'AC810 - Basic Functions in Treasury PDF

AC810 Basic Functions in Treasury
Management
AC810

R/3 System Release 46C 04/05/2001
0

AC810 Basic Functions in Treasury Management........................................................................................................0-1
Copyright ..................................................................................................................................................................0-2
Treasury ................................................................................................................................................................0-4
Course Prerequisites..............................................................................................................................................0-5
Target Group.........................................................................................................................................................0-6
Course Overview.......................................................................................................................................................1-1
Course Goals.........................................................................................................................................................1-2
Course Objectives .................................................................................................................................................1-3
Course Content......................................................................................................................................................1-4
Course Overview Diagram....................................................................................................................................1-5
Main Business Scenario........................................................................................................................................1-6
Overview of Treasury Management..........................................................................................................................2-1
Overview of Treasury Management: Unit Objectives...........................................................................................2-2
Overview of Treasury Management: Business Scenario.......................................................................................2-4
Overview of SAP Treasury...................................................................................................................................2-5
Main Targets of Treasury......................................................................................................................................2-6
SAP Support for Business Requirements..............................................................................................................2-7
Selection of Relevant Product Types ....................................................................................................................2-8
Identifying Treasury Processes .............................................................................................................................2-9
Analysis and Trading Process .............................................................................................................................2-10
Transaction and Position Management Process ..................................................................................................2-11
Short-Term Financial Instruments ......................................................................................................................2-12
Medium- to Long-Term Financial Instruments...................................................................................................2-13
Hedging Instruments ...........................................................................................................................................2-14
Treasury Management: Functions.......................................................................................................................2-15
Basic Functions of Treasury Management ..........................................................................................................2-16
Overview of Treasury Management: Unit Summary ..........................................................................................2-17
Data Used in the Exercises..................................................................................................................................2-18
Overview of Treasury Management Solutions....................................................................................................2-21
Organizational Units .................................................................................................................................................3-1
Organizational Units: Unit Objectives ..................................................................................................................3-2
Organizational Units: Business Scenario ..............................................................................................................3-4
SAP R/3 in Your Company...................................................................................................................................3-5
Customizing and Application................................................................................................................................3-6
Organizational Units .............................................................................................................................................3-7
Position Management Options ..............................................................................................................................3-8

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

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

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

Transaction Management: Worklist and Collective Processing..........................................................................8-20
Cash Flows in Cash Management .......................................................................................................................8-21
Transaction and Position Management Process:Back-Office Functions............................................................8-22
Back Office .........................................................................................................................................................8-23
Transaction Settlement........................................................................................................................................8-24
Correspondence: Confirmation Management .....................................................................................................8-25
Confirmation Letters ...........................................................................................................................................8-26
Transaction and Position Management Process:Accounting Functions.............................................................8-27
Automatic / Manual Posting Release ..................................................................................................................8-28
Release Workflow - Overview Graphic..............................................................................................................8-29
Release Workflow - Customizing I.....................................................................................................................8-30
Release Workflow - Customizing II....................................................................................................................8-31
Accounting..........................................................................................................................................................8-32
Transaction: Posting............................................................................................................................................8-33
Posting a Transaction: Overview........................................................................................................................8-34
Posting: Account Assignment Reference............................................................................................................8-35
Determining the Account Assignment Reference: Overview.............................................................................8-36
Account Assignment Reference Determination: Characteristics/Values ............................................................8-37
Determine Account Assignment Reference: Allocation .....................................................................................8-38
Customizing: Account Determination.................................................................................................................8-39
Account Determination: Posting Specifications (1) ............................................................................................8-40
Account Determination: Posting Specifications (2) ............................................................................................8-41
Account Determination : (Account) Symbols .....................................................................................................8-42
Account Determination: Accounts (Allocation)..................................................................................................8-43
Posting a Transaction: Summary.........................................................................................................................8-44
Cash Flows in Cash Management .......................................................................................................................8-45
Financial Transactions and Cash Management ...................................................................................................8-46
Treasury Management and Cash Management ...................................................................................................8-47
Basic Principles of Archiving .............................................................................................................................8-48
Archiving Money Market / Forex / and Derivatives Transactions......................................................................8-49
Process-Oriented Archiving Checks ...................................................................................................................8-50
Transaction and Position Management: Process - Unit Summary ......................................................................8-51
Transaction and Position Management: Process Exercises.................................................................................8-52
Transaction and Position Management: Process Solutions .................................................................................8-58
Payment Program for Payment Requests ..................................................................................................................9-1
Payment Program for Payment Requests: Unit Objectives...................................................................................9-2
Payment Program for Payment Requests: Business Scenario...............................................................................9-4
Processing Payment Transactions .........................................................................................................................9-5

