Treasury Management Overview

AC810 Basic Functions in Treasury
Management
AC810
R/3 System Release 46C 04/05/2001
AC810 Basic Functions in Treasury Management........................................................................................................0-1

Copyright ..................................................................................................................................................................0-2
Treasury ................................................................................................................................................................0-4
Course Prerequisites..............................................................................................................................................0-5
Target Group .........................................................................................................................................................0-6
Course Overview.......................................................................................................................................................1-1
Course Goals .........................................................................................................................................................1-2
Course Objectives .................................................................................................................................................1-3
Course Content......................................................................................................................................................1-4
Course Overview Diagram....................................................................................................................................1-5
Main Business Scenario ........................................................................................................................................1-6
Overview of Treasury Management..........................................................................................................................2-1
Overview of Treasury Management: Unit Objectives...........................................................................................2-2
Overview of Treasury Management: Business Scenario.......................................................................................2-4
Overview of SAP Treasury ...................................................................................................................................2-5
Main Targets of Treasury......................................................................................................................................2-6
SAP Support for Business Requirements..............................................................................................................2-7
Selection of Relevant Product Types ....................................................................................................................2-8
Identifying Treasury Processes .............................................................................................................................2-9
Analysis and Trading Process .............................................................................................................................2-10
Transaction and Position Management Process ..................................................................................................2-11
Short-Term Financial Instruments ......................................................................................................................2-12
Medium- to Long-Term Financial Instruments...................................................................................................2-13
Hedging Instruments ...........................................................................................................................................2-14
Treasury Management: Functions.......................................................................................................................2-15
Basic Functions of Treasury Management..........................................................................................................2-16
Overview of Treasury Management: Unit Summary ..........................................................................................2-17
Data Used in the Exercises..................................................................................................................................2-18
Overview of Treasury Management Solutions....................................................................................................2-21
Organizational Units .................................................................................................................................................3-1
Organizational Units: Unit Objectives ..................................................................................................................3-2
Organizational Units: Business Scenario ..............................................................................................................3-4
SAP R/3 in Your Company...................................................................................................................................3-5
Customizing and Application................................................................................................................................3-6
Organizational Units .............................................................................................................................................3-7
Position Management Options ..............................................................................................................................3-8
Securities Account and Portfolio...........................................................................................................................3-9

Define Portfolios .................................................................................................................................................3-10
Securities Account Master Data..........................................................................................................................3-11
Defining Trader and User Data ...........................................................................................................................3-12
Traders: Trader Authorizations ...........................................................................................................................3-13
Organizational Units: Unit Summary..................................................................................................................3-14
Organizational Units Exercises ...........................................................................................................................3-15
Organizational Units Solutions ...........................................................................................................................3-16
Business Partners ......................................................................................................................................................4-1
Business Partners: Unit Objectives .......................................................................................................................4-2
Business Partners: Business Scenario ...................................................................................................................4-4
Business Partners - Overview ...............................................................................................................................4-5
Roles and Functions ..............................................................................................................................................4-6
Business Partner Data: Overview..........................................................................................................................4-7
Creating a Business Partner ..................................................................................................................................4-8
Customizing and Application................................................................................................................................4-9
Grouping .............................................................................................................................................................4-10
Define Role Types / Role-View Assignment ......................................................................................................4-11
Field Modification...............................................................................................................................................4-12
Business Partners: Relationships.........................................................................................................................4-13
Business Partners: Relationship Types ...............................................................................................................4-14
General Customizing Settings.............................................................................................................................4-15
Business Partners: Data Maintenance .................................................................................................................4-16
Release Control ...................................................................................................................................................4-17
Business Partner Authorizations .........................................................................................................................4-18
Business Partners: Standing Instructions ............................................................................................................4-19
Creating a Business Partner with an FI Customer...............................................................................................4-20
Business Partners: Unit Summary.......................................................................................................................4-21
Business Partners Exercises ................................................................................................................................4-22
Business Partners Solutions ................................................................................................................................4-25
Banks ........................................................................................................................................................................5-1
Banks: Unit Objectives .........................................................................................................................................5-2
Banks: Business Scenario .....................................................................................................................................5-4
Transaction: Payment Details................................................................................................................................5-5
Banks - General: Master Data ...............................................................................................................................5-6
Business Partners: Central Data - Bank Details ....................................................................................................5-7
House Banks: Master Data....................................................................................................................................5-8
House Banks: Create Master Data ........................................................................................................................5-9

General Ledger Accounts....................................................................................................................................5-10
Transaction: Payment Details - Data...................................................................................................................5-11
Define Cash Management Account Name ..........................................................................................................5-12
Banks: Unit Summary .........................................................................................................................................5-13
Banks Exercises ..................................................................................................................................................5-14
Banks Solutions...................................................................................................................................................5-16
Transaction and Position Management: Preparation.................................................................................................6-1
Transaction and Position Management: Preparation: Unit Objectives..................................................................6-2
Transaction and Position Management: Preparation: Business Scenario..............................................................6-4
Standing Instructions: Overview...........................................................................................................................6-5
Business Partner Standing Instructions:Payment Details......................................................................................6-6
Standing Instructions: Payment Details ................................................................................................................6-7
Transaction: Correspondence................................................................................................................................6-8
Correspondence: Customizing ..............................................................................................................................6-9
Business Partner Standing Instructions: Correspondence ...................................................................................6-10
Transaction: Derived Flows ................................................................................................................................6-11
Derived Flows: Customizing...............................................................................................................................6-12
Business Partner Standing Instructions:Derived Flows ......................................................................................6-13
Currency Master Data .........................................................................................................................................6-14
Reasons for Reversal...........................................................................................................................................6-15
Limit Management..............................................................................................................................................6-16
Limit Management: Examples ............................................................................................................................6-17
Limit Management: Overview ............................................................................................................................6-18
Transaction and Position Management: Preparation: Unit Objectives................................................................6-19
Transaction and Position Management: PreparationExercises............................................................................6-20
Transaction and Position Management: Preparation Solutions...........................................................................6-24
Transaction and Position Management: Structure.....................................................................................................7-1
Transaction and Position Management: Structure - Unit Objectives ....................................................................7-2
Transaction and Position Management: Structure - Business Scenario ................................................................7-4
Financial Transaction and Business Partner..........................................................................................................7-5
Example: Create Financial Transaction ................................................................................................................7-6
Customizing Structure:Money Market/ Forex/Derivatives ...................................................................................7-7
Product Categories - Product Types......................................................................................................................7-8
Product Categories - Product Types: Examples ....................................................................................................7-9
Define Product Type: Example - Forex ..............................................................................................................7-10
Define Product Type: Example - Currency Option.............................................................................................7-11
Financial Transaction Types ...............................................................................................................................7-12

Customizing: Financial Transactions ..................................................................................................................7-13
Number Ranges for Transactions........................................................................................................................7-14
Activity Categories .............................................................................................................................................7-15
Transaction Types - Activity Categories: History...............................................................................................7-16
Processing Categories .........................................................................................................................................7-17
Customizing: Transaction Types - Processing Categories ..................................................................................7-18
Flow Types..........................................................................................................................................................7-19
Customizing: Flow Types ...................................................................................................................................7-20
Assign Flow Types to Transaction Types ...........................................................................................................7-21
Condition Types..................................................................................................................................................7-22
Customizing: Condition Types ...........................................................................................................................7-23
Assign Condition Types to Transaction Types ...................................................................................................7-24
Financial Product ................................................................................................................................................7-25
Financial Transaction Architecture .....................................................................................................................7-26
Financial Transactions: Cash Flow .....................................................................................................................7-27
SAP Financial Mathematics in Treasury Management: Process Flow................................................................7-28
Transaction and Position Management:Structure - Unit Summary.....................................................................7-29
Transaction and Position Management: Structure Exercises ..............................................................................7-30
Transaction and Position Management- Structure Solutions ..............................................................................7-36
Transaction and Position Management: Process .......................................................................................................8-1
Transaction and Position Management: Process: Unit Objectives ........................................................................8-2
Transaction and Position Management: Process - Business Scenario...................................................................8-4
Financial Transaction - Overview .........................................................................................................................8-5
Transaction and Position Management Process:Trading Functions.....................................................................8-6
Trading..................................................................................................................................................................8-7
Example: Creating Transactions ...........................................................................................................................8-8
Offers for Fixed-Term Deposits and Foreign Exchange .......................................................................................8-9
Simulation of Fixed-Term Deposits/Forex Transactions ....................................................................................8-10
Financial Transactions in Cash Management......................................................................................................8-11
Trading: Transaction Data...................................................................................................................................8-12
Interest Calculation Methods ..............................................................................................................................8-13
Conditions of a Financial Transaction ................................................................................................................8-14
Fixed-Term Deposits and Deposits at Notice: Changes in Capital Structure......................................................8-15
Effective Interest Rate Calculation and Update ..................................................................................................8-16
Roll Over Contract: Fixed-Term Deposit............................................................................................................8-17
Transaction History.............................................................................................................................................8-18
Collective Processing: Money Market ................................................................................................................8-19
Transaction Management: Worklist and Collective Processing..........................................................................8-20

Cash Flows in Cash Management .......................................................................................................................8-21
Transaction and Position Management Process:Back-Office Functions............................................................8-22
Back Office .........................................................................................................................................................8-23
Transaction Settlement........................................................................................................................................8-24
Correspondence: Confirmation Management .....................................................................................................8-25
Confirmation Letters ...........................................................................................................................................8-26
Transaction and Position Management Process:Accounting Functions.............................................................8-27
Automatic / Manual Posting Release ..................................................................................................................8-28
Release Workflow - Overview Graphic ..............................................................................................................8-29
Release Workflow - Customizing I.....................................................................................................................8-30
Release Workflow - Customizing II....................................................................................................................8-31
Accounting..........................................................................................................................................................8-32
Transaction: Posting............................................................................................................................................8-33
Posting a Transaction: Overview ........................................................................................................................8-34
Posting: Account Assignment Reference ............................................................................................................8-35
Determining the Account Assignment Reference: Overview .............................................................................8-36
Account Assignment Reference Determination: Characteristics/Values ............................................................8-37
Determine Account Assignment Reference: Allocation .....................................................................................8-38
Customizing: Account Determination.................................................................................................................8-39
Account Determination: Posting Specifications (1) ............................................................................................8-40
Account Determination: Posting Specifications (2) ............................................................................................8-41
Account Determination : (Account) Symbols .....................................................................................................8-42
Account Determination: Accounts (Allocation)..................................................................................................8-43
Posting a Transaction: Summary.........................................................................................................................8-44
Cash Flows in Cash Management .......................................................................................................................8-45
Financial Transactions and Cash Management ...................................................................................................8-46
Treasury Management and Cash Management ...................................................................................................8-47
Basic Principles of Archiving .............................................................................................................................8-48
Archiving Money Market / Forex / and Derivatives Transactions ......................................................................8-49
Process-Oriented Archiving Checks ...................................................................................................................8-50
Transaction and Position Management: Process - Unit Summary ......................................................................8-51
Transaction and Position Management: Process Exercises.................................................................................8-52
Transaction and Position Management: Process Solutions .................................................................................8-58
Payment Program for Payment Requests ..................................................................................................................9-1
Payment Program for Payment Requests: Unit Objectives ...................................................................................9-2
Payment Program for Payment Requests: Business Scenario ...............................................................................9-4
Processing Payment Transactions .........................................................................................................................9-5
Processing Payment Transactions: Overview .......................................................................................................9-6

1) Posting to G/L Accounts...................................................................................................................................9-7
1) Posting... ...........................................................................................................................................................9-8
3) Posting to Customer Accounts..........................................................................................................................9-9
3) Processing Payment Transactions...................................................................................................................9-10
3) Automatic Payment: FI Payment Program .....................................................................................................9-11
2) + 4) Automatic Payment: Payment Program for PR.......................................................................................9-12
Processing Payment Transactions .......................................................................................................................9-13
2) + 4) Automatic Payment: Payment Program for PR.......................................................................................9-14
Payment Program for Payment Requests ............................................................................................................9-15
Payment Requests: Customizing.........................................................................................................................9-16
Payment Program: Parameters ............................................................................................................................9-17
Origin Indicator...................................................................................................................................................9-18
Payment Program: Field Selection Control.........................................................................................................9-19
Customizing: Origin Indicator ............................................................................................................................9-20
Payment Program: Other New Features..............................................................................................................9-21
Netting - General Information.............................................................................................................................9-22
Netting - Process .................................................................................................................................................9-23
Netting and Payment Requests............................................................................................................................9-24
Payment Program for Payment Requests: Unit Summary...................................................................................9-25
Payment Program for Payment Requests Exercises............................................................................................9-26
Payment Program for Payment Requests Solutions ............................................................................................9-28
Market Data Management.......................................................................................................................................10-1
Market Data Management: Unit Objectives........................................................................................................10-2
Course Overview Diagram..................................................................................................................................10-3
Market Data Management: Business Scenario....................................................................................................10-4
Market Data: Overview.......................................................................................................................................10-5
Market Data: Current Exchange Rates................................................................................................................10-6
Market Data: Current Reference Interest Rates...................................................................................................10-7
Market Data File Interface ..................................................................................................................................10-8
Market Data File: Generate Request List ............................................................................................................10-9
Market Data File: Import File ...........................................................................................................................10-10
Market Data File: Customizing .........................................................................................................................10-11
Datafeed Architecture .......................................................................................................................................10-12
Datafeed Interface .............................................................................................................................................10-13
Datafeed: Customizing......................................................................................................................................10-14
Define Datafeed Name......................................................................................................................................10-15
Define RFC Destination....................................................................................................................................10-16
Synchronous Communication ...........................................................................................................................10-17
Asynchronous (Transactional) Communication................................................................................................10-18

Conversion Tables / Translation Table .............................................................................................................10-19
Datafeed: Conversion Tables ............................................................................................................................10-20
Datafeed: Translation Table ..............................................................................................................................10-21
Fill Translation Table Automatically (= Copy Master Data) ............................................................................10-22
Maintain Translation Table: Securities .............................................................................................................10-23
Import Securities Information from Datafeed Provider ....................................................................................10-24
Check Translation Table ...................................................................................................................................10-25
File Interface / Datafeed: Market Data Monitoring...........................................................................................10-26
Market Data Management: Unit Summary .......................................................................................................10-27
Information System.................................................................................................................................................11-1
Information System: Unit Objectives..................................................................................................................11-2
Course Overview Diagram..................................................................................................................................11-3
Information System: Business Scenario..............................................................................................................11-4
Information System Structure: Example - Journal ..............................................................................................11-5
Money Market: Journal .......................................................................................................................................11-6
Payment Schedule ...............................................................................................................................................11-7
Money Market - Position List .............................................................................................................................11-8
Drilldown Reporting Principle ............................................................................................................................11-9
Drilldown Reporting Principle ..........................................................................................................................11-10
Functions of Drilldown Reporting ....................................................................................................................11-11
Form Report ......................................................................................................................................................11-12
Drilldown Reporting: Overview........................................................................................................................11-13
Information System: Unit Summary .................................................................................................................11-14
AC810 Basic Functions in Treasury Management
AC810
Basic Functions in
Treasury Management
SAP AG 1999
R/3
Release: 4.6B
May 2000
Material number: 5003 6036
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
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Treasury
Level 2
Level 3
AC815
5 days
Loans Management for
Financial Services
AC030
3 days
Treasury Overview
AC810
3 days
Basic Functions in
Treasury Management
AC816
3 days
Loans Management for
Corporates
AC820
4 days
Securities Management
AC825
3 days
Money Market, Foreign
Exchange and Derivatives
AC830
3 days
Market Risk Management

AC805
AC010
5 days
Financial Accounting
and Reporting
SAP AG 1999
3 days
Cash Management
AC215
Cash Budget
Management
1 day
Course Prerequisites
Recommended:
AC030 - Overview of Treasury
SAP AG 1999
Target Group
Audience:
Members of the project team
System staff
Organization staff
Duration: 3 days
SAP AG 1999
Notes to the user:

The training materials are not teach-yourself programs. They complement the course instructor's
explanations. On the sheets there is space for you to write down additional information.
Course Overview
Contents:
Course goals
Course objectives
Course content
Course overview diagram
Main business scenario
SAP AG 1999
(C) SAP AG
AC810 1-1
Course Goals
This course will prepare you to:

Identify the basic Treasury Management functions
that are common to all the subcomponents
Configure banks and business partners and
recognize the concepts behind transaction and
position management in SAP Treasury
SAP AG 1999
(C) SAP AG
AC810 1-2
Course Objectives
At the conclusion of this course, you will be able to:

Set up organizational units in the SAP System
Create and configure banks and business partners
Make the system settings needed to control internal
processing
Describe and configure the payment program for
payment requests
SAP AG 1999
(C) SAP AG
AC810 1-3
Course Content
Preface
Unit 1
Course Overview
Unit 7
Unit 2
Overview of Treasury
Management
Transaction and Position

Management - Structure
Unit 8
Unit 3
Organizational Units
Transaction and Position

Management - Process
Unit 4
Business Partners
Unit 9
Payment Program for

Payment Requests
Unit 5
Banks
Unit 10
Market Data Management
Unit 6
Transaction and Position Unit 11

Management - Preparation
SAP AG 1999
(C) SAP AG
AC810 1-4
Information System
Course Overview Diagram
Overview of Treasury Management

Business Partners
Banks
Transaction and Position Management - Preparation
Transaction and Position Management - Structure
Transaction and Position Management - Process
Payment Program for Payment Requests
Information System
SAP AG 1999
(C) SAP AG
AC810 1-5
Main Business Scenario
You are using (or have successfully installed)

the SAP Financial Accounting (FI) module,
and want to implement SAP Treasury
Management.
You begin by making the basic settings in SAP
Treasury Management.
SAP AG 1999
You are a member of a project team. Your task is to make the basic settings for the SAP Treasury
module.
(C) SAP AG
AC810 1-6
Contents:
Overview of SAP Treasury
Main targets of Treasury
Overview of the product types
SAP Treasury processes
SAP Treasury functions
Overview of the basic functions in Treasury Management
SAP AG 1999
Course AC810 deals with the basic functions in Treasury Management which are common to all
subcomponents (money market, foreign exchange, securities, loans and derivatives). The course centers
on general concepts related to transaction and position management and the corresponding Customizing
options.
(C) SAP AG
AC810 2-1
Overview of Treasury Management: Unit Objectives
At the conclusion of this unit, you will be able to:

Provide an overview of the SAP Treasury system
State the relevant product types
Explain the various processes and basic functions in
Treasury Management
SAP AG 1999
(C) SAP AG
AC810 2-2

Business Partners
Banks
Information System
SAP AG 1999
(C) SAP AG
AC810 2-3
Overview of Treasury Management: Business

Scenario
Before you begin your work in the project team,

you want to gain an overview of SAP Treasury.
Which products and processes can be mapped
using the new Treasury system? What
functions are available?
Which functions form the basis for mapping
financial transactions?
SAP AG 1999
module.
(C) SAP AG
AC810 2-4
Overview of SAP Treasury

Download
Market data
TM
Business
partner
Derivatives
Securities Loans
Money Mkt Forex
Bank data
Logistics
D
100
Market Risk Management:

Interest/currency
exposure
Sensitivities
Mark-to-market
Risk analysis/simulation
Value at risk
Transaction Management
Management of financial
transactions and positions
Transfer to Financial
Accounting
Flexible reporting and
portfolio analysis
Datafeed interface
Cash Management:
Electronic banking
Liquidity status
Integrated operational
systems
Control functions
C
100
SAP AG 1999
The objective of SAP Treasury is to ensure efficient liquidity, portfolio and risk management.
SAP Treasury is subdivided into the following areas:
Cash Management (CM) offers tools for efficient liquidity analysis.
Treasury Management (TM) and Loans Management (LO) support financial transaction and position
management.
Market Risk Management (MRM) provides methods and procedures for assessing risk positions.
(C) SAP AG
AC810 2-5
Main Targets of Treasury
Priority
Target
Ensure liquidity
95
Optimize financing costs
92
Optimize yields on financial assets
74
Hedge costs (e.g. against possible

exchange rate fluctuations)
61
Hedge sales (e.g. against possible

exchange rate fluctuations)
52
Contribute to profit through active

management of open positions
30
5
6
1) % of all companies surveyed

Source: Top 500 Survey (Germany) conducted in 1994 by Price
Waterhouse
SAP AG 1999
(C) SAP AG
%1)
AC810 2-6
SAP Support for Business Requirements
Treasury in
conjunction with
other SAP modules
(FI, MM, SD)
Data integration
Central decision-making
Several currencies
Automatic processes
Cash Management
Analysis of financial
resources
Electronic banking
Investment / borrowing
Data entry
Monitoring
Back office
Money Market
Securities
Loans
Reporting
Risk management
Foreign Exchange
Derivatives
SAP AG 1999
(C) SAP AG
AC810 2-7
Selection of Relevant Product Types

Product types
Investment/borrowing
instruments
Money market
Fixed-term
deposits
Deposits at
notice
Commercial
Paper
Securities
Stocks
Subscription
rights
Investment
certificates
Bonds
Convertible
bonds
Warrant
bonds
Warrants
Hedging instruments
Loans
Forex
Mortgage
loans
Borrower's
note loans
Policy
loans
Other
loans
Forex spot
Caps / Floors
deals
FRAs
Forward
Swaps
exchange
- Interest rate
deals
- Cross-currency
Forex swaps
interest rate
OTC options
- Currency
- Interest rate
- Securities
- Swaption, IRG
Futures
Derivatives
SAP AG 1999
You can smooth out short-term liquidity deficits and surpluses using money market or foreign
exchange transactions. The system also maps securities and loans transactions for borrowing and
investing in the medium to long term.
Derivative financial instruments allow you to hedge against interest rate and currency risks.
(C) SAP AG
AC810 2-8
Identifying Treasury Processes
Earnings/
risk targets
Feedback
Revision of
planned targets
Analysis
(planning)
Adjustments
Decision
Analysis and
trading process
Financial
transactions
Transaction and position
management process
SAP AG 1999
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 earnings targets you have defined. SAP Treasury provides special tools and methods with
which you can perform an integrated analysis of your company's financial and risk situation.
Once you have decided to conclude certain financial transactions, you enter the trading processes for
these transactions in SAP Treasury Management (TM/LO). Treasury Management also supports
functions for managing transactions and the related financial positions at later stages.
A range of documentation and control functions are available for all Treasury activities. They allow you
to perform evaluations for specific instruments or groups of instruments at each stage of the Treasury
process. This fulfills the various documentation and control requirements of both Financial Accounting
and Treasury.
(C) SAP AG
AC810 2-9
Analysis and Trading Process
Earnings/
risk targets
Controlling
Information
procurement
Targets
Instruments
Methods
Measurements
Internal:
- Liquidity
status
- Risk position
External:
- Market data
Assessment
of possible
solutions
Identification
of appropriate
financial
transactions
Simulation
of alternative
results
Decision
Select one
alternative
Processing
Control
Trading
Back office
Accounting
Reporting
SAP AG 1999
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 earnings targets you have defined. SAP Treasury provides special tools and methods with
which you can perform an integrated analysis of your company's financial and risk situation.
(C) SAP AG
AC810 2-10
Transaction and Position Management Process
Release
Trading
Create new offer/
order/contract
Exercise/expiration
Terminations
Rollovers
Exercising rights
Back office
Settlement/control
Interest rate adjustment
Netting
Referencing
Confirmation letters
Securities account transfers
Corporate actions
Accounting
Postings
Payment
transactions
Reversals
Accruals/deferrals
Valuation
User authorization
Limit management
SAP AG 1999
The transaction and position management processes are divided into the following areas:
The trading area comprises functions for entering transactions and exercising rights.
In the back office area, the transactions are settled (checked). The back office also covers processes
related to position management, such as securities account transfers.
In the accounting area, you make the postings for the various activities to the subledger. From here, the
posting information is transferred to the FI general ledger.
The basic structure of the trading and transaction management processes is the same for all the Treasury
Management components. This forms the basis for integrating and processing transactions within the
SAP System and provides the framework for adapting the way transactions are represented in the system
to suit company-specific requirements.
You can authorize different users for different activities in the transaction and position management
process. This allows you to separate trading, back office and accounting functions by employee.
In addition, the limit management function enables you to assign a range of different limit amounts to
different transactions.
You can configure the system to require transactions to be released for posting by one or several
(different) person(s).
(C) SAP AG
AC810 2-11
Short-Term Financial Instruments

TRTR-TM
Money market
instruments:
TRTR-TM
Forex
instruments:
- Spot transactions
- Fwd transactions
- Currency swaps
Planning horizon
Liquidity position
- Fixed-term deposits
- Deposits at notice
- Commercial Paper
- Cash flow
transactions
Surplus
Deficit
ShortShort-term
LongLong-term
Investment
Money market
Foreign
exchange
Investment
Securities
Loans
Borrowing
Money market
Foreign exchange
Borrowing
Loans
SAP AG 1999
In the Money Market area, cash flow transactions allow you to represent a wide range of transactions
flexibly by manually entering not just the term, but also the cash flow generated for the transaction as a
result of position changes, expenses, earnings, revenues, payments, and so on.
(C) SAP AG
AC810 2-12
Medium- to Long-Term Financial Instruments
TRTR-TM
Liquidity position
Planning horizon
Surplus
ShortShort-term
LongLong-term
Investment
Money market
Foreign exchange
Investment
Securities
Loans
- Stock
- Bond
- ...
TRTR-TM
Loans:
Deficit
Borrowing
Money market
Foreign exchange
SAP AG 1999
(C) SAP AG
Securities:
AC810 2-13
Borrowing
Loans
- Mortgage loan
- Borrower's note loan
- Financing loan
- Policy loan
- ...
Hedging Instruments
Planning horizon
Short-term
Long-term
Risk situation
TRTR-TM
Derivative
instruments:
Interest
rate risk
Derivative financial instruments
Currency
risk
SAP AG 1999
(C) SAP AG
AC810 2-14
- Interest rate swap

- Cap
- Floor
- ...
Treasury Management: Functions
Complete financial transaction and position management

Support of trading and back office functions
Functions to monitor, check and release transactions
Data transfer to Financial Accounting
(including accrual/deferral and valuation)
Flexible settings for company-specific transaction and

position management processes
Financial transactions assigned to portfolios or managed in
securities accounts
Flexible reporting and portfolio analysis
Datafeed interface
SAP AG 1999
(C) SAP AG
AC810 2-15
Basic Functions of Treasury Management
Structure of financial transactions

Central data
Examples: Business partners, banks
FI
Financial
Accounting
AM
Money market
Securities
Derivatives
Loans
CO
Controlling
Foreign
exchange
Asset
Accounting
Central functions
Examples: Traders/users, currencies, correspondence,
financial mathematics, posting logic, payment transactions,
workflow, archiving, market data, information system
SAP AG 1999
(C) SAP AG
AC810 2-16
Overview of Treasury Management: Unit Summary
SAP Treasury is subdivided into three areas:

Cash Management
Treasury Management / Loans Management
You can represent financial transactions in

Treasury Management using different processes
The SAP Treasury Management functions span
the complete transaction management process,
from the trading stage through back-office
processing to Financial Accounting
SAP AG 1999
(C) SAP AG
AC810 2-17
Data Used in the Exercises

Explanation of the symbols used in the exercises and solutions
Exercises
Solutions
Unit objectives
Business scenario
Tips & tricks

Warning or caution
Data used in the exercises

Data
Data in the training

system
Data in the IDES system
Company codes
TR00 through TR20
1000
G/L accounts
113100, 113105, 113113

113913, 118888
113100, 113105, 113113

118888
Treasury business
partner
DEUBA Deutsche Bank

CITI Citibank broker
1000 Deutsche Bank
CM groupings
BANKEN
(Bank account history)
BANK-IST
(Status of available bank
BANKEN
(Bank account history)
BANK-IST
(Status of available bank
(C) SAP AG
AC810 2-18
accounts)
accounts)
PERSONEN
(Customers, vendors and
clearing accounts)
PERSONEN
(Customers, vendors and
clearing accounts)
GESAMT
(Total display)
GESAMT
(Total display)
Notes to the exercises:

Create your transactions in UNI, CHF, or USD. Exchange rates have only been maintained for
these currencies.
Do not delete any existing Customizing entries. You should only add new entries.
(C) SAP AG
AC810 2-19
Exercises
Unit: Overview of Treasury Management
SAP R/3 Treasury applications

Relevant product types
You want to gain an overview of the SAP R/3 Treasury module.
1-1
Log on to the system with your User "TREA-XX".

