Ac810 Treasury Management Basic Functions[1]

5/20/2018 Ac810 Treasury Management Basic Functions[1]

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SAP AG 1999

AC810 Basic Functions in Treasury Management

AC810AC810

Basic Functions inBasic Functions inTreasury ManagementTreasury Management

R/3

Release: 4.6C

August 2000

Material number: 5004 0724


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SAP AG 1999

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Treasury

Treasury Overview

AC030 3 days

Level 2 Level 3

Financial Accounting

and Reporting

AC010 5 days

Cash BudgetManagement

AC215 1 day

Basic Functions in

Treasury Management

AC810 3 days

Cash ManagementAC805 3 days

Money Market, Foreign

Exchange and Derivatives

AC825 3 days

Loans Management forFinancial Services

AC815 5 days

Loans Management forCorporates

AC816 3 days

Securities Management

AC820 4 days

Market Risk Management

AC830 3 days


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Course Prerequisites

Recommended:

AC030 - Overview of Treasury


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Target Group

Audience:

Members of the project team

System staff

Organization staff

Duration: 3 days

Notes to the user:

The training materials are not teach-yourself programs. They complement the course instructor's

explanations. On the sheets there is space for you to write down additional information.


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Course goals

Course objectives

Course content

Course overview diagram

Main business scenario

Contents:

Course Overview


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Course Goals

This course will prepare you to:

Identify the basic Treasury Management functions

that are common to all the subcomponents

Configure banks and business partners and

recognize the concepts behind transaction and

position management in SAP Treasury


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Course Objectives

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

Set up organizational units in the SAP System

Create and configure banks and business partners

Make the system settings needed to control internal

processing

Describe and configure the payment program for

payment requests


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Course Content

Unit 7 Transaction and PositionManagement - Structure

Unit 8 Transaction and PositionManagement - Process

Unit 9 Payment Program forPayment Requests

Unit 10 Market Data Management

Unit 11 Information System

Unit 1 Course Overview

Unit 2 Overview of TreasuryManagement

Unit 3 Organizational Units

Unit 4 Business Partners

Unit 5 Banks

Unit 6 Transaction and PositionManagement - Preparation

Preface


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Course Overview Diagram

Organizational Units

Business Partners

Overview of Treasury Management

Banks

Transaction and Position Management - Preparation

Transaction and Position Management - Structure

Payment Program for Payment Requests

Market Data Management

Information System

Transaction and Position Management - Process


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Main Business Scenario

You are using (or have successfully installed)

the SAP Financial Accounting (FI) module,

and want to implement SAP Treasury

Management.

You begin by making the basic settings in SAP

Treasury Management.

You are a member of a project team. Your task is to make the basic settings for the SAP Treasury

module.


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Contents:

Overview of SAP Treasury

Main targets of Treasury

Overview of the product types

SAP Treasury processes

SAP Treasury functions

Overview of the basic functions in Treasury Management

Course AC810 deals with the basic functions in Treasury Management which are common to all

subcomponents (money market, foreign exchange, securities, loans and derivatives). The course

centers on general concepts related to transaction and position management and the corresponding

Customizing options.


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Overview of Treasury Management: Unit Objectives

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

Provide an overview of the SAP Treasury system

State the relevant product types

Explain the various processes and basic functions in

Treasury Management


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Business Partners


Banks





Information System



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Overview of Treasury Management: BusinessScenario

Before you begin your work in the project team,

you want to gain an overview of SAP Treasury.

Which products and processes can be mapped

using the new Treasury system? What

functions are available?

Which functions form the basis for mapping

financial transactions?


module.


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Overview of SAP Treasury


Bank data

Businesspartner

Market data

DownloadMarket Risk Management:

Interest/currency

exposure

Sensitivities

Mark-to-market Risk analysis/simulation

Value at risk

Cash Management:

Electronic banking

Liquidity status

Integrated operationalsystems

Control functions

Transaction Management

Management of financial

transactions and positions

Transfer to Financial

Accounting

Flexible reporting and

portfolio analysis

Datafeed interface

DD CC DD CC

100100100100

TMTM

SecuritiesSecuritiesDerivativesDerivatives

Money Mkt ForexMoney Mkt Forex

LoansLoans

Logistics

The objective of SAP Treasury is to ensure efficient liquidity, portfolio and risk management.

SAP Treasury is subdivided into the following areas:

Cash Management (CM) offers tools for efficient liquidity analysis.

Treasury Management (TM) and Loans Management (LO) support financial transaction and position

management.

Market Risk Management (MRM) provides methods and procedures for assessing risk positions.


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Main Targets of Treasury

1) % of all companies surveyedSource: Top 500 Survey (Germany) conducted in 1994 by PriceWaterhouse

Priority Target %1)

1 Ensure liquidity 95

2 Optimize financing costs 92

3 Optimize yields on financial assets 74

4 Hedge costs (e.g. against possibleexchange rate fluctuations) 61

5 Hedge sales (e.g. against possibleexchange rate fluctuations) 52

6 Contribute to profit through active

management of open positions 30


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SAP Support for Business Requirements

Treasury in

conjunction with

other SAP modules(FI, MM, SD)

Electronic bankingCash Management

Money Market

Securities

Loans

Foreign Exchange

Derivatives

Data integration

Central decision-making

Several currencies

Automatic processes

Analysis of financial

resources

Investment / borrowing

Data entry

Monitoring

Back officeReporting

Risk management


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Selection of Relevant Product Types

Mortgageloans

Borrower'snote loans

Policyloans

Other

loans

Fixed-termdeposits

Deposits atnotice

CommercialPaper

Product types

DerivativesForexLoansSecuritiesMoney market

Stocks Subscription

rights Investment

certificates Bonds Convertible

bonds Warrant

bonds Warrants

Forex spotdeals

Forwardexchangedeals

Forex swaps

Caps / Floors FRAs Swaps

- Interest rate- Cross-currency interest rate

OTC options

- Currency- Interest rate- Securities- Swaption, IRG

Futures

Hedging instrumentsInvestment/borrowing

instruments

You can smooth out short-term liquidity deficits and surpluses using money market or foreign

exchange transactions. The system also maps securities and loans transactionsfor borrowing and

investing in the medium to long term.

Derivative financial instruments allow you to hedge against interest rate and currency risks.


