changes were major (such as a new valuation area). Before initialization can be carried out, you have to specify a key date. This key date specifies the point from which the parallel valuation or posting functions can be used. Each initialization operation consists of a variety of steps, which you have to process from the top down. You have to select a step and start it with the "Execute" button. Position management into different valuation areas is only possible after the initialization has been carried out. It is very useful to carry out the initialization before entering any transactions as this avoids position postings. One must initialize the parallel valuation areas on the basis of the existing transaction data before the corresponding functions can be used. The Data once is initialized for certain key date.

2.11 Define and Assign Valuation Classes (General Valuation Class) IMG Path Transaction FSCMTRM Transaction ManagerGeneral SettingAccounting-> Settings for Position Management->Define and Assign Valuation Classes SPRO

The general valuation class specifies in the transaction which valuation area the specified transaction can be assigned to. The following asset classes exist: Long-term Investment Medium-term Investment Short-term Investment Liabilities

2.12 Define and Assign Valuation Classes

IMG Path Transaction

FSCMTRM Transaction ManagerGeneral SettingAccounting-> Settings for Position Management->Define and Assign Valuation Classes SPRO

Each valuation area is subdivided into various valuation classes by means of the international

(IFRS) or local accounting principles.


In this step, the valuation areas are linked to the corresponding valuation classes.

2.13 Assignment of General Valuation Class to Specific Valuation Class

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IMG Path Transaction

FSCMTRM Transaction ManagerGeneral SettingAccounting-> Settings for Position Management->Define and Assign Valuation Classes SPRO

In the transaction, only the general valuation classes are entered, or they are retrieved

automatically. For the position to be transferred to the valuation classes there is now an assignment step. In the "Assign General Valuation Class" menu item, the three functional areas Valuation area, Valuation class and General valuation class are linked. In this menu option you define general valuation classes (GVCs) and special valuation classes for each valuation area and assign these classes to each other. ORGN following General Valuation Class and Valuation Area will be configured and assigned. VA 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 ValCl 001 001 001 002 002 001 003 003 002 004 004 004 001 001 002 002 002 003 Name of the general valuation class Short-term investments Short-term investments Short-term investments Mid-term investments Mid-term investments Mid-term investments Long-term investments Long-term investments Long-term investments Liabilities Liabilities Liabilities Valuation area 2 : Transfer posting longterm -> mid-term Valuation area 2 : Transfer posting longterm -> mid-term Valuation area 2 : Transfer posting longterm -> mid-term Valuation area 2 : Transfer posting longterm -> mid-term Valuation area 2 : Transfer posting longterm -> mid-term Valuation area 2 : Transfer posting longterm -> mid-term Name of the valuation class At Fair Value Through Profit or Loss Trading Current Assets Available for Sale Available for Sale Current Assets Held to Maturity / Loans and Receivables Held to Maturity Fixed Assets Liabilities Liabilities Liabilities At Fair Value Through Profit or Loss Trading Fixed Assets Available for Sale Available for Sale Name of valuation area Operative Valuation Area Parallel Valuation Area IFRS Parallel Valuation Area - Local GAAP Operative Valuation Area Parallel Valuation Area IFRS Parallel Valuation Area - Local GAAP Operative Valuation Area Parallel Valuation Area IFRS Parallel Valuation Area - Local GAAP Operative Valuation Area Parallel Valuation Area IFRS Parallel Valuation Area - Local GAAP Operative Valuation Area Parallel Valuation Area IFRS Parallel Valuation Area - Local GAAP Operative Valuation Area Parallel Valuation Area IFRS Parallel Valuation Area - Local GAAP

The above General valuation classes will be used to classify transactions by asset type and apply across all valuation areas. Special valuation classes if required will be defined at valuation area level. The general valuation classes are assigned to the special valuation classes for the valuation areas. For each transaction, the system can therefore determine the special valuation classes for the different valuation areas on the basis of the general valuation class. 11

The General valuation class assignment is made to a position when you enter the financial transaction. In activity 'Assign Position Management Procedure', the rules for assigning position management procedures to positions are defined. The valuation class is one of the criteria that you can use to assign the position management procedure.

2.14 Assign General Valuation Classes to Groups: IMG Path Financial Supply Chain Management > Treasury and Risk Management > General Settings > Accounting > Settings for Position Management > Assign General Valuation Classes to Groups SPRO

Transaction

One can define here groups and then assign general valuation classes. The groups are assigned per company code, product type and/or transaction type. When one will use the F4 help for assigning general valuation classes, then only general valuation classes for groups belonging to the product/transaction type will be displayed.

2.15 Define Position Management Procedure

IMG Path Transaction

FSCMTRM Transaction ManagerGeneral SettingAccounting-> Settings for Position Management-> Define Position Management Procedure SPRO

In this IMG activity you define the position management procedures you require. In these you establish the rules for maintaining the positions, for example, how the positions are to be valued, and also how the derived business transactions are to be generated in the case of position outflows or balance sheet transfers.
The position management procedure determines how positions are managed and valued in the

parallel valuation areas.


You first have to define the key date valuation procedures required by the relevant

accounting regulations.
You then set the sequence of the key date valuation procedures within the position

management procedures. In this way, you can combine the relevant procedures for amortizations, one-step price valuations, security price valuations and foreign currency valuations according to the respective accounting rules. You can assign position management procedures dependent on different factors (for example, valuation area, valuation class, product type). The Standard SAP Position Management Procedures are adopted.

2.16 Assign Position Management Procedure

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IMG Path

FSCMTRM Transaction ManagerGeneral SettingAccounting-> Settings for Position Management->Assign Position Management Procedure Transaction SPRO In this IMG activity you define the rules that govern how the position management procedures are assigned to the positions. You control the assignment using the parameters Accounting code, valuation area, valuation class, product category, product type, transaction type, portfolio and securities account group.
You can define position management procedures dependent on the accounting code,

valuation area, product type and transaction type. This enables you to take different statutory regulations into account for valuation.
When assigning the position management procedures, you can use the criteria valuation area,

accounting code, product category, product type, valuation class and transaction type, for example.
For all newly created positions, the position management procedure is initially derived from

the data stored here. You can change this default value manually using the transaction Maintain Position Management Procedures (TPM50).
To ensure that a position management procedure is found in all cases, you can define a

default procedure (where all influencing factors have their initial value).
If, for example, you do not specify the accounting code area, these settings apply for all

areas.
It is important to save a position management procedure for all products to ensure valuation

and position management takes place without errors.


The Assignment of position management procedure will maintain the relationship between

valuation area, class, product type, transaction type and portfolio.


The Standard SAP Position Management Procedures will be adopted.

2.17 Define Update Types and Assign Usages IMG Path Transaction FSCMTRM Transaction ManagerGeneral SettingAccounting-> Accrual/Deferral->Update Types->Define Update Types and Assign Usages SPRO

In this IMG activity, you define all the update types that are required to manage the positions in the parallel valuation areas. The update type identifies the flow in position management. Both the external and internal position management link attributes with in update type and enables properties to be assigned to a flow of the cash flow in this way. The Standard update types will be considered.