"XX" = Your group ID number = Your PC number
1-2
Browse through the various menu items in the Treasury application to get an overview
of the different functions.
1-3
Familiarize yourself with the structure of the Customizing settings.
(C) SAP AG
AC810 2-20
Overview of Treasury Management Solutions

Unit: Overview of Treasury Management
1-1
Log on to the system with your User "TREA-XX". Your instructor will tell you
which system to use. Make sure that you use the correct client, and inform the
other person in your group of the new password.
1-2
Overview of the various functions

Accounting
Treasury
Treasury Management
Basic Functions / Money Market / Foreign Exchange / Derivatives /
Securities /
1-3
Overview of Customizing
Tools
AcceleratedSAP
Customizing
Project Management
Button: SAP Reference IMG
Treasury
Treasury Management ...
(C) SAP AG
AC810 2-21
Contents:
SAP R/3 in your company
Client and company code
Portfolio and securities account
Users and traders
SAP AG 1999
(C) SAP AG
AC810 3-1
Organizational Units: Unit Objectives

Explain the relationship between the Customizing
settings and the application
Identify the organizational units in SAP Treasury
Configure trader and user data
SAP AG 1999
(C) SAP AG
AC810 3-2

Business Partners
Banks
Information System
SAP AG 1999
(C) SAP AG
AC810 3-3
Organizational Units: Business Scenario
You want to gain an overview of the organizational

units in SAP Treasury and answer the following
questions:
How do the Customizing settings affect how I work in
the productive system?
What options are available for managing financial
positions
How can I ensure that the trader data is assigned to
the correct users and stored with the individual
financial transactions?
SAP AG 1999
module.
(C) SAP AG
AC810 3-4
SAP R/3 in Your Company
Requirements
R/3
Customizing
Application
Company
SAP AG 1999
Customizing is the term used to describe the process of adapting the standard settings delivered with the
system to suit company-specific requirements.
Customizing settings determine the options in the application. For example, you may only want to
permit certain entries, or allow users to perform specific activities.
You usually customize the system once when you go live with the SAP system. You can make any
Customizing settings you require for day-to-day business (but which are not vital to system operations)
using application functions.
(C) SAP AG
AC810 3-5
Customizing and Application
IMG
Change Business Partner
Treasury Management
-
Basic Functions
Business Partners
Industry
Industry
0001
0002
0003
Description
Banks
Insurance
...
Partner
Deuba
Industry
F4
Possible entries
Industry
0001
0002
0003
Description
Banks
Insurance
...
SAP AG 1999
The Implementation Guide (IMG) lists all the activities that can be customized for each application.
Customizing settings determine the options in the application. For example, you may only want to
permit certain entries, or allow users to perform specific activities.
(C) SAP AG
AC810 3-6
Portfolio
Company code
Client
Business area
Securities
account
Controlling area
SAP AG 1999
The Treasury modules use the central SAP organizational structures. This ensures that the Treasury
system is integrated with the other SAP applications.
The client is a self-contained unit within the SAP system (commercially, organizationally, and
technically) with separate master records and its own set of tables. Client data applies for all company
codes and organizational structures. The client usually represents the corporate group level.
A company code (FI) is the smallest organizational unit for which a complete, self-contained set of
accounts can be drawn up for external reporting. The company code is the unit for which you record all
the posting activities and generate all the documents for financial statements (balance sheet, profit and
loss account).
A client can have several company codes, which enables you to manage the accounts for several
independent companies at the same time.
Business areas (FI) are organizational units for internal financial accounting. They are used to group G/L
transaction figures for internal evaluations (internal balance sheet/P&L). You can define business areas
across several company codes.
Controlling areas (CO) are organizational units within an enterprise for which you can perform
comprehensive cost accounting.
You can make further subdivisions in SAP Treasury by defining Treasury-specific evaluation groups,
such as portfolios and securities accounts.
(C) SAP AG
AC810 3-7
Position Management Options
Company code position

For several securities accounts
At portfolio level
At securities account level
For single items
SAP AG 1999
The level at which you manage your financial positions is of fundamental importance. Position
management is the basis for valuation.
In the money market, foreign exchange, derivatives and loans areas, you manage transactions as single
items. You can manage securities positions for a securities account, portfolio, for several securities
accounts, and in some cases, as single items.
(C) SAP AG
AC810 3-8
Securities Account and Portfolio
Company code
position
Portfolio
position 1
Sec. acct
position 1
Single
items
Portfolio
position 2
Sec. acct
position 2
Single
items
SAP AG 1999
You can create several portfolios within a company code.

You can assign several securities accounts to a portfolio.
(You can only assign a securities account to one portfolio.)
You use securities accounts to manage and value your positions. You need them for all transactions that
require position management. This primarily applies for listed securities. You can use securities accounts
as a basis for generating securities account statements, evaluating positions, and performing securities
account transfers. A securities account in the system usually relates to an existing securities account at a
bank. Securities accounts ensure that the legal framework and the related administrative rules can be
observed.
A portfolio is an evaluation unit in the company code, to which you can assign securities accounts
(securities area) or financial transactions (money market, forex, derivatives, borrower's note loans).
You can use portfolios to run an aggregated evaluation of different financial products. A portfolio also
acts as a risk management instrument for controlling and evaluating a your company's risk positions. In
the securities area, you can value positions for accounting purposes at portfolio level.
(C) SAP AG
AC810 3-9
Define Portfolios
Company code
1000
Treasury: Portfolio position

Portfolio
Portfolio name
SEC_1
Securities portfolio 1
SEC_2
Securities portfolio 2
BOND
Bond portfolio
FXPORT
Forex portfolio
CREDIT
Credit portfolio
MONEY_1
Money market portfolio 1
MONEY_2
Money market portfolio 2
F_ASSETS
Fixed assets
C_ASSETS
Current assets
SAP AG 1999
To evaluate and value positions at portfolio level, you first have to define the portfolios.
You define your company-specific portfolios in Customizing. An example of a possible entry would be a
trader portfolio.
(C) SAP AG
AC810 3-10
Securities Account Master Data
Company code
1000
Securities account
Account++
Sec. acct name

Bank information
Depository bank
DEUBA
Sec. acct number
22224446
Clearing account
87575733
House bank
House bank
1000
House bank acct
1000
:
:
Portfolio
SAP AG 1999
The securities accounts you create in the system usually represent existing securities accounts at a bank.
Meaning of selected fields in the securities account master data:
- Depository bank: Partner ID of the bank where the securities account is kept. You first create the
bank as a business partner in the role of "depository bank".
- Securities account number: Number used to manage the securities account at the depository bank.
- Clearing account: Account number of the cash clearing account at the depository bank.
- Internal bank account: Account number of the cash clearing account in SAP Financial Accounting.
- Blocking type: If a restraint on disposal applies to the entire securities account, you must specify
the blocking type.
- Block flag until: Date until which the restraint on disposal applies for the securities account.
- Portfolio: Assignment of the securities account to a portfolio. This field is displayed if the Portfolio
indicator is set in Customizing.
- Business area: When you post a transaction, the system uses the business area defined in the
securities account master data. If there is no entry in the securities account master data, the system
uses the entry in the account assignment reference.
(C) SAP AG
AC810 3-11
Defining Trader and User Data
Trader 01
Trader 02
Trader 03
Company code
1000
User
Brown
M T WDC REC
M T 1
Trader
Trader 01
SAP AG 1999
You define traders per company code. If a trader is active in several company codes, you have to make
the relevant settings in each company code.
You can define trader-specific input rules as user data. For example, M = million, T = thousand. WDC
enables you to carry out a working day check, and REC a rate entry check.
Once you have created the trader (and assigned a user name), you must assign this person authorizations
for the transactions he or she is allowed to conclude.
(C) SAP AG
AC810 3-12
Traders: Trader Authorizations
Trader
authorization
Treasury
Trader01
Money market
Authorization
X
Fixed-term deposit
Assign
51 A Fixed-term deposit
100
Investment
200
Borrowing
Deposit at notice
52 A Call money
100
Investment
200
Borrowing
SAP AG 1999
When you assign transaction authorizations for traders, you can restrict the trading powers to certain
financial instruments (such as money market), product categories, product types, or transaction types. A
higher-level authorization means that a trader is allowed to create any transaction below this level. For
example, a trader authorized for the Money Market area automatically has authorization to conclude a
fixed-term deposit or a deposit at notice. Similarly, authorization for a product category automatically
includes the product type and transaction type levels below it.
Before you can assign trader authorizations, you must define the trader in Customizing.
To run evaluations that concentrate on the transactions or positions of a trader, you can store the name of
the trader in the transaction. You can enter the trader name manually when you conclude the transaction,
or let the system propose the trader name automatically on the basis of the user name. You can assign
specific user data to your traders. This speeds up data entry, and allows you to use automatic checks for
working days and rates/prices (on the basis of defined deviation intervals).
The logic for assigning authorizations is the same as for business partner authorizations.
(C) SAP AG
AC810 3-13
Organizational Units: Unit Summary
The entry and selection options in the

application depend on the settings made in
Customizing.
The Treasury modules make use of the central
SAP organizational structures. There are also
Treasury-specific portfolios and securities
accounts.
If you want to record trader data with your
financial transactions, you set up corresponding
traders in Customizing and assign
authorizations to them in the application.
SAP AG 1999
(C) SAP AG
AC810 3-14
Organizational Units Exercises

Unit: Organizational Units
Topic: Defining Organizational Units
Organizational units in SAP Treasury

Configuring trader and user data
You first want to gain an overview of the organizational units used in

SAP Treasury. You then want to assign corresponding trader data to the
system users.
1-1
Create the following portfolio for your company code TRXX in Customizing: PortfXX.
1-2
Create your own trader in Customizing using the name "T-XX", overwriting the entry
"TREASURERXX". Assign your user name TREA-XX to this trader.
1-3
The trader is authorized to conclude money market, foreign exchange, derivatives and
securities transactions. Define the corresponding authorizations for your trader.
(C) SAP AG
AC810 3-15
Organizational Units Solutions

Unit: Organizational Units
Topic: Defining Organizational Units
1-1
Create portfolio
Customizing:
Treasury
Treasury Management
Basic Functions
Organization
Define Portfolio
Enter your company code TRXX and choose New entries (button). Save your
entries.
1-2
Create trader and assign user name

Customizing:
Treasury
Treasury Management
Basic Functions
Organization
Define Trader
Enter your company code TRXX and choose New entries (button). Save your
entries.
Treasury
Treasury Management
Basic Functions
Organization
Define User Data
Find your user and overwrite TREASURERXX with your new trader T-XX. Save
your entries.
(C) SAP AG
AC810 3-16
1-3
Create user authorizations

Application:
Accounting
Treasury
Treasury Management
Basic Functions
Master Data
Trader Authorization
Enter your trader T-XX and your company code TRXX, and choose Enter. Set the
indicators and save your entries.
(C) SAP AG
AC810 3-17
Business Partners
Contents:
Role category / role type
Data
Classification
Grouping / number ranges
Views / Field modification
Relationships
Release
Transaction authorizations
Standing instructions
SAP AG 1999
(C) SAP AG
AC810 4-1
Business Partners: Unit Objectives

Fully configure business partners and assign
authorizations
Define standing instructions
SAP AG 1999
(C) SAP AG
AC810 4-2

Business Partners
Banks
Information System
SAP AG 1999
(C) SAP AG
AC810 4-3
Business Partners: Business Scenario
Before you can conclude financial transactions

with a business partner, you must create the
partner in the Basic Functions area of the
application. To do this, you must first make the
corresponding settings in Customizing.
You only want to authorize your business
partners for certain transactions.
When you create transactions with a business
partner, you want the system to default to certain
settings you have defined for that partner. What
options are available?
SAP AG 1999
module.
(C) SAP AG
AC810 4-4
Business Partners - Overview

Customizing
Control
data
Roles
Relationships
General
Prerequisite
for
Creating business partners
Prerequisite
for
Creating financial transactions

SAP AG 1999
Depending on your liquidity situation (CM), your risk situation (MRM), and the revenue and risk targets
you have set, you conclude certain financial transactions with your business partners.
Example: You have a liquidity surplus, and invest this surplus amount with the business partner "Bank
A" as a fixed-term deposit.
The functions for entering transactions are based on the Customizing settings for the transaction
architecture (product types, transaction types, ...), and certain application data, such as business partner
information (address, bank details, ).
In SAP Treasury, enter each financial transaction with a (specific) business partner. The business partner
data must be available before you enter the transaction.
The settings that have been made for business partners in Customizing determine the options available
for creating business partners in the application.
(C) SAP AG
AC810 4-5
Roles and Functions
Natural
person
Organization
Borrower
Agent/counterparty
Lawyer
Surveyor
Interested party
Treasury partner
Beneficiary
Issuer
Depository bank
Trustee
Payer/payee
Assigning institution
Guarantor
SAP AG 1999
A business partner is one of the following:

- A natural person
- An organization
- A group of people or organizations in which you have a business interest
In the SAP Treasury system, you conclude transactions with business partners. Banks or central treasury
departments are typical partners.
You create a master record for each business partner.
You can assign several roles or functions to one business partner.
A role (= role category) specifies the characteristics a business partner must have before you can perform
certain transaction activities with that partner. The business partner roles are used to record the functions
of a business partner in a particular transaction.
Example: A business partner acting as a borrower or a treasury partner.
(C) SAP AG
AC810 4-6
Business Partner Data: Overview

Business
partner
Central data
Name
Address overview
Bank details
Personal data
Employment data
Legal data
Fiscal years
Additional data
Relationships
General
data
Role overview
Role data
Credit standing
Tax data
Reg. reporting data
Control data
Bank
Company code
data
Account information
Account interest
Autom. pmnt transact.
Payment data
Dunning data
Reg. reporting data
Control data
Relationships
SAP AG 1999
The user interface for the business partner data was redesigned as part of the Enjoy project. The new
screen layout uses tabstrips that let you navigate between the individual business partner views. You can
still navigate as before using the menu.
The data you can maintain for business partners is divided into three areas:
- Central data
This data is available for every business partner, regardless of the partner role.
- General data
General data is held centrally for all roles. Access to this data can vary according to the role
category, depending on the settings in Customizing (role-view-assignment).
- Company code-dependent data
Data that only applies for a particular role category in the respective company code.
Each of these areas is divided into different views.
(C) SAP AG
AC810 4-7
Creating a Business Partner
Business partner
Grouping
Role category
Classification
Organization
Natural person
Collective partner
Application level
System level
SAP AG 1999
When you create a business partner in the system, you must specify the classification and the grouping in
the initial screen.
You can assign a role (= role category) when you create the partner, or at a later date.
The classification options and role categories are predefined in the system.
You define the grouping in Customizing, and use it to classify the business partners according to your
own criteria.
(C) SAP AG
AC810 4-8
Customizing and Application
Classification
Customizing
Grouping
Number ranges
Role category
Role type
Views
Field modifications
Relationship categories
Relationship types
Data entered
Application
Business partner
authorization
SAP AG 1999
Standing
instructions
Classification: You create a business partner either as an "organization" or a "natural" person. The
classification affects the data you enter (for example, legal form for an organization, marital status for a
natural person).
The grouping lets you classify business partners according to your own criteria.
Examples: Grouping1:
Partners for money market, forex, and derivatives transactions
Grouping 2:
Partners for loan transactions
...
The business partner roles (role categories) are used to record the functions of a business partner in a
particular transaction. The role category determines which application functions are permitted or
excluded.
You can use the field modification functions to define which fields in the respective business partner
views are required, optional, or suppressed.
You can link business partners using relationships.
The data the user enters is divided into central data, general data, and company code data.
You have to authorize the business partner for the permitted transactions.
Standing instructions are general agreements made with a business partner for processing similar types
of transactions.
(C) SAP AG
AC810 4-9
Grouping
FI
TR
created
automatically
Create
business
partner
Create
customer
Customizing:
Grp.
NR
TR01 01
TR02 02
Acct group Descr. of grp.

CUST
CUST
TR partner (int.)
TR partner (ext.)
BP grouping
No.
Fr. no.
01
02
000001 000099
AAAAAA
To no. Curr. no. Ext.
ZZZZZZ
5
X
Number ranges
SAP AG 1999
You define the number range for the business partner via the business partner grouping. This number
range controls whether the business partner key is assigned internally by the system, or externally by the
user. It also determines whether the key must be numeric or alphanumeric.
In addition, you use the business partner grouping to create the link to Financial Accounting by
assigning a corresponding customer account group. If you create a partner and call up views that are
relevant for processing on the basis of customer accounts, the system automatically creates an FI
customer.
Customer-based views:
Bank details; tax data; control data; account information; account interest; automatic payment
transactions; payment data; dunning data.
To map payment flows in Cash Management, you assign a planning group to the business partner
(Company code data -> Account information). This ensures that payment flows are included in Cash
Management, even if the payment details are missing in the transaction.
(C) SAP AG
AC810 4-10
Define Role Types / Role-View Assignment
RoleC
A001
A002
RoleC
1000
1000
Name of role type

Domestic treasury partner
Foreign treasury partner
Name of role category

Treasury partner
Treasury partner
RType
1000
1000
View
0100
0190

Treasury partner
Treasury partner
Description
General: Credit standing
CoCd:
Control
SAP AG 1999
The functions of the business partner in the transaction are defined using business partner roles (role
categories). You can refine the role categories predefined in the system by defining role types in
Customizing.
Example: You could vary the standard address according to role category.
In Customizing you can define which data views can be accessed for each role category.
Example: If you do not assign the "Dunning data" view to the role category "Issuer", the user cannot call
up dunning data for a partner in the role of issuer in the application.
You can use role-view assignment to assign views from the general data and company code data areas to
roles. Central data can be called up for all role categories.
(C) SAP AG
AC810 4-11
Field Modification
?
Field modification
...
... for activities

Act.
... for role categories

Role
0100
:
1000
Short text
01
02
03
Create
Change
Display
Fld gr.
110
382
...
Credit standing
Industry

Borrower
:
Treasury partner
Hide
o
Required
o
o
X
Opt.field
o
X
Display
o
SAP AG 1999
You can configure the individual entry fields in the views using the field selection options in
Customizing.
The following options are available for data fields:
- Required
- Optional
- Display only
- Hidden (suppressed)
You can use field selection to configure fields according to activity (create/change/display business
partner) or role category.
(You have to maintain role-view assignment in order to modify the fields for the role category.)
(C) SAP AG
AC810 4-12
Business Partners: Relationships
Outgoing relationship
"Group subsidiary of"
Relationship
Example:
Subsidiary
Example:
Parent company
Relationship category
Depends upon
classification
Relationship types
SAP AG 1999
The selection of relationship categories is predefined in the system and depends on how the business
partner is classified.
Example: "Group subsidiary of ..." for an organization, "Wife of ..." for a natural person.
You can differentiate within the given relationship categories by defining your own relationship types.
(C) SAP AG
AC810 4-13
Business Partners: Relationship Types
RelTyp
Description
SUB2
Important group
subsidiary of
RelCat
0050
Description
Group subsidiary of
SAP AG 1999
You define relationship types to refine the relationship categories predefined in the system.
(C) SAP AG
AC810 4-14
General Customizing Settings
Business partner
In this section you make
additional settings that
determine the selection
options when you enter
business partner data in
the application.
General
Central data
General data
Company code data
Extras
SAP AG 1999
Examples of Customizing tasks:

- Central data:
Define forms of address
- General data: Maintain ratings for credit standing data
- Company code data:
Define planning groups for displaying data in Cash Management
- Extras:
Specifications for additional information fields
(C) SAP AG
AC810 4-15
Business Partners: Data Maintenance

Business
partner
Central data
Name
Address overview
Bank details
Personal data
Employment data
Legal data
Fiscal years
Additional data
Relationships
General
data
Role overview
Role data
Credit standing
Tax data
Reg. reporting data
Control data
Bank
Company code
data
Account information
Account interest
Autom. pmnt transact.
Payment data
Dunning data
Reg. reporting data
Control data
Relationships
SAP AG 1999
The data you can maintain for business partners is divided into three areas:
- Central data
- General data
- Company code-dependent data
When you create a business partner in the application, the data fields you can maintain in the respective
views depend on the following:
- Classification
- Grouping
- Role-view assignment
- Field modification
(C) SAP AG
AC810 4-16
Release Control
Activate release
Business partners
BPAR X Bus. partner
Partner
Define release parameters
Role cat.
ReSt
1000
22
Active
X
SAP AG 1999
If you activate the release procedure for business partners in Customizing, any business partner data that
is created or changed must be released before you can enter transactions with that partner.
You can apply different release procedures, depending on the role category. For each role category, you
assign the appropriate release status (release by one employee, release by two employees, ).
Above example: If you change the data for a business partner with role category 1000, the change must
be released by two employees before the business partner can be used.
(C) SAP AG
AC810 4-17
Business Partner Authorizations
Bus. partner
authorization
Business Partner A
Treasury
Authorization
Money market
Assign
Fixed-term deposit
51 A
100
200
Fixed-term dep.
Investment
Borrowing
Deposit at notice
52 A
100
200
Call money
Investment
Borrowing
SAP AG 1999
To use a business partner (BP), you have to:

- Create the business partner
- Release the business partner (if required)
- Authorize the business partner for certain financial transactions
You can only assign transaction authorizations if the business partner has been released (where
release is required) and is not flagged for deletion.
You use transaction authorizations to control which transactions can be concluded with a particular
business partner. You can assign transaction authorizations at the following levels:
- Contract type
- Product category
- Product type
- Transaction type
You have to assign authorization explicitly to each business partner in each company code.
(C) SAP AG
AC810 4-18
Business Partners: Standing Instructions
Business partner A
Payment details
Correspondence
Derived flows
SAP AG 1999
Standing instructions are general agreements made with a business partner for processing similar types
of transactions.
Agreements can cover:
- Payment details
For transactions with business partner A ==>
business partner A in the transaction.
- Correspondence
generated for which transactions?
- Derived flows
partner A contains flow X, add taxes
(C) SAP AG
AC810 4-19
The system proposes the payment details for
Fixed setting: Which correspondence is
Fixed setting: If the transaction with business

amounting to y% of X.
Creating a Business Partner with an FI Customer
Business partner
Grouping
Role category
Classification
Organization
.
.
Specifications
Customer
Address ID
SAP AG 1999
You can copy a customer that already exists in FI to create a business partner: The system uses the data
entered in the Specifications section to establish a link between the existing customer and the new
business partner you are creating.
(C) SAP AG
AC810 4-20
Business Partners: Unit Summary
Before you can conclude financial transactions

with a business partner, you must create,
release and authorize the partner in the Basic
Functions area of the application. To create
business partners in the application, you must
first make the corresponding settings in
Customizing.
You can set up standing instructions for a
specific business partner. The system proposes
these values (such as payment details)
automatically when you create a transaction
with this partner.
SAP AG 1999
(C) SAP AG
AC810 4-21
Business Partners Exercises

Unit: Business Partners
Topic: Business Partner Grouping
Creating a new business partner in the system

Assigning a grouping to the business partner
Before you can conclude financial transactions with a business partner,

you must create the partner in the Basic Functions area of the application.
To do this, you must first make the corresponding settings in
Customizing.
1-1
Is it currently possible to create a business partner with the business partner grouping
"TR01" and your own name "BPXX"?
__________________________ YES
__________________________ NO
1-2
(C) SAP AG
In Customizing, create a business partner grouping that allows you to assign an

external business partner name with alphabetic characters (number assignment). Name
the grouping G-XX (choose "DEBI" for the account group).
AC810 4-22
Business Partners
Exercises

Topic: Roles / Functions
Creating a new business partner in the system

Assigning roles and functions to the business partner.
You want to create a new business partner with whom you can conclude
treasury transactions. To do this, you must assign the role "Treasury
partner" to your partner.
2-1
In future, you want to conclude transactions with the business partner BPXX. Create
the partner "BPXX" as an organization (initially without roles). Use your own grouping
G-XX.
2-2
Call up the various views using the tabs, or by choosing Goto -> Central data /
General data / Company code data.
(Note: Only the Central data and the role overview can be displayed.)
2-3
To conclude money market, foreign exchange and derivatives transactions, assign the
role of Treasury partner to the business partner. Call up the various business partner
views again.
(Note: Now - after adding a role - you can call up the General data and Company code
data views.)
(C) SAP AG
AC810 4-23
Business Partners
Exercises

Topic: Additional data
Creating additional data for a business partner.
You want to enter additional master data for your business partner, such
as additional addresses, information about relationships with other
business partners, or the business partner's credit standing.
3-1
Add the following information for your business partner BPXX:
Specify that the business partner in the role of treasury partner is a "domestic treasury partner"
(-> Role type).
BPXX is a subsidiary of the existing business partner BP00 (-> outgoing relationship).
Define this relationship more precisely as a "very important subsidiary" (-> Relationship type).
The business partner has a standard address and an alternative address.
The partner's credit standing is very good.
The legal form of the organization is a "Limited company" (Ltd).
(If necessary, enter account 140000 as the reconciliation account.)
3-2
(C) SAP AG
You want to allow money market and foreign exchange deals with partner BPXX. In
the derivatives area, only interest rate swaps should be permitted. Assign
corresponding authorizations to the partner in the application.
AC810 4-24
Business Partners Solutions

Topic: Business Partner Grouping
1-1
Is it currently possible to create a business partner with the business partner grouping
"TR01" and your own name "BPXX"?
_________________________ YES
_______________ X _______ NO
No. The number range assigned to the grouping "TR01" has internal number
assignment. As a result, the system does not permit you to enter your own name.
Application:
Treasury
Treasury Management
Basic Functions
Master Data
Business Partner
Create
1-2
Creating a grouping
Customizing:
Treasury
Treasury Management
Basic Functions
Business Partners
Control Data
Define Business Partner Groupings
Choose New Entries (button) or copy the entry "TR02" and make the changes.
Enter G-XX and the number range "02", choose the account group "DEBI", and
save your entries.
(C) SAP AG
AC810 4-25
Business Partners
Solutions