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

Asynchronous (Transactional) Communication................................................................................................10-18
Conversion Tables / Translation Table .............................................................................................................10-19
Datafeed: Conversion Tables ............................................................................................................................10-20
Datafeed: Translation Table..............................................................................................................................10-21
Fill Translation Table Automatically (= Copy Master Data) ............................................................................10-22
Maintain Translation Table: Securities .............................................................................................................10-23
Import Securities Information from Datafeed Provider ....................................................................................10-24
Check Translation Table ...................................................................................................................................10-25
File Interface / Datafeed: Market Data Monitoring...........................................................................................10-26
Market Data Management: Unit Summary .......................................................................................................10-27
Information System.................................................................................................................................................11-1
Information System: Unit Objectives..................................................................................................................11-2
Course Overview Diagram..................................................................................................................................11-3
Information System: Business Scenario..............................................................................................................11-4
Information System Structure: Example - Journal ..............................................................................................11-5
Money Market: Journal .......................................................................................................................................11-6
Payment Schedule...............................................................................................................................................11-7
Money Market - Position List .............................................................................................................................11-8
Drilldown Reporting Principle............................................................................................................................11-9
Drilldown Reporting Principle..........................................................................................................................11-10
Functions of Drilldown Reporting ....................................................................................................................11-11
Form Report ......................................................................................................................................................11-12
Drilldown Reporting: Overview........................................................................................................................11-13
Information System: Unit Summary .................................................................................................................11-14

SAP AG 1999
AC810 Basic Functions in Treasury Management
AC810
AC810
Basic Functions in
Basic Functions in
Treasury Management
Treasury Management

R/3
Release: 4.6B
May 2000
Material number: 5003 6036

SAP AG 1999
Copyright 2000 SAP AG. All rights reserved.
Neither this training manual nor any part thereof may
be copied or reproduced in any form or by any means,
or translated into another language, without the prior
consent of SAP AG. The information contained in this
document is subject to change and supplement without prior
notice.
All rights reserved.
Copyright

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Design: SAP Communications Media

SAP AG 1999
Treasury
Treasury Overview
AC030 3 days
Level 2 Level 3
Financial Accounting
and Reporting
AC010 5 days
Cash Budget
Management
AC215 1 day
Basic Functions in
Treasury Management
AC810 3 days
Cash Management
AC805 3 days
Money Market, Foreign
Exchange and Derivatives
AC825 3 days
Loans Management for
Financial Services
AC815 5 days
Loans Management for
Corporates
AC816 3 days
Securities Management
AC820 4 days
Market Risk Management
AC830 3 days

SAP AG 1999
Course Prerequisites
Recommended:
AC030 - Overview of Treasury

SAP AG 1999
Target Group
Audience:
Members of the project team
System staff
Organization staff
Duration: 3 days

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.