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2.18 Define Accrual / Deferral

IMG Path Transaction

FSCMTRM Transaction ManagerGeneral SettingAccounting-> Accrual/Deferral->Update Types-> Assign Update Types for Accrual/Deferral SPRO

In this step, you assign an accrual/deferral procedure and an accrual/deferral method to the flow types that are subject to accrual/deferral. In order to determine the profit for the period, revenues and expenses - independent of due date - must be assigned to the correct economic period. Via the accrual/deferral of expenses and revenues to a particular key date/period end (e.g. at end of fiscal year), you get the accrued/deferred expenses and revenues.
When carrying out accruals/deferrals, we differentiate between the reset and difference

procedures. In the reset procedure, the accrual/deferral carried out is withdrawn again on the next day. In the difference procedure, on the other hand, only the differences to the last accrual/deferral are posted.
Update types that are relevant to accrual/deferral are defined per accounting code. The TPM44 transaction is used for all postings.

2.19

Link to Other Accounting Components FSCMTRM Transaction ManagerGeneral SettingAccounting-> Link to Other Accounting Components->Define Account Assignment References SPRO

IMG Path Transaction

In this menu option you define the account assignment references that you require. Account assignment references are required for each sub ledger position and also for each class position in a securities account. Treasury and FI integration is mapped here. One can use the account assignment references to determine the G/L account in FI in which the relevant position is to be managed. You assign the G/L accounts to the account references in the IMG activity Define Account Determination. You can use the account assignment references to control the posting of the sub ledger positions in the general ledger. You can use the account assignment reference of the class positions in the securities account to control the posting of dividend payments, interest payments and repayments for each securities account class position. You do this by making the assignment of G/L accounts in FI dependent on the account assignment reference for each account symbol (position and interest/dividend revenue). You create the account assignment references independent of the valuation areas. You can assign the account assignment references to positions valuation area-dependent and/or you control the account determination per valuation area and account assignment reference. The following Standard Account Assignment references will be considered.

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2.20 Define Account Assignment Reference Determination (OTC Transactions) IMG Path FSCMTRM Transaction ManagerGeneral SettingAccounting-> Link to Other Accounting Components->Define Account Assignment Reference Determination (OTC Transactions) SPRO

Transaction

In this Customizing item, you can save rules for automatically determining the account

assignment references for the parallel valuation areas. The rules are defined per product group, where the product groups "Securities" and "Listed options / futures" are grouped together here. The account assignment reference determination can be controlled by a derivation rule or by an assignment. An assignment consists of two parts; the definition and the condition. The definition specifies which fields or which account assignment reference is used for the product type controlled in the condition. In the conditions area, you specify which product type the assignment applies to.

2.21 Indicate Update Types as Relevant to Posting: IMG Path Transaction FSCMTRM Transaction ManagerGeneral SettingAccounting-> Link to Other Accounting Components->Indicate Update Types as Relevant to Posting SPRO

We have now used update types in many areas. Not all update types have to be designated as

posting-relevant. In this Customizing item, you specify for each update type whether it is considered relevant to posting or not.
If you mark an update type as relevant to posting, a posting document is generated when this

update type is used. If the checkmark is not selected, the update type is not forwarded to financial accounting.
The Standard update types will be maintained in SAP.

2.22 Define Account Determination IMG Path Transaction FSCMTRM Transaction ManagerGeneral SettingAccounting-> Link to Other Accounting Components->Define Account Determination SPRO

In order to control the defined account assignment references to various accounts, account

assignment has to be adjusted. The posting schemes and G/L accounts are assigned depending on the chart of accounts.
First the account symbols are defined in abstract form. These are valid for all valuation

areas.
Since the account assignment references in the parallel valuation areas no longer contain the

(original) information as to which account is to be posted to, you must also define an account symbol for the position. 15

Double-click on "Definition of Account Symbols". A description and a posting type appear on

the right for each account symbol. You specify that there are to be position postings and profit postings. The position postings are entered directly into the balance, the profit postings are entered into the profit and loss statement. You can also see that account symbol 3 is specified with the description bank clearing. This is the same as the posting record "11100 Position to bank clearing" that you just saw. The correct bank clearing account is taken from the house bank stored in the business transaction. Before assignment of accounts, one has to define the account symbols. Depending on the posting area, different account symbols are defined. The following subdivision has been used : 1- Position posting 3- Bank clearing 4- Interest revenue/expense 5- Receivables 6-Amortization
Define Account Determination is the step where SAP FI and Treasury Module will integrate

and GL Accounts will be linked.


One can define account determination settings for the flows in the parallel valuation areas.

The account determination settings define the accounts to be used when the flows are posted to Financial Accounting. The system only posts flows in the parallel valuation areas if an update type is set as relevant to posting under Indicate Update Types as Relevant to Posting and posting specifications have been defined for the corresponding update types in this IMG activity. One can define different account determination settings for an update type, depending on the valuation area. The Account Determination will be decided along with discussion of SAP FI Team with ORGN Team. The GL Accounts related to posting will be maintained and assigned. The following steps will be followed: 1. The postings specifications are applied for this update type in all the valuation areas. If one wants to assign a different set of posting specifications for a particular valuation area, it can do so in the next step (Valuation Areas -> Assignment of Update Types to Posting Specs). 2. In the step Valuation Areas -> The Assignment of Update Types to Posting Specs you can assign different posting specifications to the update types for individual valuation areas. 3. In the step Assignment of G/L Accounts to Account Symbols you define G/L accounts for each account symbol. You can make the G/L account assignment dependent on the following criteria: a. Valuation area b. Account assignment reference c. Currency

2.23 Define Account Determination

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IMG Path

Financial Accounting (New) Bank Accounting Business Transactions Payment Transactions Payment Request Define Clearing Accounts for Cross-Country Bank Account Transfers Transaction SPRO For payment processes from Treasury (TR), payment orders are sent to Bank Accounting (FI-BL). At the same time, a document is created in Treasury, and this document contains an item to be cleared in a technical clearing account from Bank Accounting. In the payment program for payment orders (transaction F111), the payment order is selected and executed. The payment document created clears the technical clearing account and posts to the bank subaccount. In the final process step, the electronic account statement clears this item in the bank subaccount against the bank account. Clearing GL Account for Payment requests in Company Code 1000 is 19009020. It will take care of the payment requests coming from Treasury.

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Money Market In the following Customizing steps, you define which money market transactions are to be used in your company, and how they are shown in the system. 2.24 Product Types 2.24.1 Define Product Types IMG Path Transaction FSCMTRM Transaction ManagerMoney MarketTransaction Management->Product Type->Define Product Type SPRO

Product types help to differentiate between different Money Market financial instruments. Differentiation is necessary if the individual instruments are subject to different processing rules or if you wish to create different levels for evaluation. By assigning different structure characteristics, various forms of transactions can be predefined. Only via the combination of the product type with a transaction type is the financial transaction finally set. In this step, you maintain the product types you require. 1. Name your product type. You have a 3-character alphanumeric field for this. 2. Specify the long text and short text for your new product type. 3. Assign your product type to a product category. The product category is an internal key and controls how the product types assigned to it are processed.