Topic: Roles / Functions
2-1
Creating "BPXX" as a business partner:

Application:
Treasury
Treasury Management
Basic Functions
Master Data
Business Partner
Create
Enter the business partner name and the grouping G-XX. Do NOT enter a role
category. Then enter the data for your new business partner (name, language,
country, address ID, street, city, postal code and country). Save your entries.
2-2
Call up the various views using the tabs, or by choosing Goto -> Central data /
General data / Company code data.
Application:
Treasury
Treasury Management
Basic Functions
Master Data
Business Partner
Create / Change
Goto ...
Since you have not yet assigned a role category, you cannot display or enter data
in the General data and Company code data views.
(C) SAP AG
AC810 4-26
2-3
Assigning the role "Treasury partner" to your partner:

Application:
Treasury
Treasury Management
Basic Functions
Master Data
Business Partner
Create / Change
Goto - General data
Role overview
Button: Add role category (1000)
Now - after adding a role - you can call up the General data and Company code
data views.
(C) SAP AG
AC810 4-27
Business Partners
Solutions

Topic: Additional Data
3-1
Adding data for business partner BPXX:

Application:
Treasury
Treasury Management
Basic Functions
Master Data
Business Partner
Change
Goto ...
Enter your data and save your entries.
3-2
Business partner authorizations:

Application:
Treasury
Treasury Management
Basic Functions
Master Data
Business Partner
Standing Instructions
Transaction Authorizations
Enter your company code and maintain the authorizations using the Change or
Enter buttons.
(C) SAP AG
AC810 4-28
Banks
Contents:
Banks - general
Business partner - bank details
House banks + corresponding bank accounts
+ general ledger accounts
Transaction - payment details
SAP AG 1999
(C) SAP AG
AC810 5-1
Banks: Unit Objectives

Configure the whole banking environment
in the SAP System
Differentiate between banks in general, business
partner banks, and house banks
Define the cash management account name for
displaying the account balances in Cash Management
SAP AG 1999
(C) SAP AG
AC810 5-2

Business Partner
Banks
Information System
SAP AG 1999
(C) SAP AG
AC810 5-3
Banks: Business Scenario
In order to post flows that involve incoming

or outgoing payments, you have to specify
payment details in the transaction.
Before you can enter payment details in the
transaction, you have to enter bank data in
the system. You then assign the bank details
to the business partners you have already
created. You need these bank details to make
actual payments to a partner.
You create the banks, where your company
keeps it own accounts, as house banks.
SAP AG 1999
module.
(C) SAP AG
AC810 5-4
Transaction: Payment Details
BP bank details
Bank
Account
Bank
data
House bank
House bank
account
Entered in
transaction
manually
Conclusion of a
transaction with
business partner A
+ Payment details
Posting/Payment
SAP AG 1999
To record the data for accounting purposes, you have to post the flows on the corresponding dates.
The system requires the following payment details to post the flows that are linked to incoming and
outgoing payments:
- Your own bank details: house bank and account (number)
- The bank details of your business partner (if required): bank and account (number)
The system uses the payment details to post the flows to the specified house bank account, and to
write the business partner's details to the corresponding payment medium (via the payment program
and the print program).
(C) SAP AG
AC810 5-5
Banks - General: Master Data
Bank country
DE
Bank key
Address
Bank name
Region
Street
City
Branch
Control data
SWIFT code
Bank group
Post bank account
Bank code
Bank
data
Banks - general...
Bank country
Bank key
Address
Bank
200 500 00
Dt. Bank
200 500 00
... Used as:
DE
200 500 00
Bank C
Region
Street
City
......
Partner bank
(Account 889613262)
House bank
(Account 12345678)
SAP AG 1999
You maintain the business partner bank details and your own bank details centrally in a "bank data
pool.
The bank data you enter is maintained in the bank directory in Financial Accounting. You either enter
the data manually, or have it generated automatically. It can be accessed across the whole system.
Bank master data is contained in the bank directory. This includes the address data for the banks and
control data, such as the SWIFT code or the bank group.
The bank directory must contain the master data of all the banks that you require for payment
processing. This includes your own house banks and the banks of your business partners.
The bank data you have created (name, address, bank number ...) can then be used to maintain:
- Partner banks - bank details of your business partner
- House banks - your own bank details with the corresponding link to R/3 Financial Accounting.
(C) SAP AG
AC810 5-6
Business Partners:
Central Data - Bank Details
Business partner A
Central data
Bank details
Ctry
Bank
data
DE
Bank key
600 501 01
Bank
account
PBank
5214561
A1
18889
B1
889613262
C1
Bank A
DE
100 500 00
Bank B
DE
200 500 00
Deutsche Bank
SAP AG 1999
You enter the bank details for the banks used by each business partner. This involves entering the
country, a relevant bank key, and a bank account.
Each set of bank details has a unique partner bank key (PBank).
Example: "B1" encodes the following: Business partner A has an account with the number 18889 at
Bank B. The bank key is 100 500 00.
When you maintain the bank details for the business partner, the system takes the bank name from the
bank data pool when you enter the country and bank key, if this data already exists.
If you enter a country and bank key in the bank details for a bank that does not yet exist in the bank data
pool, a dialog box for entering general bank data appears, enabling you to add this new bank to the bank
data pool.
(C) SAP AG
AC810 5-7
House Banks: Master Data
Bank data
Bank
Bank
data
data
Company code
1000
House banks
Bank country
Bank key
Address
Bank
Region
Street
City
Branch
Control data
SWIFT code
Bank group
DE
200 500 00
Dt. Bank
Related bank accounts:

12345678
...
SAP AG 1999
You create the banks at which your company has keeps its own current accounts as house banks.
When you maintain house banks, the system takes the bank name from the bank data pool when you
enter the country and the bank key, if this bank data already exists.
If you enter the country and the bank key for a house bank that does not yet exist in the data pool, a
dialog box for entering general bank data appears enabling you to add the house bank to the data pool.
You assign the accounts you keep with the house bank accordingly.
(C) SAP AG
AC810 5-8
House Banks: Create Master Data

Company code
1000
House bank
DEUBA
Bank country
DE
Bank key
200 500 00
Chart
of
accounts
Related bank accounts
Bank account data

Account ID
Bank acct
Currency
GIRUN
12345678
UNI
G/L account
113100
SAP AG 1999
You maintain the house banks in a particular company code. Each house bank has a specific house bank
ID.
For each house bank, you have to enter the bank accounts kept with that bank. Each bank account is
identified by an account ID you can assign yourself. This key is unique for each company code, house
bank, and account.
Short names are used to make it easier for you to enter your own bank details in transactions.
An internal general ledger is usually kept in Financial Accounting for each account kept with the house
bank.
You can establish a link in the system between the (external) house bank account and the (internal)
general ledger account by assigning the accounts appropriately.
(C) SAP AG
AC810 5-9
General Ledger Accounts
FI general ledger
Company code
1000
G/L account
Chart of accounts
113100
INT
Name
Dt. Bank
:
Account currency
:
:
Bank/finance details
House bank
Account ID
Cash Mgmt level
UNI
Deuba
GIRUN
F0
SAP AG 1999
The R/3 general ledger account you enter for maintaining the house bank first has to be created in FI as
master data. Here, you define the account currency details as well as the Cash Management level at
which the amounts posted to this account are displayed in Cash Management.
(C) SAP AG
AC810 5-10
Transaction: Payment Details - Data
Conclusion of a
transaction with
business partner A
+ Payment details
Example: Fixed-term deposit
Transaction: Payment Details

Company code
Product type
Transaction type
D
-
Curr.
UNI
UNI
1000
51A
100
Fixed-term deposit
Investment
Effective FTyp House bk

Deuba
Deuba
SAP AG 1999
Acct ID
GIRUN
GIRUN
Pmnt Payer/ee PBank
Posting
The transaction and position management process not only enables you to enter transaction data, but
payment details too (i.e. the data required for payment processing):
D:
Direction of the payment flow ("+": incoming payments; "-": outgoing payments).
House bk: House bank via which payments are processed in this transaction in the form of the
defined house bank ID.
Acct ID:
Bank account at the house bank via which the payments in this transaction are
processed, in the form of the defined account ID.
PBank:
Bank details (bank key and account) of the business partner via which the payments in
this transaction are processed in the form of the defined partner bank ID.
The system supports multi-level payment methods. By entering a bank chain, you can process payments
via several banks. You can use up to 3 intermediary banks.
(C) SAP AG
AC810 5-11
Define Cash Management Account Name
IMG: Cash Management

CoCd
1000
.
.
.
CM acct
G/L acct
DB Dollar
Bank account Description
113150
110113150
Deuba
Dollar account
Cash position / Group

Account
DB Dollar
.
.
.
CC
1000
04/03//YY
1,000
04/04/YY
1,011
SAP AG 1999
The amounts posted to the general ledger accounts are displayed in Cash Management at the cash
management level assigned in the FI accounts master data.
You can enter the related account in CM with the (general ledger) account number. Alternatively, if you
maintain a cash management name for the account, you can use this.
The cash management account name replaces the account number in the cash position with a descriptive
name. It is used there for all transactions and reports (such as cash management position) instead of the
account number.
Example: Amounts in G/L account 113150 are displayed in Cash Management:
If the cash management account name has not been maintained:
Account
Amount
113150
1,000
If the cash management account name has been maintained:
Account
Amount
113150
1,000
(C) SAP AG
AC810 5-12
Banks: Unit Summary
You have seen how to enter bank data

in the SAP System manually. You can
also import bank directories from various
countries into the system automatically.
If you conclude financial transactions with
business partners with whom you do not have
a current account (where payments cannot be
settled internally), you must enter the partner
bank details in the partner master record.
You also have to set up the house banks
and the corresponding bank and general
ledger accounts in the system.
SAP AG 1999
(C) SAP AG
AC810 5-13
Banks Exercises
Unit: Banks
Topic: Setting up banks / house banks
Setting up the entire banking environment in the SAP System.
After configuring your business partners, you now want to define the
banks in the system. These include general banks and house banks.
House banks are banks with which you have at least one current account.
1-1
Create the banks AXX and BXX. The bank keys must be 8 characters long. The banks
are in Germany.
1-2
Change your business partner "BPXX" by assigning the bank details to this partner.
Enter AXX and BXX as the bank type. These entries are required for the payment
details and the payment program.
1-3
Create the following general ledger accounts.

You create the accounts in the Financial Accounting menu in the General Ledger
section.
Enter your company code and the account number, and copy the relevant account from
company code TR00. Save your entries:
1-4
(C) SAP AG
116100 Giro/UNI
116105 Clearing/UNI
116300 Giro/USD
116305 Clearing/UNI
116113 Giro/USD
116114 Fixed-term dep./USD
Define the CXX bank as a house bank with the bank accounts GIRUN/UNI (116100)
and GIRUS/USD (116300).
AC810 5-14
1-5
(C) SAP AG
Create a fixed-term deposit with business partner BPXX. Check the payment details.
AC810 5-15
Banks Solutions
Unit: Banks
Topic: Setting up banks / house banks
1-1
Create the banks AXX and BXX

Application:
Treasury
Treasury Management
Basic Functions
Master Data
Banks
Create
Enter the bank country and an 8-character bank key of your choice. Then enter
the address details (including bank AXX).
1-2
Enter the bank details for business partner "BPXX"

Application:
Treasury
Treasury Management
Basic Functions
Master Data
Business Partner
Change
Goto - Central Data
Bank Details
Enter the bank country, the 8-character bank key, an external bank account
number (that you can assign yourself), and a bank type (such as AXX). Set the
collection authorization indicator.
You have now assigned both new banks to your new business partner. The banks
appear under the bank details for the partner. Since the bank details are a
"customer account view", a customer is created in FI automatically when you
save your entries.
(C) SAP AG
AC810 5-16
1-3
Create the following general ledger accounts.
Application:
General Ledger
Master Records
Individual Processing
In Company Code
Use the accounts specified as a reference by choosing the Create with reference
pushbutton. Delete the alternative account numbers.
1-4
Define house bank with bank accounts

Application:
Treasury
Treasury Management
Basic Functions
Master Data
Banks
House Banks
Button: Create bank
Enter the house bank CXX and the bank country DE, followed by a bank key. If
you enter a bank key that already exists in the SAP System, the data for this bank
key will appear as a default. If it does not already exist, enter new address data
for your new house bank.
Button: Create account
Enter the account ID GIRUN or GIRUS and enter a description. You can enter an
external account number of your choice in the bank account field and UNI or
USD in the currency field. In the G/L account field, enter the account 116100 or
116300.
(C) SAP AG
AC810 5-17
1-5
Create a fixed-term deposit with business partner BPXX.

Application:
Treasury
Treasury Management
Money Market
Trading
Fixed-Term Deposit
Create
Enter your data
Tab: Payment details
There are no payment details. However, you can create them using the F4 possible
entries function. In the next unit, you will learn how to set up the system so that
this data appears automatically.
(C) SAP AG
AC810 5-18
Transaction and Position Management: Preparation
Contents:
Currencies
Reasons for reversal
Limit management
SAP AG 1999
(C) SAP AG
AC810 6-1
- Payment details
- Correspondence
- Derived flows
Transaction and Position Management:

Preparation: Unit Objectives
At the conclusion of this unit, you will be able

to:
Outline the necessary preparations for transaction
and position management in the SAP system and
make the corresponding settings
Set up limit management
SAP AG 1999
(C) SAP AG
AC810 6-2

Business Partners
Banks
Information System
SAP AG 1999
(C) SAP AG
AC810 6-3

Preparation: Business Scenario
You conclude financial transactions with the

same business partner on a regular basis, and
want the values for certain fields to be
proposed automatically by the system.
To do this, you define standing instructions
for payment details, correspondence, and
certain derived flows.
You want to enter currency master data and
define certain reversal reasons. You also want
to set up limit management.
SAP AG 1999
module.
(C) SAP AG
AC810 6-4
Standing Instructions: Overview
Business partner A
Payment details
Correspondence
Derived flows
Assign
Assign
Assign
- House bank and

related bank account
- Business partner
bank details
SAP AG 1999
- Confirmation
- Derivation procedure
- Print
- Fax
- SWIFT, IDOC
- E-mail
- Counterconfirmation
Payment details contain all the relevant information for payment processing, including your own (house
bank) account and the business partner's bank details (as required).
You can maintain different sets of payment details for the partner for each currency.
In the standing instructions, you assign the payment details to the transactions for which these settings
are relevant. You can assign the payment details at different levels (contract type, product category,
transaction type).
When you conclude a transaction with business partner A, the system automatically inserts the payment
details defined for that particular transaction in the standing instructions. This saves you from making
the entries manually.
The standing instructions for correspondence control how external correspondence with a certain
business partner is processed.
You assign the correspondence medium to be used for this business partner (print, fax, e-mail, IDOC,
SWIFT) to the various transactions at the required level (from the contract type down to the transaction
type). These entries are compulsory if you want to generate correspondence for your business partner.
You can use derived flows in the money market, foreign exchange, derivatives and securities areas to
simplify the calculation of amounts that depend on other flows (such as tax amounts). To generate
derived flows, you must assign a derivation procedure to the relevant partner.
(C) SAP AG
AC810 6-5
Business Partner Standing Instructions:

Payment Details
Business Partner: Standing Instructions - Payment Details

Currency
Payment
details ID
House Account
bank
ID
......
......
......
......
......
......
......
BP A
UNI
01
Deuba
GIRUN
......
USD
01
Deuba
GIRUS
......
Assign
Payment
details
Treasury
Money Market
Incoming Outgoing
Fixed-term deposit
51 A
100
200
Fixed-term dep.
Investment
Borrowing
01
01
Deposit at notice
SAP AG 1999
The system uses the house bank and account ID defined in the standing instructions for the business
partner to identify the relevant bank account for posting.
Once you have created the payment details, remember to ASSIGN them to transactions.
This allows you to direct the postings for different products or payment directions to separate accounts.
The system supports multiple level payment methods. By entering a bank chain, you can make payments
via several banks. Up to 3 intermediate banks are supported.
(C) SAP AG
AC810 6-6
Standing Instructions: Payment Details
BP bank details
Bank
Account
Assigned
BP bank details
Bank
Account
House bank
House bank
account
House bank
House bank account
BP A:
Standing instructions (SI)
- Payment details -
Entered in
transaction
manually
Conclusion of
transaction with
business partner A
+ Payment details
Proposal from SI
Payment details in the
transaction
Posting / Payment
SAP AG 1999
Standing instructions for payment details:

Example:
Standing instructions for payment details are not maintained: The details for posting and payment
have to be entered manually in the transaction.
Standing instructions for payment details are maintained: When a transaction is created, the system
inserts the payment details that have been assigned to that particular type of transaction for the partner
as proposals.
(C) SAP AG
AC810 6-7
Transaction: Correspondence
Confirmation
Confirmation
Internal
External
Fax
Example:
Confirmations via fax,
e-mail, SWIFT
Example:
Dealing slip
SAP AG 1999
Correspondence is used to document and reconcile the transactions concluded.

You can define internal correspondence types (such as dealing slips) and external correspondence types
(such as confirmations). By performing a correspondence run, you can confirm all the financial
transactions you have concluded with a partner in a given period. You can output the correspondence
data in various ways: print, send a fax directly from the system, e-mail, and IDOC. To send e-mails, you
must set up the communication interface SAPconnect. For money market and foreign exchange
transactions you can generate SWIFT files MT320 (fixed-term deposits) and MT300 (forex). A user exit
allows you to use the FX Match function for outgoing confirmations (MT320 only).
You can control the correspondence types for external correspondence in the partner-specific standing
instructions for correspondence. Control of internal correspondence types is independent of the business
partner.
In Customizing for the product types, transaction types, and activities you control when (in other words,
at what point) correspondence is generated. You can also specify whether correspondence should be
generated automatically when a transaction is created, changed, or reversed (in other words, as soon as a
transaction is saved). In the financial transaction, the system keeps a record of the correspondence that
has been created.
The system also keeps a record of the confirmation status in the transaction. This includes information
about when the confirmation was sent/received, the relevant activity, the clerk, the form used, and the
output type of incoming or outgoing confirmations.
(C) SAP AG
AC810 6-8
Correspondence: Customizing
1) Define correspondence types
Correspondence type
001
Description
Confirmation
General
Internal correspondence type
Archiving (optical archive)
Suppress initial reversal correspondence
Language
...
2) Define correspondence activities

Company code
1000
Money Market: Forms
...
PTyp
Product type name
51 A
51 A
51 A
51 A
Fixed-term deposit: External

TTyp ACat Corr. type

100
10 001
100
10 002
100
11 001
100
11 002
Form
F_TR_CONFIRM_ALL
F_TR_DEALER_ALL
F_TR_CONFIRM_ALL
F_TR_DEALER_ALL
Aut.cor. CConf.
3) Change message control

Example:
Transaction not yet confirmed and counterconfirmed
SAP AG 1999
You define the relevant correspondence types (such as confirmation, dealing slip) in Customizing for the
relevant area under Functions --> Correspondence --> Define Correspondence Types.
The Internal correspondence type indicator determines whether the correspondence type should be
external (allowing partner-specific settings in the standing instructions) or internal (independent of the
partner).
You then define the correspondence activities for the respective area and company code. In this
Customizing step you also specify whether counterconfirmation is required.
You can change the correspondence forms using the SAP word processing program SAPscript. If you
change the existing forms in SAPscript and save them under a new name, you must maintain the new
forms in the Customizing step Define Correspondence Activities.
Message control enables you to influence transaction processing. You can set up the system to ignore
messages or checks depending on the user, or to block further processing by defining error messages (E
message).
(C) SAP AG
AC810 6-9

Correspondence
BP A
Correspondence
Correspondence type: External
Treasury
Assign
Print
Fax SWIFT Addr. ID
CConf.
Money Market
Fixed-term deposit
51 A Fixed-term dep.
100
Investment
200
Borrowing
Deposit at notice
52 A Deposit at notice
100
Investment
200
Borrowing
SAP AG 1999
You control the (external) correspondence with a particular business partner by defining standing
instructions for correspondence.
In the standing instructions for correspondence, you assign correspondence media and parameters to the
external correspondence types for a business partner. You can make this assignment at several levels:
contract type, product category, ... down to the transaction type.
You can choose between different correspondence media. You can print the forms, or send external
correspondence directly from the R/3 system (for example as a fax, or in SWIFT format).
Correspondence parameters:
Correspondence is automatically sent to the business partner's standard address. If you want to use a
different address for the partner, enter the correct key in the Address ID field.
If you require counterconfirmation from your business partner, set the CConf. indicator.
(Prerequisite: Your Customizing settings allow automatic correspondence)
In the financial transaction, the system keeps a record of the correspondence that has been created.
(C) SAP AG
AC810 6-10
Transaction: Derived Flows
You can define derivation rules for certain flows to generate

new, dependent flows
Flow 1200 Interest
Derivation rule
UNI 1,000.00
Flow 1800 Tax 1
UNI
300.00
Flow 1801 Tax 2
UNI
16.50
SAP AG 1999
You use derivation procedures to generate certain flows automatically. These flows are calculated on the
basis of other financial flows in the system.
When you process the original flow, the system generates the dependent (or derived) flows
automatically.
Example: A tax of 30% (tax 1) is deducted from the nominal interest (flow type), and a tax of 5.5% (tax
2) is deducted from tax 1 (in other words, 1.65% of the nominal interest amount).
The interest condition in the transaction generates an interest flow with the flow type 1200. At the same
time, the system adds the following flows to the cash flow on the basis of the derivation procedure:
- Tax 1 (flow type 1800)
- Tax 2 (flow type 1801)
You can then process all the flow types (original and derived). For example, you could offset the
corresponding amounts when you make the interest posting.
(C) SAP AG
AC810 6-11
Derived Flows: Customizing
Define Derivation Procedures

Proc.
Description
Tax1
Capital gains tax
Define Derivation Rules
Effective
Inc. FType
01/01/YY
01/01/YY
01/01/YY+1
1200
1800
1800
ID
+
-
Derived FType
1800
1800
1801
SAP AG 1999
To define a derivation procedure in Customizing, you first enter a name.

Secondly, you define derivation rules for each derivation procedure.
Specifications:
- Original (incoming) flow (type)
- Direction of the original flow type
- Flow (type) to be derived
- Direction of the derived flow
- Derived flow amount, expressed as a percentage of the original flow
(C) SAP AG
AC810 6-12
DD
-
Perc. rate
30.0
7.5
5.5

Derived Flows
BP A
Treasury
Assign
Derivation procedure
Money Market
Fixed-term deposit
51 A Fixed-term dep.
100 Investment
200 Borrowing
TAX1
Deposit at notice
52 A Deposit at notice
100 Investment
200 Borrowing
SAP AG 1999
In the application you specify when a particular derivation procedure should apply for a certain business
partner. You can assign the derivation procedure at different levels (from the contract type down to the
transaction type).
If you create a transaction with a business partner, and have assigned a derivation procedure to this
partner at the corresponding level, the system generates additional flows on the basis of the derivation
rules you have defined.
(C) SAP AG
AC810 6-13
Currency Master Data
Rate types
1 = Current rate
M = Middle rate
G = Bid rate
Translation
ratios
From To Trans.ratio
ITL
UNI 1000 : 1
Maintain
exchange rates
RType From To Rate

M
ITL
UNI 1.20
CURRENCY
Calendar
Leading
currencies
Currency
UNI
Cal. ID
01
Lead. curr.
curr. Foll.
Foll. curr.
ITL
UNI
SAP AG 1999
You use the rate type to define exchange rates for different purposes. This allows you to enter various
rates for the same date.
The system uses the rate type "M" for currency translation when it posts and clears documents. This rate
type must be defined in the currency master data.
The translation ratios denote the measurement units for the exchange rates.
Example: An exchange rate from ITL to UNI with the above exchange ratio means that 1000 ITL cost x
UNI.
In the productive system, you call up the Customizing tables for maintaining exchange rates from the
application (menu: Environment -> Market Data -> Manual Market Data Entry -> Enter Exchange
Rates).
You enter the current exchange rate, specifying the rate type, currency pair, and valid from date. In the
above example, the middle rate for 1000 ITL is 1.20 UNI.
Treasury specific settings affect the calendar and the leading currencies:
- Calendar: You assign a calendar to each currency. When you create a new transaction, the system
uses the calendar assigned to the transaction currency as the basis for the working day check.
- When you enter an exchange rate in a transaction, the system uses the definitions for the leading
currency and following currency to read the rate correctly.
Example: An exchange rate of 1.20 can be read as 1.20 UNI for ITL (leading currency ITL,
following currency UNI), or as the price in ITL for UNI.
(C) SAP AG
AC810 6-14
Reasons for Reversal
Treasury: Reversal reasons
Company
Document
01
Reversal due to processing error
02
Reversal due to Customizing error
03
Reversal due to condition adjustments
04
Reversal for other reasons
2.500
SAP AG 1999
Reversal: Resets the last change made to the transaction (in other words, the last transaction activity
recorded by the system).
To reverse posted flows for a financial transaction, you must first reverse the transaction activity. The
system then earmarks the posted flows to indicate that the corresponding documents have to be reversed.
You have to define the possible reversal reasons in Customizing.
(The FI reversal reasons are relevant for reversing posted documents).
(C) SAP AG
AC810 6-15
Limit Management
Limit update dependent on the following characteristics:
Company code
Trader
Business partner
Limit utilization
Business partner: Dt.
Currency
Limit: 100 m
Utilization: 30 m
Portfolio
Free (+) / Excess (-): 70 m
Limit product group

Country key
Industry key
As an offline report
Rating indicator
SAP AG 1999
The limit management functions allow you to set differentiated limits for the transactions you conclude
and monitor the amounts utilized. These utilization amounts reflect the transaction volume based on the
transaction position for a key date. The limits you define are based on limit characteristics, which you
can combine as you require.
You can control which product types or transaction types should be included for a particular limit type
using the characteristic "limit product group". You define limit product groups yourself, and then assign
them to the product types or transaction types for money market and foreign exchange transactions,
currency options, loans, and bonds in the securities area. This enables you to examine limits (risks) in
greater detail.
Example: You define a limit product group containing the transaction type fixed-term deposit
(investment and borrowing), and then combine this limit product group with the characteristic "business
partner". This allows you to set a limit for fixed-term deposit transactions with a particular business
partner.
You also need to define how the system should treat asset-side and liabilities-side transactions when it
calculates the utilizations (separately, cumulative, or netted). You can call up the current utilizations and
the free amount for a limit in an overview, which is linked to the ABAP List Viewer. You can still branch
from the limit amounts to the limit utilizations.
You can define limits for specific periods.
(C) SAP AG
AC810 6-16
Limit Management: Examples
Limit type: L1 : Limit characteristic: Bus. partner:
Char. values
Limits
Dt. Bank
100 m
Dres. Bank
90 m
Limit type: L2 : Limit characteristic: Limit product group

Total
Total
Total
FTD
FX
DE
(Fixed-term deposit)
(Foreign exchange)
(Derivatives)
70 m
50 m
70 m
Limit type: L3 : Limit characteristics: Partner / limit product group

