Saphelp Transaction Manager

Transaction ManagerPDF download from SAP Help Portal:http://help.sap.com/saphelp_erp60_sp/helpdata/en/95/dfe1391ada8726e10000000a114084/frameset.htm

Created on April 28, 2014

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Table of content

PUBLIC 2014 SAP AG or an SAP affiliate company. All rights reserved.

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Table of content1 Transaction Manager1.1 General Information about the Transaction Manager1.2 Hedge Management1.3 Trading1.4 Back Office1.4.1 Collective Processing: Financial Transaction1.4.2 Correspondence1.4.3 Netting1.4.4 Reference1.4.5 Variable Interest Calculation1.4.6 Rate Fixing1.4.7 Regulatory Reporting1.4.8 Additional EMU Functions1.5 Securities Account Management1.6 Corporate Actions1.7 Accounting1.8 Master Data1.9 Information System1.10 Tools1.11 Environment1.12 Payment Program for Payment Requests (FI-BL)1.13 Initialization Guide1.14 Country-Specific Functions1.14.1 Treasury and Risk Management Brazil (TRM)1.14.2 Treasury and Risk Management South Korea (TRM)1.14.2.1 Customizing1.14.2.1.1 Activating Additional Fields in Master Data1.14.2.1.2 Activating Bond Price Calculation1.14.2.2 Securities Master Data1.14.2.3 Business Transactions1.14.2.3.1 Calculation of Dirty Price1.14.3 Treasury and Risk Management India (TRM)1.14.3.1 Customizing1.14.3.2 Business Transactions1.14.3.2.1 Calculating Withholding Tax and Posting in TRM1.14.3.2.2 Withholding Tax Calculation in Contracts1.14.3.2.2.1 Contract Processing1.14.3.2.3 Calculating Withholding Tax on Interest Accruals1.14.3.2.4 Calculating Withholding Tax Calculation for Brokerage Amounts1.14.3.3 Treasury: Post Flows1.14.3.3.1 Posting and Transferring of Flows


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1 Transaction Manager

PurposeThe Transaction Manager is a powerful instrument that executes efficient liquidity, portfolio and risk management. You have the option of carrying out liquidity andrisk analysis in the Transaction Manager. Based on these analyses and the current conditions on the financial markets, you can make decisions about futureinvestments and borrowings.The Transaction Manager:

helps you manage your financial transactions and positions. This involves trading, back office, and the connection to Financial Accounting. helps you utilize existing rationalization and enables you to automate typical processes. provides flexible reporting and evaluation structures for analyzing your financial transactions, positions, and portfolios. enables you to directly measure the effects of the financial transactions on the liquidity or interest rate risk, due to being integrated in Treasury and Risk

Management .The Transaction Manager can be used in companies, asset management areas, and in traditional Treasury departments.

Implementation Considerations To use the Transaction Manager functions, make the required settings in Customizing by choosing Treasury and Risk Management Transaction

Manager . You make the settings for the Business Partner under Treasury and Risk Management SAP Business Partner for Financial Services . To make settings in Customizing for Market Data , choose Treasury and Risk Management Transaction Manager Basic Functions . There are various functions available to transfer your legacy data from source systems.

See also: Legacy Data Transfer

IntegrationThe Transaction Manager is a component of Treasury and Risk Management (TRM).

You must migrate your dataset if you upgrade to a higher release up to Release Enterprise 1.10. For more information, see the Migration Guide forthe Transaction Manager Version 1.1 on the SAP Help Portal . Choose Other Portals Quick Link SAP Solutions ( in Education,Consulting, Solutions Areas and more) mySAP Business Suite mySAP ERP mySAP ERP in Detail mySAP ERP Financialsin Detail Financial Supply Chain Management Media Library Documentation SAP Treasury and Risk Management.

FeaturesThe Transaction Manager helps you realize the following corporate goals:

Financial services for affiliated group companies. Activities on financial markets for investing liquid funds. Financing short-term and long-term investment projects. Hedging potential or existing risks.

The Transaction Manager follows the straight-through processing principle for entering different transaction types through to transfers to Financial Accounting. Toachieve this goal, the front-end area has been regularly enhanced and functions and basic structures have been standardized for financial transactions ( MoneyMarket, Foreign Exchange, Derivatives, Securities) in the areas of confirmation, payment processing, accounting, and valuation procedures.The Transaction and Position Management Process

Flexible Processes for Transaction and Position ManagementYou can configure the transaction and position management processes flexibly for each product type. You use rationalization to do this. At the same time, you canincrease process security by implementing organizational requirements. The dual control principle, for example, is used as an important security measure tocontrol releases.Position ManagementPosition Management gives you a clear overview of your positions according to your individual evaluation criteria. It forms the basis for parallel position


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management according to different accounting principles, and for performance and benchmark evaluations in the Portfolio Analyzer .

TradingYou can map financial transactions and exercise rights in the Trading area. The following functions are available:

Entering and evaluating offers (Competitive bids) Fast entry for the most common transactions Order limit checks Date checks Expiration and barrier checks for options Price calculators (for example, cross rate, option price, and NPV calculators)

For more information, see Trading

Back OfficeThe following options are available in the Back Office area:

Managing account assignment information Creating payment details Correspondence functions (for example, automatic confirmations and counterconfirmations) Securities account transfers and processing corporate actions for your positions

For more information, see Back Office

AccountingYou can use the following functions in the Accounting area:

Managing your positions in parallel (for example, according to HGB: German Commercial Code and US-GAAP ) Automatic posting functions for transferring data to Financial Accounting Updating the general ledger in real time Flexible functions for processing payment transactions Valuation procedures and accrual/deferral procedures Complete documentation of business transactions

Authorization Concept and ReleaseYou can use the authorization concept to separate your trading, back office, and accounting tasks. You assign user authorizations to the individual activities in thetransaction and position management process and assign authorization profiles to each employee according to his or her organizational area. You use theauthorization concept to define releases. The financial transaction can be checked, for example, by one or more employees before being transferred to accounting.See also: Transaction Release.

RolesThe roles represent the different functions and positions of your employees according to the specific organizational structure of your company. The SAP systemgives you the option of defining an employee user menu with these roles. You can base your role definition and menu structure on the standard roles that areprovided in the Transaction Manager .For more information, see Roles in Treasury and Risk Management

Central FunctionsThe following central functions and tools are important in the Transaction Manager :

Business partner and address management Financial mathematics Status-controlled transaction processing Real-time reporting

Cross-application functions of the business partner and information system provide you with a comprehensive overview of all business relationships. The useof standard organizational elements and their integration in the Transaction Manager allows you to map them in other SAP applications.

Market Data EntryThe SAP real-time datafeed is a universal, open interface that can be used to import data from any information provider or datafeed platform.You can also import current and historical market data later using a file interface. In addition, you can transfer the market data from a spreadsheet or enter itmanually.The Market Data Management functions are available across Treasury and Risk Management . You can find functions for Market Data Management on theSAP Easy Access screen by choosing Treasury and Risk Management Basic Functions.

See also: Market Data Management.

The 'Open System'Standardized interfaces (Business Application Programming Interfaces BAPIs) turn SAP applications into Open Systems . These interfaces allow theconsistent exchange of data across system boundaries. The Transaction Manager provides you with BAPIs for creating, changing, displaying, reversing, andcounterconfirming financial transactions.See also: BAPIs for the Transaction Manager.

Information System


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The efficient information and reporting system within the Transaction Manager provides you with the following functions: Central access to information Direct and restricted data selection Various evaluation options Linking reports Structuring and defining the data hierarchy Hierarchical arrangement of the report structure Clear presentation of information Graphical evaluation and formatting of results Drilldown navigation for viewing detailed information Aggregated view of the total commitment of a business partner Reproduce the history of financial transactions, payment flows, and activities in Financial Accounting Deadline monitoring of financial transactions Transfer of results to PC applications

See also: Information System.