Product type helps to differentiate between different Money Market financial instruments. The differentiation is necessary if the individual instruments are subject to different processing rules or different levels needs to be created for evaluation. By assigning different structure characteristics, various forms of transactions can be predefined. Only via the combination of the product type with a transaction type is the financial transaction finally set. The Product types specific to ORGN will be maintained. The Product type is maintained with a 3-character alphanumeric field. Product Type 51A 52A 55A ZBC ZFC ZLS ZPC ZPi ZVL ZLN ZTA Cond. Type 5 5 5 5 5 5 5 5 5 5 5 Product Code 510 520 550 550 550 550 550 550 550 550 550

Product Type Text Fixed-Term Deposit Deposit at Notice Interest rate instrument Buyers / Suppliers Credit Foreign Currency Loans Loan to Subsidiaries Packing Credit in FC Packing Credit in INR Vehicle loan INR Currency Loans Trade Advances

Product Cat Text Fixed-term deposit Deposit at notice Interest rate instrument Interest rate instrument Interest rate instrument Interest rate instrument Interest rate instrument Interest rate instrument Interest rate instrument Interest rate instrument Interest rate instrument

Text FixTrmDep. Dep.notice IntRtInst BUYERSCRDT FRCURRLOAN LOANSUBSI PCKCRDTFC PCKCRDTPI VHICLELOAN INRCURLOAN TRADEADVN 18

2.25 Transaction Types 2.25.1 Define Number Ranges IMG Path Transaction FSCMTRM Transaction ManagerMoney MarketTransaction Management->Transaction Type->Define Number Ranges SPRO

In this step, you can define number range intervals for your financial transaction types. The financial transactions generated in the application receive a number comparable with the document number from Financial Accounting. The number assignment can either be transferred internally by the system or you can specify the number externally. The assignment of transactions to a number range takes place in the step entitled Define transaction types.

2.25.2 Define Transaction Types IMG Path Transaction FSCMTRM Transaction ManagerMoney MarketTransaction Management->Transaction Types-> Define Transaction Types SPRO

In this step, you define your financial transactions and assign them to your product types. You also specify the considerable technical administrative functions that you can carry out with the product types you have defined. Transaction types are financial transactions and are assigned to product types. From ORGN Perspective following transaction types will be maintained. Name of Transaction Type Investment Investment Investment Borrowing Borrowing Borrowing Borrowing Borrowing Borrowing Borrowing

P Type 51A 55A ZLS 51A ZBC ZFC 55A ZPC ZVL ZLN

T Type 100 100 100 200 200 200 200 200 200 200

Processing Category 00002 00002 00002 00002 00002 00002 00002 00002 00002 00002

Tran. Cat 100 100 100 200 200 200 200 200 200 200

NR 1 1 4 1 2 3 1 5 4 5

Rel. ease X X X X X X X X X X

Cont. Type 5 5 5 5 5 5 5 5 5 5

Text Fixed-Term Deposit Interest rate instrument Investment in Subsidiaries Fixed-Term Deposit Buyers / Suppliers Credit Foreign Currency Loans Interest rate instrument Packing Credit in FC Vehicle Loan INR Currency loans

Cond. Type 5 5 5 5 5 5 5 5 5 5

2.26 Flow Types Flow types control how the individual financial flows are handled in the system. 2.26.1 Define Flow Types

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IMG Path

FSCMTRM Transaction ManagerMoney MarketTransaction Management->Flow Types-> Define Flow Types Transaction SPRO In this step, you define the necessary Flow types for your product types. A flow type must be defined for all possible flows in a transaction so that they can later be assigned. Flows describe various payment flows arising from transaction conclusion, valuation and accrual/deferral functions as well as transfer postings. They are classified through flow types that you define in Customizing. The sum of all transaction flows forms the basis for generation of the cash flow and describes possible changes to the updated payment flows. They also form the basis for updating transactions in FI and Cash management and for analysis in Market risk management. Possible flow types include interest rates, repayments, principal increases and commissions. A flow type determines all possible flows in a transaction so that they can later be assigned to transactions. In Flow types, one can assign a classification, flow category and calculation category. The classification divides the flow types according to business criteria. The flow category allows the system to interpret settings and the calculation category determines the representation in the cash flow. Following flow types are identified for ORGN Cont. Type 5 5 5 5 5 5 5 5 5 5 5 5 5 5 FTyp 1100 1105 1110 1120 1130 1140 1150 1200 1901 1902 1905 1906 5000 5001 Flow Type - Name Investment / Increase Borrowing / Increase Decrease Final repayment Installment repayment Annuity Repayment Interest capitalization Nominal interest Charges Commission Withholding tax 1 (e.g. state) Withholding tax 2 (e.g. region) Taxes 1 Taxes 2 Flow type and Condition Name Principal Increase Principal Increase Principal Decrease Final Repayment Installment Repayment Annuity Repayment Interest Capitalization Nominal Interest Other Flow/Condition Other Flow/Condition Other Flow/Condition Other Flow/Condition Other Flow/Condition Other Flow/Condition Calculation type Inflow (generic) Inflow (generic) Outflow (generic) Final repayment Installment repayment Annuity repayment Interest not settled Nominal interest Fixed amounts Fixed amounts Fixed amounts Fixed amounts Fixed amounts Fixed amounts

2.26.2 Assign Flow Types to Transaction Type IMG Path Transaction FSCMTRM Transaction ManagerMoney MarketTransaction Management->Flow Types-> Assign Flow Types to Transaction Type SPRO

In this step, you assign flow types to each product type at the transaction type level that is necessary in order to completely portray a financial product. The ORGN Specific Assignment of Flow Types to transaction Types is attached herewith. 20

Assign Flow Types to Transaction Type.xlsx

2.27 Derived Flows

IMG Path Transaction

FSCMTRM Transaction ManagerMoney MarketTransaction Management->Flow Types-> Assign Flow Types to Transaction Type SPRO

You can set up the transaction management area of the system to generate additional flows automatically on the basis of an original flow. You do this by defining derivation procedures and then assigning rules to each procedure. The rules determine how one flow is generated from another. The derived flow can either be a specified fixed amount, or a percentage of the original flow amount. You can also set up the system to calculate the derived flow amounts differently according to the currency and original flow amount. These rules determine the flow type from which they are derived and the structure that they have. You must also make additional setting in business partner administration for the business partners in the counterparty role in the corresponding company code. Assign the derivation procedure to the produce type on the SI: Derived Flow Tab.

2.27.1 Define Calculation Procedure for Derived Flows IMG Path Transaction FSCMTRM Transaction ManagerMoney MarketTransaction Management->Flow Types->Derived Flows->Define Calculation Procedure for Derived Flows SPRO

In this IMG activity, you can define the calculation procedures for generating derived flows. By defining calculation procedures, you can control the amount of the derived flows in relation to the currency and the amount of the original flow. By choosing 'Define Derivation Procedures and Rules', you can then select one of the calculation procedures when you define the derivation rules.

2.27.2 Define Derivation Procedures and Rules IMG Path Transaction FSCMTRM Transaction ManagerMoney MarketTransaction Management->Flow Types->Derived Flows->Define Derivation Procedures and Rules SPRO

You can set up the transaction management area of the system to generate additional flows automatically on the basis of an original flow. You do this by defining derivation procedures and 21

then assigning rules to each procedure. The rules determine how one flow is generated from another. The derived flow can either be a specified fixed amount, or a percentage of the original flow amount. You can also set up the system to calculate the derived flow amounts differently according to the currency and original flow amount. You create the necessary calculation procedures in the IMG activity Define Calculation Procedure for Derived Flows. These calculation procedures are then available when you define derivation procedures and rules in the IMG activity Define Derivation Procedures and Rules. This function is available for the money market, foreign exchange, securities and derivatives areas. You define the calculation and derivation procedures globally for all applications. This means that you always see all the calculation and derivation procedures that have been defined, regardless of the IMG section you are in. By contrast, the derivation rules are specific to a particular area, and can only be created or changed within the IMG for that area. If, for example, you define rules for a tax on interest in the securities area, these settings are not visible in the money market, foreign exchange and derivatives areas.