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Identifying Treasury Processes

Earnings/

risk targets

Revision ofplanned targets

Feedback

Adjustments

Documentation and control functions

Analysis andtrading process

Transaction and positionmanagement process

Analysis

(planning)

Decision

FinancialFinancial

transactionstransactions

From a strategic point of view, the analysis and trading process is the starting point for the various

Treasury processes. At this stage, you identify and analyze the liquidity and risk positions on the

basis of the risk and earnings targets you have defined. SAP Treasury provides special tools and

methods with which you can perform an integrated analysis of your company's financial and risksituation.

Once you have decided to conclude certain financial transactions, you enter the trading processes for

these transactions in SAP Treasury Management (TM/LO). Treasury Management also supports

functions for managing transactions and the related financial positions at later stages.

A range of documentation and control functions are available for all Treasury activities. They allow

you to perform evaluations for specific instruments or groups of instruments at each stage of the

Treasury process. This fulfills the various documentation and control requirements of both Financial

Accounting and Treasury.


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Analysis and Trading Process

Information

procurementTargets

Instruments Methods Measurements

Identification

of appropriate

financial

transactions

Simulationof alternative

results

Select onealternative

Trading Back office Accounting Reporting

Internal:- Liquidity status- Risk position

External:- Market data

Earnings/Earnings/

risk targetsrisk targets

Assessment

of possible

solutions

DecisionProcessing

Control

Controlling

From a strategic point of view, the analysis and trading process is the starting point for the various

Treasury processes. At this stage, you identify and analyze the liquidity and risk positions on the

basis of the risk and earnings targets you have defined. SAP Treasury provides special tools and

methods with which you can perform an integrated analysis of your company's financial and risksituation.


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Transaction and Position Management Process

Postings

Payment

transactions

Reversals

Accruals/deferrals

Valuation

Create new offer/

order/contract

Exercise/expiration

Terminations

Rollovers

Exercising rights

User authorization

Limit management

Release

Settlement/control

Interest rate adjustment

Netting

Referencing

Confirmation letters

Securities account transfers

Corporate actions

Trading Back office Accounting

The transaction and position management processes are divided into the following areas:

The tradingarea comprises functions for entering transactions and exercising rights.

In the back officearea, the transactions are settled (checked). The back office also covers processes

related to position management, such as securities account transfers.In the accountingarea, you make the postings for the various activities to the subledger. From here,

the posting information is transferred to the FI general ledger.

The basic structure of the trading and transaction management processes is the same for all the

Treasury Management components. This forms the basis for integrating and processing transactions

within the SAP System and provides the framework for adapting the way transactions are

represented in the system to suit company-specific requirements.

You can authorize different users for different activities in the transaction and position management

process. This allows you to separate trading, back office and accounting functions by employee.

In addition, the limit management function enables you to assign a range of different limit amounts

to different transactions.

You can configure the system to require transactions to be released for posting by one or several(different) person(s).


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Short-Term Financial Instruments

SurplusSurplus

DeficitDeficit

Short-termShort-term Long-termLong-term

InvestmentInvestment

Money marketMoney market

ForeignForeign

exchangeexchange

Investment

Securities

Loans

BorrowingBorrowingMoney marketMoney market

Foreign exchangeForeign exchange

BorrowingLoans

Money market

instruments: - Fixed-term deposits

- Deposits at notice

- Commercial Paper

- Cash flow

transactions

TR-TMTR-TM

TR-TMTR-TM

Forex

instruments: - Spot transactions

- Fwd transactions

- Currency swaps

Planning horizon

Liquidityposition

In the Money Market area, cash flow transactionsallow you to represent a wide range of transactions

flexibly by manually entering not just the term, but also the cash flow generated for the transaction

as a result of position changes, expenses, earnings, revenues, payments, and so on.


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Medium- to Long-Term Financial Instruments

SurplusSurplus

DeficitDeficit


Investment

Money market

Foreign exchange

Borrowing

Money marketForeign exchange

Securities:- Stock

- Bond

- ...

Loans:- Mortgage loan

- Borrower's note loan- Financing loan

- Policy loan

- ...

TR-TMTR-TM

TR-TMTR-TM

BorrowingBorrowingLoansLoans

InvestmentInvestment

SecuritiesSecurities

LoansLoans

Planning horizon

Liquidityposition


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Hedging Instruments

InterestInterest

rate riskrate risk

CurrencyCurrencyriskrisk


Risksituation Derivative

instruments:- Interest rate swap

- Cap

- Floor

- ...

TR-TMTR-TM

Derivative financial instrumentsDerivative financial instruments

Planning horizon


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Treasury Management: Functions

Complete financial transaction and position management Support of trading and back office functions

Functions to monitor, check and release transactions

Data transfer to Financial Accounting

(including accrual/deferral and valuation)

Flexible settingsfor company-specific transaction and

position management processes

Financial transactions assigned to portfoliosor managed in

securities accounts

Flexible reportingand portfolio analysis

Datafeed interface


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Basic Functions of Treasury Management

Central functions

Examples: Traders/users, currencies, correspondence,

financial mathematics, posting logic, payment transactions,

workflow, archiving, market data, information system

FIFI

Financial

Accounting

AMAM

Asset

Accounting

COCO

Controlling

Structure of financial transactions

Central data

Examples: Business partners, banks

Securities

Loans

Money market

Derivatives

Foreign

exchange


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Overview of Treasury Management: Unit Summary

SAP Treasury is subdivided into three areas:

Cash Management

Treasury Management / Loans Management


You can represent financial transactions in

Treasury Management using different processes

The SAP Treasury Management functions span

the complete transaction management process,

from the trading stage through back-office

processing to Financial Accounting


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Data Used in the Exercises

Explanation of the symbols used in the exercises and solutions

Exercises

Solutions

Unit objectives

Business scenario

Tips & tricks

Warning or caution


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Data used in the exercises

Data Data in the trainingsystem

Data in the IDES system

Company codes TR00 through TR20 1000

G/L accounts 113100, 113105, 113113113913, 118888

113100, 113105, 113113118888

Treasury businesspartner

DEUBA Deutsche BankCITI Citibank broker

1000 Deutsche Bank

CM groupings BANKEN(Bank account history)BANK-IST(Status of available bankaccounts)

PERSONEN(Customers, vendors andclearing accounts)

GESAMT(Total display)

BANKEN(Bank account history)BANK-IST(Status of available bankaccounts)

PERSONEN(Customers, vendors andclearing accounts)

GESAMT(Total display)

Notes to the exercises:

Create your transactions in UNI, CHF, or USD. Exchange rates have only been maintained for

these currencies.

Do not delete any existing Customizing entries. You should only add new entries.