(C) SAP AG AC810 1-1
SAP AG 1999
Course goals
Course objectives
Course content
Course overview diagram
Main business scenario
Contents:
Course Overview

SAP AG 1999
Course Goals
This course will prepare you to:
Identify the basic Treasury Management functions
that are common to all the subcomponents
Configure banks and business partners and
recognize the concepts behind transaction and
position management in SAP Treasury

SAP AG 1999
Course Objectives
At the conclusion of this course, you will be able to:
Set up organizational units in the SAP System
Create and configure banks and business partners
Make the system settings needed to control internal
processing
Describe and configure the payment program for
payment requests

SAP AG 1999
Course Content
Unit 7 Transaction and Position
Management - Structure
Management - Process
Unit 9 Payment Program for
Payment Requests
Unit 10 Market Data Management
Unit 11 Information System
Unit 1 Course Overview
Unit 2 Overview of Treasury
Management
Unit 3 Organizational Units
Unit 4 Business Partners
Unit 5 Banks
Management - Preparation
Preface

SAP AG 1999
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

SAP AG 1999
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.

SAP AG 1999
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.

SAP AG 1999
Overview of Treasury Management: Unit Objectives
At the conclusion of this unit, you will be able to:
Provide an overview of the SAP Treasury system
State the relevant product types
Explain the various processes and basic functions in
Treasury Management

SAP AG 1999
Business Partners
Banks
Information System

SAP AG 1999
Overview of Treasury Management: Business
Scenario
Before you begin your work in the project team,
you want to gain an overview of SAP Treasury.
Which products and processes can be mapped
using the new Treasury system? What
functions are available?
Which functions form the basis for mapping
financial transactions?

module.

SAP AG 1999
Overview of SAP Treasury
Bank data
Business
partner
Market data
Download
Market Risk Management:
Interest/currency
exposure
Sensitivities
Mark-to-market
Risk analysis/simulation
Value at risk
Cash Management:
Electronic banking
Liquidity status
Integrated operational
systems
Control functions
Transaction Management
Management of financial
transactions and positions
Transfer to Financial
Accounting
Flexible reporting and
portfolio analysis
Datafeed interface
D D C C D D C C
100 100
100 100
TM TM
Securities Securities
Derivatives Derivatives
Money Mkt Forex Money Mkt Forex
Loans Loans
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.

SAP AG 1999
Main Targets of Treasury
1) % of all companies surveyed
Source: Top 500 Survey (Germany) conducted in 1994 by Price
Waterhouse
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 possible
exchange rate fluctuations) 61
5 Hedge sales (e.g. against possible
exchange rate fluctuations) 52
6 Contribute to profit through active
management of open positions 30

SAP AG 1999
SAP Support for Business Requirements
Treasury in
conjunction with
other SAP modules
(FI, MM, SD)
Electronic banking
Cash 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 office
Reporting
Risk management

SAP AG 1999
Selection of Relevant Product Types
Mortgage
loans
Borrower's
note loans
Policy
loans
Other
loans
Fixed-term
deposits
Deposits at
notice
Commercial
Paper
Product types
Derivatives Forex Loans Securities Money market
Stocks
Subscription
rights
Investment
certificates
Bonds
Convertible
bonds
Warrant
bonds
Warrants
Forex spot
deals
Forward
exchange
deals
Forex swaps
Caps / Floors
FRAs
Swaps
- Interest rate
- Cross-currency
interest rate
OTC options
- Currency
- Interest rate
- Securities
- Swaption, IRG
Futures
Hedging instruments
Investment/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 transactions for borrowing and
investing in the medium to long term.
Derivative financial instruments allow you to hedge against interest rate and currency risks.

