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Manage financial risk more effectively with this comprehensive guide to SAP's treasury and risk management solutions. This book describes the areas of. Sönke Jarré,. Reinhold Lövenich, Andreas Martin, Klaus G. Müller. SAP® Treasury and Risk Management. book Seite 3 Dienstag, 2. April SAP Treasury and Risk Management Purchase this Book This book explores the intricate solution from end to end, and includes helpful examples of how to.

Sap Treasury And Risk Management Book

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This comprehensive book provides you with detailed descriptions of the functions and usage of SAP Treasury and Risk Management. Readers will be. Scope of Financial supply chain management Financial supply chain management (FSCM) is an integrated approach to provide better visibility. SAP Treasury and Risk Management book. Read reviews from world's largest community for readers. This comprehensive book provides you with detailed.

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Brand new Book. Explains functions, usage, and customizing in detail Highlights solutions for real-world problems and addresses the most common problem areas Includes new content on exposure management, hedge accounting, correspondence, and much more 2nd Edition Updated and Expanded for SAP ERP 6. This book explores the intricate solution from end to end, and includes helpful examples of how to work with business requirements and customize your system. Master the Basics Understand how to work with and ensure the quality of your master and market data, and get to know transaction management processes in detail.

Seller Inventory AAC To do this, select the icon from the menu bar. If the workflow has been activated and the user has been assigned, a transaction should be displayed in the Business Workplace inbox.

Double-click your neighbor's transaction to select it. Check the fixtures and fittings, payment details and cash flows. Then click the green arrow to return. You then have the option of releasing the transaction or rejecting the release.

Create product type 6. To create a new product type, use the "New Entries" button. Flow Type Name Foreign exchange transaction charge Foreign exchange purchasing Cash settlement Foreign exchange sales Save your entries. UV Assign a general valuation class group to your product type 6: USD Amount: EUR Rate: Create product type 7.

Flow Type Name for transaction type Nominal amount increase not relevant to posting Nominal amount reduction not relevant to posting Closing not relevant to posting Interest rate Charges Commission Save your entries.

Trading OTC derivatives Assign the relevant general valuation class group to your product type. Create product type 8. Trading Assign the relevant general valuation class group to your product type. T ra nsa c t ion M a nage r — Se curit ie s Contents: T ra nsa c t ion M a nage r — Se curit ie s — Lea rning Obje c t ive s After completing this unit, you will be able to: Securities Management: Overview Topic 2: Basic Settings for Transaction Management Topic 3: Basic Settings for Position Management Topic 4: Ove rvie w of Produc t Ca te gorie s The following product categories can be used for active all product categories and passive only for bonds and stocks position management: Passive position management is limited to stocks and bonds.

Position management is used to transfer the conditions such as interest, repayment from the securities class to the individual position. This differentiation also exists in Customizing. The resulting posting activities are automatically transferred to the Financial Accounting component.

For example, before you can represent the purchase or sale of a security in the system, you first have to enter it as a class with the relevant structure and condition characteristics. ID number? Securities purchase Transaction type? Securities sale Partner? After you have created these, you can carry out a limit check. This is followed by integration with the credit Risk Analyzer. Here, you also manage processes relating to position management, such as securities account transfers.

These include posting transactions, incoming payments such as interest earned or dividends , or write-downs that result from a position valuation. De fine N um be r I nt e rva ls for Cla sse s In order to create class master data, cross-company code number intervals must be defined: As the number can be numerical or alphanumeric, the associated number interval must be adjusted to this.

De fine Condit ion T ype s Conditions are all the flows calculated by the system. Here, you create a condition type under a three-digit key and assign it a suitable flow type. The system then automatically assigns the flow type and the financial mathematical calculation category from the flow type to the condition type. Assigning the financial math. Specification of the links between the condition types Condition types for passive position management start with a 3.

The financial mathematical formula specifies the basis such as nominal amount of the condition type, thereby specifying the condition amount in the form of an additional cash flow. Conditions must be calculated. These condition types are only set up in the standard system from ERP 6. De fining Condit ion Groups In the next step, you define individual condition groups. These are used to structure and bundle individual condition types. The condition types are assigned in the next step. Assign Condition T ype s t o Condition Groups After the condition types and condition groups have been defined, the next work step involves assigning them to each other.

