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AC825 Money Market, Foreign Exchange and Derivatives AC825AC825 Money Money Market, Market, Foreign Foreign Exchange
AC825 Money Market, Foreign Exchange and
Derivatives
AC825AC825
Money Money Market, Market,
Foreign Foreign Exchange Exchange and and
Derivatives Derivatives
 SAP AG 1999
 SAP AG

R/3 System Release 4.6C December 2000 Material number 5004 1945

Copyright
Copyright

Copyright 2000 SAP AG. All rights reserved.

Neither this training manual nor any part thereof may be copied or reproduced in any form or by any means, or translated into another language, without the prior consent of SAP AG. The information contained in this document is subject to change and supplement without prior notice.

All rights reserved.

SAP AG 1999

Trademarks:

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Treasury Level 2 Level 3 AC815 5 days Loans Management for Financial Services AC816 3
Treasury
Level 2
Level 3
AC815
5 days
Loans Management for
Financial Services
AC816
3 days
AC030
3 days
AC810
3 days
Loans Management for
Corporates
Treasury Overview
Basic Functions in
Treasury Management
AC820
4 days
Securities Management
AC825
3 days
Money Market, Foreign
Exchange and Derivatives
AC830
3 days
Market Risk Management
AC805
3 days
AC010
5 days
Cash Management
Financial Accounting
AC215
1 day
and Reporting
Cash Budget
Management

SAP AG 1999

Course Prerequisites
Course Prerequisites

Mandatory

AC030 - Treasury Overview AC810 - Basic Functions in Treasury Management

SAP AG 1999

AC825 will provide you with detailed knowledge, procedures and the corresponding system configuration.

Target Audience
Target Audience

Participants:

Project teams Project leaders Administrators

Duration: 3 days

SAP AG 1999

Participants: Project teams Project leaders Administrators Duration: 3 days  SAP AG 1999

User notes

The training materials were not made for self-study, but rather as a supplement to the information provided by the trainer. Thus, space is available for your own notes.

The exercises are in addition to the examples used in this course. There may not be sufficient time to complete all exercises. In this case, you can use the materials afterwards to enhance your learning.

Course Overview
Course Overview

Contents:

Course goals

Course objectives

Course content

Course overview diagram

Main business scenario

SAP AG 1999

goals Course objectives Course content Course overview diagram Main business scenario  SAP AG 1999

© SAP AG

AC825

1-1

Course Goals
Course Goals
Course Goals  SAP AG 1999 This course will enable you to: Conclude and manage transactions

SAP AG 1999

This course will enable you to:

Conclude and manage transactions in the Money Market, Foreign Exchange and Derivatives areas

Configure and carry out the typical business processes in these areas

Market, Foreign Exchange and Derivatives areas Configure and carry out the typical business processes in these

© SAP AG

AC825

1-2

Course Objectives
Course Objectives
Course Objectives At the conclusion of this course, you will be able to: Perform the trading

At the conclusion of this course, you will be able to:

Perform the trading and processing activities in Money Market, Foreign Exchange and Derivatives

Use the tools that support processing and

Integrate the above areas with Accounting and Cash Management

SAP AG 1999

© SAP AG

AC825

1-3

Course Content
Course Content

Preface

Chapter 1 Course Overview

Chapter 2 Treasury Management Overview

Chapter 3 Basics

Chapter 4 Money Market

Chapter 5 Foreign Exchange

Chapter 6 Derivatives

Chapter 7 Transaction Currency Changeover

Market Chapter 5 Foreign Exchange Chapter 6 Derivatives Chapter 7 Transaction Currency Changeover  SAP AG

SAP AG 1999

© SAP AG

AC825

1-4

Course Overview Diagram
Course Overview Diagram

Treasury Management Overview

Basic Principles

Money Market

Foreign Exchange

Derivatives

Transaction Currency Changeover

SAP AG 1999

© SAP AG

AC825

1-5

Main Business Scenario
Main Business Scenario
Main Business Scenario  SAP AG 1999 You have successfully installed or are already using the

SAP AG 1999

You have successfully installed or are already using the SAP R/3 FI module. Now you wish to implement SAP R/3 Treasury Management.

As preparation, you have already made the basic settings in SAP R/3 Treasury Management.

You would now like to use Money Market, Foreign Exchange and Derivatives.

You are a member of a project team that will make both the basic settings and all settings necessary for displaying financial transactions in SAP R/3 Treasury Management.

© SAP AG

AC825

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Treasury Management Overview
Treasury Management Overview

Contents:

SAP Treasury Overview

Selection of Relevant Product Types

Identifying Treasury Processes

Treasury Management Functions

SAP AG 1999

The AC825 training course shows how transactions in the areas of money market, foreign exchange and derivatives are concluded and managed. The main focus is on typical transaction processes and their implementation using appropriate Customizing settings.

The courses AC030 "Treasury Overview" and AC810 "Basic Functions of Treasury Management" are prerequisites for this course.

© SAP AG

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Treasury Management Overview: Unit Objectives
Treasury Management Overview:
Unit Objectives
Treasury Management Overview: Unit Objectives At the conclusion of this unit, you will be able to:

At the conclusion of this unit, you will be able to:

Provide an overview of SAP R/3 Treasury Provide an overview of the relevant product types Explain the different Treasury processes and standard functions of SAP Treasury Management

SAP AG 1999

© SAP AG

AC825

2-2

Course Overview Diagram
Course Overview Diagram
Treasury Treasury Management Management Overview Overview

TreasuryTreasury ManagementManagement OverviewOverview

Basic Principles

Money Market

Foreign Exchange

Derivatives

Transaction Currency Changeover

SAP AG 1999

© SAP AG

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Treasury Management Overview: Business Scenario
Treasury Management Overview: Business
Scenario
Treasury Management Overview: Business Scenario  SAP AG 1999 Before beginning your work in the project

SAP AG 1999

Before beginning your work in the project team, you would like to acquire an overview of SAP R/3 Treasury.

Which basic settings form the basis for representing financial transactions?

Which products and processes can be portrayed by the new Treasury system and what functions are available?

You are a member of a project team that will make both the basic settings and all settings necessary for displaying financial transactions in SAP R/3 Treasury Management.