2.28 Update Types 2.29 Define Update Types and Assign Usages IMG Path Transaction individual flows.
A wide variety of update types are available in the system. The names of the types have

FSCMTRM Transaction ManagerMoney MarketTransaction Management->Update Types-> Define Update Types and Assign Usages SPRO

Like flow types, update types correspond to cash flows. Update types control the posting of

been clearly selected so that all update types that start with MM belong to the money market area.
Double-clicking on the "Assign update type to usages" folder takes you to the subsequent

display. The possible usage types are: 1-Transaction management 2-Securities account management 3-Securities account transfer 4-Corporate action 5-Exercising rights 6-Accrual/deferral 7-Other flows
The name and update type of the usages (such as transaction management or valuation) are

assigned here.
The update types are no longer module-dependent and have an implicit direction. This

means, for example, that incoming and outgoing charges must be represented as two different update types. The new update types consist of the definition itself and a language-dependent text. No further indicators are defined directly with the update types. The Standard SAP Update Types maintained in System are as attached.

MM - Assign Update Types to Usages.xlsx

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2.29.1 Assign Flow Types to Update Types IMG Path Transaction FSCMTRM Transaction ManagerMoney MarketTransaction Management->Update Types-> Assign Flow Types to Update Types SPRO

The link to Accounting is created via assigning the flow types to update types. When creating

a new update type, make sure that inflows and outflows are taken into account. In certain cases, you can use different update types for these.

2.30 Condition Types In this section, you define the condition types for Money market and assign them to the transaction types 2.30.1 Define Condition Types IMG Path Transaction FSCMTRM Transaction ManagerMoney MarketTransaction Management->Condition Types-> Define Condition Types SPRO

Condition types control how flows calculated by the system are handled, such as interest,

repayments and charges. They enable you to individually control interest rate flows, for example.
There is a 1:1 relationship between the condition types and flow types. In other words,

precisely one flow type has to be created for each condition type. However, a flow type does not have to be assigned to a condition type if no cash flows that are to be calculated are mapped using the flow type.
Conditions can be classified using the following attributes:

Structure characteristics Accrual/deferral Valuation Transfer

The Standard SAP conditions are attached herewith.

MM - Maintain Condition Types.xlsx

2.30.2 Assign Condition Types to Transaction Type IMG Path Transaction or transaction types. 23 FSCMTRM Transaction ManagerMoney MarketTransaction Management->Condition Types-> Assign Condition Types to Transaction Type SPRO

After condition types have been defined, they have to be assigned to the product categories

You have to fill the drop-down menu for the classification in the same way as for the flow

types.
The condition, calculation and profile type control how the amounts are calculated,

depending on the conditions recorded in the transaction. The Condition Types standard as well as ORGN specific requirements will be configured.

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Foreign Exchange 2.31 Product Types 2.31.1 Define Product Types Product types help to differentiate between different Money Market financial instruments. Differentiation is necessary if the individual instruments are subject to different processing rules or if you wish to create different levels for evaluation. By assigning different structure characteristics, various forms of transactions can be predefined. Only via the combination of the product type with a transaction type is the financial transaction finally set. In this step, you maintain the product types you require. 1. Name your product type. You have a 3-character alphanumeric field for this. 2. Specify the long text and short text for your new product type. 3. Assign your product type to a product category. The product category is an internal key and controls how the product types assigned to it are processed. The Product types applicable to ORGN are: From ORGN Standpoint, Product Type 60A will be configured as below. Product Type 60A Cond. 4 Product Code 600 Product Type Text Foreign exchange (FX) Product Type Foreign exchange Text FX

2.32 Number Ranges 2.32.1 Define Number Ranges for Transaction In this step, you can define number range intervals for your financial transaction types. The financial transactions generated in the application receive a number comparable with the document number from Financial Accounting. The number assignment can either be transferred internally by the system or you can specify the number externally. The assignment of transactions to a number range takes place in the step entitled Define transaction types.

2.32.2 Define Number Ranges for Underlying Transaction In this step, you can define number range intervals for your underlying transactions. The number assignment can be carried out internally by the system or you can specify the number externally. Define transaction types are the step used to assign the underlying to a number range. 2.32.3 Define Transaction Types In this step, you define your financial transactions and assign them to your product types. You also specify the considerable technical administrative functions that you can carry out with the product types you have defined. IMG Path Transaction FSCMTRM Transaction ManagerForeign ExchangeTransaction Management->Transaction Types-> Define Transaction Types SPRO

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2.32.4 Assign Forex Attributes

IMG Path Transaction

FSCMTRM Transaction ManagerForeign ExchangeTransaction Management->Transaction Types-> Assign Forex Attributes SPRO

The Characteristics attributes are assigned to the FOREX products transactions.

2.32.5 Assign Fixing Spreads The Characteristics attributes are assigned to the FOREX products transactions. IMG Path Transaction FSCMTRM Transaction ManagerForeign ExchangeTransaction Management->Transaction Types-> Assign Fixing Spreads SPRO

In this step, you maintain the spreads for fixing transactions which determine the difference between bid and ask rates and between middle and ask. 2.33 Flow Types Flow types control how the individual financial flows are handled in the system. 2.33.1 Define Flow Types IMG Path Transaction FSCMTRM Transaction ManagerForeign ExchangeTransaction Management->Flow Types-> Define Flow Types SPRO

In this step, you define the necessary Flow types for your product types. A flow type must be defined for all possible flows in a transaction so that they can later be assigned Flows describe various payment flows arising from transaction conclusion, valuation and accrual/deferral functions as well as transfer postings. They are classified through flow types that you define in Customizing. The sum of all transaction flows forms the basis for generation of the cash flow and describes possible changes to the updated payment flows. They also form the basis for updating transactions in FI and Cash management and for analysis in Market risk management. Possible flow types include interest rates, repayments, principal increases and commissions. The Standard Product types are maintained for ORGN.

2.33.2 Assign Flow Types to Transaction Type IMG Path FSCMTRM Transaction Manager Foreign Exchange Transaction Management->Flow Types-> Assign Flow Types to Transaction Type SPRO

Transaction

In this step, you assign flow types to each product type at the transaction type level that is necessary in order to completely portray a financial product.

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2.34 Derived Flows You can set up the transaction management area of the system to generate additional flows automatically on the basis of an original flow. You do this by defining derivation procedures and then assigning rules to each procedure. The rules determine how one flow is generated from another. The derived flow can either be a specified fixed amount, or a percentage of the original flow amount. You can also set up the system to calculate the derived flow amounts differently according to the currency and original flow amount. These rules determine the flow type from which they are derived and the structure that they have. You must also make additional setting in business partner administration for the business partners in the counterparty role in the corresponding company code. Assign the derivation procedure to the produce type on the SI: Derived Flow Tab.