SAP AG 1999
Identifying Treasury Processes
Earnings/
risk targets
Revision of
planned targets
Feedback
Adjustments
Documentation and control functions
Analysis and
trading process
Transaction and position
management process
Analysis
(planning)
Decision
Financial Financial
transactions transactions

From a strategic point of view, the analysis and trading process is the starting point for the various
Treasury processes. At this stage, you identify and analyze the liquidity and risk positions on the basis of
the risk and earnings targets you have defined. SAP Treasury provides special tools and methods with
which you can perform an integrated analysis of your company's financial and risk situation.
Once you have decided to conclude certain financial transactions, you enter the trading processes for
these transactions in SAP Treasury Management (TM/LO). Treasury Management also supports
functions for managing transactions and the related financial positions at later stages.
A range of documentation and control functions are available for all Treasury activities. They allow you
to perform evaluations for specific instruments or groups of instruments at each stage of the Treasury
process. This fulfills the various documentation and control requirements of both Financial Accounting
and Treasury.

(C) SAP AG AC810 2-10
SAP AG 1999
Analysis and Trading Process
Information
procurement
Targets
Instruments
Methods
Measurements
Identification
of appropriate
financial
transactions
Simulation
of alternative
results
Select one
alternative
Trading
Back office
Accounting
Reporting
Internal:
- Liquidity
status
- Risk position
External:
- Market data
Earnings/ Earnings/
risk targets risk targets
Assessment
of possible
solutions
Decision
Processing
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 risk situation.

(C) SAP AG AC810 2-11
SAP AG 1999
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 trading area comprises functions for entering transactions and exercising rights.
In the back office area, the transactions are settled (checked). The back office also covers processes
related to position management, such as securities account transfers.
In the accounting area, you make the postings for the various activities to the subledger. From here, the
posting information is transferred to the FI general ledger.
The basic structure of the trading and transaction management processes is the same for all the Treasury
Management components. This forms the basis for integrating and processing transactions within the
SAP System and provides the framework for adapting the way transactions are represented in the system
to suit company-specific requirements.
You can authorize different users for different activities in the transaction and position management
process. This allows you to separate trading, back office and accounting functions by employee.
In addition, the limit management function enables you to assign a range of different limit amounts to
different transactions.
You can configure the system to require transactions to be released for posting by one or several
(different) person(s).

(C) SAP AG AC810 2-12
SAP AG 1999
Short-Term Financial Instruments
Surplus Surplus
Deficit Deficit
Short Short- -term term Long Long- -term term
Investment Investment
Money market Money market
Foreign Foreign
exchange exchange
Investment
Securities
Loans
Borrowing Borrowing
Money market Money market
Foreign exchange Foreign exchange
Borrowing
Loans
Money market
instruments:
- Fixed-term deposits
- Deposits at notice
- Commercial Paper
- Cash flow
transactions
TR TR- -TM TM
TR TR- -TM TM
Forex
instruments:
- Spot transactions
- Fwd transactions
- Currency swaps
Planning horizon
L
i
q
u
i
d
i
t
y

p
o
s
i
t
i
o
n

In the Money Market area, cash flow transactions allow you to represent a wide range of transactions
flexibly by manually entering not just the term, but also the cash flow generated for the transaction as a
result of position changes, expenses, earnings, revenues, payments, and so on.

(C) SAP AG AC810 2-13
SAP AG 1999
Medium- to Long-Term Financial Instruments
Surplus Surplus
Deficit Deficit
Investment
Money market
Foreign exchange
Borrowing
Money market
Foreign exchange
Securities:
- Stock
- Bond
- ...
Loans:
- Mortgage loan
- Borrower's note loan
- Financing loan
- Policy loan
- ...
TR TR- -TM TM
TR TR- -TM TM
Borrowing Borrowing
Loans Loans
Investment Investment
Loans Loans
Planning horizon
L
i
q
u
i
d
i
t
y

p
o
s
i
t
i
o
n

(C) SAP AG AC810 2-14
SAP AG 1999
Hedging Instruments
Interest Interest
rate risk rate risk
Currency Currency
risk risk
R
i
s
k

s
i
t
u
a
t
i
o
n
Derivative
instruments:
- Interest rate swap
- Cap
- Floor
- ...
TR TR- -TM TM
Derivative financial instruments Derivative financial instruments
Planning horizon