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Overview of Treasury Management Exercises

Unit: Overview of Treasury Management

SAP R/3 Treasury applications

Relevant product types

You want to gain an overview of the SAP R/3 Treasury module.

1-1 Log on to the system with your User"TREA-XX".

"XX" = Your group ID number = Your PC number

1-2 Browse through the various menu items in the Treasury applicationto get an

overview of the different functions.

1-3 Familiarize yourself with the structure of the Customizingsettings.


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Overview of Treasury ManagementSolutions

Unit: Overview of Treasury Management

1-1 Log on to the system with your User "TREA-XX". Your instructor will tell

you which system to use. Make sure that you use the correct client, and inform

the other person in your group of the new password.

1-2 Overview of the various functions

Accounting

TreasuryTreasury ManagementBasic Functions / Money Market / Foreign Exchange / Derivatives /

Securities /


1-3 Overview of Customizing

ToolsAcceleratedSAP

CustomizingProject Management

Button: SAP Reference IMGTreasury

Treasury Management ...


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Contents:

SAP R/3 in your company

Client and company code

Portfolio and securities account

Users and traders



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Organizational Units: Unit Objectives


Explain the relationship between the Customizing

settings and the application

Identify the organizational units in SAP Treasury

Configure trader and user data


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Business Partners


Banks





Information System



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Organizational Units: Business Scenario

You want to gain an overview of the organizational

units in SAP Treasury and answer the followingquestions:

How do the Customizing settings affect how I work in

the productive system?

What options are available for managing financial

positions

How can I ensure that the trader data is assigned to

the correct users and stored with the individual

financial transactions?


module.


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SAP R/3 in Your Company

R/3

Customizing

Requirements

CompanyApplication

Customizingis the term used to describe the process of adapting the standard settings delivered with

the system to suit company-specific requirements.

Customizing settings determine the options in the application. For example, you may only want to

permit certain entries, or allow users to perform specific activities.

You usually customize the system oncewhen you go live with the SAP system. You can make any

Customizing settings you require for day-to-day business (but which are not vital to system

operations) using application functions.


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Customizing and Application

Treasury Management

Basic Functions

Industry

Business Partners

-

Change Business PartnerChange Business Partner

Partner Deuba

Industry

Possible entriesF4

Industry Description0001 Banks

0002 Insurance

0003 . . .

Industry Description0001 Banks

0002 Insurance

0003 . . .

IMGIMG

The Implementation Guide (IMG) lists all the activities that can be customized for each application.

Customizing settings determine the options in the application. For example, you may only want to

permit certain entries, or allow users to perform specific activities.


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Company code

Controlling area

Client Business area

SecuritiesSecurities

accountaccount

PortfolioPortfolio

The Treasury modules use the central SAP organizational structures. This ensures that the Treasury

system is integrated with the other SAP applications.

The clientis a self-contained unit within the SAP system (commercially, organizationally, and

technically) with separate master records and its own set of tables. Client data applies for allcompany codes and organizational structures. The client usually represents the corporate

group level.

A company code(FI) is the smallest organizational unit for which a complete, self-contained set of

accounts can be drawn up for external reporting. The company code is the unit for which you record

all the posting activities and generate all the documents for financial statements (balance sheet, profit

and loss account).

A client can have several company codes, which enables you to manage the accounts for several

independent companies at the same time.

Business areas(FI) are organizational units for internal financial accounting. They are used to group

G/L transaction figures for internal evaluations (internal balance sheet/P&L). You can define

business areas across several company codes. Controlling areas (CO) are organizational units within an enterprise for which you can perform

comprehensive cost accounting.

You can make further subdivisions in SAP Treasury by defining Treasury-specific evaluation

groups, such as portfolios and securities accounts.


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Position Management Options

For single items

At securities account level

At portfolio level

For several securities accounts

Company code position

The level at which you manage your financial positions is of fundamental importance. Position

management is the basis for valuation.

In the money market, foreign exchange, derivatives and loans areas, you manage transactions as

single items. You can manage securities positions for a securities account, portfolio, for severalsecurities accounts, and in some cases, as single items.


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Securities Account and Portfolio

Company codeCompany code

positionposition

PortfolioPortfolio

position 1position 1

Sec. acct

position 1

Sec. acct

position 2

PortfolioPortfolio

position 2position 2

Single

items

Single

items

You can create several portfolios within a company code.

You can assign several securities accounts to a portfolio.

(You can only assign a securities account to one portfolio.)

You use securities accounts to manage and value your positions. You need them for all transactions

that require position management. This primarily applies for listed securities. You can use securities

accounts as a basis for generating securities account statements, evaluating positions, and performing

securities account transfers. A securities account in the system usually relates to an existing

securities account at a bank. Securities accounts ensure that the legal framework and the related

administrative rules can be observed.

A portfolio is an evaluation unit in the company code, to which you can assign securities accounts

(securities area) or financial transactions (money market, forex, derivatives, borrower's note loans).

You can use portfolios to run an aggregated evaluation of different financial products. A portfolio

also acts as a risk management instrument for controlling and evaluating a your company's risk

positions. In the securities area, you can value positions for accounting purposes at portfolio level.


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Define Portfolios

Company code

Portfolio Portfolio name

SEC_1 Securities portfolio 1

SEC_2 Securities portfolio 2

BOND Bond portfolio

FXPORT Forex portfolio

CREDIT Credit portfolio

MONEY_1 Money market portfolio 1

C_ASSETS Current assets

F_ASSETS Fixed assets

MONEY_2 Money market portfolio 2

Treasury: Portfolio position

1000

To evaluate and value positions at portfolio level, you first have to define the portfolios.

You define your company-specific portfolios in Customizing. An example of a possible entry would

be a trader portfolio.


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Securities Account Master Data

Company code

Securities account

Sec. acct name

1000

Account++

Bank information

Depository bank

Sec. acct number

Clearing account

::

Portfolio

House bank

House bank

House bank acct

1000

1000

?

DEUBA

22224446

87575733

The securities accounts you create in the system usually represent existing securities accounts at abank.

Meaning of selected fields in the securities account master data:

Depository bank: Partner ID of the bank where the securities account is kept. You first create the

bank as a business partner in the role of "depository bank".

Securities account number: Number used to manage the securities account at the depository bank.

Clearing account: Account number of the cash clearing account at the depository bank.

Internal bank account: Account number of the cash clearing account in SAP Financial

Accounting.

Blocking type: If a restraint on disposal applies to the entire securities account, you must specify

the blocking type.