2.34.1 Define Calculation Procedure for Derived Flows IMG Path Transaction FSCMTRM Transaction Manager Foreign Exchange Transaction Management->Flow Types->Derived Flows->Define Calculation Procedure for Derived Flows SPRO

In this IMG activity, you can define the calculation procedures for generating derived flows. By defining calculation procedures, you can control the amount of the derived flows in relation to the currency and the amount of the original flow. By choosing 'Define Derivation Procedures and Rules', you can then select one of the calculation procedures when you define the derivation rules. 2.34.2 Define Derivation Procedures and Rules IMG Path Transaction FSCMTRM Transaction Manager Foreign Exchange Transaction Management->Flow Types->Derived Flows->Define Derivation Procedures and Rules SPRO

You can set up the transaction management area of the system to generate additional flows automatically on the basis of an original flow. You do this by defining derivation procedures and then assigning rules to each procedure. The rules determine how one flow is generated from another. The derived flow can either be a specified fixed amount, or a percentage of the original flow amount. You can also set up the system to calculate the derived flow amounts differently according to the currency and original flow amount. You create the necessary calculation procedures in the IMG activity Define Calculation Procedure for Derived Flows. These calculation procedures are then available when you define derivation procedures and rules in the IMG activity Define Derivation Procedures and Rules. This function is available for the money market, foreign exchange, securities and derivatives areas. You define the calculation and derivation procedures globally for all applications. This means that you always see all the calculation and derivation procedures that have been defined, regardless of the IMG section you are in. By contrast, the derivation rules are specific to a particular area, and can only be created or changed within the IMG for that area. If, for example, 27

you define rules for a tax on interest in the securities area, these settings are not visible in the money market, foreign exchange and derivatives areas.

2.35 Update Types 2.36 Define Update Types and Assign Usages IMG Path FSCMTRM Transaction Manager Foreign Exchange Transaction Management->Update Types-> Define Update Types and Assign Usages SPRO

Transaction

Like flow types, update types correspond to cash flows. Update types control the posting of

individual flows.
A wide variety of update types are available in the system. The names of the types have

been clearly selected so that all update types that start with MM belong to the money market area.
Double-clicking on the "Assign update type to usages" folder takes you to the subsequent

display. The possible usage types are: 1-Transaction management 2-Securities account management 3-Securities account transfer 4-Corporate action 5-Exercising rights 6-Accrual/deferral 7-Other flows
The name and update type of the usages (such as transaction management or valuation) are

assigned here.
The update types are no longer module-dependent and have an implicit direction. This

means, for example, that incoming and outgoing charges must be represented as two different update types.
The new update types consist of the definition itself and a language-dependent text. No

further indicators are defined directly with the update types. The Standard configuration for Update types will be maintained and configuration other than standard will be worked on if required specific to ORGN. 2.36.1 Assign Flow Types to Update Types IMG Path Transaction FSCMTRM Transaction Manager Foreign Exchange Transaction Management->Update Types-> Assign Flow Types to Update Types SPRO

The link to Accounting is created via assigning the flow types to update types. When creating

a new update type, make sure that inflows and outflows are taken into account. In certain cases, you can use different update types for these.

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Securities 2.37 Basic Settings 2.37.1 Define Currency Units IMG Path Transaction FSCMTRM Transaction ManagerSecurities Basic Settings-> Product Type-> Define Currency units SPRO

The ratio of currency units to a currency is maintained. When you enter transactions in the Securities area, you assign a currency unit to the security price. The system uses this ratio between the currency unit and the corresponding currency to calculate the currency amount using the formula "price * no. of units". The currency unit is required for technical reasons and must be maintained for each exchange rate you use. 2.37.2 Define Exchange IMG Path Transaction FSCMTRM Transaction ManagerSecurities Basic Settings-> Product Type-> Define Exchange SPRO

The relevant exchanges are maintained here. The ORGN specific entries are as below: 2.37.3 Define Security Price Types IMG Path Transaction FSCMTRM Transaction ManagerSecurities Basic Settings-> Product Type-> Define Security Price Types SPRO

In Define Security Price Types, the various price types for securities are maintained. The individual security prices are maintained here.

2.38 Product Types 2.38.1 Define Number Ranges for Security Classes IMG Path Transaction FSCMTRM Transaction ManagerSecuritiesMaster Data-> Product Type->Define Number Ranges for Security Classes SPRO

In this section you define number ranges which you later assign to product types. Within this number range interval, you define the class data for the individual product types.

2.39 Condition Types 2.39.1 Define Condition Types IMG Path Transaction FSCMTRM Transaction ManagerSecuritiesMaster Data-> Product Type->Condition Types->Define Condition Types SPRO 29

In this step you define your condition types for the securities area. For each condition type, you create a three-character key and assign the appropriate flow type to it. The system then assigns the flow category and the FiMa calculation category from the flow type to the condition type automatically. In order to ensure correct cash flow processing, you must enter a reference condition type for some condition types. For floaters, for example, the interest rate adjustment date or the fixing of the maximum or minimum interest rate refers to the variable interest rate. You must enter the indicator of the corresponding reference condition type. Cont.Type 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 CTyp 100 101 111 113 116 118 119 133 134 209 260 261 262 263 300 301 309 310 311 312 318 900 Condition Type Text RefC Int. (perc.-quoted) Variable interest Dividend Bonus Profit distribution Repayment rate Repayment price Additional payment Int. (unit-quoted) Int. rate adjustment 101 ABS/MBS Inst.Repayt Annuity repayment Installment repayment Final repayment Issue: Interest Issue: Var. Interest Issue: Int. Adjust. 301 Issue: Ann. Repayment Issue: Inst. Repayt. Issue: Final Repayt Issue: Payoff IS-B: Blank condit. Docu FiMa TZ TZ TD TD TD UT UT TD TZST ZA TTRA TTAN TTRA TTEN TZ TZ ZA TTAN TTRA TTEN UT

2.39.2 Define Condition Groups IMG Path Transaction FSCMTRM Transaction ManagerSecuritiesMaster Data-> Product Type->Condition Types->Define Condition Groups SPRO

In this step you define the various condition groups, to which you then assign your condition types. The Standard SAP Configuration will be adopted for grouping of condition types. 2.39.3 Assign Condition Types to Condition Groups IMG Path Transaction FSCMTRM Transaction ManagerSecuritiesMaster Data-> Product Type->Condition Types->Assign Condition Types to Condition Groups SPRO

In this step, you assign the required condition types to condition groups.