(C) SAP AG AC810 2-15
SAP AG 1999
Treasury Management: Functions
Complete financial transaction and position management
Support of trading and back office functions
Functions to monitor, check and release transactions
Data transfer to Financial Accounting
(including accrual/deferral and valuation)
Flexible settings for company-specific transaction and
position management processes
Financial transactions assigned to portfolios or managed in
securities accounts
Flexible reporting and portfolio analysis
Datafeed interface

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

(C) SAP AG AC810 2-17
SAP AG 1999
Overview of Treasury Management: Unit Summary
SAP Treasury is subdivided into three areas:
Cash Management
Treasury Management / Loans Management
Market Risk 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

(C) SAP AG AC810 2-18
Data Used in the Exercises
Explanation of the symbols used in the exercises and solutions

Exercises

Solutions

Unit objectives

Business scenario

Tips & tricks

Warning or caution

Data used in the exercises
Data Data in the training
system
Data in the IDES system

Company codes TR00 through TR20 1000

G/L accounts 113100, 113105, 113113
113913, 118888
113100, 113105, 113113
118888

Treasury business
partner
DEUBA Deutsche Bank
CITI Citibank broker
1000 Deutsche Bank

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

(C) SAP AG AC810 2-19
accounts)

PERSONEN
(Customers, vendors and
clearing accounts)

GESAMT
(Total display)

accounts)

PERSONEN
(Customers, vendors and
clearing 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.

(C) SAP AG AC810 2-20
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 application to get an overview
of the different functions.
1-3 Familiarize yourself with the structure of the Customizing settings.

(C) SAP AG AC810 2-21
Overview of Treasury Management Solutions

Unit: Overview of Treasury Management

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

1-2 Overview of the various functions

= Accounting
= Treasury
= Treasury Management
= Basic Functions / Money Market / Foreign Exchange / Derivatives /
Securities /
= Market Risk Management

1-3 Overview of Customizing
= Tools
= AcceleratedSAP
= Customizing
= Project Management
= Button: SAP Reference IMG
= Treasury
= Treasury Management ...

SAP AG 1999
Contents:
SAP R/3 in your company
Client and company code
Portfolio and securities account
Users and traders

SAP AG 1999
Organizational Units: Unit Objectives
Explain the relationship between the Customizing
settings and the application
Identify the organizational units in SAP Treasury
Configure trader and user data

SAP AG 1999
Business Partners
Banks
Information System

SAP AG 1999
Organizational Units: Business Scenario
You want to gain an overview of the organizational
units in SAP Treasury and answer the following
questions:
How do the Customizing settings affect how I work in
the productive system?
What options are available for managing financial
positions
How can I ensure that the trader data is assigned to
the correct users and stored with the individual
financial transactions?

module.

SAP AG 1999
SAP R/3 in Your Company
R/3
Customizing
Requirements
Company
Application

Customizing is the term used to describe the process of adapting the standard settings delivered with the
system to suit company-specific requirements.
Customizing settings determine the options in the application. For example, you may only want to
permit certain entries, or allow users to perform specific activities.
You usually customize the system once when you go live with the SAP system. You can make any
Customizing settings you require for day-to-day business (but which are not vital to system operations)
using application functions.

SAP AG 1999
Customizing and Application
Treasury Management
Basic Functions
Industry
Business Partners
-
Change Business Partner Change Business Partner
Partner
Deuba
Industry
Possible entries
F4
Industry Description
0001 Banks
0002 Insurance
0003 . . .
Industry Description
0001 Banks
0002 Insurance
0003 . . .
IMG IMG

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.