Block flag until: Date until which the restraint on disposal applies for the securities account.

Portfolio: Assignment of the securities account to a portfolio. This field is displayed if thePortfolioindicator is set in Customizing.

Business area: When you post a transaction, the system uses the business area defined in the

securities account master data. If there is no entry in the securities account master data, the

system uses the entry in the account assignment reference.


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Defining Trader and User Data

Trader 01

Trader 02

Trader 03

User M T WDC REC Trader

Brown M T 1 Trader 01

1000Company code

You define traders per company code. If a trader is active in several company codes, you have to

make the relevant settings in each company code.

You can define trader-specific input rules as user data. For example, M = million, T = thousand.

WDC enables you to carry out a working day check, and REC a rate entry check.

Once you have created the trader (and assigned a user name), you must assign this person

authorizations for the transactions he or she is allowed to conclude.


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Traders: Trader Authorizations

Assign

Trader01

TraderTrader

authorizationauthorization

Authorization

X

Treasury

Money market

Fixed-term deposit

51 A Fixed-term deposit100 Investment

200 Borrowing

Deposit at notice

52 A Call money

100 Investment

200 Borrowing

When you assign transaction authorizations for traders, you can restrict the trading powers to certain

financial instruments (such as money market), product categories, product types, or transaction

types. A higher-level authorization means that a trader is allowed to create any transaction below this

level. For example, a trader authorized for the Money Market area automatically has authorization toconclude a fixed-term deposit or a deposit at notice. Similarly, authorization for a product category

automatically includes the product type and transaction type levels below it.

Before you can assign trader authorizations, you must define the trader in Customizing.

To run evaluations that concentrate on the transactions or positions of a trader, you can store the

name of the trader in the transaction. You can enter the trader name manually when you conclude the

transaction, or let the system propose the trader name automatically on the basis of the user name.

You can assign specific user data to your traders. This speeds up data entry, and allows you to use

automatic checks for working days and rates/prices (on the basis of defined deviation intervals).

The logic for assigning authorizations is the same as for business partner authorizations.


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Organizational Units: Unit Summary

The entry and selection options in the

application depend on the settings made inCustomizing.

The Treasury modules make use of the central

SAP organizational structures. There are also

Treasury-specific portfolios and securities

accounts.

If you want to record trader data with your

financial transactions, you set up corresponding

traders in Customizing and assign

authorizations to them in the application.


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Organizational UnitsExercises

Unit: Organizational Units

Topic: Defining Organizational Units

Organizational units in SAP Treasury

Configuring trader and user data

You first want to gain an overview of the organizational units used in

SAP Treasury. You then want to assign corresponding trader data to the

system users.

1-1 Create the followingportfoliofor your company code TRXX in Customizing:

Portf-XX.

1-2 Create your own traderin Customizing using the name "T-XX", overwriting the

entry "TREASURERXX". Assign your user name TREA-XX to this trader.

1-3 The trader is authorized to conclude money market, foreign exchange, derivativesand securities transactions. Define the corresponding authorizationsfor your trader.


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Organizational UnitsSolutions

Unit: Organizational Units

Topic: Defining Organizational Units

1-1 Create portfolio

Customizing:

TreasuryTreasury Management

Basic FunctionsOrganization

Define Portfolio

Enter your company code TRXX and chooseNew entries(button). Save your

entries.

1-2 Create trader and assign user name

Customizing:



Define Trader

Enter your company code TRXX and chooseNew entries(button). Save your

entries.



Define User Data

Find your user and overwrite TREASURERXX with your new trader T-XX.

Save your entries.


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1-3 Create user authorizations

Application:

AccountingTreasury

Treasury ManagementBasic Functions

Master DataTrader Authorization

Enter your trader T-XX and your company code TRXX, and chooseEnter. Set

the indicators and save your entries.


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Contents:

Role category / role type

Data

Classification

Grouping / number ranges

Views / Field modification

Relationships

Release

Standing instructions

Transaction authorizations

Business Partners


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Business Partners: Unit Objectives


Fully configure business partners and assign

authorizations

Define standing instructions


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Business Partners


Banks





Information System



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Business Partners: Business Scenario

Before you can conclude financial transactions

with a business partner, you must create thepartner in the Basic Functionsarea of the

application. To do this, you must first make the

corresponding settings in Customizing.

You only want to authorize your business

partners for certain transactions.

When you create transactions with a business

partner, you want the system to default to certain

settings you have defined for that partner. What

options are available?


module.


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Business Partners - Overview

Creating financial transactionsCreating financial transactions

Creating business partnersCreating business partners

Customizing

Prerequisite

for

Prerequisite

for

Control

dataRoles Relationships General

Depending on your liquidity situation (CM), your risk situation (MRM), and the revenue and risk

targets you have set, you conclude certain financial transactions with your business partners.

Example: You have a liquidity surplus, and invest this surplus amount with the business partner

"Bank A" as a fixed-term deposit. The functions for entering transactions are based on the Customizing settings for the transaction

architecture (product types, transaction types, ...), and certain application data, such as business

partner information (address, bank details, ).

In SAP Treasury, enter each financial transaction with a (specific) business partner. The business

partner data must be available before you enter the transaction.

The settings that have been made for business partners in Customizing determine the options

available for creating business partners in the application.


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Roles and Functions

Natural

person

Organization

Interested party

Treasury partner

Beneficiary

Borrower

Agent/counterparty

Lawyer

Surveyor

Issuer

Depository bankTrustee

Payer/payee

Assigning institution

Guarantor

A business partner is one of the following:

A natural person

An organization A group of people or organizations in which you have a business interest

In the SAP Treasury system, you conclude transactions with business partners. Banks or central

treasury departments are typical partners.

You create a master record for each business partner.

You can assign several roles or functions to one business partner.

A role (= role category) specifies the characteristics a business partner must have before you can

perform certain transaction activities with that partner. The business partner roles are used to record

the functions of a business partner in a particular transaction.

Example: A business partner acting as a borrower or a treasury partner.


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Business Partner Data: Overview

Central dataGeneral role

data

Company code

data

Business

partner

Name

Address overview

Bank details

Personal data

Employment data

Legal data

Fiscal years

Additional data

Relationships

Role overview

Role data

Credit standing

Tax data

Reg. reporting data

Control data

Bank

Account information

Account interest

Autom. pmnt transact.

Payment data

Dunning data

Reg. reporting dataControl data

Relationships

The user interfacefor the business partner data was redesigned as part of the Enjoy project. The new

screen layout uses tabstrips that let you navigate between the individual business partner views. You

can still navigate as before using the menu.