This is important to enable different condition characteristics in the class. Only one condition group can be assigned per product type. De fining Produc t T ype s In this menu item, you define product types and assign each of them to a condition group, a product type and a number range. All the entries you make here apply for all company codes. Interest calculation method specifies the number of days per year Assigning the number interval for the class creation Assigning the product category and the FSCM — Treasury and Risk Management — Transaction Manager — Securities — condition group defined previously.

This Master Data — Product Types — specifies the characteristic values. The product is uniquely classified using this assignment. Note here that the class and associated transaction are controlled identically. You can store alternative description types for this. Assign Repa yme nt T ype s t o Produc t T ype s In this menu item, you assign the repayment types available in the standard SAP system to the product types. This is important to enable repayment mid-term such as annuity or installment repayments or at the end of the term maturity.

Possible repayment types: To do this, you assign repayment types that are defined in the SAP standard system.

Compa ny Code -Depende nt Se tt ings for Produc t T ype In this menu item, you define company-code specific settings for each product type in the following areas: In the next step, you specify company-code specific settings for each product type. The advantage of this is that you can use local taxes and different planning levels, for example.

De fine N um ber Ra nges for T ra nsa ct ion Types In this work step, you can define number range intervals for your financial transaction types. The financial transactions generated in the application are given a number, comparable to the document number from financial accounting.

Numbers can either be assigned internally by the system or externally. The advantage of this is that products can be structured at the transaction number level, which makes it significantly easier to evaluate them by standard report or in SAP BW. External number assignment only has an effect at this point if the Treasury system obtains the transaction data from a trading or front-end system. De fining T ra nsa ct ion T ype s In this section, you define your financial transaction types and assign them to product types.

Additionally, in this work step you specify the fundamental organizational aspects of a financial transaction that you can carry out with the product types you defined. Assignment of the number interval created previously Controlling how a transaction is processed. You can save a number interval for each transaction and product type.

As these are global settings, you should control the number range logic identically for each company code. For securities, we differentiate here between order-contract and order-contract-settlement. All the assigned contract statuses must be run through.

This means that for processing type , the transaction must always be settled before it is posted. De fining Flow T ype s In this work step, you define all the flow types that are needed in transaction management. You have to define different flow types for active and passive product types. In SAP, these are known as flow types. In the SAP standard system, a variety of flow types has been set up; you have to adjust these to match your individual requirements. Assigning Flow T ype s After you have described and classified the flow types, you complete a second step to assign the product types.

The product-specific assignment means that only the necessary flow types are used. These flow types have to be controlled via the assignment to update types in account assignment.

Each product is characterized by an individual number of flow types.

Assigning Flow T ype s The update types are used to control into operative and parallel valuation areas. The definition is therefore direction-related Securities account class position update: Transaction update: Like flow types, update types correspond to cash flows.

De fine U pdat e T ype s a nd Assign t o Usa ges After you have defined the update types in the previous step, you assign them to the different possible usages: Transaction management: Position management: All update types for the securities account management area start with SAM, which ensures that there is effective separation at this point. Assigning Flow Types t o U pdat e Types When you assign the update types to the flow types, you create a table that is used for all contract types.

It is not necessary to assign the update types for securities account management at this point. When creating a new assignment, make sure that inflows and outflows are taken into account.

We subdivide into the following areas: We only assign the update types that can be seen as a fundamental structure characteristic but that are derived from the class information.

All other update types are assigned in securities account management. De fine Se curit ie s Ac count T ype s In this IMG activity, you can store securities account types for the securities account master data.

This specifies the different categories for the securities account types. You have to specify a securities account category for each sec. This category contains the information about which positions can be managed in the associated sec.

To manage issues, it is necessary for passive position management to have been set up. However, the passive position management functions are currently only available for stocks and bonds. This means that active positions can be passed on to third parties in order to change your risk profile.

Assign update for generating debit positions: Assign U pda t e T ype s t o Condit ion T ype s Ac t ive In this IMG activity, you specify separately for active and passive positions which update types the system uses for condition-based flows such as interest , depending on the underlying condition type. This is important because the necessary condition types and update types are very different.