© SAP AG

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SAP Treasury Overview
SAP Treasury Overview
SAP Treasury Overview Download Market data TMTM DerivativesDerivatives Business SecuritiesSecurities LoansLoans

Download

SAP Treasury Overview Download Market data TMTM DerivativesDerivatives Business SecuritiesSecurities LoansLoans
Market data TMTM DerivativesDerivatives Business SecuritiesSecurities LoansLoans partner CashCash ForeignForeign
Market data
TMTM
DerivativesDerivatives
Business
SecuritiesSecurities
LoansLoans
partner
CashCash
ForeignForeign exchangeexchange

Bank data

partner CashCash ForeignForeign exchangeexchange Bank data Financial Accounting DD CC DD CC Logistics 100100
partner CashCash ForeignForeign exchangeexchange Bank data Financial Accounting DD CC DD CC Logistics 100100
partner CashCash ForeignForeign exchangeexchange Bank data Financial Accounting DD CC DD CC Logistics 100100
partner CashCash ForeignForeign exchangeexchange Bank data Financial Accounting DD CC DD CC Logistics 100100
Financial Accounting DD CC DD CC Logistics 100100 100100
Financial Accounting
DD
CC
DD
CC
Logistics
100100
100100

SAP AG 1999

Market Risk Management:

Interest/currency exposure

Sensitivities

Mark-to-market value

Risk analysis/simulation

Value at risk

Transaction Management:

Managing financial transactions and positions

Transfer to Financial Accounting

Flexible reporting and portfolio analysis

Datafeed interface

Cash Management:

Electronic banking

Liquidity status

Integration of the operating systems

Control functions

The objective of the SAP Treasury module is to ensure efficient liquidity, transaction and risk management.

SAP Treasury comprises three areas:

Cash Management (CM) covers electronic banking and provides functions for liquidity analysis.

Treasury Management (TM) and Loans (LO) support the management of financial transactions and positions.

Market Risk Management (MRM) provides methods and procedures for analyzing interest rate and currency positions.

© SAP AG

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Financial Instruments Available
Financial Instruments Available
Product types Investment/borrowing Hedging tools instruments Money Market Securities Loans Foreign Exchange
Product types
Investment/borrowing
Hedging tools
instruments
Money Market
Securities
Loans
Foreign Exchange
Derivatives

Fixed-term

Stocks

Mortgage

Forex

CAP/Floor

deposits

Bonds

loans

spot

FRA

Deposits at

subscription

Borrower's

transactions

Swaps

notice

rights

note loans

Forward

- Interest rate

Commercial

Investment

Policy loans

exchange

- Currency

paper

certificates

Other loans

transactions

OTC

Bonds

Forex swaps

Options/Futures

Convertible

- Currency

bonds

- Interest rate

Warrant bonds

- Stocks

Warrants

- Swaption, IRG

SAP AG 1999

Futures

In the short-term area, money market transactions and foreign exchange transactions allow you to bridge liquidity deficits or surpluses. In the mid- to long-term area, investments and borrowings are represented by securities transactions and loan transactions.

Derivative financial instruments, on the other hand, help you hedge against interest rate and currency risks.

© SAP AG

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Identifying Treasury Processes
Identifying Treasury Processes
RevenueRevenue // riskrisk goalsgoals Feedback Revision of planned targets Corrective measures AnalysisAnalysis
RevenueRevenue //
riskrisk goalsgoals
Feedback
Revision of planned
targets
Corrective
measures
AnalysisAnalysis
DecisionDecision
(planning)(planning)
FinancialFinancial
Analysis and
trading process
transactionstransactions
Transaction and position
management process

SAP AG 1999

Transaction and position management process  SAP AG 1999 Documentation and control functions

Documentation and control functions

From a strategic point of view, the analysis and trading process is the starting point for the various Treasury processes. At this stage, you identify and analyze the liquidity and risk positions on the basis of the risk and revenue targets you have defined. Special tools and methods are available in SAP Treasury. You can use these to perform an integrated analysis of your enterprise's financial and risk situation.

Once you have decided to complete certain financial transactions, you enter the trading processes for these transactions in Treasury Management (TM/LO). Treasury Management also contains functions for the subsequent management of these transactions and the related financial positions.

A range of documentation and control functions are available for all Treasury activities. These allow you to perform evaluations for specific instruments or across the whole system and ensure that the various tasks are documented and controlled properly for Treasury and Financial Accounting.

© SAP AG

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Transaction and Position Management Process
Transaction and Position Management Process
Transaction and Position Management Process Release Back Back office office Create offer/order/contract

Release

Transaction and Position Management Process Release Back Back office office Create offer/order/contract
Back Back office office
Back Back office office

BackBack officeoffice

Back Back office office
Back Back office office
Back Back office office
Position Management Process Release Back Back office office Create offer/order/contract Exercise/Expiration
Position Management Process Release Back Back office office Create offer/order/contract Exercise/Expiration
Position Management Process Release Back Back office office Create offer/order/contract Exercise/Expiration

Create offer/order/contract Exercise/Expiration Terminations Rollovers Exercise of rights

Settlement/control Interest rate adjustment Netting Referencing Confirmation letters Account transfer postings Corporate actions

rate adjustment Netting Referencing Confirmation letters Account transfer postings Corporate actions
rate adjustment Netting Referencing Confirmation letters Account transfer postings Corporate actions
rate adjustment Netting Referencing Confirmation letters Account transfer postings Corporate actions
rate adjustment Netting Referencing Confirmation letters Account transfer postings Corporate actions
rate adjustment Netting Referencing Confirmation letters Account transfer postings Corporate actions

Postings

Payment

transactions

Reverse

Accrual/deferral

Valuation

User authorization Limit management

SAP AG 1999

As part of the processes for transaction and position management, we distinguish between the following areas:

In the trading area, you create transactions and exercise rights.

In the back office, the settlement of the business transactions is completed. This includes checking them and transferring relevant posting transactions to Financial Accounting. Here, you also manage processes relating to position management such as securities account transfers.

The accounting area includes posting activities that do not result directly from trading and back office processes. Examples of these are incoming payments postings (such as interest earned or dividends) or depreciation postings which result from a position valuation.

© SAP AG

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Treasury Management: Functions
Treasury Management: Functions
Treasury Management: Functions Complete management of financial transactions and positions Support of trading and back

Complete management of financial transactions and positions

Support of trading and back office functions

Functions to track, check and release transactions

Data transfer to Financial Accounting (including accruals/deferrals and valuations)

Flexible settings to accommodate company- specific transactions and position management processes

Assignment of financial transactions to portfolios or managing them in securities accounts

Flexible reporting and portfolio analysis

Datafeed interface

SAP AG 1999

© SAP AG

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Treasury Management Overview: Unit Summary
Treasury Management Overview: Unit Summary
Treasury Management Overview: Unit Summary  SAP AG 1999 SAP Treasury comprises Cash Management Treasury

SAP AG 1999

SAP Treasury comprises

Cash Management

Treasury Management and Loans Management

Market Risk Management

As far as short-term financial instruments are concerned, the SAP System differentiates between Money Market and Foreign Exchange.