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2.40 Define Product Types

IMG Path Transaction

FSCMTRM Transaction ManagerSecuritiesMaster Data-> Product Type->Define Product Types SPRO

In this IMG activity you define product types and assign each one to a condition group, a product category, and a number range. All the entries you make here are valid for all company codes. By assigning product types to condition groups, you ensure that only certain conditions types can be maintained or displayed as standard conditions for each product type. The product category is an internal key that controls how the product type assigned to it is processed. By assigning the product type to a number range, you can control how numbers are assigned when you create class data. If you opt for external number assignment, the system assigns numbers sequentially from the predefined interval. If you opt for external number assignment, the system checks whether the number entered manually is already being used for a class within this number range. Product Type NCD ZMF Cond. Type 2 2 Prod. Code 40 20

Product Type Text Debentures Mutual Funds - Short Term

Text DEBENTURES MF

Product Cat Text Bond Investment certificate

2.41 Assign Repayment Types to Product Types IMG Path Transaction FSCMTRM Transaction ManagerSecuritiesMaster Data-> Product Type->Define Company Code-Dependent Settings for the Product Type SPRO

In this menu option you enter the possible repayment types for each product type. The repayment types are defined under an internal key. The following are supported for securities at present: 1 2 3 4 = = = = Final repayment Installments Annuity Perpetual bond

2.42 Define Company Code-Dependent Settings for the Product Type

IMG Path Transaction

FSCMTRM Transaction ManagerSecuritiesMaster Data-> Product Type->Define Company Code-Dependent Settings for the Product Type SPRO

In this section you make the following settings for your product types for each company code: Cash Management 31

Enter a planning type for updating Cash Management. Enter an update period for Cash Management (CM period). For securities without a term end (such as stocks or perpetual bonds), this period indicates how many years in advance you want the system to generate planned records for conditions with a frequency.

Accounting FI posting indicator: Determine whether and, if so, how flows relating to a product type in a company code are to be posted to the FI General Ledger. The following values are supported for securities: o 2: no postings in FI General Ledger o 3: posting in FI General Ledger with customer o 4: posting in FI General Ledger without customer Automatic posting In the posting control field, specify whether flows relating to a product type in a company code are to be posted by the automatic posting function.

Generating incoming payment flows In the incoming payment field, you decide if incoming payment flows are to be generated.

Generating taxes You can decide whether taxes are to be generated (according to the rules you defined for tax generation) for a product type in a company code.

2.43 Securities Account Management 2.43.1 Define Securities Account Categories IMG Path Transaction FSCMTRM Transaction ManagerSecuritiesPosition Management -> Define Securities Account-> Define Securities Account Categories SPRO

You can define securities account types for the securities account master data. You therefore determine several categories for the securities account types. You have to determine a securities account category for every securities account type. The category contains information on which positions can be managed in the relevant securities accounts. The following categories are available as choice:

Asset Securities Account: For securities accounts in this category, you can manage all positions that do not belong to liability positions or securities lending transactions. Liability Securities Account: Liability securities accounts only contain positions for securities issues. The system makes sure that liability securities accounts cannot be transferred to asset securities accounts or lending securities accounts. It also ensures that asset positions or positions from securities lending transactions are not transferred to a liability securities account. Lending Securities Account: For a securities lending transaction, you transfer the lent securities at the start of the term from the asset securities account to a lending securities account. At the end of the term, you return the securities to the original asset 32

securities account. The system ensures that the positions in the lending securities account cannot be sold or cleared during the term of the securities lending transaction. The Standard settings will be adopted from ORGN perspective.

2.43.2 Maintain Field Selection for Security Account Master Data IMG Path Transaction FSCMTRM Transaction ManagerSecurities Position Management -> Define Securities Account-> Maintain Field Selection for Security Account Master Data SPRO

The SAP Standard field selection is maintained here. 2.43.3 Define Blocking Flags It is the standard SAP Setting. Blocking indicators can be entered for securities account. One can specify why a securities account is blocked for the beneficiary, if required. IMG Path Transaction FSCMTRM Transaction ManagerSecuritiesMaster Data-> Define Securities Account-> Define Blocking Flags SPRO

2.44 Number Ranges 2.44.1 Define Number Ranges for Transaction IMG Path Transaction FSCMTRM Transaction ManagerSecuritiesTransaction Management-> Transaction Types->Number Ranges->Define Number Ranges for Transaction SPRO

In this step, you can define number range intervals for your financial transaction types. The financial transactions generated in the application receive a number comparable with the document number from Financial Accounting. The number assignment can either be transferred internally by the system or you can specify the number externally. The assignment of transactions to a number range takes place in the step entitled Define transaction types. 2.44.2 Define Number Ranges for Underlying Transaction IMG Path Transaction FSCMTRM Transaction ManagerSecuritiesTransaction Management-> Transaction Types->Number Ranges->Define Number Ranges for Transaction SPRO

In this step, you can define number range intervals for your underlying transactions. The number assignment can be carried out internally by the system or you can specify the number externally. Define transaction types are the step used to assign the underlying to a number range.

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2.45 Transaction types:

IMG Path Transaction

FSCMTRM Transaction ManagerSecuritiesTransaction Management-> Transaction Types-> Define Transaction Types SPRO

Transaction types controls the transaction in securities. From ORGN Perspective, following product types are maintained. Transaction Types in Pro. T. Cont. Cat Cat Type 2 100 2 2 200 2 2 2 2 2 100 200 100 200 2 2 2 2 Securities Text Debentures Debentures Mutual Funds - Short Term Mutual Funds - Short Term Investment certificates Investment certificates Cont. Type 2 2 2 2 2 2

Prod. Type ZDB ZDB ZMF ZMF 02A 02A

Tran. Type 100 200 100 200 100 200

Name of Trans Type Purchase Sale Purchase Sale Purchase Sale

2.46 Flow Types Flow types control how the individual financial flows are handled in the system. 2.46.1 Define Flow Types IMG Path Transaction FSCMTRM Transaction ManagerSecuritiesTransaction Management-> Flow Types (Transaction) SPRO

In this step, you define the necessary Flow types for your product types. A flow type must be defined for all possible flows in a transaction so that they can later be assigned Flows describe various payment flows arising from transaction conclusion, valuation and accrual/deferral functions as well as transfer postings. They are classified through flow types that you define in Customizing. The sum of all transaction flows forms the basis for generation of the cash flow and describes possible changes to the updated payment flows. They also form the basis for updating transactions in FI and Cash management and for analysis in Market risk management. Possible flow types include interest rates, repayments, principal increases and commissions.

2.46.2 Assign Flow Types to Transaction Type IMG Path Transaction FSCMTRM Transaction Manager Foreign Exchange Transaction Management->Flow Types-> Assign Flow Types to Transaction Type SPRO

In this step, you assign flow types to each product type at the transaction type level that is necessary in order to completely portray a financial product The Standard SAP configuration is recommended for ORGN. 34

2.47 Derived Flows You can set up the transaction management area of the system to generate additional flows automatically on the basis of an original flow. You do this by defining derivation procedures and then assigning rules to each procedure. The rules determine how one flow is generated from another. The derived flow can either be a specified fixed amount, or a percentage of the original flow amount. You can also set up the system to calculate the derived flow amounts differently according to the currency and original flow amount. These rules determine the flow type from which they are derived and the structure that they have. You must also make additional setting in business partner administration for the business partners in the counterparty role in the corresponding company code. Assign the derivation procedure to the produce type on the SI: Derived Flow Tab. 2.47.1 Define Calculation Procedure for Derived Flows IMG Path Transaction FSCMTRM Transaction Manager Foreign Exchange Transaction Management->Flow Types->Derived Flows->Define Calculation Procedure for Derived Flows SPRO