In the passive position management area, the update type logic is inverted. As a result, these condition types must be assigned a payment direction and the corresponding update types.

Short sales are not possible in SAP using passive position management. Spec ify U pda t e T ype s for Sec. Ac c t M m nt The relevant update types for the securities account management area have to be specified in terms of direction and calculation procedure. The logic is the same as for flow types in position management. Specification of how cash flow is calculated. Mathematical formula retrieved in background. If you add update types using the "New Entries" button, you should retain the existing naming logic.

This ensure that there is a strict separation between transaction and position management. It is important that the calculation logic is identical at all the points described here. For this flow to be generated, it has to be activated at this point. To do this, select the two checkmarks in the debit position area. De fine U pda t e T ypes a nd Assign t o U sa ge s You also have to define separate update types for securities account transfer and assign them to the corresponding usage.

The "securities account transfer" usage is assigned as follows: Assigning U pda te T ype s for Sec. Ac c t T ra nsfe r In order to ensure that different posting templates are possible for each product type and direction, you can store various different update types. You need to ensure here that the update type has the correct direction of flow. Corpora t e Ac t ions N umbe r I nte rva ls We have already examined the basic settings for configuring transaction and position management.

For certain securities, it may also be necessary to take corporate actions during the term. In order to enable this, you first have to define number ranges. Corpora t e Ac t ions T ype s Here, you define corporate action types for the corporate action categories specified by the system. You can use the corporate action types to specify additional classification keys to classify corporate actions.

The following corporate action categories are available: After you have defined the necessary number intervals, you define the corporate action types and assign them to the standard corporate action categories.

Make sure that you keep to a 1: This enables existing stockholders to maintain their share of voting rights and compensates for any negative price trend resulting from the capital increase. One old stock usually has one subscription right ratio 1: OK corresponds to a ratio of Position indicator CorpAct: Corpora t e Ac t ions U pda t e T ype s You also have to define additional update types for the corporate actions you defined previously, and assign these to the corresponding notes to payee.

Update types are defined for each corporate action category. In the first step, you define new update types: Assigning the update types that trigger a change to a position: The standard system plans for all update types in this area to start with CA. Se c urit ie s Ac count M a st e r Da t a Creating a securities account: For sec.

Applic a t ion Defined for each company code, where multiple sec. For these settings to also be taken into account in the application, a securities account must be defined. You cannot save active business transactions in a passive securities account. The settings saved in the business partner are not used. The payment details stored here are also used as the default for all payments from position management. Cla ss M a st e r Da t a Creating a class: Make sure that the security ID number is within the defined number range.

In our example, we chose the ISIN number. When you create the class, the system also asks you to specify the product type. The system uses this value to derive the product category, which is important for account assignment reference determination.

The effect of this is that the condition types "interest" and "final repayment" are automatically included in the conditions area. T ra nsa c t ion Cre a tion Transaction creation: To do this, you make entries in the areas of nominal amount, rate, position value date and payment due date. As a default value has also been stored in Customizing for the general valuation class, this is also automatically retrieved. Securities Lesson: Create product type 4. Search function: Organizational Structure Topic 2: Setting Position Management Topic 3: Valuation Procedure Topic 5: Position Management Procedure Topic 6: Link to Accounting Topic 7: Lea rning Objec t ive s After completing this topic, you will be able to: As the current accounting specifications in Europe require a closing in line with the IFRS guidelines for most enterprises, all positions have to be subdivided into the categories: The various definitions of the periods are not standardized and allow you a degree of leeway.

As no distinction is made in the HGB between three valuation periods, the long- and medium-term holding periods are grouped together into the category: The details of the legal specifications for the individual GAAP are defined in country-specific legal sources.

De fining V a lua t ion Are a s Definition of the relevant valuation areas. The sequence is important for using the payment process. Payments can only be made from the leading area so this area should be valid for all companies.

We subdivide into operative and parallel valuation areas. The group accounting principle should be selected here as the valuation areas are cross-company code. Otherwise, it might, under certain circumstances, not be possible to make payments for subsidiaries. The parallel valuation area is derived from the operative valuation area. Ac count ing Code s Accounting codes are specific settings for the Transaction Manager.