Derivative financial instruments are used to hedge exchange rate and interest rate risks.

The functions of Treasury Management incorporate managing transactions, assigning financial transactions to portfolios, and also reporting, analysis and the datafeed interface.

© SAP AG

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Basic Principles
Basic Principles

Contents:

Basic Settings - Financial Transactions

Business Partner

SAP AG 1999

© SAP AG

AC825

3-1

Basic Principles: Unit Objectives
Basic Principles: Unit Objectives
Basic Principles: Unit Objectives At the conclusion of this unit, you will be able to: Explain

At the conclusion of this unit, you will be able to:

Explain the most important terms and basic settings for financial transactions in Money Market, Foreign Exchange and Derivatives Explain the data structure setup for business partners

SAP AG 1999

© SAP AG

AC825

3-2

Course Overview Diagram
Course Overview Diagram

Treasury Management Overview

Basic Basic Principles Principles

BasicBasic PrinciplesPrinciples

Money Market

Foreign Exchange

Derivatives

Transaction Currency Changeover

SAP AG 1999

© SAP AG

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3-3

Basic Principles: Business Scenario
Basic Principles: Business Scenario
Basic Principles: Business Scenario  SAP AG 1999 Before you can create your financial transactions, you

SAP AG 1999

Before you can create your financial transactions, you must define your products in the system settings and manage these according to the circumstances in your enterprise.

You must also make entries in the system concerning your business partners.

How can you automatically receive proposals for business partner-specific settings when you are creating transactions?

You are a member of a project team that will make both the basic settings and all settings necessary for displaying financial transactions in SAP R/3 Treasury Management.

© SAP AG

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Basic Settings - Financial Transactions
Basic Settings - Financial Transactions

Product types/categories

Financial transaction types/categories

Activity categories

Processing categories

Flow types/categories

Condition types/categories

SAP AG 1999

© SAP AG

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Customizing Structure: Money Market, Foreign Exchange and Derivatives
Customizing Structure: Money Market, Foreign
Exchange and Derivatives
Prod.Prod. cat.cat. Transaction Transaction cat. cat. Flow Flow category/ category/ CalculationCalculation cat.cat.
Prod.Prod. cat.cat.
Transaction Transaction cat. cat.
Flow Flow category/ category/
CalculationCalculation cat.cat.
(Activity cat.)
(Activity cat.)
condition cat.
condition cat.
Processing Processing cat. cat.
SYSTEM LEVEL
ProductProduct typetype
Trans.Trans. typetype
ConditionCondition typetype
FlowFlow typetype
USER LEVEL

SAP AG 1999

© SAP AG

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Product Categories - Product Types
Product Categories - Product Types
ProductProductProduct cat.cat.cat.
ProductProductProduct cat.cat.cat.

510 Fixed-term deposit

010

Stock

600

Foreign exchange

:

610

CAP/FLOOR

620

SWAP

040

Bond

:

:

SYSTEM LEVEL

620 SWAP 040 Bond : : SYSTEM LEVEL ProductProduct typetype   - Fixed-term dep. -
ProductProduct typetype
ProductProduct typetype
 

- Fixed-term dep.

- Fully paid stock

(overnight)

- Partly paid stock

- Fixed-term deposits

- Floating rate bond

(term)

:

- Fixed-interest

- Interest rate swap

security

.

.

.

- Currency swap

 

:

 

USER LEVEL

SAP AG 1999

Product categories cover the basic categories of the various financial investment or borrowing transactions and also serve to classify financial instruments. Product categories are relevant in all company codes and are determined by the system, that is, they cannot be changed by the user.

Product types serve to further refine the product categories at the user level and, unlike product categories, they can be defined by the user. The product type definition contains the business framework that applies to financial transactions involving this product type. A product type is assigned to one product category only. Multiple product types may refer to a single product category. The user creates and processes individual financial transactions on the basis of product types.

Using the product type,

you can assign various back office practices

you can make selections in Reporting

you can assign various structure characteristics

you can assign various valuation parameters in Market Risk Management (for example, different yield curves)

© SAP AG

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Product Categories - Product Types - Examples Finan.Finan.Finan. instrumentsinstrumentsinstruments ProductProduct
Product Categories - Product Types - Examples
Finan.Finan.Finan. instrumentsinstrumentsinstruments
ProductProduct catscats
ProductProduct typestypes
Money mkt
510
Fixed-term deposit
Fixed-term deposit
Fixed-term dep. (overnight)
Fixed-term dep. (overnight)
520
520
Deposit at notice
Deposit at notice
Fixed-term dep. (term)
Fixed-term dep. (term)
530
530
Comm. Paper PaperPaper
Comm. Paper
540
540
Cash Cash flow flow trans. trans.
Foreign exchange
600
Foreign exchange
Forex
EXTERNAL
INTERNAL
Derivatives
610
CAP/FLOOR
CAP
FLOOR
Interest rate swap
Currency swap
630
FRA
700
Currency futures
Stock option - No release
Index option - No release
Swaption
Currency option (OTC)
Currency barrier option
IRG

SWAP

Tradeable options

OTC Option

 SAP AG 1999 © SAP AG FRA Futures AC825
 SAP AG 1999 © SAP AG FRA Futures AC825

SAP AG 1999

© SAP AG

FRA

Futures

AC825

The product types are predefined by the system. The user can assign product types to each of the individual product categories.

3-8

Product Type Customizing: Fixed-Term Deposit
Product Type Customizing: Fixed-Term Deposit

Product type

Text

Product cat.

51A
51A

Fixed-term deposit

EXTERNAL

Fixed-term deposittype Text Product cat. 51A Fixed-term deposit EXTERNAL Default value for transactions Int. calc. method act/360

Default value for transactions

Int. calc. method

act/360

+

Effective interest calculation

 
 

Eff. int. meth.

AIBD/ISMA

+

SAP AG 1999

Product types represent the typical financial transactions that are carried out in your company. Examples of product types in the Money Market area include fixed-term deposits or deposits at notice. If the standard product types delivered with the system are not used, you can define other product types. This allows differentiated evaluations or different processing rules for external and internal transactions. The product types contain information about structure characteristics.

The product type definition contains a description of the business framework that applies to financial transactions of this product type.

You then create and manage financial transactions and manage positions on the basis of these product types.

© SAP AG

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Financial Transaction Types
Financial Transaction Types
Product Product
Product Product
 
Trans.Trans. cat.cat.
Trans.Trans. cat.cat.
 

510

600

category

category

Fixed-term dep.