The data you can maintain for business partners is divided into three areas:

Central data

This data is available for every business partner, regardless of the partner role.

General data

General data is held centrally for all roles. Access to this data can vary according to the role

category, depending on the settings in Customizing (role-view-assignment).

Company code-dependent data

Data that only applies for a particular role category in the respective company code.

Each of these areas is divided intodifferent views.


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Creating a Business Partner

??

Business partner

Grouping

Role category

Classification

Organization

Natural person

Collective partner

Application levelApplication level

System level

When you create a business partner in the system, you must specify the classification and the

grouping in the initial screen.

You can assign a role (= role category) when you create the partner, or at a later date.

The classification options and role categories are predefined in the system.

You define the grouping in Customizing, and use it to classify the business partners according to

your own criteria.


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Customizing and Application

Classification

Grouping

Role category

Views

Relationship categories

Role type

Number ranges

Relationship types

Field modifications

Customizing

ApplicationData entered

Business partner

authorization

Standing

instructions

Classification: You create a business partner either as an "organization" or a "natural" person. The

classification affects the data you enter (for example, legal form for an organization, marital status

for a natural person).

Thegroupinglets you classify business partners according to your own criteria.Examples: Grouping1: Partners for money market, forex, and derivatives transactions

Grouping 2: Partners for loan transactions

...

The business partner roles(role categories) are used to record the functions of a business partner in a

particular transaction. The role category determines which application functions are permitted or

excluded.

You can use thefield modificationfunctions to define which fields in the respective business partner

views are required, optional, or suppressed.

You can link business partners using relationships.

The data the user enters is divided into central data,general data, and company code data.

You have to authorizethe business partner for the permitted transactions.

Standing instructions are general agreements made with a business partner for processing similar

types of transactions.


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Grouping

CreateCreatebusinessbusiness

partnerpartner

FI

CreateCreatecustomercustomer

Customizing:

Grp. NR Acct group Descr. of grp.

TR01 01 CUST TR partner (int.)

TR02 02 CUST TR partner (ext.)

No. Fr. no. To no. Curr. no. Ext.

01 000001 000099 5

02 AAAAAA ZZZZZZ X

BP grouping

Number ranges

created

automatically

TR

You define the number range for the business partner via the business partner grouping. This number

range controls whether the business partner key is assigned internally by the system, or externally by

the user. It also determines whether the key must be numeric or alphanumeric.

In addition, you use the business partner grouping to create the link to Financial Accounting byassigning a corresponding customer account group. If you create a partner and call up views that are

relevant for processing on the basis of customer accounts, the system automatically creates an FI

customer.

Customer-based views:

Bank details; tax data; control data; account information; account interest; automatic payment

transactions; payment data; dunning data.

To map payment flows in Cash Management, you assign a planning group to the business partner

(Company code data -> Account information). This ensures that payment flows are included in Cash

Management, even if the payment details are missing in the transaction.


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Define Role Types / Role-View Assignment

RoleC Name of role type RType Name of role category

A001

A0021000

1000

Treasury partner

Treasury partner

Domestic treasury partner

Foreign treasury partner

RoleC Name of role category View Description

1000

10000100

0190

General: Credit standing

CoCd: Control

Treasury partner

Treasury partner

The functions of the business partner in the transaction are defined using business partner roles (role

categories). You can refine the role categories predefined in the system by defining role types in

Customizing.

Example: You could vary the standard address according to role category. In Customizing you can define which data views can be accessed for each role category.

Example: If you do not assign the "Dunning data" view to the role category "Issuer", the user cannot

call up dunning data for a partner in the role of issuer in the application.

You can use role-view assignment to assign views from the general data and company code data

areas to roles. Central data can be called up for all role categories.


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Field Modification

... for activities ... for role categories

??

Field modification

. . .

01

02

03

Create

Change

Display

Act. Short text Role Name of role category

Borrower

:

Treasury partner

0100

:

1000

382 Industry o o o o

...

Fld gr. Hide Required Opt.field Display

110 Credit standing o o o oXX

You can configure the individual entry fields in the views using the field selection options in

Customizing.

The following options are available for data fields:- Required

- Optional

- Display only

- Hidden (suppressed)

You can use field selection to configure fields according to activity (create/change/display business

partner) or role category.

(You have to maintain role-view assignment in order to modify the fields for the role category.)


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Business Partners: Relationships

Relationship

Relationship categoryRelationship category

Relationship typesRelationship types

Example:

Parent company

Example:

Subsidiary

Depends upon

classification

Outgoing relationship

"Group subsidiary of"

The selection of relationship categories is predefined in the system and depends on how the business

partner is classified.

Example: "Group subsidiary of ..." for an organization, "Wife of ..." for a natural person.

You can differentiate within the given relationship categories by defining your own relationshiptypes.


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Business Partners: Relationship Types

RelTyp Description RelCat Description

SUB2 Important group

subsidiary of 0050 Group subsidiary of

You define relationship typesto refine the relationship categories predefined in the system.


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General Customizing Settings

Business partnerIn this section you make

additional settings that

determine the selection

options when you enter

business partner data in

the application.

Central data

General data

Company code data

Extras

General

Examples of Customizing tasks:

Central data: Define forms of address

General data: Maintain ratings for credit standing data Company code data: Define planning groups for displaying data in Cash Management

Extras: Specifications for additional information fields


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Business Partners: Data Maintenance

Central dataGeneral

data

Company code

data

Business

partner

Name

Address overview

Bank details

Personal data

Employment data

Legal data

Fiscal years

Additional data

Relationships

Role overview

Role data

Credit standing

Tax data

Reg. reporting data

Control data

Bank

Account information

Account interest

Autom. pmnt transact.

Payment data

Dunning data

Reg. reporting dataControl data

Relationships

The data you can maintain for business partners is divided into three areas:

Central data

General data Company code-dependent data

When you create a business partner in the application, the data fields you can maintain in the

respective views depend on the following:

Classification

Grouping

Role-view assignment

Field modification


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Release Control

Activate release

Define release parameters

BPAR Bus. partner Partner

1000

XBusiness partners

Role cat. ReSt Active

X22

If you activate the release procedure for business partners in Customizing, any business partner data

that is created or changed must be released before you can enter transactions with that partner.

You can apply different release procedures, depending on the role category. For each role category,

you assign the appropriate release status (release by one employee, release by two employees, ).