This definition makes it possible to use different logics for the transaction manager and for accounting. In this step, you specify which identifier is used for the accounting code. You then assign a company code to each accounting code. There is normally a 1: Assigning Acc ounting Codes a nd V a lua t ion Are as Assignment of the corresponding valuation areas to the accounting codes Specification of the rate type for valuation.

In this case, the valuation uses middle rates. It is important here to ensure that all valuation areas are assigned to an accounting code. The key assignment to the correct ledger takes place in FI by means of the accounting principle.

All "Accounting Customizing" in Treasury must be completed. A separate initialization has to be carried out for each financial transaction area loans, OTC transactions, securities. If changes are carried out at a later time, it is only necessary to carry out a new initialization if the changes were major such as a new valuation area.

This key date specifies the point from which the parallel valuation or posting functions can be used. You have to select a step and start it with the "Execute" button. It is very useful to carry out the initialization before entering any transactions as this avoids position postings.

Ge ne ra l V a lua t ion Cla ss The general valuation class must contain all the information from the operative and parallel valuation areas, as only these are assigned in the transaction and all the local valuation classes are derived. V a lua t ion Cla ss Specific valuation classes: For the position to be transferred to the valuation classes, there is now an assignment step. Valuation Class" menu item, the three functional areas Valuation area, Valuation class and Gen. Lea rning Objec tive s After completing this topic, you will be able to: U pda te T ype s Define update types: This always involves the same assignment, which occurs multiple times in the menu simply to remind users.

Assigning U pda t e T ype s t o U sa ge s Assign update types to usages: User 6 should only be assigned update types that start with AD for ease of identification. From Release ERP 6. These had to be assigned in money market trading or for derivatives separately from the update types. Transaction TBB4 was used for posting.

Lea rning Obje c t ives After completing this topic, you will be able to: T re a sury Proce ss Ex a mple: Fore ign Curre nc y V a lua t ion A. One-step then forex security Sec. Total sec. In two-step valuation, the net present value should first be saved in the transaction currency in TPM60 as the effect of the interest is calculated on this basis.

Am ort iza t ion Procedure Depending on the requirements of the accounting principles and the internal company requirements, the valuation can be controlled using the following procedures: The premium or discount difference between the payment premium and the repayment amount is linearly distributed across the term. This method is also known as the effective interest method. Essentially, the amortized acquisition value of a position is identified as follows: The effective interest for a cash flow is used to discount the interest on future payments on the amortization key date.

The following variants of this method are supported: Here, interest payments are not included when determining the effective interest and when discounting future payments. This results in an exponential distribution of the premium or discount over the term.

Here, the interest payments are included in the calculation of the effective interest and they are taken into account when discounting future payments.

To avoid leaps in the amortized acquisition value on interest dates, a linear accrued interest correction is carried out for the amortized acquisition value. Here, interest payments are taken account, as in b. These amortizations are triggered by the user. These amortizations are generated by the system. For example, with a partial divestiture partial sale , the entire position is first amortized before the partial divestiture, and then the position value including the amortization that was previously generated is posted out pro rata on the basis of the partial divestiture.

This ensures that the amortized acquisition value has the current value at the time of each change to the position. One -St e p Pric e Va lua t ion In one-step price valuation, the security and the foreign currency valuation are grouped together into a single valuation step.

The results for the foreign currency and security cannot be set to separate accounts. Specification of the Specification of the rate type write-down procedure Rate types: Se curit ie s V a lua t ion Proc edure In securities valuation, only the securities income is examined, on the basis of the interest rate trends or the securities price trends. Specifying the calculation basis NPV type: The essential attributes are identical to those of the individual valuation procedure.

Fore ign Curre nc y Proc edure A foreign currency valuation procedure is only used if the transaction contains foreign currency payments that differ from the saved local currency such as EUR. Rate types: These procedures specify how balances in foreign currencies are valuated. A company in the Eurozone has US dollars. Today, the dollars are worth EUR The rate type specifies the daily exchange rates for the local currency. The values are the same as for the valuation procedure above.

Ex c ha nge Rat e De t ermina tion Proc e dure for Forex T ra nsa ctions There is a separate valuation procedure specifically designed for foreign exchange trading product types product category: I m pa irm e nt Proce dure The aim of the impairment procedure is to record in accounting expected long-term depreciation of assets, such as securities.