For more information, see:General FunctionsHedge Management

Debt ManagementUtilitiesInitialization GuidePayment Program for Payment RequestsProduct Types in the Transaction Manager

General Information about the Transaction Manager The following general topics apply to the Transaction Manager : Transaction Manager TerminologyProduct Types in the Transaction ManagerData Access and Verifiability of Digital DocumentationRoles in Treasury and Risk Management (TRM)Transaction Manager and New General LedgerTransfer Legacy Data to the Transaction Manager

Note:To transfer legacy data, choose, in Customizing, Treasury and Risk Management Transaction Manager General Settings Tools Legacy Data Transfer Position Data or Flow Data.

BAPIs for the Transaction Manager.Connection of Transaction Manager to In-House CashLink to the Marketplace Using XI Interfaces.

1.2 Hedge Management

UseHedging Risks is an important prerequisite for continuing and securing your company profit. Hedging currency risks therefore plays a central role.

Preparing and analyzing open currency exposures is an important step in hedge management, in particular in large companies. For more information, see: Exposure Management For more information on Hedge Management , see: Hedging Relationships

You use this function to comply with the accounting rules for derivative financial instruments and hedging relationships, according to FAS 133 / IAS 39. Expiration of Risks


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Hedge Management Closing Operations Information System BAPIs in Hedge Management

ProcedureFor more information, see Hedging Relationship Management

The following graphic illustrates the interrelationships:

1.3 Trading

UseIn the Trading area you can enter, edit and display financial transactions of the areas Money Market , Foreign Exchange, Derivatives , Securities and DebtManagement . To find these areas, on the SAP Easy Access screen, choose Accounting Financial Supply Chain Management Treasury and RiskManagement Transaction Manager.

In the Money Market , Foreign Exchange , and Derivatives areas, you can also give notice on and roll over transactions.

See also:Creating Financial TransactionsEditing Financial Transactions

Trading: OTC TransactionsTrading: SecuritiesOfferSimulation

1.4 Back Office

UseIn the back-office area, you process and settle transactions that were entered in the trading area.

FeaturesAs in trading, the back-office functions also enable you to call up information on existing transactions or make retrospective changes. Using the Settlementfunction , you can monitor and check financial transactions. This enables you to add missing data, such as payment instructions or posting specifications. Whenyou save a settlement activity, the system changes the activity category of the transaction to document that it has been monitored and processed in the back-office area.The back-office area also includes correspondence functions, such as the function for automatically generating confirmations.


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You can also use the collective processing functions in this area. The back-office also includes functions for netting transactions and for entering or editingreferences.Back office processing for securities area also includes position management functions. These include corporate actions, additional EMU functions and also

securities account management functions, such as securities account transfer, planned record update, automatic/manual debit position and manualposting, processing restrictions on disposal, and external securities account statements.

1.4.1 Collective Processing: Financial Transaction

UseThe Collective processing function provides you with an overview of all the transactions you have selected on the basis of the selection criteria you entered on theinitial screen.This function makes it easier for you to manage your transactions effectively by displaying a list of all transactions with common selection criteria and providing thenecessary processing functions. You can branch directly from the processing list to the individual transaction to display detailed information.You can use collective processing to speed up selection and processing for all financial transactions. From the collective processing function you can alsoperform all the necessary tasks (such as knock-in or knock-out, exercise or rollover).

In the Money Market area, you can use a more condensed version of collective processing for time deposits Fast Processing.

Features Trading Back officeMoney market Fixed-term deposits - investments or borrowings

Deposits at notice - investments or borrowingsCommercial Paper - purchase or saleCash flow transaction - investments or borrowings

Fixed-term deposits - investments or borrowingsDeposits at notice - investments or borrowingsCommercial Paper - purchase or saleCash flow transaction - investments or borrowings

Foreign exchange Spot/Forward transactionOrderOptionsExpiration/Barrier check

Spot/Forward transactionOptions

Derivatives OTC interest rate instrumentsOTC optionsExpiration/Barrier check

OTC interest rate instrumentsOTC options

Note: There is only one type of collective processing in the Money Market area. You perform collective processing in the Foreign Exchange and Derivatives areasseparately according to the product types listed in the table.

ActivitiesTo perform collective processing:

1. Choose Trading Collective Processing or Back Office Collective Processing.

The entry screen for collective processing appears (for example collective processing for options: Expiration/knock-in/knock-out). Here, you enter theselection criteria according to which you want the list of transactions to be created (for example, exercise, current activity category, and general selection).

Choose Program Execute (or press the Execute button on the upper applications toolbar).

The system displays a list of the selected transactions.By double-clicking a transaction you go to the basic data screen for the relevant transaction.You can also process transactions from the collective processing list.1. Position your cursor on the transaction you want to process.2. Choose a processing function from the menu or from the application toolbar at the top of the screen.3. The relevant screen for the particular processing function then appears.

4. Saveyour changes.5. When you exit the processing function, you return to the collective processing list, where you can process another transaction.

1.4.2 Correspondence


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UseUsing the Correspondence function, you can generate specific letters for the financial transactions managed in the system.You can send this correspondence directly from the system by Fax or e-mail or by SWIFT files or IDocs (in the Money Market and Foreign Exchange area)or print it out.This correspondence can be used as a form of internal documentation for financial transactions (dealing slips) as well as for comparing the financial transactionsconcluded with business partners using external correspondence that can also be counterconfirmed.

Prerequisites By choosing Define Correspondence Types in Customizing, you first have to create the various correspondence types. For each correspondence type you

specify: whether it is an internal or external correspondence type whether you want the correspondence to be archived ( Optical archiving indicator)

Business Object BUS2042; document type TRO_CONF whether you want to suppress initial reversal correspondence from being generated for external correspondence types. in which language you want the correspondence to be To create IDocs, you can define the Partner type and the Partner number here. These settings are used to determine a recipient port in the SAP

Basis communication interface. The following scenarios are possible: Enter a Partner type and a Partner number. This means that all outgoing IDocs for this correspondence type are sent via this port. Only enter one Partner type. This means that for each IDoc of this correspondence type, the ' Partner number' is the name of the business

partner. As a result, each IDoc is sent via a specific port. You can also assign the ' Partner type' and the ' Partner number' individually in the Customer Exit (RFTBCOEX).

By choosing 'Define Correspondence Activities , you can define at company code level when you want correspondence to be generated and thecorrespondence type and form (SAPscript) with which this is done. You also have to make this setting for the SWIFT file and IDoc media, that is, even whenno SAPscript form is required.

Here, you define the correspondence activities using the Product type , the Transaction type and the Activity categories , to which you want to assignthe required correspondence types with the required forms.

Example of a correspondence activity:In company code 0001 you want external correspondence (001) to be generated for purchases of fixed-interest bonds (product type 04I) foractivity contract (20). The entry for this looks as follows:

CoCd ProdTyp TransTyp ActCat. CorrTyp Form0001 04I 100 20 001 F_TR_CONFIRM_ALL

In a form, you specify a standard text with a user-defined layout. When the correspondence is created, the text is displayed with the currenttransaction data. You can define different standard texts for different product types, transaction types, activities, etc.The SAPscript forms delivered with the system ( Sample Customizing) F_TR_CONFIRM_ALL (sample letters of confirmation for externalcorrespondence) and F_TR_DEALER_ALL (sample letters of confirmation for internal correspondence) are described in the form documentation.For technical information on creating SAPscript forms in TR confirmations, see Structure of SAPscript Forms in TR Confirmations

You can also specify whether you want correspondence to be generated automatically for each correspondence activity. In this case, ' automaticallymeans that the planned record for the correspondence is executed as soon as you save the activity that is relevant to correspondence.If you do not set this indicator, the planned record for the correspondence is saved when you save the activity that is relevant to correspondence.Correspondence is then generated using the Outgoing correspondence report program.Procedure: Generate correspondence planned records

The external correspondence that is status-relevant can be counterconfirmed. To do this, set the Counterconfirmation required indicator to make itgenerally possible for counterconfirmation to be required for this correspondence activity.