SAP AG 1999
Company code
Controlling area
Client Business area
account account
Portfolio Portfolio

The Treasury modules use the central SAP organizational structures. This ensures that the Treasury
system is integrated with the other SAP applications.
The client is a self-contained unit within the SAP system (commercially, organizationally, and
technically) with separate master records and its own set of tables. Client data applies for all company
codes and organizational structures. The client usually represents the corporate group level.
A company code (FI) is the smallest organizational unit for which a complete, self-contained set of
accounts can be drawn up for external reporting. The company code is the unit for which you record all
the posting activities and generate all the documents for financial statements (balance sheet, profit and
loss account).
A client can have several company codes, which enables you to manage the accounts for several
independent companies at the same time.
Business areas (FI) are organizational units for internal financial accounting. They are used to group G/L
transaction figures for internal evaluations (internal balance sheet/P&L). You can define business areas
across several company codes.
Controlling areas (CO) are organizational units within an enterprise for which you can perform
comprehensive cost accounting.
You can make further subdivisions in SAP Treasury by defining Treasury-specific evaluation groups,
such as portfolios and securities accounts.

SAP AG 1999
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 several securities
accounts, and in some cases, as single items.

SAP AG 1999
Securities Account and Portfolio
Company code Company code
position position
Portfolio Portfolio
position 1 position 1
Sec. acct
position 1
Sec. acct
position 2
Portfolio Portfolio
position 2 position 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.

(C) SAP AG AC810 3-10
SAP AG 1999
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.

(C) SAP AG AC810 3-11
SAP AG 1999
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 a bank.

Meaning of selected fields in the securities account master data:
- Depository bank: Partner ID of the bank where the securities account is kept. You first create the
bank as a business partner in the role of "depository bank".
- Securities account number: Number used to manage the securities account at the depository bank.
- Clearing account: Account number of the cash clearing account at the depository bank.
- Internal bank account: Account number of the cash clearing account in SAP Financial Accounting.
- Blocking type: If a restraint on disposal applies to the entire securities account, you must specify
the blocking type.
- Block flag until: Date until which the restraint on disposal applies for the securities account.
- Portfolio: Assignment of the securities account to a portfolio. This field is displayed if the Portfolio
indicator is set in Customizing.
- Business area: When you post a transaction, the system uses the business area defined in the
securities account master data. If there is no entry in the securities account master data, the system
uses the entry in the account assignment reference.

(C) SAP AG AC810 3-12
SAP AG 1999
Defining Trader and User Data
Trader 01
Trader 02
Trader 03
User M T WDC REC Trader
Brown M T 1 Trader 01
1000
Company 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.

(C) SAP AG AC810 3-13
SAP AG 1999
Traders: Trader Authorizations
Assign
Trader01
Trader Trader
authorization authorization
Authorization
X
Treasury
Money market
Fixed-term deposit
51 A Fixed-term deposit
100 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 to conclude a
fixed-term deposit or a deposit at notice. Similarly, authorization for a product category automatically
includes the product type and transaction type levels below it.
Before you can assign trader authorizations, you must define the trader in Customizing.
To run evaluations that concentrate on the transactions or positions of a trader, you can store the name of
the trader in the transaction. You can enter the trader name manually when you conclude the transaction,
or let the system propose the trader name automatically on the basis of the user name. You can assign
specific user data to your traders. This speeds up data entry, and allows you to use automatic checks for
working days and rates/prices (on the basis of defined deviation intervals).
The logic for assigning authorizations is the same as for business partner authorizations.

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

(C) SAP AG AC810 3-15
Organizational Units Exercises

Unit: Organizational Units
Topic: Defining Organizational Units

Organizational units in SAP Treasury
Configuring trader and user data

You first want to gain an overview of the organizational units used in
SAP Treasury. You then want to assign corresponding trader data to the
system users.
1-1 Create the following portfolio for your company code TRXX in Customizing: Portf-
XX.

1-2 Create your own trader in Customizing using the name "T-XX", overwriting the entry
"TREASURERXX". Assign your user name TREA-XX to this trader.