In the position management procedure, you specify the basic rules for managing the positions, that is, how positions are evaluated and how the derived business transactions are generated for position outflows and balance sheet transfers. Specification of the sequence in which the valuation steps are to be taken. A securities valuation must always take place between an FX valuation. This indicator controls whether this step is used in key date valuation.

In this way, you can combine the relevant procedures for amortizations, one-step price valuations, security price valuations and foreign currency valuations according to the respective accounting rules. The sequence is very important because amortization always has to be carried out first and a foreign currency valuation always has to be carried out last. Indicator controls whether this step is used in key date valuation. Assigning Posit ion M a nagem ent Proc edure s After the position management procedures have been defined, you now assign them using any combination of influencing factors: This enables you to take different statutory regulations into account for valuation.

The position management procedure must also be created in the key date valuation area. Depending on the valuation template, you have to assign different update types. Year-end closing without reset 2. Mid-year valuation with reset 3.

Mid-year valuation with reset 4. Mid-year valuation with reset Negative fair value 1. Upda t e T ype s for De rived Busine ss T ra nsac t ions Depending on which the valuation steps are assigned to the position management procedure, you have to assign different update types for carrying out the key date valuation.

Summa ry You are now able to: Posting-Re le vance of U pda te T ype s You have to specify for all update types whether they are relevant to posting or not.

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No entry means that it is not relevant. Determines whether the resulting flow is relevant to posting or not Can be controlled per company code Designation depends on the area: Not all update types have to be designated as posting- relevant. In this Customizing item, you specify for each update type whether it is considered relevant to posting or not. If the checkmark is not selected, the update type is not forwarded to financial accounting.

Defining Ac count Assignm ent Re fe rence s Sec urit ie s The account assignment reference can be used to control which general ledger accounts in financial accounting each position is managed in.

The length is limited to 12 digits. Double-clicking on an assignment displays the details. In a second step, the source and target fields and the conditions are determined. Definition of the source fields from the selection list This derivation rule is only relevant to HGB Condition: Each account assignment reference may only be assigned to one source field pair. Select chart of accounts Defining account symbols: We select chart of accounts INT. These are valid for all valuation areas.

A description and a posting type appear on the right for each account symbol. You specify that there are to be position postings and profit postings. This is the same as the posting record " Position to bank clearing" that you just saw.

Depending on the posting area, different account symbols are defined. The following subdivision has been used previously: A posting record is characterized by a debit 40 and credit posting The accounts are not yet assigned at this point; the account symbols are merely assigned now.

In the upper part of the input template, you specify which document type is used. Control here is per chart of accounts. Return to the application. We now want to post a transaction to clarify again the connection between Customizing and the application. Open an existing transaction from the database. In the menu bar for each posting record, you can see information about the company code and the valuation area.

Make sure that all valuation areas that were stored for the company code are posted. Post ing M one y M a rk e t From Enhancement Package 3 onwards, the layout of the posting log has changed. Post ing Se curit ie s From Enhancement Package 3 onwards, the layout of the posting log has changed. V a lua tion N PV Ca lcula t ion The calculation of net present values is only relevant for products with interest rate risks, which excludes securities.

Customizing Accounting Settings After completing this exercise, you will be able to: Use position management procedure as a template. Use the derivation rule for product type 51A as a template. Then maintain the following entries: Select the appropriate Customizing transaction.

The system now prompts you to maintain the following entries: Select position management procedure Copy all the dependent entries. Enter an individual description and maintain the following, additional entries: After the transactions have been created and released in the workflow, the individual cash flows have to be posted on the due date. To do this, return to the application and enter transaction TBB1.

Enter the following data to ensure that only your transactions are posted. Check the individual posting transactions. To do this, enter transaction TPM Localize the transactions with the following entries: T ra nsa c t ion M a nage r — H e dge M a nagem ent Contents: T ra nsa c t ion M a nage r — H e dge M a nagem ent At the conclusion of this unit, you will be able to: Hedge Management Basics Topic 2: Basic Customizing Topic 3: Effectiveness Test Customizing Topic 4: Accounting Topic 5: Hedge Management in the Application Topic 6: Number ranges are always defined for each company code, whereby it makes sense to use a uniform number logic for all company codes.