Forex

510 600 category category Fixed-term dep. Forex 100 200 Investment Borrowing

100

200

Investment

Borrowing

610

CAP/FLOOR

:

620

SWAP

   

:

 

SYSTEM LEVEL

: 620 SWAP     :   SYSTEM LEVEL ProductProduct typetype Trans.Trans. typetype
: 620 SWAP     :   SYSTEM LEVEL ProductProduct typetype Trans.Trans. typetype
ProductProduct typetype
ProductProduct typetype
Trans.Trans. typetype
Trans.Trans. typetype
 

- Fixed-term dep.

- Investment

(overnight)

- Borrowing

- Fixed-term dep.

- Spot

(term)

 

- Forward

:

- Purchase

- Interest rate swap

- Sale

- Currency swap

- Swap

:

:

 

USER LEVEL

 

SAP AG 1999

The financial transaction type determines what type of transactions can be carried out with a certain product type and, at the same time, controls the transaction and position management process.

Examples of financial transaction types include the investment or borrowing of fixed-term deposits, and both spot and forward transactions with foreign exchange.

You can use the basic transaction types provided by SAP or you can modify these to suit the financial transaction categories specific to your company.

You can set up user-specific versions of the transaction types for each of the Money Market, Foreign Exchange and Derivatives areas.

© SAP AG

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Customizing: Financial Transaction Types
Customizing: Financial Transaction Types

Product type

Fixed-term dep. EXTERNALProduct type

Transactn type

InvestmentTransactn type  

 

Trans. category

100

Number ranges

 

Transactions

01

Offers

02

Simulations

03

Back office

Processing cat.

00002

 
!
!

Automatic posting release

 

Limit management

 

Limit group

Commercial Paper

 
   

Deposit at notice

 

SAP AG 1999

The combination of a product type with a financial transaction type - for example, product type - "fixed-term deposit (overnight deposit)" with the transaction type, "investment", - uniquely determines a financial transaction. This financial transaction undergoes various activities in the company. You determine how the transaction is processed, that is, you establish the sequence of these activities, when you choose a processing category as part of the definition of the transaction type.

© SAP AG

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Number Ranges for Transaction Types
Number Ranges for Transaction Types
Number range obj. Company code Fin. transaction 1000 IDES AG Intervals No From number To
Number range obj.
Company code
Fin. transaction
1000
IDES AG
Intervals
No
From number
To number
Number status
Ext.
01 0000000000001
0000000099999
13
02 0000000100000
0000000JJJJ99
100000
03 0000000200000
0000000299999
200001
04 0000000300000
0000000399999
300028
05 0000000400000
0000000499999
400014

SAP AG 1999

Each transaction entered in the application is recorded in the system with a transaction number. When you are defining transaction types in Customizing, you maintain a number range interval. The system assigns the numbers in the application according to this interval. You must define this interval in advance and you also determine whether the number allocation is carried out internally (by the system) or externally (by the user).

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Activity Category
Activity Category
ProductProduct cat.cat.
ProductProduct cat.cat.
 
TransactionTransaction cat.cat.
TransactionTransaction cat.cat.
 
ActivityActivity cat.cat.
ActivityActivity cat.cat.
 

510

Fixed-term dep.

100

Investment

10 Contract

600

Forex

600 Forex 200 Borrowing

200

Borrowing

600 Forex 200 Borrowing

610

CAP/FLOOR

:

11 Rollover

620

SWAP

     

:

:

 

SYSTEM LEVEL

SWAP       : :   SYSTEM LEVEL ProductProduct typetype TransactionTransaction typetype
SWAP       : :   SYSTEM LEVEL ProductProduct typetype TransactionTransaction typetype
ProductProduct typetype
ProductProduct typetype
TransactionTransaction typetype
TransactionTransaction typetype
 

- Fixed-term dep. (overnight)

- Investment

- Borrowing

- Fixed-term dep. (term)

- Spot

- Forward

:

- Purchase

- Interest rate swap

- Sale

- Currency swap

- Swap

:

:

 

USER LEVEL

 

SAP AG 1999

Activity categories in the Money Market, Foreign Exchange and Derivatives component areas control which activities are possible for a particular financial transaction category.

Example:

Product category

Transaction category

Activity category

510

Fixed-term deposit

100

Investment

10

Contract

 

11

Rollover

20

Contract settlement

21

Rollover settlement

600

Foreign exchange

101

Spot exchange transaction

10

Order

 

15

Order expiration

20

Contract

30

Settlement

The activity categories are displayed in the financial transaction - under status - for information purposes. The activity category provides the basis for the history, and it also controls the correspondence.

© SAP AG

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Transaction - Activity Categories: History
Transaction - Activity Categories: History

Company code

1000

IDES AG

Transaction

1501

Product type

51A

Fixed-term dep. EXTERNAL

Transaction type

100

Investment

Acty

Activity category

Status

Transition function

0001

Contract

Replaced

New contract

0002

Contract settlement

Active

Activity transition

0003

     

0004

0005

SAP AG 1999

During its processing in your company, a financial transaction goes through various activities. These activities, in turn, have different statuses.

Example: With the completion of the "contract" activity, a transaction is identified as legally binding.

The completion of the "settlement" activity is a sign that the recorded transaction data has been checked.

© SAP AG

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Processing Categories
Processing Categories
ProductProduct cat.cat. TransactionTransaction cat.cat. ActivityActivity categorycategory ProcessingProcessing cat.cat.
ProductProduct cat.cat.
TransactionTransaction cat.cat.
ActivityActivity categorycategory
ProcessingProcessing cat.cat.
10 Contract
510
Fixed-term dep.
100
Investment
1 With settlement
600
Forex
200
Borrowing
activities
11 Rollover
610
CAP/FLOOR
:
:
620
SWAP
2 Without settlement
:
activities
SYSTEM LEVEL
ProductProduct typetype
Trans.Trans. typetype
- Fixed-term dep.
- Investment
(overnight)
- Borrowing
- Fixed-term dep.
- Spot
(term)
- Forward
:
- Purchase
- Interest rate swap
- Sale
- Currency swap
- Swap
:
:
USER LEVEL

SAP AG 1999

The processing sequence of a financial transaction is determined either by the processing categories (Money market, Foreign exchange, Derivatives, Securities) or by status transitions (Loans).

Processing categories and status transitions establish the sequence of the individual activities in a financial transaction. They describe the processing steps that are carried out in the respective company areas from the order entry in trading, via processing, right up to the transfer of the data to Financial Accounting.

In this way, you determine the company-specific chain of activities that must be gone through for a financial transaction of a certain product type.