In the Define Printer Options and Define Fax Options (Spool) Customizing activities, (the settings in Define Fax Options (Spool) only apply if you usethe Basis communication interface SAPcomm), you specify which printer or fax machine you want to use for the correspondence activities for each companycode. You can also define several other specific entries for print or fax output (output immediately yes/no, entries for naming the spool requests, and so on).

When you have finished the settings for correspondence in Customizing for the application areas, you can have these settings checked by theIMG activity Check.

With external correspondence it is also necessary to maintain the Standing instructions for correspondence for each business partner in the master data for


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the business partner. This means that external correspondence types can be managed independently of partners.For each business partner you specify at contract type, product category, product type and transaction type level for each external correspondence type,whether you want correspondence to be created, and if so, using which medium ( print, fax, e-mail, SWIFT or IDoc).

If no assignment has been made in the standing instructions for the business partner, then no external correspondence can be generated withthis business partner for the financial transactions.

To send correspondence by e-mail, the communication interface SAPconnect must be set up. (See also: Note no.: 152474)Here, you also specify for each business partner, whether a counterconfirmation is required.In field F (Leading transfer medium for correspondence status), you define which medium of those selected is the leading one for the status. (For moreinformation, see the F1 Help for this field).

In Customizing for the General Functions, you can choose Change Message Control and use the message type ( I, W, E, -) to determine the processingsequence in a financial transaction for the status-relevant correspondence type for the transaction activity. You can make these settings for all users(user name filled) or for individual users.

When are the messages output?

Status at activity levelOutgoing correspondence

Status at activity levelIncoming confirmations

Activity/Message

not required not required -required not required Activity transition, for example:

Settlement T0 828Rollover T0 828

required required Activity transition, for example:Settlement T0 827

Rollover T0 827executed required Activity transition, for example:

Settlement T0 829Rollover T0 829

executed matched Change T0 843

The short texts of the messages are as follows:

T0 827 Confirmation and counterconfirmation are not yet carried outT0 828 Confirmation (Correspondence type X; medium Y) not yet carried outT0 829 The counterconfirmation has not yet been matchedT0 843 The current activity has already been counterconfirmed

Message types:W = WarningE = ErrorsI = Note in window- = Switch off message

Example:If you define message T0 843 as an E message for the user EXAMPLE, this user can no longer change a transaction that has already beencounterconfirmed.

Features Correspondence can be either

external correspondence (for example, confirmation letters ) or internal correspondence (for example, dealing slips )

The planned records that are generated for correspondence can either be executed automatically when the activity relevant for correspondence is saved, or theplanned records are saved first and then executed using the Outgoing correspondence report.

The data for the financial transactions is prepared and incorporated in the confirmation letters (forms).The correspondence can either be output by a printer or a fax machine. Or it can be sent directly from the system as an e-mail.For fixed-term deposits and forex transactions you can also generate SWIFT files (MT300, MT320) or IDocs.

You can also manage a counterconfirmation status in the system for the transaction.After you have set the Counterconfirmation required indicator in the Standing instructions for correspondence or in Customizing by choosing DefineCorrespondence Activities, you can use the following functions for counterconfirming transactions:

In the Money Market and Foreign Exchange areas, transactions are counterconfirmed using the Incoming Confirmations function. In the other areas you can use the Correspondence Monitor to match the correspondence activities that are require counterconfirmation.

Correspondence letters can be archived (optical archive). You access the archived correspondence from the transaction display. If you are in thedisplay/change mode for a transaction, you can display the correspondence activities by choosing Goto from the menu. By double-clicking a line from the Correspondence overview , you activate the archive link and you can display the document. The content of the file is displayed for SWIFT correspondence.

The confirmation status (that is, the information about the time, the activity, the processor, the form used, and the output type for confirmations) is recorded inthe transaction.Using the ' Message control, the system checks for each activity transition whether the outgoing confirmation of the previous activity has already taken placeand, if so, whether this has already been matched in the case of required counterconfirmation. When the activity changes, the system checks to see if thetransaction to be changed has already been counterconfirmed.

Correspondence MonitorThe correspondence monitor provides the following processing and monitoring functions.

Overview of the current processing status A function for setting the counterconfirmation status to matched A function that allows you to execute planned correspondence directly from the monitor


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A function for repeating correspondence that has already been generated An option of branching to the IDoc management A function for branching to the transaction history A function for branching to display the optical archive A function for deleting correspondence planned records A function for resetting a counterconfirmation that was set manually

Using the Printer Override function, you control how correspondence is assigned to a printer in Customizing. This may be necessary, if the printer you want touse is out of order.

See also: Standing Instructions for Correspondence in the master data for the business partner

Create Standing Instructions for Correspondence Outgoing Correspondence: Incoming Confirmations (only for money market and foreign exchange) Generating SWIFT Files (only for money market and foreign exchange) Correspondence Monitor Printer Override Function Correspondence Overview (in the information system) See also the documentation for the above-mentioned IMG activities in the prerequisites.

1.4.3 Netting

UseThe Netting function allows you to group together transactions from the Money Market, Foreign Exchange and Derivatives areas and to pay them collectively.Situations can arise where several transactions are to be paid collectively; this happens especially in the case of transactions with business partners that are nothouse banks, that is payments need to be exchanged.

Example: Fixed-term deposit investment in EUR and fixed-term deposit borrowing in EUR You balance the open payment amounts and only pay or receive the net amounts Advantage: Saving of transaction costs or bank charges

To do this, you can group transactions to form Netting transactions.

Prerequisites The transactions must be created in the same company code with the same business partner and in the same currency. They must also have the same valuedate and identical payment details. To trigger a netting transaction:

All netting transactions are explicit agreements between business partners to simplify payment processing. When the transactions are confirmed (correspondence), they are assigned a reference to the other transactions involved. The decision to create a netting transaction is usually taken shortly before the payment flows are due, mostly on the same day as the related transactions are

posted. Only then do you know which transactions (such as forward exchange and spot exchange transactions) are suitable for net payment. Before you can group transactions together, you have to create identical payment activities. It is particularly important to note that all the transactions you want

to net must be able to produce payment requests because netting transactions can only be paid using the Payment Program for Payment Requests.

ActivitiesThe Proposal List for Netting report program supports the selection of transactions that can be netted according to the criteria you select. You can process andexecute the netting transaction directly from the report. Assigning individual transactions to netting transactions triggers the generation of payment requests that aregrouped into one Grouping key and are processed collectively in the enhanced payment program (if required without posting to a customer account). Thisgrouping key controls which payment requests will be separated from others. All the payment flows or their requests involved in the same netting transaction areassigned the same unique grouping key and are, therefore, separated from the other payment requests. They should not be grouped together with other requests.You cannot make retrospective changes to netting-relevant data in the individual transactions (especially due dates, amounts, house bank and payment data). Atransaction linked to a netting transaction is shown as such when processed.

Features Proposal list for netting transactions. Create Change Display Undo

IntegrationTransactions that are linked by netting are referenced with each other by means of Object Links (Reference key: KMP).


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1.4.4 Reference

UseA reference between Treasury transactions records a relationship between any number of transactions. The reference category defines the meaning of a reference.References are supported in the money market, foreign exchange, derivatives, securities and loans areas. In the securities and loans areas there is a Generalreference category, which you can use to represent relationships between transactions in these areas. In other words, you can use this reference category to linkany transactions you choose in these areas.

FeaturesSome references are created automatically when a certain activity is carried out. Others have to be created by the user. Reference categories, which are createdautomatically when you enter a transaction, can also be created manually.