N umbe r Range s for Ea ch Company Code H edge Pla n In the next step, you need to assign the number range interval you defined earlier to a company code.

N umbe r Range s for Ea ch Company Code H edging Re la tionships In the next step, you need to assign the number range interval you defined earlier to a company code.

This makes sense because it is possible that several number ranges have been created for each company code for example, year-specific number range intervals. N umbe r Range s for Ea ch Company Code H edge d I t em s In the next step, you need to assign the number range interval you defined earlier to a company code.

Va lua t ion Are a -De pende nt Se t t ings Evaluation types: Details for company code and valuation area Carry out reclassification in case effectiveness is not met? To do so, you assign the individual valuation areas to the company codes and specify the valuation type. The value stays in OCI until then. Se t t ings for t he Aut om a tic Cre a t ion of H e dge Da t a You can now specify for which products the Hedge Management tab is supposed to be displayed in the transaction.

In this step, you specify for which product and transaction types direct integration into the hedge plan is supposed to be possible. This tab enables the parallel entry of the hedge relationship directly in the transaction instead of the hedge monitor.

Docum ent a t ion To meet the IFRS requirements with regard to documentation, appropriate forms must be defined. Assigning the pdf forms included in the standard Structure of the forms: These include the effectiveness calculation category, the offsetting calculation category for the differences, the evaluation type in the Market Risk Analyzer, and the NPV type. Asse ssm ent T ype s You use assessment types to define in which interval the hedging relationship is considered effective.

To implement IAS39 in the Hedge Management area there are detailed requirements as to where a hedging relationship is considered effective. You define an upper and lower limit for the effectiveness ratio, which determines the range within which the hedging relationship is deemed effective. These assessment types are available as possible entries when you define the hedge strategy later on.

H e dge St ra t e gy In SAP, you can map cash flow and fair value hedge relationships and define different hedge strategies for this purpose. Overview of individual hedge strategies. The hedge strategy comprises several parameters that define how the effectiveness test is carried out. These include the assessment types, the calculation types for the effectiveness assessment, and the calculation types for the effectiveness measurement.

Sum mary You are now able to: Only these update types can be used or posted from Hedge Management. To do so, every update type is assigned to user U pda t e T ype s Re le va nt t o Posting Before you can post from Hedge Management to Accounting you must mark the corresponding update types as relevant to posting.

Additional option using valuation areas. Posit ion M a nage me nt Procedure To use valuation results as the basis for making a posting from Hedge Management, appropriate update types must be assigned to the position management procedure. This is important to make them easy to identify.

If you want, you can use a separate document type for hedge accounting. H e dge Pla n You use the hedge plan to link underlying transaction and hedge transaction. Double-click to select a hedge plan. H e dge Pla n Def.

H e dging Re la t ionships For each hedge plan, you can now decide which market risks interest, currency risks, commodity price risks you want to hedge and assign the corresponding underlying transactions. Details on the selected hedge plan or risk object Overview of the corresponding exposures that have already been created.

You can define as many exposures as you require. H e dge d I tem s Choose the hedged items to be hedged. Select the second tab page Display of corresponding hedged items with value and runtime Specification of hedge type: This differentiation is made according to the type of hedged underlying transaction exposure. The system supports the categories cash flow hedge, fair value hedge and net investment in foreign subsidiary.

Cash flow hedge and fair value hedge differ with regard to the hedged risk. Whilst cash flow hedges aim to fix future cash flows, fair value hedges are used to hedge changes in market value for the underlying transaction. The net investment in foreign subsidiary is a special case of the cash flow hedge.

The actual hedging rate provides information about the actual hedging rate of the exposure to be hedged. The system calculates the actual hedging rate as soon as you integrate a derivative financial instrument or a certain portion thereof into a hedging relationship. The actual hedging rate is defined the portion in percent of an exposure that is hedged at a certain time. H e dging Re la t ionship In the last step, you have to assign the hedging transactions FX, derivatives and the hedge rate.

The hedge rate is important for the subsequent effectiveness assessment. Display documentation and carry out the effectiveness test Select the tab page "Hedging Relationships" Overview of assigned hedge transactions. The valuation then takes place analogously.