L2
70
Dres.
90
FTD
50 Dt.
100
FTD
40
L1
L1
Dt. Bank
FTD
FX
DE
50 m
40 m
60 m
Dres. Bank
FTD
FX
DE
40 m
30 m
50 m
L3
SAP AG 1999
You set limits for a combination of limit characteristics. By combining these limit characteristics in
different ways, you can define a wide range of limits.
For each of the characteristics assigned to a limit type, you specify characteristic values. You then assign
a limit amount to these values (the combination of these values).
Above examples:
L1: Limit type 1 - Business partner limit
With the business partner Deutsche Bank you can conclude transactions up to 100 million UNI (money
market, forex spot, forward exchange, currency options).
L2: Limit type 2 - Limit for product/transaction type
You can conclude fixed-term deposits up to 70 million UNI (total for all partners).
L3: Limit type 3 - Limit for a partner/transaction
You can conclude fixed-term deposits up to 50 million UNI with the business partner Deutsche Bank.
(C) SAP AG
AC810 6-17
Limit Management: Overview

Customizing:
Define limit type: L3
Assign
Limit characteristics
- Characteristic 1: Business partner (BP)
- Characteristic 2: Limit product group (LPG)
Prerequisites: 1. Define LPG
2. Assign LPG to product
type / transaction type
Application:
- Process limits for limit types:
Limit type L3:
BP
Dres. Bank
Dt. Bank
Dres. Bank
...
- Generate utilizations
- Overview of utilizations
LPG
FTD
FTD
FX
Amount
40 m
50 m
30 m
SAP AG 1999
Customizing:
When you define a limit type, you specify the combination of limit characteristics upon which the limits
and limit utilizations should be based.
You must also specify whether the system should calculate transactions on the assets and liabilities sides
separately when the utilizations are calculated, or whether the amounts should be cumulated or netted.
If you use the characteristic "limit product group" you can restrict the limit to certain transactions.
Application:
For each limit type, you enter values for the combination of characteristics and and set the limit amounts.
The report Generate Utilizations calculates the utilizations for all the limit types for a certain key date.
You can schedule this report as a job. The selections Risk of default and Foreign currency risk determine
how forex transactions are counted towards the utilization amount.
The report Overview of Limit Utilizations shows the limits next to the amounts currently utilized and the
free amounts. Amounts that exceed the limit are highlighted in color.
(C) SAP AG
AC810 6-18

Preparation: Unit Objectives
To reduce your workload, you have created

partner-specific standing instructions.
You have maintained the relevant currency
tables for foreign exchange transactions.
You have defined several limit types and
entered corresponding characteristic values.
This allows you to run evaluations based on
different criteria to identify when limits have
been exceeded.
SAP AG 1999
(C) SAP AG
AC810 6-19
Transaction and Position Management: Preparation Exercises

Unit: Transaction and Position Management: Preparation
Topic:

Payment Details
Preparation activities for transaction and position management
You can simplify the entry process by letting the system propose certain
values when you enter transactions. To do this, you define standing
instructions.
1-1
Create standing instructions for your business partner BPXX for the currency UNI.
You want to make payments from your current account with house bank CXX using
the payment request function. The payment details ID is I-XX and applies for all
payments resulting from money market and foreign exchange transactions. The
payer/payee is the business partner itself. You can choose the partner bank (AXX or
BXX). You want to make outgoing payments by bank transfer, and collect incoming
payments by direct debit.
Remember to assign the payment details to incoming and outgoing payments.
1-2
(C) SAP AG
Create another fixed-term deposit with your business partner BPXX. Check the
payment details.
AC810 6-20
Exercises

Topic: House Banks and Business Partners
Creating a house bank as a business partner and making the relevant

settings
Often, a house bank is also a business partner. If this is the case, you
create the bank as a house bank, and then create it as a business partner.
2-1
If you want to conclude transactions with your house bank, you must create your house
bank as a business partner.
Create a partner for your own house bank. Use the business partner name "CXX".
(Grouping G-XX, role category 1000 (treasury partner)
2-2
You intend to conclude money market, foreign exchange and derivatives transactions
with your house bank. Set up the authorizations in the application.
2-3
Define the standing instructions for payment details for your new business partner
CXX - for the currencies UNI and USD.
(Standing instructions for payment details: Since the house bank will debit your
payments from your account itself, the entries for the partner bank and payment
method are not relevant. Relevant fields: Currency, house bank ID, and account ID.
Assignment for incoming/outgoing payments).
(C) SAP AG
AC810 6-21
Exercises

Topic:

Correspondence
Defining other standing instructions
Once you have made the correspondence settings in Customizing, you

need to define the correspondence details for each business partner.
3-1
(C) SAP AG
Set up standing instructions for correspondence with your business partners BPXX
and CXX for money market and foreign exchange transactions. The principal
correspondence medium in all cases should be the printer.
AC810 6-22
Exercises

Topic: Business Partner Overview
Obtaining an overview of the settings for a business partner
What entries have you made for your business partner?
4-1
(C) SAP AG
Finally, take another overall look at your business partners BPXX and CXX. Call up
the master data, role data, address data, credit standing data, and bank data. Also look
at the standing instructions.
AC810 6-23
Transaction and Position Management: Preparation Solutions

Topic:
1-1

Payment Details
Creating standing instructions for your business partner BPXX:

Application:
Treasury
Treasury Management
Basic Functions
Master Data
Business Partner
Payment Details
Enter your data
Field name or data type
Values
Currency
UNI
Payment details ID
I-XX
House bank ID
CXX
Account ID
GIRUN
Payer/ee
BPXX
Partner bank
AXX
Payment request
Set indicator
Payment method
EU
Once you have entered a set of payment details, make the assignment for
incoming and outgoing payments (button: Assign).
(C) SAP AG
AC810 6-24
1-2
Creating a fixed-term deposit with your partner BPXX:

Application:
Treasury
Treasury Management
Money Market
Trading
Fixed-Term Deposit
Create
Enter your data
The information for the payment details has been entered automatically. These
are proposals that can be overwritten by the user.
(C) SAP AG
AC810 6-25
Solutions

Topic: House Banks and Business Partners
2-1
Creating a house bank as a business partner:
Application:
Treasury
Treasury Management
Basic Functions
Master Data
Business Partner
Create
Enter the business partner name CXX, the grouping G-XX, and the role category
1000. Then enter the data for your new business partner (name, language,
country, address ID, street, city, postal code and country). Save your entries.
2-2
Assigning authorizations to your house bank - business partner:

Application:
Treasury
Treasury Management
Basic Functions
Master Data
Business Partner
Transaction Authorizations
Assign the corresponding transaction authorizations.
(C) SAP AG
AC810 6-26
2-3
Standing instructions for payment details:

Application:
Treasury
Treasury Management
Basic Functions
Master Data
Business Partner
Payment Details
Field name or data type
Values
Currency
UNI and USD
Payment details ID
01 in each case
House bank ID
CXX
Account ID
GIRUN and GIRUS
Once you have entered a set of payment details, make the assignment for
incoming and outgoing payments (button: Assign).
(C) SAP AG
AC810 6-27
Solutions

Topic: Business Partner Standing Instructions:
Correspondence
3-1
Standing instructions for correspondence:

Application:
Treasury
Treasury Management
Basic Functions
Master Data
Business Partner
Correspondence
Correspondence type "001 - External confirmation"
In each case, set the Printer indicator.
(C) SAP AG
AC810 6-28
Solutions

Topic: Business Partner Overview
4-1
Overall view of business partners BPXX and CXX:

Application:
Treasury
Treasury Management
Basic Functions
Master Data
Business Partner
Display
Treasury
Treasury Management
Basic Functions
Master Data
Business Partner
Payment Details
Call up the master data, role data, address data, credit standing data, and bank
data. Also call up the standing instructions. Look at the differences between these
two business partners: BPXX, to which you actively make payments, and CXX,
which is also a house bank.
(C) SAP AG
AC810 6-29
Transaction and Position Management: Structure
Contents
Product types/categories
Transaction types/categories
Activity categories
Processing categories
Flow types/categories
Condition types/categories
Cash flow
SAP AG 1999
(C) SAP AG
AC810 7-1
Transaction and Position Management: Structure Unit Objectives

to:
Recognize the main Customizing terms and make
the corresponding settings
SAP AG 1999
(C) SAP AG
AC810 7-2

Business Partners
Banks
Information System
SAP AG 1999
(C) SAP AG
AC810 7-3
Transaction and Position Management: Structure Business Scenario
Once you have configured the business partners,

you need to make the Customizing settings for the
respective financial transactions before you can
enter transactions in the system.
SAP AG 1999
module.
(C) SAP AG
AC810 7-4
Financial Transaction and Business Partner
CM
MRM
TM / LO
Prerequisites:
Product type
Transaction type
Prerequisites:
Data authorizations
...
Transaction
concluded
Position
Example: Fixed-term deposit with

Business partner Bank X
Trading / Back office / Accounting
Example: Interest accrual/deferral
SAP AG 1999
Certain transactions are concluded with business partners on the basis of liquidity situation (CM) or risk
situation (MRM) analyses, taking into account the risk and revenue goals predefined.
Example: As a result of excess liquidity, a corresponding amount is created as a fixed-term deposit with
business partner Bank X.
You enter transactions on the basis of both the Customizing settings relating to the transaction
architecture (product types, transaction types ...) and certain application data, such as the information
that exists for the business partner (address, bank details ...).
(C) SAP AG
AC810 7-5
Example: Create Financial Transaction
Company code
1000
IDES AG
Product type
60a
Forex EXTERNAL
Transaction type
101
Spot transaction
Partner
Deuba
Deutsche Bank
Specifications
Portfolio
Business transaction
Order/Fixing
Contract
External number assignment

Transaction
SAP AG 1999
You create transactions with a business partner in a company code for a certain product type and a
specific transaction type.
(C) SAP AG
AC810 7-6
Customizing Structure:
Money Market/ Forex/Derivatives
Product cat.
Transaction cat.
(Activity cat.)
Processing cat.
Flow category/
Condition cat.
Calculation cat.
Condition type
Flow type
SYSTEM LEVEL
Product type
Transactn type
USER LEVEL
SAP AG 1999
(C) SAP AG
AC810 7-7
Product Categories - Product Types
Product category
510
600
610
620
Fixed-term deposit
Foreign exchange
Cap/Floor
Swap
:
010 Stock
:
040 Bond
:
SYSTEM LEVEL
Product type
- Fixed-term
deposit
- Forex external
- Forex internal
- Cap/Floor
- Currency swap
:
- Domestic stock
- Foreign stock
- Floater
- Fixed-interest
bond . . .
USER LEVEL
SAP AG 1999
Product categories cover the basic types of financial borrowing and investment transactions and
represent a classification of financial instruments. Product categories are predefined in the system, apply
to all company codes, and may not be modified by the user.
Product types represent a refinement of the product categories at user level and, unlike the product
categories, they can be defined by the user. When you define a product type, you specify the business
framework that applies to financial transactions of this product type. A product type is assigned to just
one product category, but it is possible to have several product types that refer to the same product
category. You create and process your own financial transactions on the basis of product types.
You use product types to
- Assign various processing methods
- Select reports
- Assign various structure characteristics
- Assign various valuation parameters (such as different yield curves) in Market Risk Management.
(C) SAP AG
AC810 7-8
Product Categories - Product Types: Examples

Product categories
Financial instruments
Product types
Money market
510
520
530
540
Fixed-term deposit
Deposit at notice
Comm. paper
Cash flow transaction
Fixed-term deposit
Fixed-term deposit
Foreign exchange
600
Forex
Forex
Derivatives
610
Cap/Floor
620
Swap
Cap
Floor
Interest rate swap
Currency swap
swap
630
700
FRA
Futures
FRA
Securities futures
750
Listed options
Stock option
Index option
option
760
OTC Option
Swaption
Currency option
option (OTC)
Currency barrier
barrier option
IRG
SAP AG 1999
EXTERN
INTERN
Product categories are predefined in the system. You can define your own product types for the
individual product categories.
(C) SAP AG
AC810 7-9
Define Product Type: Example - Forex
Product type
60A
Text
Forex external
Product cat.
600
Foreign exchange
SAP AG 1999
Product types represent the financial transactions that are used in your company. Examples of product
types in the Money Market area are fixed-term deposits or deposits at notice. If you do not want to use
the standard product types delivered with the system, you can define product types of your own. This
allows you, for example, to carry out different evaluations or to specify different processing rules for
internal and external transactions. Product types contain information about the structure characteristics.
When you define a product type, you specify the business framework that applies to financial
transactions of this product type.
You use product types as a basis for managing your positions and for creating and managing your
financial transactions.
(C) SAP AG
AC810 7-10
Define Product Type: Example - Currency Option
Product type
76A
Text
Prod. category
Currency option (OTC)

760 OTC options
Option / Future
Number range
Settlement
Quotation type
Settlmnt method
Exercise type
Option category
01
1
2
1
2
1
Underlying
Product type
60A
Transactn type 101
No. underlyings
1
SAP AG 1999
When you define product types, the data you enter differs according to which financial instrument you
use. For example, when you define product type "Currency option" , you have to enter data in the fields
for the underlying transaction.
(C) SAP AG
AC810 7-11
Financial Transaction Types
Product cat.
510 Fixed-term
deposit
600 Forex
610 Cap/Floor
620 Swap
:
Transaction cat.
100 Investment
200 Borrowing
100 Forex
transaction
:
SYSTEM LEVEL
Product type
- Fixed-term
deposit
- Forex external
- Forex internal
- Cap/Floor
- Currency swap
:
Transaction type
- Investment
- Borrowing
- Spot
- Forward
- Purchase
- Sale
- Swap
:
USER LEVEL
SAP AG 1999
A financial transaction type determines the type of transaction you can execute with a specific product
type. It also controls the transaction and position management process.
Examples of financial transaction types are the investment or borrowing of fixed-term deposits, spot
transactions, or forward exchange transactions.
You can use the basic transaction types delivered with the system, or refine these according to your
company's requirements on the basis of financial transaction categories.
You can define user-specific values for the Money Market, Foreign Exchange, and Derivatives areas. In
the Securities and Loans areas, transaction types such as the sale or purchase of securities, are already
represented in the system.
(C) SAP AG
AC810 7-12
Customizing: Financial Transactions

Product type
60A
Forex EXTERNAL
Trans. type
101
Spot transaction
Trans. cat.
100
Number ranges
Transactions
Offers
01
02
Underlyings
Simulations
19
03
Back office
Processing category 00101
Automatic posting release
Limit management
Limit group
SAP AG 1999
You can uniquely determine a financial transaction by combining a product type with a financial
transaction type, such as product type Foreign exchange with transaction type Spot transaction.
This transaction passes through a series of activities in the company. When you define the transaction
type, you specify a processing category. This determines how the transaction is processed (in other
words, the sequence of activities).
Example: You want spot transactions with product type 60A to be processed with the following
activities: Order - Contract - Settlement.
(C) SAP AG
AC810 7-13
Number Ranges for Transactions
Number range object Fin. transaction

Company code
1000
IDES AG
Ranges
From number
To number
Current number
X 01
No
0000000000001
0000000099999
13
X 02
0000000100000
0000000199999
100000
X 03
0000000200000
0000000299999
200001
X 04
0000000300000
0000000399999
300028
X 05
0000000400000
0000000499999
400014
Ext.
SAP AG 1999
The transactions entered in the application are managed with a transaction number in the system. When
you define transaction types in Customizing, you enter a number range interval that corresponds to the
number assignment in the application. You have to define this range beforehand and specify, for
example, whether the numbers are to be assigned internally (by the system) or externally (by the user).
(C) SAP AG
AC810 7-14
Activity Categories
Product cat.
Activity cat.
Transaction cat.
510 Fixed-term
deposit
600 Forex
610 Cap/Floor
620 Swap
:
01 Order
02 Contract
03 Settlement
:
100 Investment
200 Borrowing
:
SYSTEM LEVEL
Product type
Transaction type
- Fixed-term
deposit
- Forex external
- Forex internal
- Cap/Floor
- Currency swap
:
- Investment
- Borrowing
- Spot
- Forward
- Purchase
- Sale
- Swap
:
USER LEVEL
SAP AG 1999
In the Money Market, Foreign Exchange, and Derivatives areas, transaction activity categories control
the activities that are possible for a particular 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 Forex spot transaction

15 Order expiration
20 Contract
30 Settlement
10 Order
The activity categories are displayed for information purposes in the financial transaction.
They form the basis for the history. Even correspondence is managed on the basis of activity categories.
(C) SAP AG
AC810 7-15
Transaction Types - Activity Categories: History
Company code
Transaction
Product type
Transaction type
Active status
1000
15001
60a
101
0
IDES AG
Forex EXTERNAL
Spot transaction
Active
Acty
Activity category
Status
Transition function
0001
0002
0003
0004
0005
Contract
Settlement
Replaced New entry

Active
Activity transition
SAP AG 1999
When you process a financial transaction, it passes through several activities, which are indicated by
activity information.
Example:
The activity "contract" indicates that a transaction is legally binding.
The activity "settlement" indicates that the transaction data entered has been checked.
(C) SAP AG
AC810 7-16
Processing Categories
Product cat.
510 Fixed-term
deposit
600 Forex
610 Cap/Floor
620 Swap
:
Transaction cat.
100 Investment
200 Borrowing
:
Activity cat.
10 Contract
11 Rollover
:
Processing cat.
101 Order - Contract
- Settlement
102 Order - Contract
SYSTEM LEVEL
Product type
- Fixed-term
deposit
- Forex
- Cap/Floor
- Currency swap
:
Transact. type
- Investment
- Borrowing
- Spot
- Forward
- Purchase
- Sale
- Swap
:
USER LEVEL
SAP AG 1999
The processing sequence of a financial transaction is determined by processing categories (Money

Market, Foreign Exchange, Derivatives, Securities) or status transfers (Loans).
Processing categories or status transfers determine the sequence of the individual activities within a
financial transaction. They describe the processing steps involved in the respective areas of the company
- from entering a transaction in the trading area, via processing it in the back-office area, through to
transferring the data to Financial Accounting.
As a result, you determine the company-specific chain of activities that a particular transaction has to
pass through.
(C) SAP AG
AC810 7-17
Customizing: Transaction Types - Processing

Categories
Product type
60A
Forex EXTERNAL
Trans. type
101
Spot transaction
Trans. cat.
100
Number ranges
Transactions
Offers
01
02
Underlyings
Simulations
Back office
Processing cat. 00101
Automatic posting release
Limit management
19
03
Processing category
00101 = Order - contract settlement
00102 = Order - contract
Limit group
SAP AG 1999
Processing categories are predefined in the system based on the product category and the transaction
category. You select one processing category for the individual transaction types from a series of
alternatives proposed by the system.
Example:
Fixed-term deposit
510
510
Foreign exchange
(C) SAP AG
Product category
Processing category
00001 Without settlement activities
00002 With settlement activities
600
00101 Order - contract - settlement
00102 Order - contract
AC810 7-18
Flow Types
Product
category
Transaction
category
Condition cat.
Flow category
Nominal interest
10 - Principal increase
Final repayment
:
A - Inflow
TD - Dividend
Calculation cat.
AA - Inflow
TD - Dividend
SYSTEM LEVEL
Product type
Transact. type
Condition type
Flow type
- Dividend
- Bonus
- Variable interest
- Repayment
- Int. rate adjustment
- Repayment rate
:
1000 - Buy foreign

exchange
2000 - Sell foreign
exchange
....
USER LEVEL
SAP AG 1999
Flow types describe possible changes in cash flows. Flows are the basis for generating the cash flow in
financial mathematics as well as further processing, such as posting. The cash flow contains all the flow
records in chronological order and is used as a basis for updating transaction data to Financial
Accounting, Cash Management, and Market Risk Management.
Examples of typical flow types are fixed or variable interest, increases in nominal amount, or
commission.
You assign each flow type to just one flow category. However, several flow types can refer to the same
flow category. For example, you can assign both variable and fixed interest to the flow category Interest.
Payment flows for the cash flow and for posting are controlled by two indicators, which you have to
assign to each flow type. The calculation category controls the financial mathematical processing of the
flow for the cash flow. The flow category controls the way the flow is processed for accounting
purposes.
Flows are generated by the following: Conditions (e.g. interest flows), manual entries (e.g. charges),
accrual/deferral runs (e.g. interest accruals/deferrals), or valuation runs (e.g. write-ups/write-downs).
Examples of flow categories are accounting flows such as inflows (e.g. security purchase), outflows (e.g.
repayment), expenses, or revenues. Examples of cash flows are purchases security purchases/sales,
interest, repayment, or charges.
(C) SAP AG
AC810 7-19
Customizing: Flow Types
Flow type
1000
Name
Buy foreign exchange
Control
Classification
Flow category
Calculation cat.
Structure characteristics
10 Principal increase
AA Inflow (generic)
Relevant to CM
Relevant to posting
Relevant to position
Relevant to P/L
Relevant to valuation
Rel. for accrual/deferral
Payment request ...

Individual payment ...
SAP AG 1999
You define flow types in Customizing:

Classifications are predefined in the system and they subdivide the flow types according to their
different business criteria (structure characteristic, accrual/deferral, valuation ...).
The Relevant to CM indicator tells you whether the flow is updated in Cash Management.
The Relevant to posting indicator tells you whether the flow is transferred to Financial Accounting.
You select the Relevant to position/Relevant to P/L indicator to display the flows in drilldown
reporting.
The Relevant to valuation/Relevant for accrual/deferral indicator tells you whether the flow is
included in a valuation run or an accrual/deferral run.
The Payment request indicator tells you whether a payment request may or may not be generated for
this flow.
The Individual payment indicator tells you whether this flow requires only a single payment for a
payment request.
(C) SAP AG
AC810 7-20
Assign Flow Types to Transaction Types
Product type
60A
Forex EXTERNAL
Transaction type
101
Spot transaction
Flow type
1000
Buy foreign exchange
Direction
Incoming
SAP AG 1999
(C) SAP AG
AC810 7-21
Condition Types
Product
category
Transaction
category
Condition cat.
Nominal interest
Final repayment
:
SYSTEM LEVEL
Product type
Transaction
type
Condition type
- Dividend
- Bonus
- Variable interest
- Repayment
- Interest rate adj.
- Repayment rate
:
nge
cha
x
e
gn
orei
f
r
o
f
Not
USER LEVEL
SAP AG 1999
Within SAP Treasury, financial transactions are represented on the basis of flow and condition concepts.
Conditions are elements of a financial transaction that are defined in a contract. You can define different
forms of interest, dividend, or repayment methods as condition types. By assigning condition types to
product types/transaction types, you can ensure that the appropriate structure characteristics are assigned
to each product type. Condition types therefore control which structure characteristics are displayed
when you create a transaction (for a particular product type).
Condition categories are the basis for processing condition types, and they refine the classification of
flows and conditions. Examples of condition categories are principal increases, final repayments, or
nominal interest.
You define condition types on the basis of condition categories, and assign them to the related
product/transaction type.
(C) SAP AG
AC810 7-22
Customizing: Condition Types
Condition type
1200
Name (short)
Nom. interest
Condition type text
Nominal interest
Name (long)
Nominal interest
Control
Classification
Structure characteristics
Condition category
20
Nominal interest
Calculation category
TZ
Nominal interest
Generated flow type
1200
Nominal interest
nge
cha
x
e
ign
fore
r
o
f
Not
SAP AG 1999
You require conditions mainly for generating flows automatically. This means you must assign the flow
types, which are elements of the cash flow, to condition types.
As you do this, remember that condition types may exist, which do not generate any flows (for example,
interest rate adjustment, repayment settlement).
(C) SAP AG
AC810 7-23
Assign Condition Types to Transaction Types
Product type
Transaction type
51A
100
Condition type
1200
Direction
00
Fixed-term dep. EXTERNAL

Investment
Nominal interest
Incoming and outgoing

for
Not
i
fore
xc
gn e
ge
han
SAP AG 1999
You can set up product/transaction types in a flexible way by assigning condition (and flow) types to
them.
(C) SAP AG
AC810 7-24
Financial Product "Fixed-Term Deposit": Example
1. Define product type
PXX
2. Define transaction type
TXX = Investment
TZZ = Borrowing
with processing category

3. Define flow types
FXX1 = Principal increase

FXX2 = Principal decrease
FXX3 = Final repayment
FXX5 = Interest
4. Define condition types
2xx1 = Final repayment

2xx2 = Interest
"Assign"
SAP AG 1999
You can set up product/transaction types in a flexible way by assigning condition (and flow) types to
them.
(C) SAP AG
AC810 7-25
Financial Transaction Architecture
Transfer flow
Product type
Valuation flow
Transaction type
Business partner
Posting
information
Calculation
bases
rm
Flows describing
structure
characteristics
Conditions
Conditions
Conditions
Conditions
Conditions
Conditions
Te
Tr
ad
er
ac
ct
sh
ee
t
History
pa
ym
e
re
SAP AG 1999
Int
er
es
nt
Ba
l.
Cu
rre
nc
ies
General info
Accrual/deferral flow
Payment
information
When you create a financial transaction, its structure characteristics are used to determine the cash flow
via the condition and flow types. This cash flow contains all the information that is relevant to a
financial transaction in the form of flow records. For instance, the amount invested, the interest
payments, and the repayments are concentrated in one or more flow records. The cash flow of a
transaction is made up of flow records that can be generated in various ways:
- Flows entered manually, such as charges:
- Automatically generated flow records are generated, for example, from conditions (via the flow
types assigned to the condition type) as well as on the basis of accrual/deferral or valuation runs.
(C) SAP AG
AC810 7-26
Financial Transactions: Cash Flow
Amount
invested/
borrowed
Transaction
Basis for
ACTUAL
Updating Cash Management

Updating Financial Accounting
using flexible account
determination
Condition
Triggering payments
PLANNED
Updating items
Accrued/deferred interest
Foreign currency valuation
Cash flow (example)
Yield calculation
Investment 4/1/YY 1m
Interest
DEM made
7/1/YY 10 000 DEM anticipated
Repayment 7/1/YY 1m
DEM anticipated
SAP AG 1999
The cash flow of financial transactions forms the basis for all trading, transaction management, and
position management processes. It is also used for evaluation activities within Treasury.
Financial mathematics are used to determine the cash flows in Treasury.
You can display the cash flow both with posting information or with payment information. You can
display the calculation bases for the amounts displayed, if required.
The system provides a range of formulas based on the "building block principle", which take account of
the flexible organization of the Treasury application.
In Treasury Management, application-specific control programs call up central financial mathematical
function modules, for instance, to calculate interest and repayment schedules.
These FiMa function modules generate and calculate a series of flows known as a cash flow (payment
flow) for a financial transaction in the application (e.g. stock purchase, swap) on the basis of the
conditions assigned to a financial transaction and the specified calculation period.
(C) SAP AG
AC810 7-27
SAP Financial Mathematics in Treasury