Reference category Description CommentsBID Offer Generated automaticallyCON SWIFT confirmation files Generated automaticallyEUR Euro transaction currency changeover Generated automaticallyMIR Mirror transaction - link Not supportedKMP Netting Create manually using the Netting function.OPT Option reference - derivatives Generated automaticallyPRL Rollover of forex transactions Generated automaticallyREF General reference Create manuallySWP Forex swap Generated automaticallyICH Issuance contract hedge Create manually

You can also use the change reference function (TBR7) to process existing references. You can also create references for reference categories that are normallygenerated automatically. This is the only function you can use, however, to create and process references manually. (Exception: You use the netting function tocreate and process references from reference category KMP (netting). You can, however, also use the Collective processing function for references to editexisting references from this category).The following functions are available for references:

1. Creating a new referenceYou can create a reference between two or more transactions that are related to one another.The system performs an internal check when you create references for the Option reference - derivatives , Rollover of forex transactions and the Forexswap categories .You can create a general reference between any transactions you choose.2. Editing existing referencesYou can change, display or undo existing references.

Only in exceptional circumstances is it necessary to manually edit a reference that was created automatically. For example, if an optionbelonging to an option spread had to be reversed and you have to assign the new option to the other option again.

3. Collective processingThe collective processing report program enables you to display a list of references in one or several application areas. You can restrict your selectionsaccording to the following criteria:

a. Reference categoryb. Referencec. Statusd. Company codee. Transactionf. Order numberg. Loan numberh. Other selection parameters for netting transactions:

i. Business partnerii. Due date

An overview list is generated which displays the transactions selected for each reference.From here you can jump to the detailed screen for the transaction you want to edit by positioning your cursor on the transaction and choosing Reference Change/Display/Undo . You can add individual transactions to a reference, or remove them.

To obtain an overview of all netting transactions with particular business partners involved in money market transactions:a. Choose the Money market application.b. Choose the KMP (netting) reference category.c. Restrict your selections to one or several partners.


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d. Execute the report program.To obtain an overview of all references for a particular transaction:

a. Do not enter a reference category.b. Enter the Company code and the Order number of the transaction.c. Execute the report program.

1.4.5 Variable Interest Calculation For more information, see:

Interest Rate InstrumentsUpdating Planned Records

1.4.6 Rate Fixing

UseYou must fix rates for derivatives and foreign exchange transactions that you have created in the trading transaction.

FeaturesYou can use the Fix Average Rates report to determine exchange rates for creating average rates or the Reset Average Rate Fixing to delete these rates.You can fix rates manually or have the system fix them automatically. In foreign exchange trading there are an additional two functions available:When you opt for Automatic Fixing the system first imports the corresponding rate (as a rule the average rate) from the rates table. Subsequently, apremium/discount to the value of the separately defined fixing margin is calculated. This method allows you to use spreads that differ from the ask/bid spread.If you use the Manual Fixing Processing function, you set the exchange rate manually.When you fix rates, the transaction is transferred to the Contract activity.Double-click to go to the individual fixing transactions.

1.4.7 Regulatory Reporting The premium reserves are created from insurance premiums and are disclosed as liabilities in the balance sheets of insurance companies. The premiumreserves cover the assets belonging to the premium reserve fund. This premium reserve fund must be created in order to fulfill German supervisory requirements. It is used to ensure that claims from insurance policyholders canbe met. The assets of the premium reserve fund are documented in premium reserve fund lists (PRF Lists). In general, a separate premium reserve fund is set up foreach branch of insurance operated by an insurance company. The premium reserve fund is divided into various asset categories. Examples of possible asset categories:

Asset Category DescriptionPRF 1 Registered bondPRF 2 Registered debtPRF 8 BondsPRF 9 Stocks

The Stock Indicator and the insurance branch for each securities account are available in the SAP system. All values related to the securities account areassigned to the relevant asset grouping and insurance branch. See also:

Regulatory ReportingPremium Reserve Fund: Transfer


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Premium Reserve Fund: Information

Additional EMU Functions For information about the euro changeover functions, refer to the documentation: European Monetary Union: Euro (CA-EUR).

1.5 Securities Account Management

UseVarious functions are available for managing your securities positions. You can use these to map the changes that securities positions undergo over time. On theSAP Easy Access screen, choose Accounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Securities Back Office Securities Account Management .

Features

Position InformationHere you can use the evaluation reports for securities account management. They provide you with a lot of information about the security positions.

Securities Account TransferThe Securities account transfer function enables you to transfer a position from one securities account to another.

External Securities Account StatementsYou can use these functions to import external securities account statements and compare them with internal information.

PaymentsHere you can use the functions for the Automatic and Manual Debit Position and the function Manual Posting .See also: Payments.

Updating Planned RecordsThe function Update Planned Records recalculates the cash flows for the selected securities positions and updates the database.

Restraints on DisposalYou can use this function to block and unblock securities positions.See also: Editing Restraints on Disposal

Prerequisites 1. You made the necessary Customizing settings for update types. Choose Transaction Manager Securities Position Management Securities

Account Transfer and Securities Account Management. 2. You entered the posting specifications for the update types in Customizing for Transaction Manager. Choose General Settings Accounting Link to

Other Accounting Components Define Account Determination .

1.6 Corporate Actions

UseCorporate actions are part of position management in the securities area. You can use this function to display changes made by the issuer to the capital structurefor classes in your position. On the SAP Easy Access screen, choose Accounting Financial Supply Chain Management Treasury and RiskManagement Transaction Manager Securities Back Office Corporate Actions (FWK0).

Prerequisites You have made the following settings for Securities in Customizing for the Transaction Manager .


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You have determined number ranges by choosing Position Management Corporate Actions Define Number Ranges for Corporate Actions . In addition to the default corporate action categories, you have created individual corporate action types and assigned them number ranges by choosing

Position Management Corporate Actions Define Types of Corporate Actions. You have created three update types for the corporate action and assigned them to usage 0004 Corporate Action by choosing Transaction Management

Update Types Define Update Types and Assign Usages.

SAP provides the following default update types for corporate actions: CA0001 Corporate action: Position increase - units/nominal CA0002 Corporate action: Position decrease - units/nominal CA0003 Corporate action: Issue currency changeover

You have made your settings by choosing Position Management Corporate Actions Update Types Assign Update Types to Corporate ActionCategories .

For the issue currency changeover, you assign only the update type CA0003 Corporate Action: Issue Currency Changeover .

FeaturesStandard functions are available for the following capital changes:

Stock split Stock Swap Capital reduction Capital increases from retained earnings Transfer new stock Posting Subscription Rights Issue Currency Changeover

You can use the Manually Generated Corporate Actions function for capital changes that are not supported by the standard functions offered in the securitiesmanagement area.Status Concept of Corporate Actions

Status Description Remarks0 Planned The corporate action has status 0 once you

have created and saved it in the system. You can change, delete or activate the corporate

action. You cannot post the corporate action.

1 Activated (No flows exist)

This status enables you to transfer a plannedcorporate action (status 0) or one you have justcreated by choosing Corporate action Activate.

You can post the corporate action. Deactivate resets the corporate action to status

0.2 Activated

(Posted flows exist) At least one company code contains posted

flows.3 Activated

(Posted and reversed flows exist) At least one company code contains posted

flows. At least one company code contains reversed

flows.4 Activated

(Reversed flows exist) You can transfer the corporate action to status 5

using the deactivate function.5 Reversed The corporate action is deactivated and all flows

are reversed. You can no longer post the corporate action.

ActivitiesYou must execute the following steps for a corporate action: 1. Creating Corporate Actions

You create corporate actions for all company codes. When you create a corporate action, the system does not update any positions or generate general andsubledger documents.

2. ActivateIf you activate the corporate action (status 1), you can then post it in each company code. See also: Editing Corporate Actions

3. Position IndicatorYou create securities account position indicators for new positions.

4. Posting Corporate ActionsYou post corporate actions for each company code. This updates the company code positions and generates the FI documents (posting log), whereapplicable. The corporate action is automatically assigned status 2 and 3.