Above example: If you change the data for a business partner with role category 1000, the change

must be released by two employees before the business partner can be used.


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Business Partners: Standing Instructions

Business partner ABusiness partner A

PaymentPayment

detailsdetailsTransactionTransaction

authorizationsauthorizations

DerivedDerivedflowsflows

CorrespondenceCorrespondence

Standing instructions are general agreements made with a business partner for processing similar

types of transactions. You can access the business partner standing instructions for payment details,

correspondence, authorizations and derived flows using the tabs on the business partner maintenance

screen. The integration of the standing instructions with the business partner data means that therelease workflow for business partners can also be applied to the standing instructions. You can also

access the standing instructions using a separate menu path.

Agreements can cover:

Authorizations

Which financial transactions may be concluded with this partner?

Payment details

For transactions with business partner A ==> The system proposes the payment details for

business partner A in the transaction

Correspondence

For transactions with business partner A ==> Fixed setting: Which correspondence is

generated for which transactions?

Derived flows

For transactions with business partner A ==> Fixed setting: If the transaction with business

partner A contains flow X, add taxes

amounting to y% of X.


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Business Partner Authorizations

Business Partner A

Assign

Bus. partner

authorization

Authorization

X

Treasury

Money market

Fixed-term deposit

51 A Fixed-term dep.100 Investment

200 Borrowing

Deposit at notice

51 B Call money

100 Investment

200 Borrowing

To use a business partner (BP), you have to:

Create the business partner

Release the business partner (if required) Authorize the business partner for certain financial transactions

You can only assign transaction authorizationsif the business partner has been released (where

release is required) and is not flagged for deletion.

You use transaction authorizations to control which transactions can be concluded with a particular

business partner. You can assign transaction authorizations at the following levels:

Contract type

Product category

Product type

Transaction type

You have to assign authorization explicitly to each business partnerin each company code.


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Creating a Business Partner with an FI Customer

Business partner

Grouping

Role category

Classification

Organization .

.

Specifications

CustomerAddress ID

??

?

You can copy a customer that already exists in FI to create a business partner: The system uses the

data entered in the Specificationssection to establish a link between the existing customer and the

new business partner you are creating.


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Business Partners: Unit Summary

Before you can conclude financial transactions

with a business partner, you must create,release and authorize the partner in the Basic

Functionsarea of the application. To create

business partners in the application, you must

first make the corresponding settings in

Customizing.

You can set up standing instructions for a

specific business partner. The system proposes

these values (such as payment details)

automatically when you create a transaction

with this partner.


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Business PartnersExercises

Unit: Business Partners

Topic: Business Partner Grouping

Creating a new business partner in the system

Assigning a grouping to the business partner

Before you can conclude financial transactions with a business partner,

you must create the partner in theBasic Functionsarea of the application.

To do this, you must first make the corresponding settings in

Customizing.

1-1 Is it currently possible to create a business partnerwith the business partner

grouping "TR01" and your own name "BPXX"?

__________________________ YES

__________________________ NO

1-2 In Customizing, create a business partner groupingthat allows you to assign an

external business partner name with alphabetic characters (number assignment).

Name the grouping G-XX (choose "DEBI" for the account group).


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Topic: Roles / Functions

Creating a new business partner in the system

Assigning roles and functions to the business partner.

You want to create a new business partner with whom you can conclude

treasury transactions. To do this, you must assign the role "Treasury

partner" to your partner.

2-1 In future, you want to conclude transactions with the business partner BPXX.

Create the partner "BPXX" as an organization (initially without roles). Use your

own grouping G-XX.

2-2 Call up the various views using the tabs, or by choosing Goto -> Central data/

General data /Company code data.

(Note: Only the Central dataand the role overview can be displayed.)

2-3 To conclude money market, foreign exchange and derivatives transactions, assign

the role of Treasury partnerto the business partner. Call up the various business

partner views again.

(Note: Now - after adding a role - you can call up the General dataand Company

code dataviews.)


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Topic: Additional data

Creating additional data for a business partner.

You want to enter additional master data for your business partner, such

as additional addresses, information about relationships with other

business partners, or the business partner's credit standing.

3-1 Add the following information for your business partner BPXX:

Specify that the business partner in the role of treasury partner is a "domestic

treasury partner" (->Role type).

BPXX is a subsidiary of the existing business partner BP00 (-> outgoing

relationship).

Define this relationship more precisely as a "very important subsidiary" (->

Relationship type).

The business partner has a standard address and an alternative address.

The partner's credit standing is very good.

The legal form of the organization is a "Limited company" (Ltd).

(If necessary, enter account 140000 as the reconciliation account.)

3-2 You want to allow money market and foreign exchange deals with partner BPXX.

In the derivatives area, only interest rate swaps should be permitted. Assigncorresponding authorizations to the partner in the application.


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Business PartnersSolutions


Topic: Business Partner Grouping

1-1 Is it currently possible to create a business partnerwith the business partner

grouping "TR01" and your own name "BPXX"?

_________________________ YES

_______________ X _______ NO

No. The number range assigned to the grouping "TR01" has internal number

assignment. As a result, the system does not permit you to enter your own

name.

Application:

Treasury

Treasury Management

Basic Functions

Master Data

Business Partner

Create

1-2 Creating a grouping

Customizing:

Treasury

Treasury Management

Basic Functions

Business Partners

Control Data

Define Business Partner Groupings

ChooseNew Entries (button) or copy the entry "TR02" and make the changes.

Enter G-XX and the number range "02", choose the account group "DEBI",

and save your entries.


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Topic: Roles / Functions

2-1 Creating "BPXX" as a business partner:

Application:

Treasury

Treasury Management

Basic Functions

Master Data

Business Partner

Create

Enter the business partner name and the grouping G-XX. Do NOT enter a role

category. Then enter the data for your new business partner (name, language,

country, address ID, street, city, postal code and country). Save your entries.

2-2 Call up the various views using the tabs, or by choosing Goto -> Central data/

General data /Company code data.

Application:


Basic Functions

Master Data

Business Partner

Create / Change

Goto ...

Since you have not yet assigned a role category, you cannot display or enter

data in the General dataand Company code dataviews.


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2-3 Assigning the role "Treasury partner" to your partner:

Application:

Treasury

Treasury Management

Basic FunctionsMaster Data

Business Partner

Create / Change

Goto - General data

Role overview

Button: Add role category (1000)

Now - after adding a role - you can call up the General dataand Company code

dataviews.


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Topic: Additional Data

3-1 Adding data for business partner BPXX:

Application:

Treasury

Treasury Management

Basic Functions

Master Data

Business Partner

ChangeGoto ...