This must be within a certain range in order for the hedge relationship to be called "effective". It is only then that Hedge Accounting is possible legal requirements. Ca lcula t ion M e t hods You can use various methods to calculate changes in market value.

The method depends on the derivative and the hedge category: For example, changes to the fair value for variable interest financial instruments are mostly insignificant and are based more on the time that has passed than changes to the situation on the market. The cumulative approach uses the change from the start of the hedge relationship, that is, the total change in market value, to calculate the effectiveness. However, in general, we distinguish between a retrospective and a prospective effectiveness test.

The only differences are in the data basis of the changes in market value. Specification for valuation date on which the effectiveness of the hedging relationship is to be checked Selection of whether a prospective or retrospective effectiveness test is to be performed FSCM — Treasury and Risk Management — TM — Hedge Management — Information System — Effectiveness Test Transaction: The evaluation of the effectiveness, which is the result of the created hedging relationships and the current market values, is specified by entering an evaluation date and the company code.

Effectiveness value Overview of assigned transactions. Double-click to access the detail screen. The transaction has very good effectiveness, which is illustrated by the effectiveness ratio in the second last column. Hedge Management Lesson: Structure of Hedging Relationships After completing this exercise, you will be able to: Assign this transaction to the exposure. This triggers a posting into OCI. The items in OCI are now cleared. Structure of Hedging Relationships You want to create a hedge plan for your company code FS and your group.

You see an overview of all hedge plans that have been created already. In the bottom section of the screen, make the following entries. Your hedge plan is added to the list. Now add an exposure in USD to this hedge plan. Cash flow Save your entries again.

Make the following entries: Use the button to select the transaction you created earlier.

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Enter transaction TPM60 and specify the following restrictions. NPV at start: Restrict your entry by making the following entries: Double-clicking an entry enables you to take a closer look at the transaction. Proceed as described in unit 5. Pa ym e nt Progra m Contents: Pa ym e nt Progra m After completing this unit, you will be able to: Customizing F Topic 3: Customizing F Topic 4: Payment Forms Topic 5: Executing the Treasury Payment Run Topic 6: Pa ym e nt Progra m Ove rvie w There are two payment programs: Payment programs z F for the payment program in Accounting, which is based on vendor payments for example, liabilities from delivery and services.

After you enter the transaction, an interim menu appears. From there, you can navigate to the individual area T ra nsa c t ion: Pa ying Com pa ny Code s In the first step, define from which company codes payments are to be generated. Definition of minimum payment amounts.

If a value falls below this threshold, no payment is executed. Choose a company code where you want to take a closer look at the payment control.

Company code FS00 can be used as the paying and sending company code. Company Code s In the second step, define from which company codes payments are to be generated. In this Customizing activity, you assign the possible or allowed payment methods depending on the country.

Choose a payment method by double-clicking it to look at the details. You have to assign the permissible payment methods depending on the country. First of all, you need to specify for which country and payment method the new entry is supposed to be valid.

Definition of the direction of the cash flow a separate cash flow has to be created for each direction Definition of the payment method classification. This is important for output control. Payment methods can be controlled depending on the currency.

Only allowed currencies can then be paid. Assignment of payment notes: In order to limit the number of currencies per payment method in advance, you can enter the values here.

In the application, you can only use payment methods for which there is an entry in this table. You will see that only the assigned payment methods are displayed when the business partner master data is adjusted. Double-click to view the payment method in the country Setting for the highest amount that may be paid with one payment run Specifies whether payment is also possible in a foreign currency Specification of issuer information.

This data can be output in the payment file! Settings for payment advise generation! If the open item does not meet these conditions, no payment takes place. Controlled for each company code Ranking: If several house banks have been created in the master data, you specify the order in which they are used here. Assignment of bank subaccounts to payment method Specify planned amounts: The advantage of this is that they can then be controlled individually. Depending on the house bank and payment method, you can thus define preferences that can be very important especially for foreign currency payments.