After you have carried out a corporate action, you cannot change position-changing business transactions to the positions of the relevant securities beforethe corporate action key date, because the function sets a lock. If, however, you have to subsequently make a change, you must first reverse thecorporate action. (See also: Reversing Corporate Actions).


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If you have carried out a stock split, you must change the nominal value of the stock in the class data. On the SAP Easy Access screen, chooseAccounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Derivatives Master

Data Listed Derivative Class ( FWZZ ). 5. Reversing Corporate Actions

1.7 Accounting

UseThe Transaction Manager and Loans Management are FI subledgers in which the information on the various financial transactions and finance positions is held.With the parallel position management of the Transaction Manager , it is possible to manage these positions according to other accounting principles parallel indifferent valuation areas.

Features Parallel valuation areas can be used for all product types in the money market , foreign exchange , derivatives , securities and loans areas.

Restriction:The amortization function according to LAC and SAC is not released for loans with annuity or installment repayments, or for securities with annuity orinstallment repayments.

Using the parallel valuation areas, it is possible to manage the positions in parallel according to different valuation guidelines. This means that you canproduce quarterly and annual accounts according to different accounting principles, for example, HGB (German Commercial Code) and US-GAAP.The position management in the parallel valuation areas contains functions for valuation, account assignment reference, and for valuation class transfer. Foreach valuation area, the values of the positions are stated depending on how the position components are managed.

In order to use the parallel valuation areas, you have to make the corresponding Customizing settings for position management. These settings are cross-application and they control the management of the positions in the application functions described below.

ExampleIn Customizing, you determine the criteria according to which the positions are established, you define the position management procedures, and youalso determine the rules for assigning the position management procedures to the positions. The application function Valuation then carries out the key datevaluation for each valuation area at the level of the positions. The exact steps are defined in the position management procedures.

Accounting Application Functions Transaction Posting Derived Business Transactions

Update Derived Business Transactions Fix and Post Derived Business Transactions

Execute Key Date Valuation and Reverse Key Date Valuation Execute Valuation Class Transfer and Reverse Valuation Class Transfer (only in the Securities area) Account Assignment Reference Transfer and Reversal of Account Assignment Reference Transfer

Functions for editing the master data of the positions Assign Position Management Procedure Assign Account Assignment Reference

You can also use the following evaluation reports: Positions Flows Posting Journal.

Integration The valuation area-dependent Operative Business Transactions enter your flows in the parallel valuation areas and these are managed there according to

the valuation area-dependent settings. Since the parallel position management is based on update types and not on flow types, the flow types must be assigned to the corresponding update

types. In Loans, the position-changing flows are transferred to the parallel valuation areas on a debit position basis. This means, for example, that the incoming

payment function in the Loans area is not linked to the parallel valuation areas.


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Overview: Integration of the Operative Business Transactions

PrerequisitesIMG activity Remarks

To set up the parallel valuation areas, you have to make settings in the following IMG activities in Customizing. Choose Transaction Manager General Settings Accounting :

Organization Define Valuation Areas Define Accounting Codes Assign Accounting Codes and Valuation Areas Product Categories to be Excluded - Parallel

Valuation Areas

Here you define which valuation areas you wish to have.

Valuation area 0001 is always the operative valuation area. Here, in the case of listed derivatives, forwards andrepos only, you use the functions of the parallel valuation areas to manage the positions.

You create the Accounting codes and assign them to the valuation areas.For the update of the parallel valuation areas into Accounting, you can extend your chart of accounts and post directly tothe general ledger or you can use the FI special ledger.If you wish to use the special ledgers, see the application documentation in the SAP Library under Accounting FI Special Ledger .The documentation on the IMG activity Assign Accounting Codes and Valuation Areas describes how to create aspecial ledger and link it to the parallel valuation areas.

Settings for Position Management Define and Assign Valuation Classes Define and Assign Differentiations Assign Consumption Sequence Procedure Set the Effects of the Update Types on the

Position Components Key Date Valuation

Define Amortization Procedure Define One-Step Price Valuation Procedure Define Security Valuation Procedure Define Foreign Currency Valuation Procedure Define Price Valuation Procedure for Forward

Exchange Transactions Define Position Management Procedure Assign Position Management Procedure Define Securities Account Groups

Make you make all the basic settings for managing positions in the parallel valuation areas.Under Define and Assign Differentiations, you determine how the positions are to be defined in the Securities area.Under Set the Effects of the Update Types on the Position Components , you must assign a position changecategory to the update types that are not generated using the parallel valuation area functions, but that are used there.Flows for an update type, to which no position change category has been assigned here, are not taken into accountwhen the position components are determined in the parallel valuation areas.Examples of update types (from the Customizing settings delivered with the system) for which an assignment must bemade:

SE1000 Purchase Post purchase value SE2000 Sales Incoming payment at position outflow SE3001 Brokerage capitalized Post costs to purchase value component ...

There are also some update types that cause no changes to position components but which must be linked to theparallel valuation areas. The position change category No position change is assigned to these update types.Also, you define here all the valuation procedures you require. Then under Define Position Management Procedures ,you combine these position management procedures for a specific position management category and under AssignPosition Management Procedure you define the rules according to which the position management procedures areto be assigned to the positions.If you have opted for representing the positions in the Securities area at the level of securities account groups (underDefine and Assign Differentiations ), you create the required securities account groups under Define Securities

Account Groups . When you create a securities account in the application, you must assign it to a securities accountgroup.

The securities account groups in the parallel valuation areas differ from those in the operative valuation area. Inthe operative valuation area, the securities account groups are created at the level of the ID number, this means thatthe securities account groups may differ depending on the ID number. Here in the parallel valuation areas, thesecurities account groups are defined and then the securities accounts are created and assigned to one of the groups.[The securities account group in the parallel valuation areas corresponds, therefore, to the portfolio of the operativevaluation area.]

Update Types Define Update Types Assign Update Types to Usages Assign Update Types for Valuation Assign Update Types for Derived Business

Transactions Alternative Assignment of Update Types for

Position Outflows Assign Update Types for FAS 133 Distribution Assign Update Types for Account Assignment

Update types carry the information for a flow in the parallel valuation areas. They roughly correspond to the flow typesin the operative valuation areas.Once you have defined and assigned the update types to the various usages, you have to carry out the usage-specificIMG activities.You can find the relevant IMG activities, Define Update types and Assign Update Types to Usages in all those partsof the IMG where they are required.You have to assign some update types to the corresponding flow types to enable the transfer of valuation area-dependent business transactions into the parallel valuation areas. This assignment is necessary in the Securities andListed Derivatives areas even if you do not have any parallel valuation areas.

If an update type is to be posted, you define the posting rules for the update type in Customizing under


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Reference Transfer Assign Update Types for Valuation Class

Transfer Assign Update Types for Initializing Positions Assign Update Types for Local Currency

DeterminationAssign Update Types to Usages in the Securities AreaUnder Transaction Manager Securities PositionManagement

Securities Account Transfer UpdateTypes Assign Update Types forSecurities Account Transfer

Securities Account Management UpdateTypes Specify Update Types for SecuritiesAccount Management

Securities Account Management UpdateTypes Assign Update Types to theFunctions of Security Account Management

Corporate Actions Update Types AssignUpdate Types to the Corporate ActionCategories

Rights Update Types Assign UpdateTypes to the Rights Category

Specify and Assign Update Types for Futures AccountManagementIn the Listed Derivatives area Customizing underPosition Management Futures Account

Management Update Types Specify Update Types for Futures Account

Management Assign Update Types for Margin Management

per Product TypeAssign Update Types for Transaction Management - OTCDerivativesIn the OTC Derivatives Customizing under TransactionManagement Update Types Assign UpdateTypes for Position UpdateAssign Update Types to Flow TypesIn Loans Management Customizing under TransactionManagement Update Types Assign Loan FlowTypes to Update TypesIn Customizing for the Money Market, Foreign Exchange,Securities and OTC Derivatives areas under TransactionManagement Update Types AssignTransaction Flow Types to Update TypesIn the Securities area Customizing under Accounting inOperative Valuation Area Flow Types Assign Flow Types to Update Types

If an update type is to be posted, you define the posting rules for the update type in Customizing underTransaction Manager General Settings Accounting Parallel Valuation Areas Link to Other

Accounting Components Define Account Determination .See the documentation on the update types in the IMG and also the Customizing settings delivered with thesystem.