Management: Process Flow
INPUT
INPUT
OUTPUT
FLOW RECORDS
CONDITIONS
FLOW RECORDS
E.g. Principal
increase
Nominal interest
Final repayment
E.g. Principal
increase
E.g. Interest
USER LEVEL
SYSTEM LEVEL
Flow records
of SAP - FiMa
Conditions
SAP - FiMa
Flow records
or SAP - FiMa
Generation of a
cash flow
in the form of
FiMa flow records
Control
parameters
Functions
Calculate effective
interest rate
Alternative effective
calculations
Execute
accrual/deferral
SAP AG 1999
You either enter flow records manually or you let the system generate them from condition items as it
does in other areas, such as discount calculation or accrual/deferral. The system first generates planned
records, which become actual records as a result of posting activities.
A flow record is defined by
- its type (e.g. interest or repayment)
- its calendar days (calculation, due date, planning date, calculation period)
- an amount defined in local currency (and foreign currency)
It also contains posting information as an application flow record.
Not only does a flow record have a flow type and a flow category as business characteristics, it also has
a financial mathematical calculation category, which determines how it is processed in SAP's financial
mathematics.
When flow records are generated, dated 'flow record shells' are created. These incorporate all the data
you need (such as the calculation period, period, interest calculation method).
(C) SAP AG
AC810 7-28

Structure - Unit Summary
By configuring the transaction master data,

you have fulfilled additional requirements for
creating financial transactions in SAP Treasury.
SAP AG 1999
(C) SAP AG
AC810 7-29
Transaction and Position Management: Structure Exercises

Unit: Transaction and Position Management - Structure
Topic: Creating a New Product (Fixed-Term Deposit)
Creating the master data to configure new product types.
You want to configure your own financial instruments in Customizing.
1-1
Set up your own fixed-term deposit product. Assign the product type the following ID:
PXX (XX = your group number); with product category 510.
1-2
Define your own transaction types:
Check beforehand whether number ranges for transaction types have been defined for your
company code.
Create a transaction type for a fixed-term deposit using TXX (XX = your group name) as the
transaction type ID.
Do not settle the fixed-term deposit.
Use the number range 01 for the transactions. You do not want users to be able to make
offers or perform simulations.
You do not want the posting to be released by a second user, but released automatically. Set
the indicator accordingly.
(C) SAP AG
AC810 7-30
1-3
Define the following flow types of your own for your fixed-term deposit:
ID
- Principal increase
- Principal decrease
- Final repayment
- Interest capitalization
- Nominal interest
- Charges
- Commission
FXX1 (XX = your group ID)

FXX2
FXX3
FXX4
FXX5
FXX6
FXX7
Defining flow types using the copy function:

You can copy the entries for the following flow types to your new flow types:
Flow type
- Principal increase
- Principal decrease
- Final repayment
- Interest capitalization
- Nominal interest
- Charges
- Commission
1100
1110
1120
1150
1200
1901
1902
Defining flow types without using the copy function:
-> Use suitable flow categories (with the corresponding calculation categories).
When you define flow types, you are defining the structure characteristics of
the transaction.
(C) SAP AG
AC810 7-31
-> Assign your flow types to the following categories:
Relevant
Princ.inc.
Princ.decr.
Final rept
Int. cap.
Nom. int.
Charges
Cash Mgmt
Posting
Position
P/L
Valuation
Accr./def.
Eff.int.calc.
Commission
1-4
Assign all the new flow types FXX ... - except for interest and repayment - to your
new transaction type TXX (together with your new product type PXX).
1-5
Set up the following condition types:

Final repayment
Nominal interest
ID: 2XX1
- Structure characteristics
- Flow category:
Final repayment
- Flow type generated:
FXX3 Final repayment
ID: 2XX2
- Structure characteristics
- Flow category:
Nominal interest
- Flow type generated:
FXX5 Nominal interest
You can use the following condition types to copy the data for your condition types:
1120 Final repayment
1200 Nominal interest
(C) SAP AG
AC810 7-32
1-6
Assign the condition types

"Final repayment"(2XX1) and
"Nominal interest" (2XX2)
to your transaction type fixed-term deposit TXX (together with your product type
PXX).
Both condition types apply for the incoming and the outgoing sides of the transaction.
1-7
(C) SAP AG
Create a fixed-term deposit with your house bank using your new product type.
Check the cash flow and add other flows (such as charges). Does the transaction need
to be settled?
AC810 7-33
Optional Exercises

Topic: Creating a New Product (Currency Option)
Creating the master data to configure a different product type.
Your Treasury department wants to purchase a currency option (OTC) to

hedge against the falling US dollar. Your company has not used currency
options before. Make the necessary settings in the system to allow your
traders to use this product.
2-1
Create the product type for the currency option. Assign the following ID to the product
type: OXX (XX = your group number).
Assign the product type to the number range "01".

You want the currency option to be exercised physically (no cash settlement).
The option is price-quoted and will be settled once (normal style).
It is a standard option that can be exercised on any bank working day.
Use the product type 60A (external forex transaction) and transaction type 101 (spot
transaction) as the underlying..
2-2
Define your own transaction type:

For your product type currency option OXX (XX = your group name), define the
transaction type Purchase OXX (XX = your group name).
(C) SAP AG
AC810 7-34
Assign the processing category 00101 to your transaction type: Order-cont.-settl.exercise/Expir.-settl.-term.-term. settl.
Assign the transaction type to number range '03'. The number range for the underlying
corresponds to the second number range for the forex spot transaction (number range 19). You
do not want currency options to be released for posting automatically.
2-3
Assign the following flow types to your transaction type:

- 1301
- 1310
- 1320
- 1321
- 1900
2-4
(C) SAP AG
Option premium (OTC)

Cash settlement
Premium transfer on expiration
Premium transfer on exercise
Charges
Create a transaction in the application using the new product type for currency options.
Remember that your business partner will need to be authorized for OTC options.
AC810 7-35
Transaction and Position Management- Structure Solutions

Topic: Creating a New Product (Fixed-Term Deposit)
1-1
To create your fixed-term deposit:

Customizing:
Treasury
Treasury Management
Money Market
Product Types
Define Product Types
Button: New entries
1-2
To define transaction types:
Customizing:
Treasury
Treasury Management
Money Market
Transaction Types
Define Number Ranges
You do not need to enter any new data here, just check what is there.
Customizing:
Treasury
Treasury Management
Money Market
Transaction Types
Define Transaction Types
Button: New entries
(C) SAP AG
AC810 7-36
1-3
To define flow types:

Customizing:
Treasury
Treasury Management
Money Market
Flow Types
Define Flow Types
Button: New entries
1-4
To assign your flow types to transaction types:

Customizing:
Treasury
Treasury Management
Money Market
Flow Types
Assign Flow Types to Transaction Type
Button: New entries
1-5
To define the condition types:

Customizing:
Treasury
Treasury Management
Money Market
Condition Types
Define Condition Types
Button: New entries
(C) SAP AG
AC810 7-37
1-6
To assign the condition types to the transaction types:

Customizing:
Treasury
Treasury Management
Money Market
Condition Types
Assign Condition Types to Transaction Type
Button: New entries
1-7
To create a fixed-term deposit:

Application:
Treasury
Treasury Management
Money Market
Trading
Fixed-Term Deposit
Create
(C) SAP AG
AC810 7-38
Transaction and Position Management- Structure
Solutions

Topic: Creating a New Product (Currency Option)
2-1
To create a product type for currency options:

Customizing:
Treasury
Treasury Management
Derivatives
Product Types
Define Product Types
Button: New entries
2-2
To define a transaction type:

Customizing:
Treasury
Treasury Management
Derivatives
Transaction Types
Define Transaction Types
Button: New entries
2-3
To assign your flow types to the transaction types:

Customizing:
Treasury
Treasury Management
Derivatives
Flow Types
Assign Flow Types to Transaction Type
Button: New entries
(C) SAP AG
AC810 7-39
2-4
To create a currency option:

Application:
Treasury
Treasury Management
Derivatives
Trading
OTC Option
Create
(C) SAP AG
AC810 7-40
Transaction and Position Management: Process
Contents:
Trading
Back office
Accounting
SAP AG 1999
(C) SAP AG
AC810 8-1
Transaction and Position Management: Process:

Unit Objectives

to:
Enter financial transactions in the SAP Treasury
Management system from start to finish - from the
trading stage through to the back office and on to
financial accounting.
SAP AG 1999
(C) SAP AG
AC810 8-2

Business Partners
Banks
Information System
SAP AG 1999
(C) SAP AG
AC810 8-3
Transaction and Position Management: Process Business Scenario
After learning the basic settings you need to make

to represent your financial transactions in SAP
Treasury Management, you will now learn about
the entire transaction process and how it is
represented in the system.
SAP AG 1999
module.
(C) SAP AG
AC810 8-4
Financial Transaction - Overview
Evaluation reports in the Information System
Forex - Administration
configured in R/3
Master data:
Business partners
Execute
financial
transactions
Transaction authorizations
Payment details
Correspondence
Currencies
R/3 Financial Accounting
Transaction management
Customizing
SAP AG 1999
Before you can use the foreign exchange management functions, for example, you are required to enter
master data (such as create business partner, set up product types and transaction types).
You can then enter entire foreign exchange transactions.
You can also use the reporting functions within transaction and position management.
Flows relevant for posting are transferred to the R/3 Financial Accounting component.
(C) SAP AG
AC810 8-5
Transaction and Position Management Process:

Trading Functions
Release
Trading
Back office
Accounting
Create new offer/

order/contract
Exercise/expiration
Notice
Rollovers
Exercise rights
Settlement/control
Netting
References
Sec. account transfers
Corporate actions
Postings
Payment
transactions
Reversals
Accruals/deferrals
Valuation
User authorization
Limit management
SAP AG 1999
Within the transaction and position management process, a distinction is made between the following
areas:
- In the trading area, you enter offers and transactions, and exercise rights.
- In the back office area, you settle transactions, which means you check existing transactions and
perform position management-related processes, such as securities account transfers.
- In the accounting area, you process the relevant account-based activities in the subledger and
transfer posting information to the general ledger in Financial Accounting.
You can set up your system so that a transaction must be released by one/several (other) people before it
can be posted.
(C) SAP AG
AC810 8-6
Trading
Financial transactions
Are assigned to their organizational entity (company code)
in the enterprise
Wide range of different options to reflect the organizational
structures of group companies
Are concluded for a specific product type/transaction type

You are free to define product types and transaction types
that suit your requirements
Are concluded with a business partner

Internal and external (banks) business partners
Can be created with different processing categories
SAP AG 1999
The main functions for entering and changing financial transactions are grouped together in the trading
area. To represent financial transactions in the system efficiently, you first have to make basic settings:
Which organizational unit (company code) is concluding the financial transaction? This setting
enables companies with complex organizational structures, such as Treasury headquarters, to
differentiate between the various company areas.
Which financial transaction is being concluded? Here, you specify the product and transaction
types along with the relevant processing rules.
With whom are you concluding a certain financial transaction? Each financial transaction is
linked to a business partner. The data you define for the business partner offers a large amount of
scope for rationalization. If, for example, you always use the same bank and payment details with a
business partner, they can be added automatically to the financial transaction. You can also set up
restrictions, for example, which allow you to only trade certain product types with a given business
partner.
(C) SAP AG
AC810 8-7
Example: Creating Transactions
Company code 1000

Product type
60a
Transact. type
101
Partner
Deuba
IDES AG
Forex EXTERNAL
Spot transaction
Deutsche Bank
Specifications
Portfolio
Business transaction
Order/Fixing
Contract
External number assignment

Transaction
SAP AG 1999
You create transactions with a business partner in a company code for a certain product type and a
specific transaction type.
A whole range of tools are available to enable you to work with the transaction management functions.
Using the Field selection control you can control a large number of the visible fields. This enables you
to set up the appearance of the display screens for TR Transaction Management to suit the prevailing
business conditions.
You group the visible fields into field groups according to different business criteria. Each of the field
groups available can be assigned an attribute, which determines how the screen appears for the user. This
means you can specify whether you want field groups to be suppressed, displayed, or to appear as
required entries.
(C) SAP AG
AC810 8-8
Offers for Fixed-Term Deposits and Foreign

Exchange
Offer
no.1
2.4%
Offer
no.2
2.7%
Offer
no.3
2.5%
Sorting according to quality
Contract
Offer
no.2
2.7%
SAP AG 1999
The activity category Offer allows you to group together and store quotations from different banks with a
reference.
This enables you to sort the offers according to their quality. You have the option of creating a contract
directly from an offer.
You have to create a specific number range for transactions with the activity category Offer. In
Customizing for transaction types, you assign this number range to the relevant transaction type in the
number ranges for offers field.
You can use this function in the Money Market area for fixed-term deposits and in the Foreign Exchange
area for forex spot transactions and forward exchange transactions.
A special Evaluation report for offers, which you can set up yourself, tells you how many offers were
submitted, and how many of these resulted in a contract.
You can use the Journal to display offers..
(C) SAP AG
AC810 8-9
Simulation of Fixed-Term Deposits/Forex

Transactions
You can create simulated transactions
MRM
No business partner is required for the simulation
Simulations are managed with their own number range
You can create a contract from a simulation
You can add a business partner
SAP AG 1999
For forex transactions and fixed-term deposits, you can create simulated transactions with the activity
category Simulation.
You use simulated transactions for analysis purposes in Market Risk Management.
You can create a contract from a simulated transaction using the change function. To do this, however,
you must add a business partner, since simulated transactions are created without a business partner.
You manage simulations under a number range of their own. You must assign this number range to the
relevant transaction type in the number ranges for simulations field in Customizing for transaction types.
You can use the Journal to display simulations.
(C) SAP AG
AC810 8-10
Financial Transactions in Cash Management
Assign planning levels

1000
IDES AG
60A
Forex external
DB
Forex banks
20
Contract
Cash Management: Display Levels

Banks
Le
DB
...
B5
...
F0
Description
10/03 10/03
10/04 10/05
10/05 later
later
10/02
10/02 10/03
Forex banks
150,000 xxx,xxx xxx,xxx xxx,xxx xxx,xxx
...
...
Clearing
Banks
Balance
...
...
...
...
...
...
...
...
...
...

xxx,xxx xxx,xxx xxx,xxx xxx,xxx xxx,xxx
SAP AG 1999
Each activity category (status) within a business transaction (order, contract, settlement, etc.) can be
displayed automatically in Cash Management and, if required, can be viewed at separate levels.
In this way, cash flows particularly from Treasury transactions that have not yet been posted, but whose
value date is known, can be used by the cash manager for forecasting and planning.
For the relevant product types and activity categories (Money Market, Foreign Exchange, Derivatives)
or statuses (Securities, Loans), you maintain the planning levels for G/L and/or subledger accounts on
which the information is to be displayed in Customizing.
Example:
Product type: 60A
- Forex
Activity cat:
20
- Contract
Level: DB
- Forex (bank known)
(C) SAP AG
AC810 8-11
Trading: Transaction Data
Basic data
(Amount/Interest rate/Price ...)
Payment details
(Direction / Currency / House bank / Account ID ... )
Cash flow
(Payment data / Payment amount / Flow type ... )
Administration data
Conditions (overview)
(Activity category ... )
orex
for f
t
o
N
SAP AG 1999
(C) SAP AG
AC810 8-12
(Condition category / Effective from / Cond. type /

Description ... )
Interest Calculation Methods

Method
Characteristics
Numerator
(days)
Denominator
(day basis)
Example
06/16/ 12/31/YY
360/360
actual/360
Actual
calendar days
30 days/month
360 days/year
360 days
per year
360 days
per year
195 days
198 days
Method
360E/360
actual/366
actual/365
Actual calendar
days
365 days
per year
198 days
Actual calendar
days
366 days
per year
198 days
actual/ actualP
actual/ actualY
actualW/252
Actual
calendar days
Actual
calendar days
Work days of
an interest rate
calendar
Characteristics
Numerator
(days)
Denominator
(day basis)
Example 06/16 12/31/YY
30 days
per month
31st >- 30th
360 days
per year
194 days
(*) Example: Factory calendar Germany
Actual
calendar days
of a period
198 days
Actual calendar
days of a
calendar year
252 work days

per year
198 days
141 days (*)
x
fore
r
o
f
Not
SAP AG 1999
The following are defined as DAY BASIS:

1. 360
Based on a year with 360 days.
2. 365
3. 366
4. 252
Based on a year with 252 days (work days).
5. actP
P stands for period and means that the actual number of days in a period is used to calculate the
interest. The number of days per period is multiplied by the number of periods per annum to give the
number of days per year.
6. actY
Y stands for Year and indicates that the actual number of days in a calendar year (365 days in a
normal year and 366 in a leap year) is used. If a calculation period comprises two calendar years, and
one of them is a leap year, the calculation is done in two parts.
(C) SAP AG
AC810 8-13
Conditions of a Financial Transaction
Example: Fixed-term deposit

Nominal interest
4% interest / Frequency: 6 months
Final repayment
orex
for f
t
o
N
Condition change:
Nominal interest
Nominal interest
Payment date
Int.
Amount
10/31/YY
04/30/YY
4%
5%
3,333.33 UNI
4,166.67 UNI
SAP AG 1999
You can assign different, flexible user-defined agreements using the "building block principle" for the
term of a financial transaction.
Depending on the condition type, a condition item is characterized by
- Amounts or percentage rates and calculation bases
- Calendar dates and the frequency.
Within a given period, you may require different values for a condition type (such as a change in the
interest rate or frequency). This means that the contract conditions for a condition type are each tied to
an "Effective from" date. Each condition is valid until the effective date of the following condition is
reached.
(C) SAP AG
AC810 8-14
Fixed-Term Deposits and Deposits at Notice:

Changes in Capital Structure
Changes in capital structure

At the start of term
During rollovers
During the term

w
Ne
Advantage:
Higher degree of flexibility when mapping

transactions (e.g. creating repayment schedules)
Button next to amount field

Automatically included in cash flow
SAP AG 1999
For fixed-term deposits and deposits at notice, you can enter other principal increases and decreases
during the term in addition to the main flows at the start of term or on the rollover date. This enables you
to represent repayment schedules, for example.
(C) SAP AG
AC810 8-15
Effective Interest Rate Calculation and Update
The effective interest rate is

Calculated by the system and
Updated to the database
Prerequisite: You must enter an effective interest method
when you define the product type
Effective interest rate is available for evaluations

in reporting
You can calculate and display the effective interest rates

(using all the effective interest methods available) when
you process transactions
SAP AG 1999
Definition of the Effective interest rate:

Expression of the profitability/costs of a capital investment or borrowing. Alongside the nominal
interest, charges, clearing dates, discount/premium, and repayment modalities are also used in the
effective interest rate calculation, for example.
In the Money Market area, the effective interest rate is calculated and updated to the database during
transaction processing provided that you entered an effective interest method when you defined the
respective product type. In this case, the effective interest rate can be used for evaluations in reporting.
For transactions that were entered before Release 4.6A, a report is available (RFTMEZ00) that you can
use to calculate and update the effective interest rate.
(C) SAP AG
AC810 8-16
Roll Over Contract: Fixed-Term Deposit
Transaction
created
Roll
over
...
1100 Principal increase

1110 Principal decrease
Principal change
Term
Flow type
Start
11/06/YYYY
Amount
Rollover
10/10/YYYY
End
Interest structure
...
...
SAP AG 1999
You can roll over existing transactions using the same transaction number, and, if required, with
different conditions.
You can display the status of the current business transaction or display its history with all the related
details.
Using the memo function, you can specify additional information for each activity.
By choosing Extras --> Amount overview, a list appears showing the capital and interest flows that are
due before or on the relevant key date, which are related to the transaction and sorted by their amounts.
(C) SAP AG
AC810 8-17
Transaction History
History: Activity Sequence
Activity
Order
Administration data
Active
status
Order
10/01/YY Replaced
Contract
10/02/YY Replaced
Settlement
10/02/YY Replaced
Rollover
Settlement
10/31/YY Replaced
11/30/YY Active
...
...
Contract
Administration data
CoCd 0001 SAP AGTransaction

4711
PTyp 51a
Activity 1
Basic
data
TTyp 100
Act.cat Order
CoCd 0001 SAP AG Transaction
4711
PTyp 51a
Activity 1
TTyp 100
Act. cat. Order
Date
Act. category
CoCd 0001 SAP AG Trans. 4711

PTypdata
51a
Activity 1
Basic
TTyp 100
Act. cat. Cont.
PTyp 51a
Activity 1
TTyp 100
Act. cat. Cont.
...
Settlement
Administration data
PTyp
Activity 1
Basic51a
data
TTyp 100
Act. cat. Sttlmt
PTyp 51a
Activity 1
TTyp 100
Act. cat. Sttlmt
...
Rollover
Administration data
CoCd 0001 SAP AG Trans.
4711
PTyp data
51a
Activity 1
Basic
TTyp 100
Act. cat. Cont.
CoCd 0001 SAP AG Trans.
4711
PTyp 51a
Activity 1
TTyp 100
Act. cat. Cont.
Settlement
Administration data
4711
PTyp
Activity
1
Basic51a
data
TTyp 100
Act. cat. Settlement
4711
PTyp 51a
Activity 1
TTyp 100
Act. cat. Settlement
SAP AG 1999
In the transaction history you can call up each activity (status) with the corresponding details.
(C) SAP AG
AC810 8-18
Collective Processing: Money Market

Overview of money market transactions that correspond
to the selection criteria entered
Process the relevant transactions
Create
Change
Display
Roll over
Give notice
Settle
Reverse
History
Branch directly to the individual transaction
Connection to the ABAP List Viewer
SAP AG 1999
The collective processing function helps you manage your transactions systematically by displaying a
list of all the transactions with common selection criteria. The list includes key information about each
transaction as well as a range of processing functions.
From this processing list, you can branch directly to the individual transactions at any time.
The connection to the ABAP List Viewer provides you with a whole range of display options. You can
structure your list by column or row, sort the list, and display totals.You can save these display variants
for later use.
When you have finished processing a transaction, a Processing indicator appears.
(C) SAP AG
AC810 8-19
Transaction Management:
Worklist and Collective Processing
Processing financial transactions for all product
categories
User-specific managing of financial transactions

Selecting and displaying Treasury financial transactions
Branching to individual transaction processing
Representing transactions using the SAP List Viewer
SAP AG 1999
You can process financial transactions across all of the following product categories:
Fixed-term deposits and deposits at notice
Commercial Paper
Cash flow transactions
Forex spot transactions and forward exchange transactions
Interest derivatives
OTC options
Futures
Securities
You can store any number of selections as variants and manage these in a tree structure either userspecifically or for all users.
The display variant controls the structure of the list. You can store the following information in a display
variant:
Column structure
Sorting criteria
Filter conditions
(C) SAP AG
AC810 8-20
Cash Flows in Cash Management

Treasury Management cash flow
Jun
Jun
19
19
1000+ Forex purchase

2000- Forex sale
Business partner
Planning groups
E2 domestic customer
Subledger accounts
DP Forex
JUN 19
+ 1000
E2 Domestic customers
1,000
1,800
Business partner / transaction

Payment details and house banks
+ USD
- USD
DB
DB
JUN 19
- 1800
GIRUN
GIRUN
Bank accounts
DB Forex
DBGIRO
Alternative 1
Alternative 2
Payment details
unknown
Payment details
known
SAP AG 1999
Alternative 1:
If no payment details have been entered in the transaction, i.e. the bank accounts are unknown, the cash
flow cannot be displayed for a bank (clearing) account. The amount relating to subledger accounts is
displayed, so that the cash flow can still be seen in Cash Management. The system uses the planning
group entered in the master record of the business partner.
Alternative 2:
If payment details have been entered in the transaction, i.e. the bank accounts are known, the cash flow
is displayed in Cash Management at the level that is assigned to the corresponding bank (clearing)
account.
(C) SAP AG
AC810 8-21

Back-Office Functions
Release
Trading
Create new offer/
order/contract
Exercise/expiration
Notice
Rollovers
Exercise rights
Back office
Settlement/control
Netting
References
Corporate actions
Accounting
Postings
Payment
transactions
Reversals
Accruals/deferrals
Valuation
User authorization
Limit management
SAP AG 1999
In the back office area you settle transactions, in other words, you check existing transactions and
perform position management-related processes, such as securities account transfers.
(C) SAP AG
AC810 8-22
Back Office
Accounting
Back office
Correspondence
Confirmation
management
(incoming
/outgoing)
Confirmation
Position management
Collective processing
Netting
References
Interest rate changes
Sec. account
transfers
Capital structure
changes
Settlement of
transactions
Settlement/control
Payment details
Payment details
Curr.
...
Bank
...
Acct
...
Confirmation
SAP AG 1999
Depending on how your company is set up, you can transfer transactions you have entered in the trading
area to the back office area. The back office area includes functions for checking and changing
transactions. Some of the key postprocessing activities include:
- Enhancing transaction data, for example, adding information that is relevant for the back office.
- Preparing postings and payments, for example, checking the accounts that are used later on in the
automated processes. This is the last opportunity you have of assigning an account assignment
reference and payment details to the transaction. You need this information in order to post the
Treasury flow to Financial Accounting (see account assignment reference).
- Generating correspondence in the form of dealing slips, letters of confirmation, or confirmation
files.
- Position management tasks, such as securities account transfers.
By saving the settlement activity the system changes the activity category of the transaction to record
that has been checked and processed in the back office.
(C) SAP AG
AC810 8-23
Transaction Settlement
Account assignment reference

DB000001 Deutsche Bank
Fixed-term deposit
G/L account: 113113
Transaction: Payment details

Company code
Product type
Transaction type
D
+
Curr.
UNI
UNI
1000
51A
100
Effective FTyp House bk

Deuba
Deuba
Fixed-term deposit
Investment
Acct ID
GIRUN
GIRUN
Payment Pmnt req.
SAP AG 1999
You can check, change, or add information that is relevant for posting and payment. This is the last
opportunity you have of assigning an account assignment reference and payment details to a transaction.
You need this information in order to post the Treasury flow to Financial Accounting.
Depending on how you set up your system, you can have the account assignment reference or the
payment details for the particular business partner appear as default values, which you can then change
or enhance.
The system supports multiple level payment methods. By entering a bank chain, you can process
payments via several banks. Up to 3 intermediate banks are supported.
(C) SAP AG
AC810 8-24
Correspondence: Confirmation Management
Differentiates between outgoing confirmation and

counterconfirmation
Confirmation status for correspondence can be seen in
the financial transaction - under 'Status'
Status management for counterconfirmation can be
controlled according to the business partner - in the
standing instructions + Customizing
Monitors overdue counterconfirmations
Optical archiving of correspondence
Correspondence overview and correspondence monitor
SAP AG 1999
You can define for each business partner (in the standing instructions) whether counterconfirmation is
required for external correspondence.
The system updates the confirmation status of the business transaction on the Status tab.
--> Executed, matched (counterconfirmation has been received and matched).
You can archive correspondence letters optically. To do this, you must have set the 'Archiving (Optical
archiving)' indicator in Customizing (by choosing "Define Correspondence Types") for each
correspondence type you require. However, you need to use an external optical archive for this. You
access the archived correspondence from the transaction display. If you are in the display/change mode
for a transaction, you can also display the correspondence activities by choosing Goto. By doubleclicking a line, you activate the archive link monitor and display the document.
The correspondence monitor provides new functions that enable you to process and monitor your
correspondence. These functions have been developed on the basis of the existing correspondence
overview.
Overview function of the current processing status
Option of setting the counterconfirmation status to matched directly from the monitor (manual
match)
Function for executing planned correspondence directly from the monitor
Function for repeating correspondence that has already been generated ...
The correspondence monitor has been developed using the ABAP List Viewer.
(C) SAP AG
AC810 8-25
Confirmation Letters
Create Correspondence on Basis of Planned Records
Selections
Company code
Transaction
Correspondence type
Product category
Product type
Transaction type
...
Business partner
Portfolio
Trader
End of term/due date
Entered/changed on
Entered/changed by
1000
to
?
to
to
...
SAP AG 1999
The generation of correspondence is built up from planned records, which are created on the basis of
your Customizing settings and standing instructions for correspondence when you create, change, or
reverse transactions, for example.
You go to the selection screen for calling up confirmation letters by choosing Back office -->
Correspondence --> Outgoing Correspondence from the menu.
You can select transactions that are to be confirmed.
The confirmation letters that are generated appear in chronological order in the display. You can print
them out, if required.
(C) SAP AG
AC810 8-26