In this IMG activity, you can define the calculation procedures for generating derived flows. By defining calculation procedures, you can control the amount of the derived flows in relation to the currency and the amount of the original flow. By choosing 'Define Derivation Procedures and Rules', you can then select one of the calculation procedures when you define the derivation rules. The TDS Procedure according to the law requirements will be configured specific to ORGN. 2.47.2 Define Derivation Procedures and Rules IMG Path Transaction FSCMTRM Transaction Manager Foreign Exchange Transaction Management->Flow Types->Derived Flows->Define Derivation Procedures and Rules SPRO

You can set up the transaction management area of the system to generate additional flows automatically on the basis of an original flow. You do this by defining derivation procedures and then assigning rules to each procedure. The rules determine how one flow is generated from another. The derived flow can either be a specified fixed amount, or a percentage of the original flow amount. You can also set up the system to calculate the derived flow amounts differently according to the currency and original flow amount. You create the necessary calculation procedures in the IMG activity Define Calculation Procedure for Derived Flows. These calculation procedures are then available when you define derivation procedures and rules in the IMG activity Define Derivation Procedures and Rules. This function is available for the money market, foreign exchange, securities and derivatives areas. You define the calculation and derivation procedures globally for all applications. This means that you always see all the calculation and derivation procedures that have been defined, regardless of the IMG section you are in. By contrast, the derivation rules are specific to a particular area, and can only be created or changed within the IMG for that area. If, for example, 35

you define rules for a tax on interest in the securities area, these settings are not visible in the money market, foreign exchange and derivatives areas.

2.48 Update Types 2.49 Define Update Types and Assign Usages IMG Path Transaction FSCMTRM Transaction Manager Foreign Exchange Transaction Management->Update Types-> Define Update Types and Assign Usages SPRO

Like flow types, update types correspond to cash flows. Update types control the posting of

individual flows.
A wide variety of update types are available in the system.

The names of the types have been clearly selected so that all update types that start with MM belong to the money market area. Double-clicking on the "Assign update type to usages" folder takes you to the subsequent display. The possible usage types are: o 1-Transaction management o 2-Securities account management o 3-Securities account transfer o 4-Corporate action o 5-Exercising rights o 6-Accrual/deferral o 7-Other flows The name and update type of the usages (such as transaction management or valuation) are assigned here. The update types are no longer module-dependent and have an implicit direction. This means, for example, that incoming and outgoing charges must be represented as two different update types. The new update types consist of the definition itself and a language-dependent text. No further indicators are defined directly with the update types.

The Standard Update Types will be configured for ORGN. The List of Update types is attached.

Define Update Type for SEC.xlsx


2.49.1 Assign Flow Types to Update Types IMG Path Transaction FSCMTRM Transaction Manager Foreign Exchange Transaction Management->Update Types-> Assign Flow Types to Update Types SPRO

The link to Accounting is created via assigning the flow types to update types. When creating

a new update type, make sure that inflows and outflows are taken into account. In certain cases, you can use different update types for these.

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Hedge Management 2.50 Number Ranges 2.50.1 Define Number Ranges for Hedges IMG Path Transaction FSCMTRM Transaction ManagerGeneral Setting Hedge ManagementNumber Ranges->Define Number Ranges for Hedges SPRO

In this step, you can define one or several number range intervals for hedge transactions or hedge items for each company code. A hedge item is generated the moment you decide to save an exposure that has been entered in the application. The number for uniquely identifying this hedge item either assigned internally by the system, or you assigns the number externally.

2.50.2 Assign Hedge Number Ranges to a Company Code IMG Path Transaction FSCMTRM Transaction ManagerGeneral Setting Hedge ManagementNumber Ranges->Assign Hedge Number Ranges to a Company Code SPRO

In this step, you can assign a number range interval that is already defined for hedge transactions or hedge items to a company code. 2.50.3 Define Number Ranges for Hedging Relationships IMG Path Transaction FSCMTRM Transaction ManagerGeneral Setting Hedge ManagementNumber Ranges->Define Number Ranges for Hedging Relationships SPRO

In this step you can define one or number range intervals for hedging relationships in each company code. Numbers to uniquely identify the hedged item are assigned either automatically or manually 2.50.4 Assign Hedging Relationship Number Ranges to a Company Code IMG Path Transaction FSCMTRM Transaction ManagerGeneral Setting Hedge ManagementNumber Ranges->Assign Hedging Relationship Number Ranges to a Company Code SPRO

In this step you can assign a pre-defined number range interval for a hedging relationship to a company code. 2.50.5 Define Number Ranges for Hedge Plans IMG Path Transaction FSCMTRM Transaction ManagerGeneral Setting Hedge ManagementNumber Ranges->Define Number Ranges for Hedge Plans SPRO

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In this IMG activity you can define one or number range intervals for hedge plans in each company code. The numbers uniquely identify the hedge plans and can be assigned either automatically or manually. 2.50.6 Assign Hedge Plan Number Ranges to a Company Code IMG Path Transaction FSCMTRM Transaction ManagerGeneral Setting Hedge ManagementNumber Ranges->Assign Hedge Plan Number Ranges to a Company Code SPRO

In this IMG activity you can assign a previously defined number range interval for a hedge plan to a company code. 2.50.7 Define Number Ranges for Transactions IMG Path Transaction FSCMTRM Transaction ManagerGeneral Setting Hedge ManagementNumber Ranges->Define Number Ranges for Transactions SPRO

In this IMG activity you can define one or number range intervals for hedge transactions in each company code. The numbers uniquely identify the hedge transactions and can be assigned either automatically or manually.

2.50.8 Assign Transaction Number Ranges to a Company code

IMG Path Transaction

FSCMTRM Transaction ManagerGeneral Setting Hedge ManagementNumber Ranges->Assign Transaction Number Ranges to a Company code SPRO

In this IMG activity you can assign a previously defined number range interval for hedge transactions to a company code.

2.51 Valuation Area-Dependent Settings for Hedge Management IMG Path Transaction FSCMTRM Transaction ManagerGeneral Setting Hedge Management Valuation Area-Dependent Settings for Hedge Management SPRO

In this step you can define whether you want a hedge relationship that is regarded as ineffective in the future to be dissolved or de-designated. The following two valuation areas are considered from ORGN point of view.

2.52 Settings for Automatic Creation of Hedge Management Data

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IMG Path Transaction

FSCMTRM Transaction ManagerGeneral Setting Hedge Management Settings for Automatic Creation of Hedge Management Data SPRO

The Exposure rollover, premature settings will be configured here for Product Types specific to ORGN. Settings for Automatic Creation of Hedge Management Data Tran. Pro. T. Text Type Cat Cat 102 4 600 Foreign exchange (FX)

Prod. Type 60A

Company Code 1000

Cash Management 2.53 Currencies

IMG Path Transaction

SPRO Financial Supply Chain Management Cash & Liquidity Management Cash Management Market Data Master Data Currencies Check Currency Codes SPRO

The Currency will be defined in currency settings view as below. 2.54 Check rate Type IMG Path Transaction SPRO Financial Supply Chain Management Cash & Liquidity Management Cash Management Market Data Master Data Currencies Check Rate types SPRO

Exchange rates for different purposes for the same date are defined in the system as exchange rate types. The currency conversion rate type maintained is M as maintained below. 2.55 Define Source Symbol IMG Path Transaction SPRO Financial Supply Chain Management Cash & Liquidity Management Cash Management Basic Settings Define source symbols SPRO