Derived Business Transactions Control of Processing of Derived Business

Transactions

Here you determine whether the derived business transactions are to be generated online or offline .

If you have a large amount of data, it can be useful to opt for offline processing and schedule the update run forderived business transactions [RTPM_TRL_DERIVE_TRANSACTIONS] as a batch job, for example, everyevening.

Link to Other Accounting Components Define Account Assignment Reference Define Account Assignment Reference

Determination (OTC Financial Transactions) Define Account Assignment Reference

Determination (Securities/Listed Derivatives) Define Account Assignment Reference

Determination (Loans) Define Account Determination

Here you define account assignment references and establish rules for determining the account assignment referencesautomatically.You also define the account determination for the update types in FI.

The flow types in the operative valuation area have the indicator relevant to posting . The Customizing checkreport allows you to check whether an account determination was defined for all the flow types indicated as relevantto posting. Update types do not have this indicator. As soon as an account determination is defined for an updatetype, the update type is relevant to posting. Similarly, as long as no account determination has been defined for anupdate type, the update type is not relevant to posting.

In Loans Management Customizing under Basic Settings Parallel Valuation Areas

Initialization Date per Company Code You do not make any manual settings here. Rather, you can see if, and since when, loan positions have been held inthe parallel valuation areas.The indicator is set automatically by the system when the parallel valuation areas are initialized for the loans positions.

You can use the Customizing settings delivered as a guide.See also:See the documentation on the individual IMG activities.

1.8 Master Data


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DefinitionMaster data is basic data that rarely changes. You can edit and manage master data in the Transaction Manager in the following areas: BanksHouse Banks

SAP Business Partners for Financial ServicesChanges to Business Partners

ClassFacilitiesMaster AgreementPosition Management ProcedureSecurities AccountRedemption Schedules

1.9 Information System

PurposeYou can use the Information System in the Transaction Manager to execute the reports defined by SAP or to create your own reports.When defining reports, you can used the tools SAP Query and SAP Drilldown Reportin g, or load data into the Business Information Warehouse for analysis.

IntegrationTo access the Information System, choose Accounting Financial Supply Chain Management Treasury and Risk Management TransactionManager Information System.

Features Logical Databases for the Transaction Manager

Logical databases (LDBs) have been created to provide easier access to data in the Transaction Manager.These databases provide a structured, integrated view of the system database tables. They provide a pool of table fields for a particular business function. Indoing so, they encapsulate access to up to 100 database tables and integrate certain calculation procedures (for example, the NPV calculator).

Logical Database UseFTI_TR_POSITIONSPositions

You can use this LDB to evaluate positions in the Transaction Manager for a given keydate. This enables you to analyze all the key figures and characteristics that are relevantfor accounting for the specified key date.

FTI_TR_PERIODSPeriod Evaluations

You can use this LDB to evaluate flows in the Transaction Manager for a given period.This enables you to analyze position trends and revenues within the selected period,including positions at the start and end of the period, on a flexible basis.

FTI_TR_PL_CFRevenue Reporting

You can use this LDB to evaluate revenues/flows incurred within a given period. Thisenables you to analyze all the revenues for the respective due date or period.

FTI_TR_CASH_FLOWSPayment Information

You can use this LDB to evaluate payments in the Transaction Manager for a givenperiod. You can flexibly analyze payment flows from transaction management within theselected period.

FTI_TR_DEALSTransaction Reporting

This LDB evaluates information from transaction management. You can use the logicaldatabase for front office-based reporting. These functions enable cross-applicationreporting over the various financial products. In addition to cash flow-based evaluations,you can also create transaction data reports.

To improve system performance, all LDBs are accessed by a field list which includes only the fields and their nodes that are required by the callingprogram for the period.


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The graphic above provides an overview of the data that can be accessed in the Transaction Manager and the logical database from which it originates. Thelogical databases FTI_TR_POSITIONS and FTI_TR_PERIODS provide access to data in position management. You can use LDB FTI_TR_DEALS toevaluate your transaction management data, and analyze payment flows with FTI_TR_CASH_FLOWS. The logical database also contain key figures frommarket risk management that are required for evaluation purposes.

Using SAP Query for the application areas in the Transaction Manager : SAP Query is used to generate lists that are not yet contained in the standard system. It has the advantage that the user can create comprehensive

reports without having to carry out manual programming.SAP Query comprises the components Queries and InfoSet Query for defining reports, the component InfoSets to maintain InfoSets, the UserGroups to manage user groups, and the Translation/Query component that can be used to translate texts created in SAP Query.See also:

For more information about the SAP Query features and its use, see SAP Query. To evaluate data in the Transaction Manager using SAP Query , you should use the logical databases for the Transaction Manager . The logical

databases have been designed in a way so that you can use them according to their evaluation purposes.You can use InfoSets for the Transaction Manager to define reports and various report forms, such as basic lists, statistics, and ranked lists.Some Standard Queries for the Transaction Manager have also been defined that you can execute or use as a copy template.

To use the functions for maintaining queries, InfoSets, and user groups, choose Transaction Manager Information System Tools SAPQuery.

Link to the Business Information Warehouse (BW) :The Transaction Manager has been linked to the Business Information Warehouse (BW) . In doing so, the logical databases in the Transaction Manager areused as the basis for the BW extractors.

Link to SAP Drilldown ReportingThe link to the SAP drilldown reporting tool enables you to extract position data, position trend data, and flow data from the operative system with user-definedreports. You can present and analyze this data graphically.You can use drilldown reporting to custom-design reports and to process them interactively. You can evaluate the report results graphically or transfer them toPC applications. The tool also allows you to link reports and organize them hierarchically in a report structure.You can also create your own ad-hoc reports. When you define reports in this way, you do not need to define forms.

Output with the SAP List ViewerYou can use the link to the SAP List Viewer to display lists with all the characteristics in the lead column.

For more information, see Drilldown Reporting: Link to the Transaction ManagerAll the standard reports for the Transaction Manager are located in the report structure delivered with the system. Choose Information System Reports.

1.10 Tools

1.11 Environment Use Environment to branch to the functions for managing market data.

Manual market data entry Editing exchange rates manuallyEditing reference interest rates manually

Editing security prices manuallyEditing index values manually

Market data transfer from table calculation File interfaces Importing market data

Generating a requirements listDatafeed Displaying market data

Requesting current market data


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Payment Program for Payment Requests (FI-BL)

PurposeThe payment program for payment requests is an additional automatic payment option in the SAP system. You can use this payment program to make paymentsto customers and vendors, or between G/L accounts. Unlike the standard payment program, the payments are not based on open items (FI documents) but onpayment requests.