Here, you must make sure that the foreign currency amount is actually available at the time of payment. If that is not the case, not all items are paid. Since the value date does not have to match the payment run date, you can define a time setting here Assigning expenses and fees: The limit is assigned for each house bank and currency. Configuring t he Pa yme nt Progra m for Pa ym e nt Re que st s In this Customizing activity, you have to set up the bank determination in the same way as for F because inconsistencies can occur otherwise The consistency check is started using transaction F8BH.

N um be r Ra nge Int e rva l for Pa ym ent Re que st You must define a number range interval for the generation of the payment request.

Cle a ring Acc ounts If the Payment Request checkmark is set in the business partner, the posting is not made directly to the clearing account but to a payment request account, which is defined here.

Ac companying She e t SAPscript is used to define the structure of the form. Only active forms can be output! You can copy them and adjust them according to your requirements.

This form is used to output the payment log and can therefore be controlled individually. Ac companying She e t St ruc t ure A payment form usually consists of one page. Ac companying She e t Va lue s of t he Form Form setup: Busine ss Pa rtne r Pa ym ent De t a ils In order to be able to execute a payment run, you must specify the bank details of the recipient Bank details T ra nsa c t ion: Busine ss Pa rt ner Pa ym e nt De t ails Count e rparty Specification of the house bank and payment details in the "Counterparty" role Assignment of the defined payment method.

Definition of recipient data Here, you specify whether a payment request is to be generated, which serves as the basis for F We now look at the EURO payment details for all outbound transactions To look at the details, we double-click the entry Definition of the house bank from the BP master data used to fetch the We use the Payment Request entry to specify whether all account data EUR outflows are supposed to be paid using payment run F Post ing Posting the asset cash flow that is to be paid using the payment run.

The posting generates a payment request. In this area, you can specify the transaction and the company code in order to limit the output.

Pa ym ent Run F11 1 Pa ra m e te rs Based on the payment request and the business partner information, a payment run can be executed. Parameter entry Additional log control see screen below T ra nsa c t ion: Pa ym ent Run F11 1 Proposa l You can generate a payment proposal based on the stored parameters. Pa ym ent Run F11 1 Pa yment Run All included payment entries are now posted and a payment file is generated.

Posting document from payment run. In the payment proposal, you can check the selected payments and exclude individual payments, if necessary. Pa ym ent Run F11 1 Pa yment File After the successful execution of the payment run, a payment file is generated, which can be sent to the bank using Bank Communication Management, for example.

Example of a DME file: ERP 6. You do not need to enter any parameters manually. However, you can still start a manual payment run.

The implementation is shipped as inactive. If you want to process payments using In-House Cash, all you have to do is activate this implementation. Payments that are only made using open items on a customer cannot be replaced.

Therefore, when you create transactions in Treasury, make sure that the flag for payment requests is set. Decides whether the payment is processed using the methods of the BAdI or, by default, using the payment requests of Accounting.

Displays a payment. Returns the status of a payment. Releases a payment. Blocks a payment. Pa ym e nt Progra m — Sum ma ry You are now able to: Payment Program Lesson: Performing a Payment Run After completing this exercise, you will be able to: You now want to create a fixed term deposit in Transaction Manager, post it, and pay it using payment run F Usually, these settings are retrieved automatically from the business partner or in case of securities also from the securities account.

During the posting, a payment request is created. Check the posting transactions and make a note of the payment request number. Write down the document numbers: Transaction Alternatively, you can also use the SAP standard report transaction: Choose the selection parameters so that only the transaction you created in step is selected.

Check whether your transaction has been selected. Generate a payment and a payment medium. The posting is now generated. Document number: Performing a Payment Run In your company code FS , create a fixed term deposit with product type 5 and transaction type The payment details were fetched correctly from the business partner and a payment request is generated for outbound cash flows.

In the structure, choose the inbound workflow items. On the right side, you see a list with all transactions that can be released. You see the transaction details. Check these, paying special attention to the payment request for the outbound transaction.


Then use the green arrow in the toolbar to go back. You see a menu where you can release or reject the transaction. Release the transaction, if all information is correct. In order to post your transaction, set a restriction to company code FS and enter your transaction number.We're a small town bookstore that loves books and loves it's customers!

That is, interest calculated on last day of the month. Displays a payment. The system then automatically assigns the flow type and the financial mathematical calculation category from the flow type to the condition type. Alternatively, you can also import this information.

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