The source symbol divides the planning level according to the sources that supply them with data. In ORGN, following source symbols are being used. Bank accounting ORGN Cash Flow Sub ledger accounting Materials management Sales and distribution Treasury and Risk Management (BNK) (CF) (PSK) (MMF) (SDF) (TRM)

Cash position field should be selected for source symbol BNK so that the data is shown under cash position. 39

2.56 Define Planning Level

IMG Path Transaction

SPRO Financial Supply Chain Management Cash & Liquidity Management Cash Management Master Data GL Accounts Define Planning Levels SPRO

In this step, you specify planning levels for your bank GL accounts or sub-ledger accounts and allocate these planning levels to the cash position or liquidity forecast by using the corresponding source symbol. In the standard R/3 System, separate levels are intended for updating data from Sales and Distribution (SD) and Materials Management (MM). Thus, the liquidity forecast display is easier to analyze. The G/L Account and sub-ledger-account relevant to planning levels is maintained and is assigned to the planning level to the cash position or liquidity forecast by using the source symbol. The typical financial transactions in Cash Management are displayed using planning levels, which explain the opening and closing balances. The Planning levels are already created with standard SAP ERP. The following list provides all planning levels which are reused in SAP Best Practices without any change. This is indicative list and detailed list be integrated with FI, SD and MM Modules as per requirement from the Core Team.

Level AB AG AU B1 B2 B3 B4 B5 B6 B7 B8 B9 CB CL CP DB DE DI DP F0

Sym BNK PSK BNK BNK BNK BNK BNK BNK BNK BNK BNK BNK BNK BNK PSK BNK BNK PSK PSK BNK

Short Text Advice, c. Agcy bus. Advice, uc Out. check Dom trans For. trans Bank coll. Int posts Liability Cl. bill Inc checks Cash rec Comm. paper Concentration Comm. Paper TR Forex Loans Planned TR Forex FI Banks

Planning Level long text Payment advice (confirmed) Agency business Payment advice (unconfirmed) Outgoing checks Outgoing transfer, domestic Outgoing transfer, foreign Bank collection Other interim postings Own-accepted liabilities Cl. acct for bill payment Incoming checks Customer cash receipt Commercial paper - bank Cash concentration Commercial paper - sub ledger Bank foreign exchange Loan revenue General planning Sub ledger Forex Posting to bank account 40

F1 FF FK FR FW IB IP KB KP LB LP M1 M2 M3 ME MP OB OP RE RL RR S1 TA TB TD TK TP WB WP XA XR XX ZB ZP

PSK PSK PSK PSK PSK BNK PSK BNK PSK BNK PSK MMF MMF MMF BNK PSK BNK PSK PSK REM REM SDF BNK BNK BNK BNK PSK BNK BNK PSK PSK PSK BNK PSK

FI C/V FI DP req FI DP req FRA FI bill Int. Deriv Int. Deriv Dep.at not Dep.at not Loans Loans Purch.Req. Pur. Order SchedAgree Rents Noted itms TR Bk Crcy TR SL Crcy RealEstate Rent Res. Rents rcvb Order Investment Deps/loans F-T Dep. Borrowing Deps/loans Securities Sec rev Block ID A Block ID R Block ID X All fields All fields

Posting of purchasing & sales Down payment request Advance pymts (offsettg entry) FRA Personnel FI bill of exchange Interest Derivatives Bank Interest Derivatives People Deposit at notice Deposits at notice subledger Bank loans Personal loans Purchase requisition Purchase order Scheduling agreement Rent received Planning - Noted items TR currency option, bank TR currency option, subledger Real Estate Rent Result Rents Receivable Sales Orders Deposit/loan mgmt: invest Time deposits: banks Fixed-term deposit management Deposit/loan mgmt: borrow Time deposits: subledger Bank securities Security revenue Blocked for payment Invoice verification Block indicator X All fields of bank records All fields, subledger records

The Screen shot for the Planning Levels in SAP System. 2.57 Define Planning Groups

IMG Path

SPRO Financial Supply Chain Management Cash & Liquidity 41

Transaction

Management Cash Management Master Data Sub ledger Accounts Planning Groups SPRO

In this step, you define the planning groups for customers and vendors and assign them to appropriate planning level. A planning group represents particular characteristics, behaviors or risks of the customer or vendor group. You can break down incoming and outgoing payments according to the amount, the probability of the cash inflow or outflow, and the type of business relationship. Planning Groups will be integrated with SAP-FI, SD and MM Modules. The ORGN Specific master data will be incorporated as per needs from ORGN Core team. This is indicative list and detailed list be integrated with FI, SD and MM Modules as per requirement from the Core Team. 2.58 Define Groupings and maintain headers IMG Path Transaction SPRO Financial Supply Chain Management Cash & Liquidity Management Cash Management Structuring Groupings Define Groupings and Maintain Headers SPRO

In this step you define the groupings, and stipulate the main headings and the line headings that the system displays in the cash management position or liquidity forecast. Basically this involves creating a name and specifying its description for the report that one proposes to use for the purpose of Cash Position and Liquidity Forecast. Groupings created for are as per attached screen shot. The ORGN Specific Grouping will be created as below. 2.59 Maintain Structure

IMG Path Transaction

SPRO Financial Supply Chain Management Cash & Liquidity Management Cash Management Structuring Groupings Maintain Structure SPRO

In this step, you specify grouping structures. These structures enable you to group together bank and sub-ledger accounts in the cash position or the liquidity forecast. For the cash position and the liquidity forecast, you specify: The accounts you want to see in the grouping and those you want to exclude The summarization term under which you want to group together the lines for levels and the lines for groups in the display The line type, whereby "E" stands for level and "G" for the account or planning group

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2.60 Prepare production startup for Cash Management

IMG Path Transaction

SPRO Financial Supply Chain Management Cash & Liquidity Management Cash Management Tools Prepare production start up and data setup SPRO

This menu supports you when you are implementing the cash management and forecast (CM&F). You can activate company codes for the CM&F update: tables are checked in the process. 2.61 Activate company code When a company code is activated for CM&F, the first effect is that CM&F data can be updated when CM-relevant funds movements or planning takes place. There are further indicators enabling data to be recorded from the logistical applications MM and SD. During activation, all the necessary table settings are verified and, if necessary, made. 2.62 Define Value Date Default The Value Date is current date as the default value date when one has to enter line items. This setting is maintained for the company codes in which one is implementing Cash Management. The company code has to be configured first and then the functions for cash management and forecast are activated. IMG menu Financial Supply Chain Management Cash and Liquidity Management Cash Management Basic Settings Define Value Date Default SPRO

Transaction code

Following values will be maintained for the value date. Co. Code 1000 Company Name Organization Ltd. City Mumbai Proposed Value Date X

2.63 Integration with other Modules. The Treasury and Cash Management module will have integration with FI, SD and MM module. The following are key integration points with respect to integration with modules. FI-TR Integration: Account Groups in CM Planning Levels in CM Planning Groups in CM Integration of Bank Statement with CM via EBS or Bank Statement Upload. 43

Account Symbols/Updates will be used as integration point with Financials at COA Levels.

SD-TR Integration: Account Groups in Cash management Planning Levels in Cash management Sales Area

MM_TR Integration: Account Groups in Cash management Planning Levels in Cash management Purchasing Area

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