© SAP AG

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Customizing Transaction Types - Processing Categories
Customizing Transaction Types - Processing
Categories

Product type

Fixed-term dep. EXTERNALProduct type    

   

Trans. type

InvestmentTrans. type  

 

Trans. cat.

100

Number ranges

   

Transactions

01

Offers

02

Simulations

03

Back office

Processing category

00001 = without

   
Processing cat. 00002 !
Processing cat.
00002
!

Automatic posting release

Processing cat. 00002 ! Automatic posting release

settlement activities

00002 = with settlement activities

 

SAP AG 1999

Processing categories are predefined by the system based on the product category and transaction category. From a range of alternative processing categories predefined in the system, you choose a processing category for each individual financial transaction. Example:

Fixed-term deposit

Product cat.

Processing category

510

00001 Without settlement rules

 

00002 With settlement rules

Foreign exchange

600

00101 Order - Contract- Settlement 00102 Order - Contract

© SAP AG

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Flow Types
Flow Types
Product Product ConditionCondition cat.cat. FlowFlow cat.cat. CalculationCalculation cat.cat. category category
Product Product
ConditionCondition cat.cat.
FlowFlow cat.cat.
CalculationCalculation cat.cat.
category
category
Interest
AA - Inflow
TD - Dividend
AA - Inflow
TD - Dividend
Trans.Trans. Trans. cat.cat. cat.
Repayment
:
SYSTEM LEVEL
Trans. cat.cat. cat. Repayment : SYSTEM LEVEL Product Product type type Trans. Trans. type type
Trans. cat.cat. cat. Repayment : SYSTEM LEVEL Product Product type type Trans. Trans. type type
Trans. cat.cat. cat. Repayment : SYSTEM LEVEL Product Product type type Trans. Trans. type type
Product Product type type Trans. Trans. type type
Product Product type type
Trans. Trans. type type
Product Product type type Trans. Trans. type type ConditionCondition typetype - Expected dividend - Bonus paid
ConditionCondition typetype
ConditionCondition typetype

- Expected dividend

- Bonus paid

- Variable interest

- Repayment

- Interest rate adj.

- Repayment rate

:

FlowFlow typetype
FlowFlow typetype

1000 - Security purch.

5013 - Dividend

1100 - Principal

increase

- Repayment rate : FlowFlow typetype 1000 - Security purch. 5013 - Dividend 1100 - Principal

USER LEVEL

SAP AG 1999

Flow types describe various changes in cash flows. All the flows involved in a transaction are the basis for generating the cash flow in financial mathematics and also further processing such as posting. The cash flow contains all flow records in chronological order and is used as the basis for updating transaction data in FI, Cash Management and Market Risk Management. Typical flow types are fixed or variable interest, increases in principal, and commissions.

Each flow type is assigned to exactly one flow category, while several flow types may belong to one flow category. For example, both fixed and variable interest are assigned to the "interest" flow category.

The payment flows for both the Cash flow and Accounting are controlled by two indicators that must be assigned to each flow type. The calculation category controls the finance-mathematical processing of the flow for the cash flow. The flow category controls the accounting treatment of the flow.

Flows can result from conditions (e.g. interest rate flows), from manual entries (e.g. charges), from accrual/deferral runs (e.g. interest accruals/deferrals) or from valuation runs (e.g. depreciation). Flow types include accounting flows such as inflow (e.g. purchase of securities), outflow (e.g. repayment), expenditure, or earnings. Cash flow-related flows include purchase/sale of securities, interest, repayment or charges.

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Customizing Flow Types
Customizing Flow Types

Flow type

1100
1100
 

Name

Principal increase

 

Control

 
 

Classification

Structure characteristics

 

Flow cat.

10

Principal increase Inflow (generic)

Calculat. cat.

AA
AA
! Relevant to CM

! Relevant to CM

!
!

Relevant to position Rel. To P/L

Rel. To valuation! Relevant to CM ! Relevant to position Rel. To P/L

!
!

Relevant to posting

! Relevant to posting Rel. for acc./defer.

Rel. for acc./defer.! Relevant to posting

Payment management

 

Effective interest calculation

 

SAP AG 1999

Flow types are defined in Customizing:

The classifications are fixed in the system and distinguish the flow types according to business criteria such as structure characteristics, accrual/deferral, valuation, etc.

Relevant to Cash Management: indicates whether the flow is to be updated in Cash Management.

Relevant to posting: indicates whether the flow is transferred to FI.

Relevant to position/relevant to profit/loss: refers to selection for display in drilldown reporting.

Relevant to valuation/relevant to accrual/deferral: indicates whether the flow is included in a valuation run/accrual/deferral run.

Effective interest rate calculation: indicates whether this flow is included in the effective interest rate calculation.

Payment request: indicates whether this flow is permitted for the generation of a payment request.

Individual payment: indicates whether this flow may only be settled individually in a payment request.

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Assignment of Flow Types to Transaction Types
Assignment of Flow Types to Transaction Types

Product type

51A

Fixed-term deposit EXTERNAL

Transaction type

100

Investment

Flow type

1100
1100

Principal increase

SAP AG 1999

© SAP AG

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3-19

Condition Types
Condition Types
Product Product cat. cat. ConditionCondition cat.cat. Nominal interest Transaction Transaction cat. cat. Final
Product Product cat. cat.
ConditionCondition cat.cat.
Nominal interest
Transaction Transaction
cat. cat.
Final repayment
:
SYSTEM LEVEL
Transaction cat. cat. Final repayment : SYSTEM LEVEL Product Product type type Transaction Transaction type
Transaction cat. cat. Final repayment : SYSTEM LEVEL Product Product type type Transaction Transaction type
Product Product type type Transaction Transaction type type
Product Product type type
Transaction Transaction
type type
Product Product type type Transaction Transaction type type ConditionCondition typetype - Expected dividend - Bonus
ConditionCondition typetype
ConditionCondition typetype

- Expected dividend

- Bonus paid

- Variable interest

- Nominal interest

- Repayment

- Interest rate

adjustment.

- Repayment rate

:

USER LEVEL

SAP AG 1999

Financial transactions are represented within SAP Treasury on the basis of the flow and condition concept. Conditions are contractually agreed components of a financial transaction. You can define, for example, various interest rate, dividend or repayment provisions as condition types. By assigning condition types to product/transaction types, you ensure that each product type has its specific structure characteristics assigned to it. This way you can define different conditions for a condition type (for example, interest) over a time period.

Condition categories are the basis for processing the condition types and they further refine the classification of flows and conditions. Examples of condition categories are principal increases, final repayments or nominal interest. The user defines condition types on the basis of condition categories and assigns them to the respective product/transaction type.