Accounting Functions
Release
Trading
Create new offer/
order/contract
Exercise/expiration
Notice
Rollovers
Exercise rights
Back office
Settlement/control
Netting
References
Corporate actions
Accounting
Postings
Payment
transactions
Reversals
Accruals/deferrals
Valuation
User authorization
Limit management
SAP AG 1999
In the accounting area, you process the relevant account-based activities in the subledger and transfer
posting information to the general ledger in Financial Accounting.
You can set up your system so that a transaction must be released by one/several (other) people before it
can be posted.
(C) SAP AG
AC810 8-27
Automatic / Manual Posting Release
Product type
Transaction type
X
Posting release
Automatic !
Release
Trading
Back office
Posting
SAP AG 1999
In the Money Market, Foreign Exchange, and Derivatives areas, transactions either do not require any
release, or they must be released by a second employee.
If you want the transactions to be released for posting automatically (i.e. not explicitly), you have to put
a cross in the "posting release" field in Customizing (according to the product type and transaction type).
In this case the transactions can be posted without being released.
Manual posting release: If you want the transactions to be released for posting by a second user, leave
this field blank.
(C) SAP AG
AC810 8-28
Release Workflow - Overview Graphic

Start workflow
release
One-level
approval
Two-level
approval
1st approval
or rejection
Inbox
1st approval
or rejection
1st approval
or rejection
G A
Three-level
approval
2nd approval
or rejection
Inbox
2nd approval
or rejection
R
A
R
Inbox
3rd approval
or rejection
A
A
If a transaction is rejected, it can be changed/reversed

SAP AG 1999
The TR transaction release process includes the following key components:

Integration or organization management in the SAP Business Workflow
(Organizational plan, task distribution according to responsibilities and job descriptions, dynamic task
distribution for the runtime from the context of the workflow and the objects processed)
Integration of the release management in the SAP Business Workflow
(Organizational plan for the release, consideration of the release strategies that can be customized in
Treasury for the runtime of the workflow)
The release procedure includes approval or control procedures with organizational conditions.
If a release is rejected, the person who last processed the transaction is informed by the release point, and
the transaction can be changed or reversed. The transaction may then have to be released again.
(C) SAP AG
AC810 8-29
Release Workflow - Customizing I
Release procedure
Release conditions
Release procedure
Release conditions
Company code 1000 IDES AG

Release procedure
PTyp TTyp Rel. proc.
51A 100
51B 100
60A 101
Company code 1000 IDES AG

Product type
51B Fixed-term dep. internal
Transaction type 100 Purchase
Release conditions
ACat Act. Rel. nec.
10
01
Rel. steps
1
Trans. processing
1
SAP AG 1999
You can specify in Customizing the procedure you want to use according to the company code, product
type, and transaction type. This is why you define release procedures and release conditions.
In the release conditions you enter the release step and information relating to the transaction release
according to the activity category and activity.
The release steps define how many people are required to release an object (for example, 1 release step:
2 employees (1 employee, 1 person responsible for the release).
You use the transaction release to define what the application does while the transaction is in the release
workflow (for example, ongoing transaction during the release workflow is not permitted).
(C) SAP AG
AC810 8-30
Release Workflow - Customizing II

Display standard role 20000034 (TRTMTR_DEAL)
Create responsibilities
Agent assignment
Example:
Description
Company code
Product type
Transaction type
Mom. approval level
Release steps
of
1000
51B
100
1
2
to
Activate event linkage
Activate event linkage
SAP AG 1999
Make the standard Customizing settings for the workflow.

Display standard role 20000034 (TRTMTR_DEAL): The standard role describes the responsibilities for
the individual approval steps.
The agents must be found in the system for the individual approvals. To do this a standard role has been
built into the workflow definition, which is still empty. To define the agents for an approval level, you
have to create a responsibility in the standard role and assign a user/position to it.
(Change the responsibilities so that the "momentary approval level" is set to the corresponding value,
and the "release steps" are set to the maximum number).
You have the option of entering several users/positions, which are notified if deadlines are exceeded
(standard role 20000035).
Since this workflow is triggered by an event, you must activate the event linkage of the workflow used.
For more information about the release workflow, see the IMG documentation.
A reporting overview is available that enables you to see for each Treasury transaction the release that
was processed, when it was processed, and by whom.
(C) SAP AG
AC810 8-31
Accounting
Forex spot transaction Purchase USD - Rate 1.80
Oct 01
1000 +
Forex purchase
1,000,000
Oct 01
2000 -
Forex sale
1,800,000
Selection of the
transactions and flows
relevant for posting
FI interface
SAP AG 1999
The Treasury information that is required for posting is passed on to Financial Accounting via an
interface. The posting logic is based on the flow types generated and the account assignment reference
that belongs to the financial transaction as well as the account determination defined by the user.
You can post individual flows either via G/L accounts or via customer accounts. If you want to trigger
actual payment activities, you can use the FI payment program on the basis of posting via customer
accounts. You also have the option of using an extended payment program for payment requests via
which active payments can be made on the basis of postings via non-customer accounts. In this case,
payment requests are first generated in Treasury, and are then paid individually or jointly via the TR
payment program. The following four posting alternatives are possible:
1. G/L accounts without payment requests: flows are posted to bank clearing accounts and cleared
via manual or automatic bank statements.
2. Customer accounts without payment requests: flows are posted to customer accounts and cleared
by active payment triggering by the FI payment program.The bank clearing accounts that have
been posted to are cleared via the bank statement.
3. G/L accounts with payment requests: (see Unit 8)
4. Customer accounts with payment requests: a payment request is generated per flow and posting is
initiated via the payment requests clearing account or customer account. The subsequent payment
run performs the posting to the bank clearing accounts.
(C) SAP AG
AC810 8-32
Transaction: Posting
... via G/L accounts

IDES
FT dep. bal. sheet acct
(Deuba)
House bank account

(Deuba)
100 m
100 m
FT dep.
investment
House bank
DEUBA
Bank clearing account

100 m
100 m
? Fixed-term dep. inv.

? Statement from bank
SAP AG 1999
In the case of financial transactions that are concluded with business partners that are also the house
bank of the company, active payments are not usually made.
Rather the corresponding postings on the business partner side (= the house bank) are posted to the
bank account. The flows 'preposted' from Treasury Management to the bank clearing accounts are
cleared when the bank statement is received.
Example: G/L account posting without payment request
(C) SAP AG
AC810 8-33
Posting a Transaction: Overview

Example: Fixed-term deposit investment
Posting record (= "Posting specifications"):
for (40) bal. sheet acct
to (50) bank clearing account
for
to
113113
Bal. sheet account
Fixed-term deposit
Bal. sheet account
from
transaction
Account assignment ref.

- fixed -
113105
TR clearing
Bank clearing acct

from
transaction
Account assignment ref.

- changeable -
SAP AG 1999
To post transactions:
You define the balance sheet account in the account assignment reference. This includes the account
number for the balance sheet account and additional information (such as the business area).
In turn, you enter the account assignment reference in the transaction in the Administration data.
You cannot change the balance sheet account within account determination for posting transactions.
The bank clearing account is read from the payment details entered in the transaction. You can change
this account for posting within account determination.
(C) SAP AG
AC810 8-34
Posting: Account Assignment Reference
Fixed-term deposit Date
Sept 01
1,000,000.00
Term 1 month
UNI
Deutsche Bank Nominal interest 3.5%
Company code
1000
Acct ass.ref. Short text

Deutsche Bank deposit at notice
DB000002
DB000001
.
.
.
Deutsche Bank fixed-term deposit

Details
Business area
Cost center
G/L account
.
.
113113
SAP AG 1999
The account assignment reference determines the G/L account (balance sheet account) to which the
current financial transaction is posted. You can structure the position differently using various account
assignment references.
As well as entering the account for position management in the account assignment reference, you can
also assign a cost center (only relevant for posting category 4) and a business area.
The account assignment reference is part of account determination, which you can set up in Customizing
according to the currency and/or account assignment reference. This flexibility enables you to structure
postings in different ways. For example, in the account assignment reference for revenue and expense
postings in securities you can see whether affiliated or unaffiliated companies (depending on the account
assignment reference) issued the respective securities.
In the Money Market, Foreign Exchange, Derivatives, and Loans areas, you define the account
assignment reference directly in the relevant financial transaction. In the Securities area, however, you
enter the account assignment reference in the position indicator.
(C) SAP AG
AC810 8-35
Determining the Account Assignment Reference:

Overview
Characteristic 1
Characteristic 2
Value group > Values

1
A
B
C
D
E
.
.
.
(all) value group combinations

Select as required for automatic determination
of account assignment reference
Assign account assignment references to the

combinations selected
SAP AG 1999
When you create a transaction, you require information about the balance sheet account to be posted for
(later) posting activities.
You can enter the account assignment reference in the transaction or position indicator manually, or you
can have the system generate it automatically. The automatically generated account assignment
reference is a default value, but you can change it.
When you have the system determine the account assignment reference automatically, it reads certain
characteristics in the transaction and uses these to determine the account assignment reference
accordingly.
(C) SAP AG
AC810 8-36
Account Assignment Reference Determination:

Characteristics/Values
Company code
1000
Contract type
mp
a
x
E
le
Securities
Product cat.
Selectable characteristics
Stock type
Execution type (American or European)
Type of shareholding
Holding share comp. code position
Selected characteristics
Holding share sec. acct position
Issue currency
Shareholding indicator comp. code
Product type
Shareholding indicator sec. acct position

Balance sheet indicator sec. acct position
Industry key
Stock form indicator
SCB asset group indicator comp. code
SCB asset group indicator sec. acct position
Foreign Investment Law indicator
Double-click
Balance sheet grouping indicator comp. code
Values
ValGrp
Value groups
Comment
UNI
Universal currency
Comment
CHF
Swiss franc
Local currency
FRF
French franc
Europe
ITL
Italian lira
Other
Other
ValGrp
SAP AG 1999
You can have the system determine the account assignment reference automatically on the basis of
certain characteristics you select in Customizing. The characteristics available come from business
partner management or position data.
You have to define values for the characteristics. These are then grouped together to form evaluation
groups.
You define the automatic determination of the account assignment reference in the company code either
for selected product categories and/or for the entire securities contract type, in other words, for all
product categories.
The account assignment reference is determined at two levels:
1. If a corresponding entry is available at product category level, the system uses this account
assignment reference.
2. If no corresponding entry is found in 1, the system uses the relevant specification for the contract
type.
If no account assignment reference is determined in 1 or 2, you have to enter one manually in the
position indicator.
(C) SAP AG
AC810 8-37
Determine Account Assignment Reference:

Allocation
Acct assignment ref. allocation
Combinations
ValGrp
Issue currency
ValGrp
Product type
0001
Local currency
0001
Bonds
0001
Local currency
0002
Stocks
0002
0002
Europe
Europe
0001
0002
Bonds
Stocks
0003
0003
Other
Other
0001
0002
Bonds
Stocks
Select and Copy

Acct ass. ValGrp
Issue currency
ValGrp
Product type
ref.
ANL-IN
AKT-INL
0001
0001
Local currency
Local currency
0001
0002
Bonds
Stocks
ANL-EUR
ANL-REST
0002
0003
Europe
Other
0001
0001
Bonds
Bonds
Enter and save

SAP AG 1999
Using the values and value groups defined for the selected characteristics, the system displays all the
value group combinations that can be used to determine the account assignment reference automatically.
You then assign account assignment references to the combinations you have chosen .
(C) SAP AG
AC810 8-38
Customizing: Account Determination
Money Market
Functions
Accounting
Application
Chart of accts
Account Determination
Define Settings
Check
Treasury: Money market
Flow type
1100
Payment transact. +
...
Comp.
40
50
SA
1
3
++++++++++5
273100
220000
479100
465000
465001
Account symbols
Acct symbol Description
Posting specifications
Direction
Debit
Credit
Document type
+
+
+
+
+
+
+
+
+
+
+
+
3
4.1.1
4.1.3
4.2.2
4.2.3
4.2.2
Accounts Symbols
0105

International chart of accounts
Account assignment
Acct symbol Acct assignment ref. Currency G/L acct
Chart of accounts
Application
0105
INT
Balance
Bank clearing
Posting cat. 13
Bank clearing
4.1.1
Interest received
...
SAP AG 1999
You define the account determination for the relevant application in Customizing.
You use the account determination function to determine which accounts you want to use for posting
activities. It includes the posting specifications, the account symbols used for this, and the accounts
assigned to the symbols.
The following requirements must be met before you can post transactions to Financial Accounting:
- You must have created all the necessary accounts and made the correct settings.
- The document types must appear in the document types table and allow the required account types
to be posted.
- The number range linked to the document type must have internal number assignment in Financial
Accounting.
- The posting periods must be open for posting.
(C) SAP AG
AC810 8-39
Account Determination: Posting Specifications (1)
Accounts
Symbols
Application
0105
Field selection
Payment transact. +
Flow type
1100
Direction Debit
40
Credit
50
Document type
SA
Flow type
Direction Debit
Credit
Document type
1100
Flow type
Direction +
Debit
Credit
Document type
1200
40
50
SA
40
50
SA
1
3
Balance
Bank clearing
Posting category
Payment transact. x
Balance
Subledger accounts
Posting category
1
2
Payment transact. +
3
4.1.1
Bank clearing
Interest received
Posting category
Comp.
13
Comp.
12
Comp.
34
SAP AG 1999
The posting details are an abstract description of the posting type and are independent of the chart of
accounts. You also have to specify the document type, posting key, account symbols, and posting
category.
Account determination takes place here on the basis of the flow type, the direction of the flow, and the
payment transaction.
Direction:
+ for inflow
- for outflow
Payment transaction: x for postings via customer accounts
+ for postings via non-customer accounts (pure G/L account postings)
You define debit/credit postings using the corresponding posting keys (40: debit position posting to a
G/L account; 50: credit position posting to a G/L account).
The document type controls how the postings to Financial Accounting are made (SA: G/L account
document).
(C) SAP AG
AC810 8-40
Account Determination: Posting Specifications (2)
Posting category
Flow Types
FTyp
1100
Name
Principal increase
:
:
1200
Nominal interest
:
:
Payment transaction + not via customer accts
PT
Name
11
12
13
14
15
21
:
31
32
33
34
35
41
42
43
44
45
51
:
:
Bal. sheet to bal. sheet

Bal. sheet to subledger
Bal. sheet to bank
Bal. sheet to profit/loss
Bal. sheet to G/L account
Subledger to bal. sheet
Bank to bal. sheet
Bank to subledger
Bank to bank
Bank to profit/loss
Bank to G/L account
Profit/loss to bal. sheet
Profit/loss to subledger
Profit/loss to bank
Profit/loss to profit/loss
Profit/loss to G/L account
G/L account to bal. sheet
x via customer accts
SAP AG 1999
Accounts are determined in two stages:

1. The posting details are determined on the basis of the flow type, the payment transaction, and the
direction of the flow. The posting specifications are an abstract description of the posting type, and are
independent of the chart of accounts. You also have to specify each document type, posting key, account
symbol, and posting category.
The posting category describes (both for debit and credit postings) the category of account you are
posting to:
1: Balance sheet account
(from account assignment reference)
2: Subledger account (customer account)
3: Bank clearing account
4: Profit/loss account (G/L account with cost center)
5: G/L account
(G/L account without cost center)
2. The account symbols are replaced by actual G/L accounts, but you can change them, if required.
Posting category 1 is an exception to this. The account symbol for the balance sheet account is replaced
by the balance sheet account defined in the account assignment reference, but it cannot be changed.
(C) SAP AG
AC810 8-41
Account Determination : (Account) Symbols
Symbols
Accounts Posting specs

Application
0105
Account symbols
Account symbol
:
:
1
:
2
3
4.1.1
:
:
Description
:
:
Balance
Subledger accounts
Bank clearing
Interest received
:
:
SAP AG 1999
An account symbol describes a group of general ledger accounts. You can use it to group together
similar types of postings (such as interest paid for write-downs).
The symbols can be used for a large number of posting specifications. You fine-tune posting activities
by setting different control parameters for assigning G/L accounts.
(C) SAP AG
AC810 8-42
Account Determination: Accounts (Allocation)

Accounts
Chart of accts
Posting specs
Application
Chart of accounts
INT
Symbols
0105
INT
Account assignment
Account symbol
:
:
3
3
4.1.1
:
:
:
:
Acct assign.ref.
+
+
+
Currency
+
USD
+
G/L acct
+++++++++5
++++++++19
273100
SAP AG 1999
You assign one or several G/L accounts to the account symbol for the corresponding chart of accounts.
You assign several accounts on the basis of the currency and/or the account assignment reference. This
enables you to make different control settings for all posting activities.
When you post a transaction, the G/L account specified in the house bank account field for the
transaction is read. This G/L account is then transferred to the corresponding sub-account using the
account symbol from the posting details based on the account assignment reference and/or currency.
Example:
You conclude a fixed-term deposit in USD, in which the USD current account 113150 is defined as the
account ID in the payment details via the house bank. If the payment is made in USD, the account
113150 is replaced the bank clearing account 113155 in the account determination; for payment amounts
in all other currencies, the posting is made to the account 113105.
(C) SAP AG
AC810 8-43
Posting a Transaction: Summary

Fixed-term dep. 1 month 4.5
Sept 01
Oct 01
Oct 01
1100 1120 +
1200 +
Fixed-term dep.
Final repayment
Nominal interest
Acct assignment ref. DB000001
1,000,000
1,000,000
3,750
Balance sheet account

acc. to acct assignment reference
Flow type
Fixed-term dep. acct 113113

Investment
D
1,000,000
Final
repayment
1,000,000
1100 -
Debit Balance Credit Bank
1120 +
Debit Bank
Credit Balance
1200 +
Debit Bank
Credit Int. received
Interest received 273100
Bank clearing acct 113105

D
C
FT deposit
1,000,000
Nom.interest
3,750
Final
repayment
1,000,000
D
Nominal
interest
C
3,750
SAP AG 1999
When financial instruments (e.g. money market, forex, derivatives, securities, loans) are processed, they
become business transactions, which have to be entered in the accounting system. These automatic
postings and the corresponding offsetting entries on FI accounts may be carried out online.
The posting of individual business transactions is controlled via the posting specifications. The posting
specifications contain the rules for posting and account determination based on the account assignment
reference per flow type. You make settings for these during Customizing.
The flow type determines the correct posting specifications for each flow to be posted.
The document type and the posting keys for the debit and credit side of the posting included in the
posting specifications represent control information, which is passed on directly to the Financial
Accounting module. In addition, the posting category and the account symbols in the posting details are
used to determine the actual G/L and subledger accounts via the Treasury posting interface.
From the display of an accounting document (for example, FI document), you can display the original
posting in Treasury. To do this, go to the menu option Environment in the display for the FI document in
the general ledger (Display document function, transaction FB03) and choose "Original document". This
results in an overview of the flows in Treasury, which have led to postings in Financial Accounting.
(C) SAP AG
AC810 8-44
Cash Flows in Cash Management

Transaction entered
Product type PXX
Payment details (PD) maintained
Payment details not maintained
From PD: House bank Deuba

Account: DBGiro
From business partner/customer

Group: E2
From Cust.: Prod.Type PXX: Level TB
From Cust.: ProdType PXX: Level TP

Payment details added !!!
Transaction is posted
Transaction is posted
Account DBGiro:
FI account master: Level B5
SAP AG 1999
It is essential that you enter payment details if you want to post a transaction, since you also enter the
house bank and your own account you want to post to in the payment details.
When you make a posting the payment details are entered, in other words, the bank accounts are known,
so that the cash flow is displayed in Cash Management at the level that is assigned to the corresponding
bank (clearing) account in the account master record.
(C) SAP AG
AC810 8-45
Financial Transactions and Cash Management
Cash Management: Display Levels

Banks
Le
Description
DB
Forex
...
B5
...
F0
...
TR clearing
10/02
10/03
150,000
...
150,000
...
...
Banks
xxx,xxx
Balance
xxx,xxx
10/04
xxx,xxx
...
xxx,xxx
...
150,000
xxx,xxx
10/05
xxx,xxx
...
xxx,xxx
...
later
xxx,xxx
xxx,xxx
...
xxx,xxx
...
xxx,xxx
...
...
xxx,xxx
xxx,xxx
xxx,xxx
xxx,xxx
xxx,xxx
xxx,xxx
SAP AG 1999
You can set up your system to display cash flows from Cash Management transactions so that you can
display the payment at another level per activity category or status. This enables you to enter qualitative
information about the status of the transaction via the different level.
Example:
Concluded forex transaction:
DB level - foreign exchange
(Pre)posted foreign exchange transaction:

After receipt of bank statement:
(C) SAP AG
AC810 8-46
B5 level - bank clearing account
B0 level - bank account
Treasury Management and Cash Management
Fixed-term deposit
investment
Via activity at
fixed-term deposit level
Post flows
to clearing account
Change to clearing
accounts
Clearing entry
via account statement
Change to bank
account level
SAP AG 1999
The above slide represents an ideal process, which describes how the system represents the relationships
between Treasury Management and Cash Management as well as postings to Financial Accounting.
Payments are usually triggered by the business partner (bank) and processed further via automatic bank
statements in Cash Management.
(C) SAP AG
AC810 8-47
Basic Principles of Archiving
Motivation
Steady increase in volume of data for the end user
Poor performance due to database overload
Costs of investing in new hardware
Archiving requirements
Store financial transactions outside the R/3 System
Delete and reload archived data to the R/3 System
Automatic conversion if table structures are changed
Online archiving and archive management
Compressing of data
Connection to external archiving system
SAP AG 1999
Archiving data allows you to remove mass data that is no longer required in the system from the
database, yet to store it where it can be evaluated. Transactions are written to archive files by Archiving
objects, which describe the structure and composition of the data. These files can be stored in other
media.
SAP's archiving concept is based on the Archive Development Kit (ADK). If you start the archive
management function via the application, the special features that are specific to the application
(archiving objects, programs) are already preconfigured.
The archiving program first generates an archive file. The files to be archived are then read as
background processing and written to the archive file.
Once the archive file has been closed a program is started - automatically or manually - which reads the
archived data from the archive file and deletes it in the database. This procedure guarantees that only the
data that has been stored correctly in the archive file is deleted in the database.
Archive files, whose contents were removed from the database by the deletion program, can be stored
externally. There are several options available (depending on the hardware you have), for example
ArchiveLink. If the archive system of a third provider is connected via ArchiveLink, this system has to
automatically store the processed file at the conclusion of a successful deletion program. You can also
store this file manually at a later date.
(C) SAP AG
AC810 8-48
Archiving Money Market / Forex / and Derivatives

Transactions
Before transactions can be archived, they must
fulfil the following criteria:
Reach the minimum retention period specified in
Customizing:
Define Company Code-Dependent Minimum Retention Period
Define Product Type-Dependent Minimum Retention Period
The current business transaction must have been settled
(if necessary, see Customizing for transaction types) or
reversed
All flows relevant for posting must have been posted
The transaction must have reached the required
confirmation status
SAP AG 1999
You can enter the minimum retention period of financial transactions in Customizing using the following
Customizing activities:
Define Company Code-Dependent Minimum Retention Period
Define Product Type-Dependent Minimum Retention Period
Using selection criteria, you can restrict the number of financial transactions to be archived. Remember
that financial transactions can only be archived in a certain status. The archiving object TRTM_FTR is
set up so that you have to start the Deletion report manually. You can change this using the transaction
AOBJ.
This transaction allows you to make further technical settings for the archiving object TRTM_FTR, such
as the name and path of the archive file.
The financial transactions to be archived are stored in a physical file according to a platformindependent file name and path name.
Note that the archiving function deletes archived financial transactions from the R/3 System. We
recommend therefore that you start a test run before you perform the update run of an archiving activity,
in order to identify any errors that may occur. You can only reload financial transactions that have been
archived correctly.
(C) SAP AG
AC810 8-49
Process-Oriented Archiving Checks

Product category 510/520/530 +
600
Order (600)
Contract
Expiration
Posting status
Not posted
Archive
Confirmation status
Not confirmed
Archive
SAP AG 1999
You can archive TR-TM financial transactions in the Money Market, Foreign Exchange, and Derivatives
areas. The functions available use the R/3 standard functions of the Archive Development Kit (ADK).
This ensures that the data in the archive files relating to the database conversion is retained consistently.
The ADK easily supports the connection of external archiving systems via the Archive Link. The
archiving of financial transactions includes the following functions:
Archiving and deleting financial transactions
Reloading archived financial transactions
Managing archive files
When you archive financial transactions, they undergo a whole range of technical and business checks,
which ensure that the data is retained consistently in the system.
You can now also archive orders that have not been executed (such as order expiration) when you
archive financial transactions. This function is useful if the due date of the order has been exceeded and
the transaction is therefore no longer relevant. To prevent orders from being archived or deleted
unintentionally, the system checks the minimum retention period of the transaction.
(C) SAP AG
AC810 8-50
Transaction and Position Management: Process Unit Summary
You now have an overview of the complete

transaction process in the SAP System.
You can use SAP Treasury Management to
map all possible processing steps - trading,
back office, release, and accounting
SAP AG 1999
(C) SAP AG
AC810 8-51
Transaction and Position Management: Process Exercises

Unit: Transaction and Position Management: Process
Topic: Trading
Transaction processes in SAP Treasury
You want to gain an overview of the complete transaction process, from

the trading stage through to back office and accounting.
1-1
Assignment to cash management levels:
Assign your product type PXX for fixed-term deposits to cash management levels for
your company code:
Make the assignment for the activity category:
10
Contract
Assign your product type PXX to the following levels:

Level: "TB" Time deposits: Banks
Level: "TP" Time deposits: Subledger
You can use the following entries as a basis:
- Product type 51A
- Activity category 10
1-2
Create another fixed-term deposit (term: 3 months) in the application using your
product type PXX.
Check the cash position of your fixed-term deposit in Cash Management for the level
(C) SAP AG
AC810 8-52
"Time deposits: Banks".
(C) SAP AG
AC810 8-53
Exercises