Enter your data and save your entries.

3-2 Business partner authorizations:

Application:

Treasury

Treasury Management

Basic FunctionsMaster Data

Business Partner

Standing Instructions

Transaction Authorizations

Enter your company code and maintain the authorizations using the Change

orEnter buttons.


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Banks

Contents:

Banks - general Business partner - bank details

House banks + corresponding bank accounts

+ general ledger accounts

Transaction - payment details


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Banks: Unit Objectives

At the conclusion of this unit, you will be able to: Configure the whole banking environment

in the SAP System

Differentiate between banks in general, business

partner banks, and house banks

Define the cash management account name for

displaying the account balances in Cash Management


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Business Partner


Banks





Information System



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Banks: Business Scenario

In order to post flows that involve incoming

or outgoing payments, you have to specifypayment details in the transaction.

Before you can enter payment details in the

transaction, you have to enter bank data in

the system. You then assign the bank details

to the business partners you have already

created. You need these bank details to make

actual payments to a partner.

You create the banks, where your company

keeps it own accounts, as house banks.


module.


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Transaction: Payment Details

BP bank details

BankAccount

House bank

House bank account

Conclusion of a

transaction with

business partner A

Posting/Payment

Entered in

transaction

manually

+ Payment details

BankBankdatadata

To record the data for accounting purposes, you have to post the flows on the corresponding dates.

The system requires the following payment details to post the flows that are linked to incoming and

outgoing payments:

Your own bank details: house bank and account (number)

The bank details of your business partner (if required): bank and account (number)

The system uses the payment details to post the flows to the specified house bank account, and to

write the business partner's details to the corresponding payment medium (via the payment program

and the print program).


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Banks - General: Master Data

Bank country DEBank keyBank key 200 500 00200 500 00

Address

Bank name Dt. Bank

Region

Street

City

Branch

Control data

SWIFT code

Bank group

Post bank account

Bank code 200 500 00

Banks - general...

Bank country DE

Bank keyBank key 200 500 00200 500 00

Address

Bank Bank C

Region

Street

City

......

(Account 889613262)

(Account 12345678)

Partner bank

House bank

... Used as:

BankBank

datadata

You maintain the business partner bank details and your own bank details centrally in a "bank data

pool.

The bank data you enter is maintained in the bank directory in Financial Accounting. You either

enter the data manually, or have it generated automatically. It can be accessed across the wholesystem.

Bank master data is contained in the bank directory. This includes the address data for the banks and

control data, such as the SWIFT code or the bank group.

The bank directory must contain the master data of all the banks that you require for payment

processing. This includes your own house banks and the banks of your business partners.

The bank data you have created (name, address, bank number ...) can then be used to maintain:

Partner banks - bank details of your business partner

House banks - your own bank details with the corresponding link to R/3 Financial Accounting.


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Business Partners:Central Data - Bank Details

Central dataCentral data

Ctry Bank keyBank

account PBank

DE 600 501 01 5214561 A1

DE 100 500 00 18889 B1

Bank A

Bank B

DE 200 500 00 889613262 C1

Deutsche Bank

Business partner A

BankBank

datadata

Bank details

You enter the bank details for the banks used by each business partner. This involves entering the

country, a relevant bank key, and a bank account.

Each set of bank details has a unique partner bank key (PBank).

Example: "B1" encodes the following: Business partner A has an account with the number 18889 at

Bank B. The bank key is 100 500 00.

When you maintain the bank details for the business partner, the system takes the bank name from

the bank data pool when you enter the country and bank key, if this data already exists.

If you enter a country and bank key in the bank details for a bank that does not yet exist in the bank

data pool, a dialog box for entering general bank data appears, enabling you to add this new bank to

the bank data pool.


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House Banks: Master Data

Related bank accounts:

12345678

. . .

Bank country DE

Bank keyBank key 200 500 00200 500 00

Address

Bank Dt. Bank

Region

Street

City

Branch

Control data

SWIFT code

Bank group

House banks

Bank dataBank data

BankBank

datadata

Company code 1000

BankBank

datadata

You create the banks at which your company has keeps its own current accounts as house banks.

When you maintain house banks, the system takes the bank name from the bank data pool when you

enter the country and the bank key, if this bank data already exists.

If you enter the country and the bank key for a house bank that does not yet exist in the data pool, a

dialog box for entering general bank data appears enabling you to add the house bank to the data

pool.

You assign the accounts you keep with the house bank accordingly.


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House Banks: Create Master Data

Chartof

accounts

Bank account data

G/L account 113100

Account ID GIRUN

Bank acct 12345678

Currency UNI

Company code 1000

Related bank accounts

House bank DEUBA

Bank country DE

Bank key 200 500 00

You maintain the house banks in a particular company code. Each house bank has a specific house

bank ID.

For each house bank, you have to enter the bank accounts kept with that bank. Each bank account isidentified by an account ID you can assign yourself. This key is unique for each company code,

house bank, and account.

Short names are used to make it easier for you to enter your own bank details in transactions.

An internal general ledger is usually kept in Financial Accounting for each account kept with the

house bank.

You can establish a link in the system between the (external) house bank account and the (internal)

general ledger account by assigning the accounts appropriately.


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General Ledger Accounts

FI general ledgerFI general ledger

Company code 1000

G/L account 113100

Chart of accountsChart of accounts INTINT

Name Dt. Bank

:

Account currency UNI

:

:

Bank/finance details House bank Deuba

Account ID GIRUN

Cash Mgmt level F0

The R/3 general ledger account you enter for maintaining the house bank first has to be created in FI

as master data. Here, you define the account currency details as well as the Cash Management level

at which the amounts posted to this account are displayed in Cash Management.


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Transaction: Payment Details - Data

Company code 1000

Product type 51A Fixed-term deposit

Transaction type 100 Investment

D Curr. Effective FTyp House bk Acct ID Pmnt Payer/ee PBank

- UNI Deuba GIRUN

- UNI Deuba GIRUN

Transaction: Payment Details

Conclusion of a

transaction with

business partner A

Posting

+ Payment details

Example: Fixed-term deposit

The transaction and position management process not only enables you to enter transaction data, but

payment details too (i.e. the data required for payment processing):

D: Direction of the payment flow ("+": incoming payments; "-": outgoing payments).

House bk: House bank via which payments are processed in this transaction in the form of the

defined house bank ID.

Acct ID: Bank account at the house bank via which the payments in this transaction are

processed, in the form of the defined account ID.