© SAP AG

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Customizing Condition Types
Customizing Condition Types

Condition type Name (short) Cond. type text Name (long)

1200
1200

Nominal int.

Nominal interest

Nominal interest

Control Classification Cond. category Calculat. cat. Generated flow type

Structure characteristics

20

Nominal interest

TZ
TZ

Nominal interest

1200

Nominal interest

SAP AG 1999

The main task of conditions is the automatic generation of flows. The flow types that you assign to the condition types are elements of the cash flow and, therefore, of accounting.

Note that there are condition types that do not produce flow types (for example, interest rate adjustments, repayment settlement).

© SAP AG

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Assignment of Condition Types to Transaction Types
Assignment of Condition Types to Transaction
Types

Product type

51A
51A

Fixed-term dep. EXTERNAL

Transaction type

100
100

Investment

Condition type

1200
1200

Nominal interest

Direction

0 0
0 0

Incoming and outgoing

SAP AG 1999

By assigning condition types (and flow types) to product/transaction types, you can structure them very flexibly.

© SAP AG

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3-22

Exercise - Basic Settings
Exercise - Basic Settings
Exercise - Basic Settings  SAP AG 1999

SAP AG 1999

© SAP AG

AC825

3-23

Business Partner
Business Partner

Roles of a business partner

Standing instructions

Transaction authorizations Payment details Correspondence Derived flows

SAP AG 1999

© SAP AG

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3-24

Business Partner - Basic Principles
Business Partner - Basic Principles

SAP AG 1999

CreationCreation ofof CustomizingCustomizing

Control data
Control
data
Roles
Roles
Relationships
Relationships
General
General
Prerequisite for CreationCreation ofof businessbusiness partnerspartners Prerequisite for CreationCreation ofof
Prerequisite
for
CreationCreation ofof businessbusiness partnerspartners
Prerequisite
for
CreationCreation ofof financialfinancial transactionstransactions
businessbusiness partnerspartners Prerequisite for CreationCreation ofof financialfinancial transactionstransactions

Based on the analysis of the liquidity situation (CM) or the risk situation (MRM), certain financial transactions are carried out with business partners taking the pre-determined risk and revenue objectives into account.

Example:

Due to a cash surplus, an amount is invested as a fixed term-deposit with business partner bank A.

The recording of the financial transaction is based both on Customizing settings regarding the

transaction architecture (product types, financial transaction types

application data, for example, business partner details (address, bank details

), and also on certain

).

In SAP Treasury each financial transaction is recorded as a transaction with a (specific) business partner. For this reason the business partner data must be maintained before the transaction is recorded. The options available to you when you create a business partner depend on the settings you have made in Customizing.

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Business Partner - Roles and Functions
Business Partner - Roles and Functions
Natural person Organization BorrowerBorrower Interested party Agent/CounterpartyAgent/Counterparty NotaryNotary
Natural
person
Organization
BorrowerBorrower
Interested party
Agent/CounterpartyAgent/Counterparty
NotaryNotary
Treasury partner
SurveyorSurveyor
Beneficiary
IssuerIssuer
DepositoryDepository bankbank
TrusteeTrustee
Payer/eePayer/ee
AssigningAssigning institutioninstitution
GuarantorGuarantor

SAP AG 1999

A business partner is either

a natural person or

an organization or

a group of persons or organizations with which you have a business interest.

Financial transactions are concluded with the business partner within SAP Treasury. Typical business partners include banks, brokers, or a central Treasury department.

You create a master record for each business partner.

You can assign several roles/functions to a business partner.

A role (= a role category) is a set of properties that a business partner must have in order to carry out

certain business transactions with you. The functions of the business partner in financial transactions are described in business partner roles (categories).

Example:

A business partner can act as a borrower or as a Treasury partner.

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Business Partners: Standing Instructions
Business Partners: Standing Instructions
TransactionTransaction authorizationsauthorizations
TransactionTransaction
authorizationsauthorizations
PaymentPayment detailsdetails
PaymentPayment
detailsdetails
BusinessBusiness partnerpartner AA
BusinessBusiness partnerpartner AA
CorrespondenceCorrespondence
CorrespondenceCorrespondence

SAP AG 1999

DerivedDerived flowsflows
DerivedDerived
flowsflows

Standing instructions are general agreements made with a business partner for processing similar types of transactions. You can access the business partner standing instructions for payment details, correspondence, authorizations and derived flows using the tabs on the business partner maintenance screen. The integration of the standing instructions with the business partner data means that the release workflow for business partners can also be applied to the standing instructions. You can also access the standing instructions using a separate menu path.

Agreements can cover:

Authorizations Which financial transactions may be concluded with this partner?

Payment details For transactions with business partner A

==>

The system proposes the payment details for business partner A in the transaction

Correspondence For transactions with business partner A

==>

Fixed setting: Which correspondence is generated for which transactions?

Derived flows For transactions with business partner A

==>

Fixed setting: If the transaction with business partner A contains flow X, add taxes amounting to y% of X.

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Business Partner - Transaction Authorization
Business Partner - Transaction Authorization
Business Partner - Transaction Authorization Business partner A Assign  SAP AG 1999 Partner authorization Treasury

Business partner A

Assign
Assign

SAP AG 1999

Partner authorization Treasury Authorization Money market Fixed-term dep. X 51 A Fixed-term dep. 100 Investment
Partner
authorization
Treasury
Authorization
Money market
Fixed-term dep.
X
51
A
Fixed-term dep.
100
Investment
200
Borrowing
Deposit at notice
52
A
Dep. At notice
100
Investment
200
Borrowing

In order to make use of a business partner (BP), you must

create the BP,

release the BP for use and

authorize the BP as a partner for specific financial transactions.

You can only grant transaction authorizations if the business partner - once set up - is released and is not designated for deletion.

The transaction authorizations control which financial transactions are permitted with a business partner. You can assign transaction authorizations at the following levels:

Contract type

Product category

Product type

Transaction type

Each business partner must be authorized explicitly in each company code.

© SAP AG

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Basic Principles: Unit Summary
Basic Principles: Unit Summary
Basic Principles: Unit Summary  SAP AG 1999 The definition and creation of master records is

SAP AG 1999

The definition and creation of master records is an important prerequisite for the processing of Money Market, Foreign Exchange and Derivatives transactions.

You determine, for example, the authorizations, payment details and correspondence requirements.

You can assign different roles to the business partner.

By means of the transaction authorization, you determine which financial transactions can be carried out with a business partner.

You can create standing instructions for specific business partners. These include payment details, different methods of correspondence, and derived flows.