FeaturesThe functions of the payment program include:

Payment processingAllows you to control the selection of the payment requests, posts and clears the corresponding documents in the system, and generates the payment media

Payments in third currencies Update of payment data in Cash Management

1.13 Initialization Guide

- Initialization of the Parallel Valuation Areas

PurposeYou can use the initialization process to generate new valuation areas in the Treasury subledger (Treasury Ledger).The initialization covers the following products:

Transactions Securities Loans

Fixed-Term Deposits Stock Mortgage Loans

Deposits at Notice Investment Certificates Borrower's Note Loans

Commercial Paper Subscription Rights General Loans

Cash Flow Transactions Bonds

Interest Rate Instruments Redemption Bonds

Spot/Forward Transactions Convertible Bonds

Caps/Floors Warrant Bonds

Swap Warrants: Index /equity / currency / bond

FRAs Shareholdings

OTC Options

Listed Options

Futures

You always carry out the initialization of the Treasury Ledger (TRL Initialization) on a key date.Business transactions are mapped for most of the product categories before the key date. They are mapped by an initial business transaction, rather thanindividually. This means the subledger position (TRL Position) is structured correctly for the key date. The system provides data, depending on the product group,to determine the initial business transactions. All the flows that are to be transferred to the parallel valuation areas (TR Ledger) can be divided into:

The quantity of flows before the TRL initialization key date. The quantity of flows after the TRL initialization key date.

This results in the following:


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1. Exchange rate gains and valuations before the TRL initialization go into the initial business transaction on the key date. You map these flows using theupdate types that you defined in Customizing for the TRL initialization.

2. The system does not transfer valuations after the initialization key date to the new valuation areas. You must carry out this transfer yourself after theinitialization. On the SAP Easy Access screen, choose Execute Valuation (transaction TPM1).

3. The system generates exchange rate gains and other valuation-independent flows for the business transactions after the initialization key date using thederived business transactions of the TRL. In this way the position components are used as the basis for the calculation of the initial values generated by thesystem (and in certain cases changed by the customers).

In order to ensure that the initial positions in the TRL cannot be changed at a later date, the system blocks all of the business transactions on the key date.

Process FlowIn order to initialize the parallel valuation areas, choose Initialize Parallel Valuation Areas (transaction TPM_INITIALIZE) on the SAP Easy Access screen. Thistransaction provides you with the following options:

Carrying out initializations for each company code, valuation area, and product group. Splitting the transaction logic into single packages.

This ensures that you do not need to repeat the whole initialization process - just the incorrect step - if errors occur. For an overview of the initialization process, see Schematic Initialization Process Flow.

ProcedureThe individual product groups each have different initialization procedures. For more information, see:

Initialization in the Area of Securities Initialization in the Area of Loans Initialization in the Areas Money Market, Forex and Derivatives

Prerequisites The system generates proposals for the initial business transactions, based on specific data. These proposals must be changed to meet the accounting requirements in the new valuation areas. This means that the position components (write-down, write-up, amortization) of the business transactions that were transferred to the TR Ledger need to be adjusted using the TRL initialization process. In doing this, the startvalues of the relevant valuation area are taken into account.You will have to match the data from the external system if you manage your positions according to US GAAP in a different system. The positions in the TRLedger will be managed on the basis of this data at a later stage.The initial business transactions provided by the system are duplicated for each valuation area during the initialization process and then provisionally saved in atransparent database table. You can change this data according to the different start values (depending on the accounting principles).You can also carry out the initialization of parallel valuation areas as a batch process. For more information, see Initialization Batch Planning.

ResultThe values defined as start values by the initialization in parallel books are final.

1.14 Country-Specific Functions

PurposeThe Transaction Manager (FIN-FSCM-TRM-TM) component covers specific functions that are used only in a particular country and cover needs arising from locallegislation or business practices.They include localized versions of generic functions or functions not otherwise covered by the generic functions.

FeaturesTransaction Manager contains specific functions for the following countries:

Brazil


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India South Korea

Treasury and Risk Management Brazil (TRM) The Transaction Manager (FIN-FSCM-TRM-TM) component covers the most important laws and business practices specific to Brazil. The followingdocumentation describes these aspects of the component.For generic information about FIN-FSCM-TRM-TM, see Transaction Manager .

Implementation ConsiderationsTo use FIN-FSCM-TRM-TM for Brazil, you have activated the business function Financials Extension (EA-FIN). You make this setting in Customizing, bychoosing SAP ECC Extensions.For more information, in the SAP Library, see Financials Extension (EA-FIN).

Features

CustomizingIn addition to the generic Customizing activities, carry out the activities specific to Brazil as described in Customizing.

Business TransactionsYou follow a special process in Brazil when you sell funds, to ensure taxes are calculated properly and the relevant sale transactions are created.

Periodic ProcessingYou carry out the following activities on a periodic basis:

Run a report to calculate swap taxes Follow a special process for calculating intercompany-loan taxes and posting the resulting tax flows Follow a special process for calculating month-end taxes for funds and creating sale-transactions for funds taxes Run a report to transfer position amounts between short, medium, and long-term periods

Treasury and Risk Management South Korea (TRM)

PurposeTreasury and Risk Management for Korea covers the South-Korean specific business requirements in the areas of Transaction Management and Bond Tradingin order to comply with the following South-Korean practices for pricing trading bonds:

Calculation of the dirty price (with theoretical and practical methods)Calculation of effective interest rate

PrerequisitesYou have customized the standard master data for securities according to the general rules.

FeaturesCustomizingIn addition to the generic Customizing activities, carry out the activities specific to South Korea as described in Customizing.Master DataMaintain the securities master data as described.Business TransactionA number of business processes in TRM differ from those in other countries. TRM for South Korea offers special processes for the calculation of dirty price. See also:

Transaction Manager


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1.14.3.1 Customizing

UseTo use the South-Korean specific TRM functions you must activate the enhancement implementation of two enhancement spots as described in ActivatingAdditional Fields in Master Data and Activating Bond Price Calculation for South Korea.

Activating Additional Fields in Master Data

UseSecurities master data in South Korea must contain additional information, such as information related to Interest Payment Rules or Interest Before Issue . Formore information, see Securities Master Data.To activate the fields for this information, proceed as described below.

Activities1. To activate the additional fields install the enhancement spot for additional master data in Customizing for Treasury & Risk Management by choosing

Transaction Manager Country specific Customizing South Korea Transaction Manager: South Korea Additional Fields for Bonds.2. On the Enhancement Implementation Elements tab page select the Implementation is active indicator.

1.14.2.1.2 Activating Bond Price Calculation

UseTo activate the Calculation of Dirty Price proceed as described below.

ActivitiesTo activate the calculation of bond price as required in South Korea, install the enhancement for the calculation of dirty price in Customizing for Treasury & RiskManagement by choosing Transaction Manager Country specific Customizing South Korea Transaction Manager: South Korea Country-specificCalculation Methods.As a result, along with the standard Pricing button, you see the active Own pricing button on the Structure tab page in the contract management transactionsfor securities.See also:Calculating Bond Prices

1.14.2.2 Securities Master Data

UseThe trading practice in South Korea is different from other countries and therefore requires additional master data fields to calculate the bond price. You display the additional master data fields by choosing from the SAP Easy Access screen Accounting Financial Supply Chain Management Treasuryand Risk Management Transaction Manager Securities Master Data Display and Change Class Data Additional Master Data.

PrerequisitesYou followed the procedure for the activation of additional master data fields as described in Activating Additional Fields in Master Data.These fields only appear when a specific master data enhancement has been activated and the product type of the security record that you are processingrequires additional data.


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Procedure1. Enter securities data for bond trading practice as required in the standard procedure for securities2. Enter additional master data fields on a specific screen to fulfill South-Korean requirements. The group boxes of the additional master data fields are:3. Bond Price Information Data

Additional Information FieldsInterest Calculation Information

ResultYou can enter additional master data for South-Korean purposes.In a second step you can calculate South-Korean-specific bond price, in case you also activate the South-Korean bond pricing feature as described in ActivatingBond Price Calculation.See also:Calculating Bond Prices

Editing Classes

1.14.3.2 Business Transactions

UseTRM localization for South Korea focuses on bond transactions and provides the calculation of the dirty price and effective interest rate with additional country-specific master data fields in contract management transactions.The calculation method for this country-specific bond pricing differs according to the type of cash flow and is classified into three types:

1. Coupon bond : this calculation is used for a bond that pays the holder a specified amount of interest at given dates until maturity. The face value(principals) of the bond is paid at maturity and the interest is paid several times until maturity. An example is the fixed interest rate bond and the floatinginterest rate bond.