Topic: Back Office

2-1
Correspondence
Check the possible correspondence types for money market transactions in
Customizing.
Assign the following forms to your fixed-term deposit product type PXX. Pay attention
to the different activity categories:
Confirmation letter
Form: F_TR_ CONFIRM_ALL
Dealing slip
Form: F_TR_ DEALER_ALL
Generate a dealing slip and a confirmation letter for a newly-created transaction in the
application.
If necessary, match the counterconfirmation for external correspondence.
(C) SAP AG
AC810 8-54
Exercises

Topic: Accounting

3-1
Account assignment reference

Define an account assignment reference for fixed-term deposits in UNI and USD:
CXX00001 (XX = your group ID) for fixed-term deposits in UNI
(fixed-term deposits in UNI FI G/L account 116113)
CXX00002 (XX = your group ID) for fixed-term deposits in USD
(Fixed-term deposits in USD FI G/L account 116114)
Create fixed-term deposits in UNI and USD in the application. Use the account
assignment references you have just defined.
(C) SAP AG
AC810 8-55
3-2
Automatic account assignment reference

Define automatic account assignment references for fixed-term deposits in UNI and
USD:
-
For your company code, choose product category 510 for fixed-term deposits.
- Select the following additional characteristics:
- Product type
- Currency of financial transaction.
Define a new characteristic group for business partner CXX, and enter a valid
characteristic value (CXX).
Define a new characteristic group for product type PXX, and enter a valid
characteristic value (PXX).
Define two new characteristic groups for the currency of the financial transaction
and enter the valid characteristic values (UNI and USD).
Reassign the account assignment reference using the new characteristic groups for
the business partner, the product type, and the currencies. The characteristic
transaction type is not taken into consideration.
Use the account assignment reference CXX00001 for fixed-term deposits in UNI
with business partner CXX.
Use the account assignment reference CXX00002 for fixed-term deposits in USD
with business partner CXX.
Check the possible combinations.
Create fixed-term deposits in UNI and USD in the application. Does the system
default to the correct account assignment reference?
(C) SAP AG
AC810 8-56
3-3
Account determination
Create a fixed-term deposit in UNI with the following conditions:
- Nominal interest
- Full repayment upon maturity
Check the account determination settings for your fixed-term deposit in the chart of
accounts INT.
Define account determination for your own flow types:
- BXX1
- BXX3
- BXX5
Principal increase
Full repayment upon maturity
Nominal interest
Copy the following sample flow type settings (menu: Edit -> Copy):
New setting
Copy reference
FType
FType
Direction
Pmnt trans.
1100
1120
1200
+
+
+
+
+
BXX1
BXX3
BXX5
Principal increase
Repayment upon maturity
Nominal interest
Create a fixed-term deposit in UNI in the Treasury application. Check the cash flow.
Post the transaction in Financial Accounting (update run).
To which G/L accounts are postings made? What changes can you see in Cash
Management?
(C) SAP AG
AC810 8-57
Transaction and Position Management: Process Solutions

Topic: Trading
1-1
Assignment to Cash Management levels:

Customizing:
Treasury
Treasury Management
Money Market
Product Types
Assign Planning Levels
Only enter your company code!
1-2
Creating a fixed-term deposit:

Application:
Treasury
Treasury Management
Money Market
Trading
Fixed-Term Deposit
Create
Checking the cash position in Cash Management:

Application:
Treasury
Cash Management
Information System
Reports on Cash Management
Liquidity Analyses
Cash Position
(C) SAP AG
AC810 8-58
You may need to use the variant AC805-TFS-Bank and change the company code.
(C) SAP AG
AC810 8-59
Solutions

Topic: Back Office
2-1
Checking correspondence types:

Customizing:
Treasury
Treasury Management
Basic Functions
Define Correspondence Types
Assigning forms:
Customizing:
Treasury
Treasury Management
Money Market
Functions
Correspondence
Define Correspondence Activities
Button: New entries
Generating dealing slips and confirmation letters:

Application:
Treasury
Treasury Management
Money Market
Back Office
Correspondence
Outgoing Correspondence
(C) SAP AG
AC810 8-60
(C) SAP AG
AC810 8-61
Matching counterconfirmations:
Application:
Treasury
Treasury Management
Money Market
Back Office
Correspondence
Incoming Confirmations
Enter the data you receive from the bank or your business partner. The system
matches the confirmations and assigns the transaction to you. Save your entries.
(C) SAP AG
AC810 8-62
Solutions

Topic: Accounting
3-1
Defining the account assignment reference:
Customizing:
Treasury
Treasury Management
Money Market
Functions
Accounting
Account Assignment Reference
Define Settings
Button: New entries
Creating fixed-term deposits in UNI and USD

Application:
Treasury
Treasury Management
Money Market
Trading
Fixed-Term Deposit
Create
3-2
Automatic account assignment reference:

Customizing:
Treasury
Treasury Management
Money Market
Functions
Accounting
(C) SAP AG
AC810 8-63
Account Assignment Reference

Define Automatic Determination
Create fixed-term deposit investments in UNI and USD. Does the system default to the
correct account assignment reference?
Application:
Treasury
Treasury Management
Money Market
Trading
Fixed-Term Deposit
Create
Button: Administration
3-3
Checking account determination for fixed-term deposits in the chart of accounts INT:
Customizing:
Treasury
Treasury Management
Money Market
Functions
Accounting
Account Determination
Define Settings
Define account determination for your own flow types.
(C) SAP AG
AC810 8-64
Contents:
Posting via G/L accounts
Standard payment program
Payment program for payment requests
SAP AG 1999
(C) SAP AG
AC810 9-1
Payment Program for Payment Requests:

Unit Objectives

to:
Explain the various posting options in SAP Treasury
Management
Configure and run the payment program for
payment requests
SAP AG 1999
(C) SAP AG
AC810 9-2

Business Partners
Banks
Information System
SAP AG 1999
(C) SAP AG
AC810 9-3

Business Scenario
You want to familiarize yourself with the various

options for transferring the Treasury data that is
relevant for posting to Financial Accounting.
In addition to making preliminary postings to
bank clearing accounts, you can also use two
payment programs to make actual payments.
These payment programs will now be explained
in more detail.
SAP AG 1999
module.
(C) SAP AG
AC810 9-4
Processing Payment Transactions
- Posting to bank clearing accounts

- Clearing on basis of bank statement
Business partner
House bank
- Active payment using the payment

program
Business partner
SAP AG
Example: Subsidiary
USD
SAP AG 1999
If you conclude financial transactions with business partners that are also one of the company's house
banks, you do not usually make active payments.
In this case, the business partner (= house bank) makes the corresponding postings to your bank account.
The flows posted to the bank clearing accounts by Treasury Management are cleared when the bank
statement is received.
If you conclude financial transactions with business partners that are not house banks, you have to make
an active payment (triggered by your company or your business partner). Two programs are available for
making payments in the Treasury area:
You can use the FI payment program, which is based on postings to customer accounts. The business
partner must have been created in the system as a customer. The postings from TR-TM generate open
items in the customer account, which are then settled using the FI payment program ("Automatic
payment transactions".).
Alternatively, you can use the Payment program for payment requests, which processes payments on
the basis of G/L accounts. In this case, the posting generates "payment requests", which are then
settled by the payment program for payment requests ("Automatic payment transactions for payment
requests").
(C) SAP AG
AC810 9-5
Processing Payment Transactions: Overview
FI pmnt program
Pmnt prog. for PR
Four alternatives:
1) Post to G/L accounts
2) Post to G/L accounts with payment request
3) Post to customer accounts
x]
[ 4) Post to customer accounts with payment request
SAP AG 1999
Use of the four alternatives - Examples:

1) Transactions with the house bank are usually processed as pure G/L account postings.
2) Transactions with a partner that is not a house bank, without using a customer account Payment
using the payment program for payment requests. Payment requests are documents used to generate
payment media. They are usually generated automatically when you post flows that are due. The
payments are then made individually or jointly using the payment program for payment requests
(F111).
3) Transactions with a partner that is not a house bank, using a customer account. Payment using
the FI payment program.
4) Transactions with a partner that is not a house bank, using a customer account. Payments
made with the payment program for payment requests in order to use the netting option.
(C) SAP AG
AC810 9-6
1) Posting to G/L Accounts
Business
partner
Bank
House bank
Standing
instructions
Transaction - Payment Details

D Currency ...
House
bank
Acct
ID
UNI
...
DB
GIRUN
UNI
...
DB
GIRUN
Payment
activity
Payment
request
SAP AG 1999
In the transaction, you enter the information required for processing payments on the Payment details
tab.
In the case of a pure G/L account posting, you must enter the following:
-
D:
Currency:
House bank:
Account ID:
(C) SAP AG
Direction of the flow (inflow, outflow)

Currency of the flow
House bank key (ID)
Key for the account with the house bank
AC810 9-7
1) Posting...
... via clearing accounts

IDES
Fixed-term deposit position
(Deuba)
House bank account

(Deuba)
100 m
100 m
Fixed-term
deposit
House bank
DEUBA
Bank clearing acct

100 m
100 m
Fixed-term deposit
Statement from bank
SAP AG 1999
If you conclude financial transactions with business partners that are also house banks, you do not
usually make active payments. In this case, the corresponding flows are posted to the bank account by
the business partner. The flows posted to the bank clearing accounts by Treasury Management are
cleared when the bank statement is received.
(C) SAP AG
AC810 9-8
3) Posting to Customer Accounts
Business
partner
Bank
House bank
Standing
instructions
Transaction - Payment details

D Currency ...
House Account Payment

activity
bank ID
Payer/ee
PBank Pmnt
mth.
UNI
...
DB
GIRUN
Recipient
B1
UNI
...
DB
GIRUN
Recipient
B1
SAP AG 1999
In the transaction, you enter the information required for processing payments on the Payment details
tab.
The entries required for payment using the FI payment program on the basis of customer accounts
include:
- D:
- Currency:
- House bank:
House bank key (ID)
- Account ID:
- Payment acty: X = Posting to customer account
- Payer/ee:
Person receiving the payment (usually the business partner)
- PBank:
Partner bank ID (encodes the bank details - bank and account - of the
payee)
- Payment method:
Procedure used to process payments (in the payment run), for example U =
transfer
If you make postings to customer accounts and use the FI payment program, the system uses the house
bank specified for the customer. If no house bank has been specified for the customer, the system uses
the house bank defined in account determination for the FI payment program. The entries on the
Payment details tab in the transaction are not used.
(C) SAP AG
AC810 9-9
3) Processing Payment Transactions...
via customer accounts

Fixed-term deposit
Fixed-term deposit
position (broker)
House bank Current account (Deuba)
100 m
50 m
150 m
100 m
50 m
1st fixed-term deposit

2nd fixed-term deposit
Broker
Payment
order
House bank
DEUBA
Customer (broker)
150 m
IDES
Payment

150 m
150 m
Payment
(Trigger PR run)
Bank statement
SAP AG 1999
If you want to make active payments using the FI payment program, you must post the payment flows to
customer accounts. In other words, you have to create the business partner as a customer. The postings
from TR-TM generate open items on this customer account, which are then settled by the FI payment
program ("Automatic payment transactions").
(C) SAP AG
AC810 9-10
3) Automatic Payment: FI Payment Program

Payment
control
Current
parameters
Master
Documents
Proposal run
Proposal data set
Edit
proposal
Payment run
Print data set
Print program
Check
Bank transfer
Eurocheck
Payment
advice
note
Payment
summary
IDOC
SAP AG 1999
One of the options is to make postings to customer accounts and use the FI payment program. This
option is used in the loans area, for example.
In connection with account determination in the Treasury posting interface, you can control whether
payment activities involve a flow of funds. You can post transactions directly to the payer/ee in order to
generate corresponding payment documents using the payment program.
Functions of the payment program:
- Automatic selection of the items to be paid and any exceptions (such as blocked items)
- Generation of payment documents (customer accounts / vendor accounts)
- Generation of payment data
- Generation of payment lists and logs
- Generation of payment media (such as checks) for this payment data by print programs
You usually carry out a payment proposal run first. This run creates a proposal data set, which you can
edit prior to the actual payment run.
(C) SAP AG
AC810 9-11
2) + 4) Automatic Payment: Payment Program for PR
Business
partner
Bank
House bank
Standing
instructions
Business partner - Payment details

D Currency ... House Account Payer/ee Partn.
bank
bank ID
...
Pmnt
request
UNI
...
DB
GIRUN
Recipient
B1
...
UNI
...
DB
GIRUN Recipient
B1
...
Indiv.
pmnt
Pmnt
mth.
ESU
ESU
SAP AG 1999
To use the payment program for payment requests, you must enter the following data:
- D:
- Currency:
- House bank:
House bank key (ID)
- Account ID:
- Payment activity:
Blank = G/L account posting, or X = customer account posting
- Payer/ee:
Person receiving the payment (usually the business partner)
- Partner bank: Partner bank ID (encodes the bank details - bank and account - of the
payee)
- Payment request:
Blank = Do not generate a payment request
X = Generate a payment request
- Individual payment:
Blank = This payment flow may be settled together with other flows,
for example for netting purposes
- Payment methods:
List of payment methods used to process payments in the payment run
If you post payments using the payment program for payment requests, you can define in Customizing
which bank account should be used - the bank account specified in the payment details for the
transaction, or the bank account found using account determination for the payment program.
(C) SAP AG
AC810 9-12
Processing Payment Transactions
2)+4)...via a clearing account for payment requests

Fixed-term deposit
Fixed-term deposit
position (broker)
House bank Current account (Deuba)
100 m
50 m
150 m
100 m
50 m
1st Fixed-term deposit

2nd Fixed term deposit
Broker
Payment
order
House bank
DEUBA
2) Clearing acct for PR

4) Customer account
150 m
IDES
Payment

150 m
150 m
Payment
(Trigger PR run)
Bank statement
SAP AG 1999
If you conclude transactions with a partner that is not a house bank, and you want to make active
payments, you have the option of generating "payment requests". Payment requests are processed using
a special payment program - the payment program for payment requests.
Example:
- You conclude several transactions with a partner that is not a house bank.
- When you post the fixed-term deposit, the system automatically generates a payment request.
- Payment requests are managed in the clearing account for payment requests.
- You can group/net the payments from payment requests.
- To make the payment, you trigger a payment run in accounting, and the system transfers the
payment amount to the bank clearing account.
- At the same time, it generates a payment medium, which is passed on to the house bank.
- When the bank statement arrives, the payment is posted to the bank account.
(C) SAP AG
AC810 9-13
2) + 4) Automatic Payment: Payment Program for PR

Payment
control
Current
parameters
Master
Payment
request
Proposal run
Documents
Proposal data set
Edit
proposal
Payment run
Print data set
Print program
Check
Bank transfer
Eurocheck
Payment
advice
note
Payment
summary
IDOC
SAP AG 1999
Functions of the payment program for payment requests:

- Generation of payment requests (PR): Automatic request selection
- Generation of payment documents (customer accounts / vendor accounts / G/L accounts): Transfer
posting to the corresponding bank (sub-)accounts for each house bank and currency
- Generation of payment data
- Generation of payment lists and logs
- Generation of payment media (such as checks) for this payment data by print programs
You usually carry out a payment proposal run first. This run creates a proposal data set, which you can
edit prior to the actual payment run.
(C) SAP AG
AC810 9-14
Prerequisites
You must maintain the relevant Customizing settings for the standard
payment program.
You must make additional settings for the payment program for
payment requests.
Use
The payment program settles payment requests (PR).
It can be used in conjunction with postings to:
Customer accounts
Vendor accounts
G/L accounts
SAP AG 1999
(C) SAP AG
AC810 9-15
Payment Requests: Customizing
Define the number range for payment requests.

Set up and assign a planning level for payment
requests for Cash Management.
Define a clearing account for payment requests in the
chart of accounts.
Assign this clearing account to the company code.
Where appropriate, make the relevant settings in the
Standing Instructions: Set the Payment request and
Individual payment indicators; enter a payment
method in the list of payment methods.
...
SAP AG 1999
(C) SAP AG
AC810 9-16
Payment Program: Parameters

Automatic Payment Transactions: Parameters
Payment medium
Additional log
Dynamic selections
Run date
MM/19/YYYY
Posting date
MM/19/YYYY
Identification
1423
Next payment run on
MM/20/YYYY
Payments control
Company code
0001
Payment methods
UE
to
1000
Selections
TR-LO
TR-TM
Origin
to
Vendor account
to
Customer account
to
G/L account
bis
Further selections
Documents entered up to
Documents up to
MM/19/YYYY
/
SAP AG 1999
You can use field selection control to show or suppress the fields for the input parameters.
In Customizing for bank accounting, you can define which of the following fields should appear and be
ready for input when payment parameters are entered:
-
Vendor accounts
Customer accounts
G/L accounts
Created on
Origin
You can use Origin indicator to define the applications for which payments should be generated.
(C) SAP AG
AC810 9-17
Origin Indicator
New Origin indicator to specify the application for which

payments are to be generated
Possible values: TR-CM-BT, TR-TM, TR-LO
If payment requests have different origins:
Payment requests can be netted
You control how payment requests are netted in
Customizing for bank accounting
The payment program only uses the attributes of the
indicator for which the Grouping flag is set.
SAP AG 1999
The origin indicator is a new field. You use it to specify the application for which you want to generate
payments, and to determine how the payment should be processed. Origin indicators for the following
applications that generate payment requests are delivered with the system:
TR-CM-BT (Bank account transfers from Cash Management)
TR-TM (Transactions from the Treasury Management areas money market, foreign exchange,
securities, and derivatives)
TR-LO (Transactions from Loans Management)
(C) SAP AG
AC810 9-18
Payment Program: Field Selection Control
You can determine which fields are

shown or suppressed on the screen
for entering the payment
parameters:
Vendor accounts
Customer accounts
G/L accounts
Created on
Selections
Origin
Vendor accounts
Customer accounts
G/L accounts
Created on
Distribution
ALE active
Origin
SAP AG 1999
In the global settings for bank accounting in Customizing, you can define which of the following fields
should appear and be ready for input in the screen for entering payment parameters:
-
Vendor accounts
Customer accounts
G/L accounts
Created on
Origin
If you do not want to make any restrictions, and always want to make payments for all the items that are
due, do not select any of the fields.
(C) SAP AG
AC810 9-19
Customizing: Origin Indicator

Display View "Origin Settings": Overview
Origin settings
Origin
Name
Available amts Account determ.
Grouping
Collective posting
TR-CM-BT Bank account transfers

TR - LO
Loans Management
TR - TM
Treasury Management
Customizing settings for each origin indicator:

Do not check available amounts (Y/N)
Account determination from application or payment program
(to determine bank clearing account)
Grouping flag: Use the attributes of this indicator (Y/N)
SAP AG 1999
The Customizing settings for the origin indicator let you control how the payment transactions are
processed:
Should the payment program check the available amounts? If you set this indicator, the payment
program for payment requests does not check the available amounts.
Should the bank clearing account for the payment be taken from account determination for the
application or account determination for the payment program? If you do not set this indicator, the
system takes the bank clearing account from account determination for the payment program. The
result of account determination in the application is ignored.
If payment requests with different origins are netted, should the system use the attributes defined for a
certain origin? If you set this indicator, the payment program uses the attributes for this origin when
you net payment requests with different origins.
If you want to net payment requests with different origins, you must assign these origins to each other in
Customizing (IMG step: Bank Accounting -> Business Transactions -> Payment Transactions ->
Payment Handling -> Assign Origin to Combination of Payments).
(C) SAP AG
AC810 9-20
Payment Program: Other New Features
You can edit the following in the payment proposal:

Payments (block)
Payment methods (change)
House banks (change)
Reversing payments:
Reset clearing posting, reverse payment document
Reset clearing postings for payment requests
Reverse original transaction
SAP AG 1999
You can now edit the payment proposals for payment requests (block payments, change payment
methods and house banks). The authorization to make these changes is controlled by a new authorization
object F_PAYRQ. This object is used to control authorization for creating, reversing and displaying
payment requests.
The system works out the due date of the payments by counting back the number of days between the
value date at the house bank and the date of the payment run, taking the factory calendar into
consideration. Payments that are not yet due are shifted to the next payment run. To count back the due
date, you must specify the difference in days between the payment run and the value date at your house
bank.
You can now fully reverse a payment. Transaction F8BW reverses the clearing posting for payment
requests. Reversing a payment, including reversal of the original transaction, involves the following
steps:
1. Reset clearing posting, reverse payment document
2. Reset clearing postings for payment requests
3. Reverse original transaction
(C) SAP AG
AC810 9-21
Netting - General Information
If you conclude transactions with business partners that

are not house banks, in other words, where payments are
actually exchanged, there may be cases where you want to
settle several transactions together.
Example: Fixed-term deposit in UNI and fixed-term loan in UNI
The open payment amounts are netted out and only the net amounts are
actually paid.
Advantage: Reduced transaction costs and bank charges
For this purpose, you can group transactions in "netting

units".
SAP AG 1999
You can currently net transactions in the money market, foreign exchange, derivatives and securities
areas, or across several of these areas.
You can either net G/L account payments using G/L account payment requests, or payments posted to
customer accounts using customer account payment requests.
(C) SAP AG
AC810 9-22
Netting - Process
Making a netting arrangement

All netting arrangements are explicit agreements
between business partners in order to simplify payment
processing.
The transaction confirmation (correspondence) contains a Confirmation
reference to the other related transactions.
Result after creating a netting unit

Changes to the relevant transaction fields are blocked
(particularly due date, amounts, house bank data and payment
data).
The transactions and corresponding payment requests are
assigned a common grouping reference.
SAP AG 1999
Payment requests have a special Grouping term field. You can use this field to control which payment
requests you want to separate from others (application).
All the payment flows and payment requests linked to the same netting unit are given the same unique
grouping term which separates them from other payment requests. This indicates that they should not be
grouped together with other requests.
(C) SAP AG
AC810 9-23
Netting and Payment Requests
Settlement
Contract
Administrative Data
Administrative Data
CoCd 0001
SAP AG Transaction 4711
PType
1
Activity
Basic51a
Data
TType 100
Act.cat.
Contract
CoCd 0001
SAP AG Transactn 4711
PType 51a
Activity
1
TType 100
Act.cat. Contract
CoCd 0001
PType
51a
1
Activity
Basic
Data
TType 100
Act. cat. Sttlmnt
CoCd 0001
PType 51a
1
Activity
TType 100
Act.cat. Sttlmnt
Transactions
TR
Netting
Posting
Create Netting Transaction: Data

Cat.
No.
Partn
KMP
001
DB
Netting
Val.dte 01/01/YY
Deutsche Bank
Netting
TR
Treasury: Posting of Flows

Testmandant
Walldorf
Treasury: Buchungen
Protokoll
Accounts
FI
Payment
requests
FI
SAP AG 1999
Netting is a special form of joint payment of transactions. As a rule, all transactions can be paid jointly.
Netting represents a specific part of these transactions.
The decision to create a netting transaction is not usually taken until shortly before the due date of cash
flows. This normally takes place the day the transactions involved are posted. Only then do you know
which transactions (e.g. forward exchange and spot exchange transactions) are suitable for net payment.
You can group flows together in netted transactions provided they have
-
the same company code

the same business partner
the same payment date
the same payment methods
- and other payment program criteria
(C) SAP AG
AC810 9-24

Unit Summary
You now have an overview of the various

posting and payment options in SAP Treasury
Management.
In addition, you have learned the procedure for
netting financial transactions in the SAP
System.
SAP AG 1999
(C) SAP AG
AC810 9-25
Payment Program for Payment Requests Exercises

Unit: Payment Program for Payment Requests
Topic: Executing a Payment Run
Executing a payment run in SAP Treasury Management
You do not have a current account with your business partner, and must
therefore instruct your house bank to make a payment to your business
partner's bank. You make the payment using the payment program for
payment requests.
1-1
Create a new fixed-term deposit (Product type 51A, Transaction type 100). The start of
the term is today. The business partner is the CITIBANK-BROKER (CITI). Since the
Citibank broker is not a house bank, you need to make a physical payment from your
house bank account at Deutsche Bank. You could also use your partner BPXX.
Look at the payment details in the transaction (the payment details have been proposed
by the system on the basis of the standing instructions entered for Citibank). Pay
particular attention to the settings for the payment program for payment requests.
1-2
Settle the transaction and enter an account assignment reference.
1-3
Post today's principal increase resulting from the transaction. Look at the accounting
document (balance sheet account to clearing account for payment requests).
1-4
Look at the open items in the clearing account for payment requests in Financial
Accounting.
(C) SAP AG
AC810 9-26
1-5
Carry out the payment run.

- Run date: TODAY
- ID:
TRXX (XX = your group ID)
Enter the parameters:

- Posting date:
- Due by:
- Payment methods:
- Bank account:
- Docs entered up to:
TODAY
TODAY
U = Transfer (outgoing payment only)
118888
TODAY
Also enter the details for the additional log:

- Opt for payment method selection in all cases for account 118888.
Save your parameter entries.
Schedule a proposal run to start immediately, and then display the log.
Now schedule the actual payment run (start immediately) and display the log.
The status message "Posting orders: 1 generated, 1 completed" should appear.
1-6
Look at the cleared items in the FI clearing account for payment requests.
The payment run has cleared the clearing account for payment requests and posted the
payments to the bank clearing account 113105. This account will be cleared when the
bank statement is posted.
(C) SAP AG
AC810 9-27
Payment Program for Payment Requests Solutions

Unit: Payment Program for Payment Requests
Topic: Executing a Payment Run
1-1
Creating a new fixed-term deposit, start of term = today

Application:
Treasury
Treasury Management
Money Market
Trading
Fixed-Term Deposit
Create
Check the payment details in the transaction.