© SAP AG

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Data for the Exercises

Explanation of the symbols used in the exercises and solutions

Exercises

Exercises

Solutions

Solutions

Unit objectives

Unit objectives

Business scenario

Business scenario

Tips & tricks

Tips & tricks

Warning or attention

Warning or attention

Data in the exercises

Data

Data in the training system

Data in the IDES system

Company codes

TR00 to TR20

1000

G/L accounts

113100, 113105, 113113 113200, 113205, 113213

113100, 113105, 113113 113200, 113205, 113213

Treasury business partners

DEUBA – Deutsche Bank

1000 – Deutsche Bank

CITI

– Citibank

Grouping (CM)

BANKS, BANK-ACTUAL, PERSONS, TOTAL

BANKS, BANK-ACTUAL, PERSONS, TOTAL

Note:

Create transactions in UNI, CHF or USD. Exchange rates are maintained only in these currencies.

Do not delete/change existing entries in Customizing. You must make new entries in each case.

© SAP AG

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Exercises

Unit: Basic Principles Topic: Basic Settings - Financial Transactions Topic: Basic Settings - Financial Transactions

Principles Topic: Basic Settings - Financial Transactions At the conclusion of these exercises, you will be

At the conclusion of these exercises, you will be able to:

Set up a forward exchange product in SAP R/3 Treasury Management.

You would like to trade a new product in your Treasury department. To do this, you need to introduce the product to your system. do this, you need to introduce the product to your system.

1-1

Create your own product type - FOREX TRANSACTION.

The forex product type has the following ID: DXX (XX = Your group number), text and short text: FOREXXX. The new product type is assigned to the product category, 600 - Forex.

1-2

Based on your new product type, define a new transaction type for a forward exchange transaction under the ID, GXX (XX = your group ID) FORWARDXX.

Transaction category is 100 - Forex transaction.

The back office processing category is Order-contract (00102).

The number range for the forward exchange transaction is 01. Choose number range '02' for offers and number range '03' for simulations.

Posting release should be automatic - this means that the transaction does not have to be released by a second user.

1-3

Check the predefined flow types for forex transactions.

Take a special look at charges, buying and selling. Double click on a line to see the relevant details screen.

© SAP AG

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1-4

Assign the following existing flow types to your transaction type, GXX (in combination with your product type DXX):

Charges - Forex transaction (Incoming and outgoing)

Purchase - Forex (Incoming)

Sale - Forex (Outgoing)

F8 takes you to the next entry .

© SAP AG

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Solutions Unit: Basic Principles Topic: Basic Settings - Financial Transactions 1-1 Solution to the step:

Solutions

Unit: Basic Principles Topic: Basic Settings - Financial Transactions

1-1

Solution to the step: Defining your own foreign exchange transaction - product type.

Customizing:

Treasury

Treasury Management

Foreign Exchange

Transaction Management

Product Types

Define Product Types

Button: New entries

Field name or data type

Values

 

Product type

DXX

(XX = Your group number)

Text

FOREXXX.

Short text

FOREXXX.

Product category

600

Save

1-2

Solution to the step: Defining your own foreign exchange transaction type.

Customizing:

Treasury

Treasury Management

Foreign Exchange

Transaction Management

Transaction Types

Define Transaction Types

Button: New entries

Field name or data type

Values

© SAP AG

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3-33

Product type

DXX

(XX = Your group number)

Transaction type

GXX

Transaction category

100

Number ranges - Transactions

01

Number ranges - Offers

02

Number ranges - Underlyings

No entry

Number ranges - Simulations

03

Processing category

00102

Automatic posting release

Set the flag

Limit group

602

1-3

Save

Solution to the step: Checking the predefined flow types.

Customizing:

Treasury

Treasury Management

Foreign Exchange

Transaction Management

Flow Types

Define Flow Types

Management ⇒ Flow Types ⇒ Define Flow Types Take a special look at charges, buying and

Take a special look at charges, buying and selling. Double click on a line to see the relevant details screen.

© SAP AG

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3-34

1-4

Solution to the step: Assigning flow types to the new transaction type.

Customizing:

Treasury

Treasury Management

Foreign Exchange

Transaction Management

Flow Types

Assign Flow Types to Transaction Type

Button: New entries

Field name or data type

Values

Product type

DXX

(XX = Your group number)

Transaction type

GXX

Charges:

 

Flow type

0010

Direction

0

Purchase:

 

Flow type

1000

Direction

2

Sale:

 

Flow type

2000

Direction

1

F8 takes you to the next entry.

Save

© SAP AG

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3-35

MoneyMoney MarketMarket
MoneyMoney MarketMarket

Contents:

Topic 1 Introduction to Money Market

Topic 2 Trading functions

Topic 3 Back office functions

Topic 4 Accounting functions

Topic 5 Special functions

Topic 6 Special Features of Deposit at Notice/Commercial Paper/ Cash Flow Transactions

Topic 7 Information system

SAP AG 1999

© SAP AG

AC825

4-1

Money Market: Unit Objectives
Money Market: Unit Objectives
Money Market: Unit Objectives At the conclusion of this unit, you will be able to: Perform

At the conclusion of this unit, you will be able to:

Perform trading and back office activities in Money Market using the example of a fixed-term deposit transaction

Use the tools that support processing and

Carry out the integration with Financial Accounting and Cash Management

SAP AG 1999

© SAP AG

AC825

4-2

Course Overview Diagram
Course Overview Diagram

Treasury Management Overview

Basic Principles

Money Money Market Market

MoneyMoney MarketMarket

Foreign Exchange

Derivatives

Transaction Currency Changeover

SAP AG 1999

© SAP AG

AC825

4-3

Money Market: Business scenario
Money Market: Business scenario
Money Market: Business scenario  SAP AG 1999 After you have made the necessary Customizing settings

SAP AG 1999

After you have made the necessary Customizing settings and created the business partners in the system, you would like to get an overview of the functions in Money Market.

As a user, what must you enter in the trading area in order to create a financial transaction?

How can you map your back office department in the SAP R/3 System?

What additional functions exist?

How can you ensure the integration of Treasury transactions in Financial Accounting?

You are a member of a project team that will make both the basic settings and all settings necessary for displaying financial transactions in SAP R/3 Treasury Management.