2. Simple-interest bond, compound bond, discount bond, synthetic bond : this calculation is used for a bond that pays the holder the interest and theface value of the bond at maturity. The face value and the interest are paid only once at maturity.

3. Bond with installment repayment: this calculation is used for a bond that pays the holder a specific amount of money including both the face value of thebond and the interest at given dates until maturity. Both principal and interest amounts are paid several times until maturity.

1.14.2.3.1 Calculation of Dirty Price

UseYou use the bond price calculation within the standard function to create or change a security transaction.You can calculate the dirty price for bond trading with two different methods:

Theoretical calculationPractical calculation

PrerequisitesYou have installed the enhancement spot and the product type and the transaction type that you use for the processed transaction allow your own pricing for theselected ID number.

ActivitiesTo execute the South-Korean specific bond pricing you:

1. Choose the Own pricing button on the Structure tab page.2. Enter the yield rate.3. Choose the Calculate button.4. Choose one of the two prices (theoretical or practical).

For more information about creating or editing securities transactions, see the standard documentation about Trading.


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Treasury and Risk Management India (TRM)

PurposeIn India, you are required to calculate and post withholding tax during the borrowings operations in TRM.In SAP ECC you use the Treasury and Risk Management solution to withhold this tax automatically.The TRM withholding tax function for India is available for product types:

Money marketSecurities

The performance of one of these functions has as result that the tax transaction is part of TRM transactions.In the case of a tax rate change, the new tax rate is considered for the withholding tax calculation.

IntegrationPrerequisite for the TRM withholding tax customizing is a complete extended withholding tax customizing in Financial Accounting.The specific functions for India are integrated into the Financial Accounting process and calculate the withholding tax before posting the tax to the correspondingcustomer account.For more information about the Customizing settings in FI see Extended Withholding Tax.

Features

CustomizingYou must carry out the Customizing settings for extended withholding tax.You carry out the customizing actions to generate withholding tax in TRM with the maintenance view TRXV_WT_ASSIGN.You can use this view to control for which flows withholding tax is calculated and posted. You can assign flows only to certain product types, financial transactiontypes, business partners, securities accounts, securities account groups or portfolios. For more information, see Overview.In addition you must carry out the settings as described in Customizing.

Business TransactionsYou record money market and securities transactions following the standard procedure.The system automatically calculates withholding tax for India when you save the transaction.If, for example, the interest rate has changed during settlement, the system recalculates withholding tax.

ReportingYou can prepare your report and print it: you use for this the cash flow reporting program.

ConstraintsThis component is not used for areas:

CML (Loans) Micro-hedging for recording the underlyings for foreign exchange (forex) contracts

1.14.3.1 Customizing Implementation ConsiderationTo customize Treasury and Risk Management for use in India you carry out the generic Customizing activities for withholding tax using the information providedin the following.Additionally, you carry out the Customizing activities that relate to functions used only in India.

Settings


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You must maintain every update type in the Update Type Tax Base column of the maintenance view, which should generate a withholding tax flow.You create this withholding tax flow with a flow type maintained in the Update Type column.Since it is very important to correctly maintain this table, we recommend that you read the F1 Help of the fields of this maintenance view.

1.14.3.2 Business Transactions

UseYou record money market and securities transactions following the standard procedure.In addition, when you save this transaction, the system automatically calculates withholding tax.During settlement, the system recalculates withholding tax.

Calculating Withholding Tax and Posting in TRM

PurposeYou can use this process to execute withholding tax calculation with the standard procedure and by posting the tax relevant flows to customer for thecorresponding business partner.The calculation and posting of withholding tax in TRM is possible for product types Money Market (using the transaction for creating fixed-term deposit) andSecurities (using the transaction for creating security transactions).

PrerequisitesThe withholding tax calculation is dependent on the withholding tax type and the withholding tax code which are defined in the Financial Accounting GlobalSettings, customized under topic Extended Withholding Tax.To calculate withholding tax in TRM, the flow types for which withholding tax should be calculated and posted must be defined in the customizing tableTRXV_WT_ASSIGN.For every item in this table the withholding tax type and the withholding tax code have to be defined.

ResultThe withholding tax flow is now calculated, posted and is part of the TRM transaction.

1.14.3.2.2 Withholding Tax Calculation in Contracts

UseIf you want to perform a withholding tax calculation and post it in Treasury and Risk Management you post tax-relevant flows.The operator posts the tax-relevant flows involving the customer account for the corresponding business partner.

ProcedureIn the contract you define the flow types for which withholding tax must be calculated and posted.You assign a contract to a customer using the Control Data indicator on the Payment details tab page in the contract. Only then the system calculates andposts the withholding tax.Maintain the fields Business Place and Section Code in a contract. In TRM, both fields can be maintained in the box Position indicator of a transaction. Toaccess this transaction on the SAP Easy Access screen choose Create fixed-term deposit Environment Posting Indicator .

ResultYou have calculated the withholding tax and saved it in the database.

1.14.3.2.2.1 Contract Processing


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UseThe business place and section code fields are used for the withholding tax process in India.In TRM, you can enter data for both fields in the Position Indicator of a transaction.On the SAP Easy Access screen, choose Environment Posting Indicator.The integration to Financial Accounting guarantees that the values of these fields are also transferred to FI and are then part of the FI accounting document.

ExampleThe mapping of registration data, reporting, payment and due dates are based on these fields.

Calculating Withholding Tax on Interest Accruals

UseThis function enables you to define the posting on accruals and deferrals of expenses and revenues in Treasury. To perform these functions, you use thecorresponding transaction. On the SAP Easy Access screen, choose for Money Market Accounting Financial Supply Chain Management Treasuryand Risk Management Transaction Manager Money Market Accounting Accrual/Deferral.Choose for Securities, instead: Accounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Securities Accounting Interest Accrual/Deferral.For more information about processing of interest accruals, see Accrual/Deferral.For the TRM India withholding tax function only the difference procedure is possible as an accrual/deferral procedure.

PrerequisitesTo generate a withholding tax flow for an accrual, it is necessary to maintain the accrual update type in the corresponding Customizing table.

FeaturesThis program makes accruals or deferrals of expenses and revenues resulting from Treasury deals, and allocates revenue and expenditure items to the properaccount periods.This program performs the following functions:

Calculates the amount to be accrued or deferred for the flows concernedCreates the corresponding accrual or deferral flowsPosts the items immediately in financial accounting, if required.

Calculating Withholding Tax Calculation for Brokerage Amounts

UseIf withholding tax is raised on brokerage you can create brokerage flows on tab page Other flows of the transaction for brokerage amounts.To generate withholding tax for a brokerage flow, you must maintain the brokerage update type, in the Update Type Tax Base column of the Customizing view..

ExampleYou can use the following update type:

SE3001: Brokerage capitalized

1.14.3.3 Treasury: Post Flows

UseYou use this report to check and control the postings and transferring transactions you have carried out.


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1.14.3.3.1 Posting and Transferring of Flows

UseYou use this function to generate documents to Financial Accounting in Treasury .This is possible with transaction Settle Fixed-Term Deposit and Program Treasury: Post Flows.

FeaturesThe report performs following activities:

1. The program finds the corresponding posting details for each flow in account determination.2. The document is prepared and transferred to Financial Accounting .3. The calculated withholding tax amounts or flows are processed, transferred to Financial Accounting , and posted in a single FI document.4. The list output displays the selected transactions with the withholding taxes calculated.

ActivitiesYou can use the test run to check whether these steps can be carried out correctly, without Financial Ac

Saphelp Transaction Manager

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