PBank: Bank details (bank key and account) of the business partner via which the payments in

this transaction are processed in the form of the defined partner bank ID.

The system supports multi-level payment methods.By entering a bank chain, you can process

payments via several banks. You can use up to 3 intermediary banks.


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Define Cash Management Account Name

CoCd

1000

.

.

.

CM acct

DB Dollar

G/L acct

113150

Bank account

110113150

Description

Deuba

Dollar account

Cash position / Group

Account CC 04/04/YY

DB Dollar

.

.

.

1000

04/03//YY

1,000 1,011

IMG: Cash Management

The amounts posted to the general ledger accounts are displayed in Cash Management at the cash

management level assigned in the FI accounts master data.

You can enter the related account in CM with the (general ledger) account number. Alternatively, if

you maintain a cash management name for the account, you can use this.

The cash management account name replaces the account number in the cash position with a

descriptive name. It is used there for all transactions and reports (such as cash management position)

instead of the account number.

Example: Amounts in G/L account 113150 are displayed in Cash Management:

If the cash management account name has notbeen maintained:

Account Amount

113150 1,000

If the cash management account name hasbeen maintained:

Account Amount

113150 1,000


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Banks: Unit Summary

You have seen how to enter bank data

in the SAP System manually. You canalso import bank directories from various

countries into the system automatically.

If you conclude financial transactions with

business partners with whom you do not have

a current account (where payments cannot be

settled internally), you must enter the partner

bank details in the partner master record.

You also have to set up the house banks

and the corresponding bank and general

ledger accounts in the system.


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BanksExercises

Unit: Banks

Topic: Setting up banks / house banks

Setting up the entire banking environment in the SAP System.

After configuring your business partners, you now want to define the

banks in the system. These include general banks and house banks.

House banks are banks with which you have at least one current account.

1-1 Create the banksAXX and BXX. The bank keys must be 8 characters long. The

banks are in Germany.

1-2 Change your business partner "BPXX" by assigning the bank details to this partner.

Enter AXX and BXX as the bank type. These entries are required for the payment

details and the payment program.

1-3 Create the following general ledger accounts.

You create the accounts in theFinancial Accounting menu in the General Ledger

section.

Enter your company code and the account number, and copy the relevant account

from company code TR00. Save your entries:

116100 Giro/UNI 116105 Clearing/UNI

116300 Giro/USD 116305 Clearing/UNI

116113 Giro/USD 116114 Fixed-term dep./USD

1-4 Define the CXX bank as a house bankwith the bank accounts GIRUN/UNI

(116100) and GIRUS/USD (116300).

1-5 Create a fixed-term deposit with business partner BPXX. Check the payment

details.


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BanksSolutions

Unit: Banks

Topic: Setting up banks / house banks

1-1 Create the banks AXX and BXX

Application:

Treasury

Treasury Management

Basic Functions

Master Data

Banks

Create

Enter the bank country and an 8-character bank key of your choice. Then

enter the address details (including bank AXX).

1-2 Enter the bank details for business partner "BPXX"

Application:

Treasury

Treasury ManagementBasic Functions

Master Data

Business Partner

Change

Goto - Central Data

Bank Details

Enter the bank country, the 8-character bank key, an external bank account

number (that you can assign yourself), and a bank type (such as AXX). Set the

collection authorization indicator.

You have now assigned both new banks to your new business partner. Thebanks appear under the bank details for the partner. Since the bank details

are a "customer account view", a customer is created in FI automatically when

you save your entries.


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1-3 Create the following general ledger accounts.

Application:


General LedgerMaster Records

Individual Processing

In Company Code

Use the accounts specified as a reference by choosing the Create with reference

pushbutton. Delete the alternative account numbers.

1-4 Define house bank with bank accounts

Application:

Treasury

Treasury Management

Basic Functions

Master Data

Banks

House Banks

Button: Create bank

Enter the house bank CXX and the bank country DE, followed by a bank key.

If you enter a bank key that already exists in the SAP System, the data for this

bank key will appear as a default. If it does not already exist, enter new

address data for your new house bank.

Button: Create account

Enter the account ID GIRUN or GIRUS and enter a description. You can

enter an external account number of your choice in the bank account field and

UNI or USD in the currency field. In the G/L account field, enter the account

116100 or 116300.


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1-5 Create a fixed-term deposit with business partner BPXX.

Application:

Treasury

Treasury Management

Money MarketTrading

Fixed-Term Deposit

Create

Enter your data

Tab: Payment details

There are no payment details. However, you can create them using the F4

possible entries function. In the next unit, you will learn how to set up the

system so that this data appears automatically.


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Transaction and Position Management: Preparation

Contents:

Standing instructions - Authorizations- Payment details

- Correspondence

- Derived flows

Currencies

Reasons for reversal

Limit management


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Transaction and Position Management:Preparation: Unit Objectives

At the conclusion of this unit, you will be ableto:

Outline the necessary preparations for transaction

and position management in the SAP system and

make the corresponding settings

Set up limit management


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Business Partners


Banks





Information System



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Transaction and Position Management:Preparation: Business Scenario

You conclude financial transactions with the

same business partner on a regular basis, and

want the values for certain fields to be

proposed automatically by the system.

To do this, you define standing instructions

for payment details, correspondence, and

certain derived flows.

You want to enter currency master data and

define certain reversal reasons. You also want

to set up limit management.


module.


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Standing Instructions: Overview

Payment detailsPayment details

Assign Assign

CorrespondenceCorrespondence Derived flowsDerived flows

Assign

- Derivation procedure- House bank andrelated bank account

- Business partner

bank details

Business partner ABusiness partner A

- Confirmation - Print

- Fax

- SWIFT, IDOC

- E-mail

- Counterconfirmation

Payment details contain all the relevant information for payment processing, including your own

(house bank) account and the business partner's bank details (as required).

You can maintain different sets of payment details for the partner for each currency.

In the standing instructions, you assign the payment details to the transactions for which thesesettings are relevant. You can assign the payment details at different levels (contract type, product

category, transaction type).

When you conclude a transaction with business partner A, the system automatically inserts the

payment details defined for that particular transaction in the standing instructions. This saves you

from making the entries manually.

The standing instructions for correspondence control how external correspondence with a certain

business partner is processed.

You assign the correspondence medium to be used for this business partner (print, fax, e-mail,

IDOC, SWIFT) to the various transactions at the required level (from th

Documents

Ac810 Treasury Management Basic Functions[1]