© SAP AG

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4-4

Introduction to Money Market (Topic 1)
Introduction to Money Market (Topic 1)

Product types in Money Market Analysis and trading process

SAP AG 1999

© SAP AG

AC825

4-5

Money Market - Overview
Money Market - Overview

Information system - evaluation reports

Money Market management in R/3

Master data:

Basic settings Business partners

Transaction authorizations Payment details Correspondence Currencies

Payment details Correspondence Currencies  SAP AG 1999 Execution of financial transactions

SAP AG 1999

Execution of financial transactions R/3R/3 FinancialFinancial AccountingAccounting
Execution
of
financial transactions
R/3R/3 FinancialFinancial AccountingAccounting

Before using money market management, you must maintain master data. You must

create your business partners, assign specific roles to them, and maintain transaction authorizations,

set up standing instructions (correspondence, payment details) and, if necessary, release the business partner.

You can then define money market transactions in the system.

There are numerous functions at your disposal in the system for position management of these transactions.

All activities that lead to changes in the G/L accounts are automatically transferred to SAP R/3 Financial Accounting.

© SAP AG

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Money Market Product Types
Money Market Product Types
Money Market Product Types Product types Investment/borrowing instruments Hedging instruments Money Market Securities

Product types

Investment/borrowing
Investment/borrowing

Investment/borrowing

Investment/borrowing
Investment/borrowing instruments
Investment/borrowing instruments
Investment/borrowing instruments
instruments

instruments

Investment/borrowing instruments
Investment/borrowing instruments
Investment/borrowing instruments
Investment/borrowing instruments
Investment/borrowing instruments
Investment/borrowing instruments
Investment/borrowing instruments
Investment/borrowing instruments
Investment/borrowing instruments
Investment/borrowing instruments
Investment/borrowing instruments
Investment/borrowing instruments
Investment/borrowing instruments
Investment/borrowing instruments
Investment/borrowing instruments
Types Product types Investment/borrowing instruments Hedging instruments Money Market Securities Loans Foreign
Types Product types Investment/borrowing instruments Hedging instruments Money Market Securities Loans Foreign
Hedging instruments

Hedging instruments

Hedging instruments
Hedging instruments
Hedging instruments
Hedging instruments
Hedging instruments
Hedging instruments
Hedging instruments

Money Market

Securities

Loans

Foreign Exchange

Derivatives

Fixed-term deposits Deposits at notice Commercial Paper

SAP AG 1999

Money Market transactions are used to invest or borrow liquid funds in the short to medium term. On the basis of surpluses or deficits determined in Cash Management, you can implement the planning decisions in Money Market. The effects of these transactions on liquidity (with the appropriate value date at the time of investment/borrowing and due date) are then shown directly in Cash Management.

The product types in Money Market include:

fixed-term deposits (overnight deposits, time deposits)

deposits at notice

Commercial Paper

cash flow transactions

Cash flow transactions in Money Market enable you to represent a wide range of transactions. You enter the term manually and also the cash flow that results from the particular structure of the transaction. This includes position changes, expenses, revenues, and payments.

© SAP AG

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Time Deposits
Time Deposits
Time Deposits Fixed-term deposits Due date arranged from the outset Fixed interest for the whole term

Fixed-term deposits

Due date arranged from the outset Fixed interest for the whole term (at least 30 days) Rollover facility

for the whole term (at least 30 days) Rollover facility Overnight Money Term only lasts one

Overnight Money

Term only lasts one day (current practice until further notice)

only lasts one day (current practice until further notice) Deposit at notice Concluded for an unspecified

Deposit at notice

Concluded for an unspecified time period Due date depends on the period of notice

SAP AG 1999

Fixed-term deposit trading (including overnight money and euro money) incorporates the transaction types, fixed-term deposit investment and fixed-term deposit borrowing. If the authorized business partners and corresponding payment details are already defined in the system, the only necessary entries are structure characteristics and conditions.

When trading with deposits at notice, you carry out investment and borrowing without defined due dates. The period of notice, the payment date, and the interest payment pattern are entered in addition to the amounts and conditions.

© SAP AG

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Commercial Paper
Commercial Paper
Commercial Paper Short-term, discounted bearer bond No interest payments during the term Term: Issuer and investor

Short-term, discounted bearer bond

No interest payments during the term

Term:

Issuer and investor enter directly into a business relationship and agree on a repayment amount which the debtor pays to the creditor at the end of the term.

This repayment amount is discounted to the start of the term using the required yield. The investor pays the amount calculated to the debtor at the start of the term.

Banks act as 'DEALERS' without assuming the placing risk.

1 week to 1 year (on average 2 months)

SAP AG 1999

Commercial Paper trading includes the purchase and sale of individual Commercial Paper tranches. A characteristic of Commercial Papers is that no interest payments arise during the term. By entering a nominal amount and the yield to be achieved, the payment amount that the investor has to pay to the debtor at the start of the term is determined via discounting. The interest calculation can alternatively be determined on the basis of a given rate.

At the start of the term, the cash flow shows the principal increase as the nominal amount together with the discounting amount. At the end of the term, the repayment of the nominal amount is shown. As a second variant, you can show the discounted principal increase at the start of the term, and then the repayment of the cash value and the interest rate flow at the end of the term .

© SAP AG

AC825

4-9

Trading Functions (Topic 2)
Trading Functions (Topic 2)

Transaction and position management process Financial transaction - initial screen Additional functions

SAP AG 1999

© SAP AG

AC825

4-10

Transaction and Position Management Process: Fixed-Term Deposit
Transaction and Position Management Process:
Fixed-Term Deposit
and Position Management Process: Fixed-Term Deposit Release Back Back office office Create order/contract

Release

and Position Management Process: Fixed-Term Deposit Release Back Back office office Create order/contract Rollovers
Back Back office office
Back Back office office

BackBack officeoffice

Back Back office office
Back Back office office
Back Back office office
Fixed-Term Deposit Release Back Back office office Create order/contract Rollovers Reversals Transaction
Fixed-Term Deposit Release Back Back office office Create order/contract Rollovers Reversals Transaction
Fixed-Term Deposit Release Back Back office office Create order/contract Rollovers Reversals Transaction

Create order/contractFixed-Term Deposit Release Back Back office office Rollovers Reversals Transaction history Settlement/ checking

RolloversRelease Back Back office office Create order/contract Reversals Transaction history Settlement/ checking Netting

ReversalsBack Back office office Create order/contract Rollovers Transaction history Settlement/ checking Netting

Transaction historyoffice office Create order/contract Rollovers Reversals Settlement/ checking Netting Confirmation letters Postings

Settlement/order/contract Rollovers Reversals Transaction history checking Netting Confirmation letters Postings Payment

checkingRollovers Reversals Transaction history Settlement/ Netting Confirmation letters Postings Payment transactions

NettingRollovers Reversals Transaction history Settlement/ checking Confirmation letters Postings Payment transactions

Confirmation letters