DB is entered as the house bank, and GIRUN as the house bank account. The
payee is CITI. The key for the payee bank details is LZB01. The Payment requests
indicator is set. The possible payment methods are direct debit for incoming
payments, and checks and transfers for outgoing payments.
(C) SAP AG
AC810 9-28
1-2
Settling the transaction and entering an account assignment reference:
Application:
Treasury
Treasury Management
Money Market
Back Office
Fixed-Term Deposit
Settle
1-3
Posting the principle increase for the transaction:
Application:
Treasury
Treasury Management
Money Market
Accounting
Posting
Execute
1-4
Viewing the open items in the clearing account for payment requests in Financial
Accounting:
Application:
General Ledger
Account
Display/Change Line Items
Enter: Account 118888
Select Open items field
(C) SAP AG
AC810 9-29
1-5
Performing the payment run:
Application:
Treasury
Treasury Management
Money Market
Accounting
Payment
Payment Request
Enter the parameters
Button: Parameters
Enter the details for the additional log
Button: Additional log
Save your parameter entries.
Schedule a proposal run to start immediately, and then display the log.
Button: Proposal
Button: Proposal run log
Now schedule the actual payment run (start immediately) and display the log.
Button: Payment run
Button: Payment run log
The status message "Posting orders: 1 generated, 1 completed" should appear.
(C) SAP AG
AC810 9-30
1-6
Viewing the cleared items in the clearing account for payment requests in Financial
Accounting:
Application:
General Ledger
Account
Display/Change Line Items
Enter: Account 118888
Select Cleared items field
The original posting document now contains information on the clearing posting.
The payment run has cleared the clearing account for payment requests and
posted the payments to the bank clearing account 113105. This account will be
cleared when the bank statement is posted.
(C) SAP AG
AC810 9-31
Contents:
Data: overview
Manual maintenance
Market data transfer from spreadsheets
Market data file interface
Datafeed interface
Market data monitoring
SAP AG 1999
(C) SAP AG
AC810 10-1
Market Data Management: Unit Objectives

Explain the various options for entering and
importing market data into the SAP system
SAP AG 1999
(C) SAP AG
AC810 10-2

Business Partners
Banks
Information System
SAP AG 1999
(C) SAP AG
AC810 10-3
Market Data Management: Business Scenario
Before you can conclude certain

transactions (such as forex or securities
transactions), you must fill the market data
tables in the SAP system.
You can fill the tables in different ways:
Manually
Using a spreadsheet
Using a file interface
Using a datafeed link
SAP AG 1999
module.
(C) SAP AG
AC810 10-4
Market Data: Overview
The following market data can be imported into

the SAP system:
Rates and prices:
Exchange rates
Indexes (not used in MRM)

Indexes (not used in MRM)
Commodities (not used in MRM)
Statistics data:
Volatilities
Correlations
Beta factors (not used in MRM)
SAP AG 1999
The datafeed function groups the above rate and price information into instrument classes:
Name
Instrument class
01
Currencies
02
Securities
03
Interest rates
04
Indexes
05
Commodities
21
Forwards (swap rates)
31
Currency volatilities
32
Securities volatilities
33
Interest rate volatilities
34
Index volatilities
(C) SAP AG
AC810 10-5
Via file interface
Reference interest rates (such as

LIBOR, EURIBOR)
Via datafeed
Securities prices
Market Data: Current Exchange Rates
Type
0011
0011
0012
0012
0013
0013
0014
0014
0021
0021
0022
0022
0023
0023
0024
0024
From
UNI
USD
UNI
USD
UNI
USD
UNI
USD
UNI
USD
UNI
USD
UNI
USD
UNI
USD
To
USD
UNI
USD
UNI
USD
UNI
USD
UNI
USD
UNI
USD
UNI
USD
UNI
USD
UNI
Valid from
01/01/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
Rate
Translation ratios
1: 1
0.57143
1: 1
1.75000
1: 1
0.57143
1: 1
1.75000
1: 1
0.57143
1: 1
1.75000
1: 1
0.55555
1.80000
1: 1
0.57143
1: 1
1.75000
1: 1
0.57143
1: 1
1.75000
1: 1
0.57143
1: 1
1.75000
1: 1
0.55555
1: 1
1.80000
1: 1
SAP AG 1999
One way of entering market data in the SAP system is to enter it manually.
You first have to define the different types of market data in Customizing.
Examples:
- Define the rate types for exchange rates
- Define the reference interest rate names for interest rates (such as LIB_6_UNI)
- ...
You then maintain the current market data, either in Customizing or in the application.
(C) SAP AG
AC810 10-6
Market Data: Current Reference Interest Rates
Reference
DM_MRM_3MG
DM_MRM_4JB
DM_MRM_4JG
DM_MRM_5JB
DM_MRM_5JG
DM_MRM_6MB
DM_MRM_6MG
DM_MRM_7JB
DM_MRM_7JG
FIB_6
HYPZINS
HYPZINS
HYPZINS
HYPZINS
HYPZINS
LIB_6
Short text
Eff. from
06/10/YYYY
06/10/YYYY
06/10/YYYY
06/10/YYYY
06/10/YYYY
06/10/YYYY
06/10/YYYY
06/10/YYYY
06/10/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
Position...
Int. rate
6.0000000
6.0000000
6.0000000
6.0000000
6.0000000
6.0000000
6.0000000
6.0000000
6.0000000
7.0000000
5.2500000
5.5000000
5.7500000
6.5000000
6.0000000
8.1000000
Entry 16 of 66
SAP AG 1999
You can use the Spreadsheet function (report program RFTBDF_OLE) to call up market data in a
spreadsheet directly from R/3 and transfer this data to the system.
The former workaround using the file interface is no longer necessary.
A template for Microsoft Excel 97 is delivered with the system. If you use a different spreadsheet or
version, you will need to adjust the template.
(C) SAP AG
AC810 10-7
Market Data File Interface
1. Generate request list

2. Enter data:
- manually
- from data provider
3. Import market data file
SAP AG 1999
Another way of entering market data is by importing it to the SAP System using a file interface.
You collect the rates and prices for which you would like to request the current values (in file format) in
a request list in R/3.
You then fill the request file with current data, either manually or via a data provider.
Subsequently, you import the updated file to the R/3 System, and the SAP tables are automatically filled
with the new values.
(C) SAP AG
AC810 10-8
Market Data File: Generate Request List
Output
File name
/usr/sap/trans/tmp/request.dat
Instrument class
Currencies
Securities
Interest rates
Indexes
Selection
Key 1
Key 2
Instrument property
to
to
to
SAP AG 1999
This function provides a file interface that can generate a list of market data required by R/3. Within the
request list, data is grouped according to instrument class (currencies, securities, interest rates and
indexes).
Check that the directory path of the output file you have specified is valid before you call up the report.
If no file with the given file name exists, the report creates one. If a file already exists, the report deletes
the contents and fills it with the current request data.
(C) SAP AG
AC810 10-9
Market Data File: Import File
File
Name
/usr/sap/trans/tmp/file
Other
Test run
Generate error file
SAP AG 1999
This function inserts data from an input file with a specific file format into the operative SAP market
data tables. Make sure you adhere to this format, since incorrect entries can only be corrected by making
time-consuming manual amendments (format: see report documentation).
(C) SAP AG
AC810 10-10
Market Data File: Customizing
1. Source of market data: Which provider?

2. Conversion tables:
Example: Exchange rates
Data provider
R/3
Rate type M
LAST
Rate type B
ASK
...
Enter
manually
...
Fill automatically
Create Tables for Code Conversion
SAP AG 1999
Define the data providers for the file interface.

For each data provider, you must make the settings for converting the codes used by the R/3
into the codes used by the data provider for the following:
-
System
Currencies
(currency names, exchange rate types)
Securities
(exchanges, security price types, security ID)
Reference interest rates (interest rate definitions)
Indexes (index definitions, index types)
The market data names you have defined in R/3 need to be entered in the conversion tables.
You can either enter the names manually, or let the system fill the conversion tables with all or some of
the names automatically (IMG step: Create Tables for Code Conversion).
To make the conversion settings, ask your data provider how the names you have defined in R/3 are
defined externally, in other words, what the related instrument properties are called.
(C) SAP AG
AC810 10-11
Datafeed Architecture
SAP R/3
Datafeed provider
TR applications
Market
data
buffer
Translation
table
Forex
...
Information
providers
Reply
Request
Market
Risk Securities
Mgmt
Operative
SAP tables
External
interface
program
Refresh
Reply
Request
Datafeed
Internet/
RFC
Log
Datafeed
server
SAP AG 1999
You can also use the datafeed interface to import market data into the SAP system.
To do so, you must install a stock exchange information system and a corresponding partner program
with which the R/3 datafeed interface can communicate.
(C) SAP AG
AC810 10-12
Datafeed Interface
1. Refresh current data

2. Display current data
...
.........
R/3
Data provider
Display
market data
Buffer
Ref. int. rates
Ref. int. rates
Ref.
int. rates 3.4
LIB_6_UNI
LIB_6_UNI 3.4
...
...
LIB_6_UNI
3.4
...
Refresh
market data
Data
(save, if required)
SAP AG 1999
You can "update" selected market data by importing current values via the datafeed interface and writing
them to a market data buffer.
To save the updated values to the market data tables, set the corresponding flag when you request the
market data. (prerequisite: you have also set the relevant flag in the Customizing settings for the
translation table)
You can update the values for all instrument classes, or just selected classes (currencies, securities,
interest rates, indexes, forwards, volatilities for currencies/interest/securities/indexes).
The Display Market Data function displays the market data last imported into the buffer.
(C) SAP AG
AC810 10-13
Datafeed: Customizing
Technical settings
Define datafeed name
Define RFC destination, assign
Mode (type of connection):
- synchronous
- asynchronous (= transactional)
Conversion tables / translation table

Schedule market data retrieval
SAP AG 1999
Technical Settings: Settings for communication between the R/3 System and the external partner
program; settings for the results/error log.
Translation Table: Definition of the required market data and the external datafeed notation; settings for
requesting and updating market data.
Schedule Market Data Retrieval: Definition of the market data to be requested and the request times.
(C) SAP AG
AC810 10-14
Define Datafeed Name
Data provider Description

Bridge Telerate TTRS/RFE
TELERATE
Reuters SSL Interface
REUTERS
Position...
Entry 1 of 1
SAP AG 1999
In this IMG step, you define the datafeed name. You use this name to make requests from the
application.
(C) SAP AG
AC810 10-15
Define RFC Destination
RFC destination
RFC_DATAFEED_SYNC
Gateway
Technical settings
Connection type T
TCP/IP connection
Start
Activation type
Registration
Trace
Start on
Application server
Explicit host
Front-end workstation
Explicit host
Program
Target host
/usr/aws/bin/rfc_datafeed
hw1455.wdf.sap-ag.de
Description
Datafeed connection: Dow Jones Telerate to R/3
SAP AG 1999
In this IMG step, you define all the logical links between the external partner program of the datafeed
provider and the R/3 System. These logical links are called RFC (Remote Function Call) destinations
and can be set up synchronously or asynchronously.
(C) SAP AG
AC810 10-16
Synchronous Communication
SAP R/3 process
External interface
program
Time
Activity
Requ
est
External
communication
Unnecessary
waiting time
Activity
External
communication
Activity
Reply
Data transfer is not repeated

if an error occurs!
SAP AG 1999
If data is transferred synchronously, the external program is responsible for keeping the communication
channel to the R/3 function module requesting the data open, since the R/3 module waits until it receives
the requested values or an error message. Once the requested data has been transferred, the connection is
deactivated.
(C) SAP AG
AC810 10-17
Asynchronous (Transactional) Communication
Time
SAP R/3 processes

Requ
Activity
External interface
program
est
Activity
waiting
time
Activity
Reply
Network
error
part
pt / 1st
m
e
t
t
a
1 st
y
Repl
Activity
atte
2 nd
/ 1s
mp t
t pa r
p
Re
Activity
1s t
ly
em
att
pt
External
communication
Activity
d
/ 2n
p ar
External
communication
SAP AG 1999
If the data is transferred synchronously, the request table is transferred to the external program. The
connection is then deactivated. Once the external program is ready to deliver data, it dials into the R/3
System independently and sends the reply. To use asynchronous communication, you must set up a
special R/3 user (user type CPIC, authorization F_DTFEED_ALL).
Advantages:
Large requests do not block R/3 batch jobs and online processes.
Error situations are minimized (network problems, feed problems, ...).
If an error occurs, R/3 automatically repeats the data transfer.
Market data can be delivered in blocks according to priority.
(C) SAP AG
AC810 10-18
Conversion Tables / Translation Table
Conversion tables
Maintain manually
or
generate automatically
Translation table
Maintain manually
or
generate automatically ( = copy master data)
Special case - Securities:
Import Securities Information from Datafeed Provider
Check translation table
SAP AG 1999
(C) SAP AG
AC810 10-19
Datafeed: Conversion Tables
Example: Securities
R/3
Data provider
Security price type

05 Closing price
External security price type

=
...
Enter
manually
CLOSE
...
Fill automatically
Create Tables for Code Conversion
SAP AG 1999
For each data provider, you must make the settings for converting the codes used by the R/3 System into
the codes used by the data provider for the following:
Currencies (exchange rate types)
Securities (security price types)
Volatilities (volatility types)
Indexes (index types)
To make the conversion settings, ask your data provider how the names you have defined in R/3 are
defined externally, in other words, what the related instrument properties are called.
(C) SAP AG
AC810 10-20
Datafeed: Translation Table
Example: Securities
Data provider
R/3
Security price type

Security ID no.
Exchange
CLOSE
FSAG
...
Enter
manually
...
Fill automatically
Automatic Entry of Data in the Translation Table
(= copy master data)
SAP AG 1999
The translation table links the R/3 notations for the market data to the corresponding datafeed notations
used by the external partner program.
The R/3 notation can be derived automatically from the existing master data in R/3.
You must enter the datafeed notation and any additional information manually.
If you have already defined conversion codes, and fill the translation table automatically, the system
converts the corresponding data and enters the instrument property in datafeed notation as the default
value in the translation table. Defining the conversion codes beforehand saves you from having to
maintain the translation table manually.
(C) SAP AG
AC810 10-21
Fill Translation Table Automatically

(= Copy Master Data)
Select master data

Currencies
Securities
Interest rates
Indexes
Datafeed
Name
Selection
1st key definition
to
2nd key definition
to
Instrument property
to
SAP AG 1999
(C) SAP AG
TELERATE
AC810 10-22
Maintain Translation Table: Securities
Instr. class
02
Security
0000000716460
0000000716460
0000000716460
0000000716460
0000000716463
0000000716463
0000000716463
0000000716463
0000000804010
0000000815510
0000000815510
0000000815512
0000000815512
Exchange
RT Datafeed
FRANKFURT 01 BRIDGE
FRANKFURT 05 BRIDGE
01 BRIDGE
XETRA
XETRA
05 BRIDGE
FRANKFURT 01 BRIDGE
FRANKFURT 05 BRIDGE
XETRA
01 BRIDGE
05 BRIDGE
XETRA
01 BRIDGE
XETRA
FRANKFURT 01 BRIDGE
XETRA
01 BRIDGE
FRANKFURT 01 BRIDGE
01 BRIDGE
XETRA
Instrument
=FSAG
=FSAG
LQSAG
LQSAG
=FSAG3
=FSAG3
LQSAG3
LQSAG3
LQDBK
=KCKST
LQCKST
=FCKSV
LQCKSV
SAP AG 1999
In the translation table you maintain the external datafeed notations and all the necessary parameters for
the data provider.
Example:
R/3 notation:
- Security name: 716463 (SAP preference)
- Exchange: Frankfurt
- Rate type: 05
Datafeed notation (example for Dow Jones, April 1998):
- Instrument name: =FSAP3
- Data source: BRIDGE
- Instrument property: CLOSE
In the detail screen, you can set an indicator for each class to determine whether the user should have the
option of saving the imported security prices permanently. If this is the case, the user can set an indicator
in the application to actually save the updated values.
(This save option is available for all types of datafeed data.)
(C) SAP AG
AC810 10-23
Import Securities Information from Datafeed

Provider
Datafeed
Name
TELERATE
Datafeed provider file to be imported

/usr/sap/trans/tmp/germany
File name
Securities selection
Security name
Exchange
to
to
Names for security price type

R/3 name
Datafeed name
05
CLOSE
SAP AG 1999
Import Securities Information from Datafeed Provider:

If the datafeed provider supports this function, you can import a file for each security price you request,
which automatically translates the R/3 notation into the datafeed notation in the translation table and
adds the relevant datafeed parameters.
Prerequisites: You must use the same name in the security class data in R/3 as the datafeed provider
uses, and the datafeed provider must make an input file available.
(C) SAP AG
AC810 10-24
Check Translation Table
Datafeed
Name
TELERATE
Market data selection

Instrument class
1st key definition
02
0000000716460
to
2nd key definition
FRANKFURT
to
Instrument property
to
0000000716463
to
SAP AG 1999
This report checks whether the translation table is fully configured. Incorrect and incomplete entries are
displayed in an error list.
(C) SAP AG
AC810 10-25
File Interface / Datafeed: Market Data Monitoring
Class
01
02
03
04
31
33
Percent
5
5
5
5
5
5
SAP AG 1999
You can define a maximum tolerance limit for price deviations per instrument class. When you import
market data, the system checks whether the price deviations fall within these limits. If the difference
between the new price and the most recently imported price exceeds the defined range, the error log
contains a warning message. This allows you to identify incorrect prices, which you can then adjust
manually.
(C) SAP AG
AC810 10-26
Market Data Management: Unit Summary
You are now familiar with the various options

for managing market data in the SAP System.
By configuring the datafeed interface, you can
import external market data to the SAP system
upon request.
SAP AG 1999
(C) SAP AG
AC810 10-27
Information System
Contents:
Overview of reporting options
Standard reports
SAP AG 1999
(C) SAP AG
AC810 11-1
Information System: Unit Objectives

to:
Describe the various reporting options in SAP Treasury
SAP AG 1999
(C) SAP AG
AC810 11-2

Business Partners
Banks
Information System
SAP AG 1999
(C) SAP AG
AC810 11-3
Information System: Business Scenario
You have created various transactions in

the SAP Treasury applications and now want
to gain an overview of the reporting options
the module offers, including drilldown reporting.
SAP AG 1999
module.
(C) SAP AG
AC810 11-4
Information System Structure: Example - Journal

...
Accounting
Treasury
Treasury Management
Money Market
Information System
Area-specific journal
Transaction
Information System
Treasury Reports
Transaction Overview
Journal - Money Market
Treasury: Strategic View

Treasury: Operative View
Cross-application journal
Transaction
Transaction Overview
Journal: Money Market,
Forex, Derivatives, Securities
SAP AG 1999
For an overview of all Treasury reports, see Treasury Reports.

You find the cross-Treasury reports in the menu option Treasury: Strategic View. These include reports
from Cash Management for analyzing liquidity, reports from the Limit Management and Market Risk
Management areas for controlling risk, and cross-Treasury reports for analyzing your positions and
revenue.
For detailed analyses that support work processes in day-to-day business, see the menu option Treasury:
Operative View.
Information on area-specific reporting is aggregated in the cross-application reporting section in the
Treasury Information System.
The reporting tree displays a complete directory of all reports defined in Treasury that can be assigned to
users. You can assign reports, like transactions, to specific users (role-specific).
(C) SAP AG
AC810 11-5
Money Market: Journal
Overview list of Money Market transactions

Information on
Company code 1000

Product type
51A
Transaction
Act. categ.
1
Contract
Counterparty
Portfolio
Fin. project
Status
Curr.
Amount
StartTerm
1000
Deutsche Bank
Active
UNI
100,000.00 09/06/YYYY
Company code 1000

Product type
52A
Transaction
Act. categ.
3
Contract
IDES AG
Fixed-term deposit
IDES AG
Deposit at notice
Counterparty
Portfolio
Fin. project
Status
Curr.
Amount
StartTerm
1000
Deutsche Bank
Active
UNI
100,000.00 09/06/YYYY
Ent./Changed on 09/06/YYYY
Transaction type
Trader
StartRoll.
100 Investment
OutConf.
EndTerm
1 required
11/06/YYYY
IncomConf.
Int. rate
1 required
2.5
ContDate
Valid since
09/06/YYYY
09/06/YYYY
Chgd/Entd on
Chgd/Entrd
09/06/YYYY
BAUERT
Ent./Changed on 09/06/YYYY
Transaction type
Trader
StartRoll.
100 Investment
OutConf.
1 required
IncomConf. ContDate
Int. rate
Valid since
1 required
09/06/YYYY
2.6
09/06/YYYY
Chgd/Entd on
Chgd/Entrd
09/06/YYYY
BAUERT
SAP AG 1999
The Money Market journal enables you to call up an overview of the money market transactions stored
in the system using any number of selection criteria. For each selection, you can define selection options
(single values or ranges, incl./excl.).
You can use the journal to select transactions, for example, that were concluded with certain traders or
with certain business partners.
(C) SAP AG
AC810 11-6
Payment Schedule
Area-specific payment schedule
Cross-application payment schedule
Payment schedule:
Money Market, Forex,
Derivatives, Securities
Payment schedule:
Money Market
Company code
Payment date, payment amount, payment currency
Transaction, name
Product type, transaction type
Posting status, posting release
Bank key of house bank, bank account of house bank
Bank key of business partner bank, business partner bank
account
...
SAP AG 1999
You use the payment schedule to call up incoming and outgoing payments within a specified period.
Considerable enhancements have been made to the payment schedule. You can now use the ABAP List
Viewer to output lists flexibly, and have the option of:
- Defining and saving your own display variants
- Sorting by any field
- Filtering according to any values
- Forming group totals
The payment amounts for a payment date are added together automatically, provided all the amounts for
this date are in one currency. The layout of the payment schedule is flexible. You can have a maximum
width of 255 characters, you can define new column characteristics, or delete existing ones.
(C) SAP AG
AC810 11-7
Money Market - Position List
CoCd Trans.
PrC TCat
PTypTTypPartner TCurr. Amount
Int. rate
StartTerm
EndTerm ...
1000 1
510 100
51A 100 1000
UNI
100,000.00 2.5
09/06/YYYY11/06/YYYY
1000 3
520 100
52A 100 1000
UNI
100,000.00 2.5
09/06/YYYY
1000 4
510 100
51A 100 1000
UNI
100,000.00 2.7
09/07/YYYY11/07/YYYY
Connection to the ABAP List Viewer
SAP AG 1999
You can use the position list to carry out profit/loss checks for traders or business partners, by listing
transaction types sorted by conditions. The positions for money market transactions are displayed in the
position list for specific key dates.
You can also select money market transactions that are due as of a certain start of term or up to a certain
end of term.
The connection to the ABAP List Viewer means you have a whole range of options for generating lists,
as regards the row/column layout, and sorting and totaling lists. You can save these as display variants
and use them later.
(C) SAP AG
AC810 11-8
Drilldown Reporting Principle
Portfolio
as a drilldown report
BOND
as a list (list viewer)
Data
output
Term
Fr om To
MM
Basic
transaction
MMkt/Sec./
Loans
Forex/
Derivatives
Open
item
as a graphic
FX
JPY
USD
FLOOR
EUR
CAP
Product type
FRA
Currency
SAP AG 1999
You use the drilldown reporting tool to prepare your own reports and process them interactively.
Functions for analyzing the results graphically, or transferring them to PC applications, as well as
features that enable you to link reports and assign them to a hierarchical tree structure, all contribute to
make drilldown reporting an extremely flexible reporting instrument.
Drilldown reports enable you to represent the information available in different business views by
selecting a useful combination of characteristics and key figures.
The idea behind drilldown reporting is to make the information you require available in a
multidimensional dice. Each cell (= each part of the dice) is specified by characteristics. The
characteristics correspond to the dimensions (example: 3 characteristics: portfolio, product type,
currency).
Each cell contains n key figures (example: 2 key figures: investment/purchase; borrowing/sale). By
linking the characteristics and key figures, you can generate different views from the possible
combinations of the corresponding values.
(C) SAP AG
AC810 11-9
Drilldown Reporting Principle

Characteristics
Key figures
Forms
Report
Report
index
save
Create
Change
Execute
Batch
list
save
Winword
Lists
Graphics
Navigation/
Drilldown
Mail
Excel
...
SAP AG 1999
You can use characteristics, key figures, and forms to define reports. A report compiles a number of lists
that you can access interactively and display on your screen. You can also print reports, export them to
MS Word or Excel, or enter them in a file.
Forms describe the contents and format of reports. Forms provide the basis for reports, which you
complete later when you define the reports.
Characteristics define the different ways in which the dataset can be classified, for example, by company
code, business partner, portfolio. You can include characteristics both in forms and reports.
Key figures can be amounts and quantities; you can use a key figure transaction to define additional key
figures from existing key figures (key figure tree).
You can select key figures in forms or in reports.
Note: For more detailed information, see the general documentation on Drilldown Reporting.
(C) SAP AG
AC810 11-10
Functions of Drilldown Reporting
Navigation to all levels (characteristics)

Exception reporting provides a visual warning when
critical values deviate from expectations
Hierarchy processing shows external hierarchies
(such as flow type hierarchy)
Graphics improve visualization of the figures
Analysis functions allow you to classify your data
Data mining enables you to identify conspicuous values
in the dataset automatically
Currency translation determines currency influences
SAP AG 1999
(C) SAP AG
AC810 11-11
Form Report
Form report
For reports prepared individually with
formform-oriented layout
specific formatting (colors, etc.)
integration of variables
complex selection
SAP AG 1999
The general maxim for creating reports is that simple tools are available for generating simple reports,
while more sophisticated tools are available when you need to generate more complex reports.
In the Treasury area, you create form reports. These are reports based on forms and are suitable for
printing reports.
Drilldown reporting is always related to the business objects of an application.
Reports
- are complex structures, which comprise many subcomponents
- are language-dependent and can therefore be translated
- can be transported and delivered
- contain authorization checks and can therefore be blocked for a specific user.
It is now possible to define "Basic reports". When you use these types of reports, you do not need to
create forms.
(C) SAP AG
AC810 11-12
Drilldown Reporting: Overview
Create form
Treasury Management:
Application; Customizing
Create reports
Treasury Management:
Application; Customizing
Link report to report tree
Treasury Management;
Customizing
Execute report
Treasury Management;
Application
SAP AG 1999
(C) SAP AG
AC810 11-13
Information System: Unit Summary
The reporting functions provide you with

additional options for monitoring and
evaluating financial transactions in SAP
Treasury Management.
The drilldown reporting tool, in particular,
offers a high degree of flexibility for evaluating
your transactions.
SAP AG 1999
(C) SAP AG
AC810 11-14

Treasury Management Overview

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Treasury Management Overview

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AC810 Basic Functions in Treasury

R/3 System Release 46C 04/05/2001

AC810 Basic Functions in Treasury Management........................................................................................................0-1

Securities Account and Portfolio...........................................................................................................................3-9

House Banks: Create Master Data ........................................................................................................................5-9

Financial Transaction Types ...............................................................................................................................7-12

Transaction Management: Worklist and Collective Processing..........................................................................8-20

Processing Payment Transactions: Overview .......................................................................................................9-6

Asynchronous (Transactional) Communication................................................................................................10-18

AC810 Basic Functions in Treasury Management

Copyright 2000 SAP AG. All rights reserved.

Market Risk Management

Notes to the user:

This course will prepare you to:

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

Transaction and Position

Transaction and Position

Payment Program for

Market Data Management

Transaction and Position Unit 11

Course Overview Diagram

Overview of Treasury Management

Main Business Scenario

You are using (or have successfully installed)

Overview of Treasury Management

Overview of Treasury Management: Unit Objectives

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

Course Overview Diagram

Overview of Treasury Management

Overview of Treasury Management: Business

Before you begin your work in the project team,

Overview of SAP Treasury

Market Risk Management:

Main Targets of Treasury

Optimize financing costs

Optimize yields on financial assets

Hedge costs (e.g. against possible

Hedge sales (e.g. against possible

Contribute to profit through active

1) % of all companies surveyed

SAP Support for Business Requirements

Selection of Relevant Product Types

Identifying Treasury Processes

Documentation and control functions

Analysis and Trading Process

Transaction and Position Management Process

Short-Term Financial Instruments

Medium- to Long-Term Financial Instruments

- Interest rate swap

Treasury Management: Functions

Complete financial transaction and position management

Flexible settings for company-specific transaction and

Basic Functions of Treasury Management

Structure of financial transactions

Overview of Treasury Management: Unit Summary

SAP Treasury is subdivided into three areas:

You can represent financial transactions in

Data Used in the Exercises

Tips & tricks

Data used in the exercises

Data in the training

Data in the IDES system

TR00 through TR20

113100, 113105, 113113