1-3 The trader is authorized to conclude money market, foreign exchange, derivatives and
securities transactions. Define the corresponding authorizations for your trader.

(C) SAP AG AC810 3-16
Organizational Units Solutions

Unit: Organizational Units
Topic: Defining Organizational Units
1-1 Create portfolio

Customizing:

= Treasury
= Basic Functions
= Organization
= Define Portfolio

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

1-2 Create trader and assign user name

Customizing:

= Treasury
= Basic Functions
= Organization
= Define Trader

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

= Treasury
= Basic Functions
= Organization
= Define User Data

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

(C) SAP AG AC810 3-17
1-3 Create user authorizations

Application:

= Accounting
= Treasury
= Basic Functions
= Master Data
= Trader Authorization

Enter your trader T-XX and your company code TRXX, and choose Enter. Set the
indicators and save your entries.

SAP AG 1999
Contents:
Role category / role type
Data
Classification
Grouping / number ranges
Views / Field modification
Relationships
Release
Transaction authorizations
Standing instructions
Business Partners

SAP AG 1999
Business Partners: Unit Objectives
Fully configure business partners and assign
authorizations
Define standing instructions

SAP AG 1999
Business Partners
Banks
Information System

SAP AG 1999
Business Partners: Business Scenario
Before you can conclude financial transactions
with a business partner, you must create the
partner in the Basic Functions area of the
application. To do this, you must first make the
corresponding settings in Customizing.
You only want to authorize your business
partners for certain transactions.
When you create transactions with a business
partner, you want the system to default to certain
settings you have defined for that partner. What
options are available?

module.

SAP AG 1999
Business Partners - Overview
Creating financial transactions Creating financial transactions
Creating business partners Creating business partners
Customizing
Prerequisite
for
Prerequisite
for
Control
data
Roles 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.

SAP AG 1999
Roles and Functions
Natural
person
Organization
Interested party
Treasury partner
Beneficiary
Borrower
Agent/counterparty
Lawyer
Surveyor
Issuer
Depository bank
Trustee
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.

SAP AG 1999
Business Partner Data: Overview
Central data
General
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 data
Control data
Relationships

The user interface for the business partner data was redesigned as part of the Enjoy project. The new
screen layout uses tabstrips that let you navigate between the individual business partner views. You can
still navigate as before using the menu.
The data you can maintain for business partners is divided into three areas:
- Central data
This data is available for every business partner, regardless of the partner role.
- General data
General data is held centrally for all roles. Access to this data can vary according to the role
category, depending on the settings in Customizing (role-view-assignment).
- Company code-dependent data
Data that only applies for a particular role category in the respective company code.
Each of these areas is divided into different views.

SAP AG 1999
Creating a Business Partner
? ?
q

q q
Business partner
Grouping
Role category
Classification
Organization
Natural person
Collective partner
Application level Application 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.

SAP AG 1999
Customizing and Application
Classification
Grouping
Role category
Views
Relationship categories
Role type
Number ranges
Relationship types
Field modifications
Customizing
Application
Data 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).
The grouping lets you classify business partners according to your own criteria.
Examples: Grouping1: Partners for money market, forex, and derivatives transactions
Grouping 2: Partners for loan transactions
...
The business partner roles (role categories) are used to record the functions of a business partner in a
particular transaction. The role category determines which application functions are permitted or
excluded.
You can use the field modification functions to define which fields in the respective business partner
views are required, optional, or suppressed.
You can link business partners using relationships.
The data the user enters is divided into central data, general data, and company code data.
You have to authorize the business partner for the permitted transactions.
Standing instructions are general agreements made with a business partner for processing similar types
of transactions.

(C) SAP AG AC810 4-10
SAP AG 1999
Grouping
Create Create
business business
partner partner
FI
Create Create
customer customer
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 by
assigning a corresponding customer account group. If you create a partner and call up views that are
relevant for processing on the basis of customer accounts, the system automatically creates an FI
customer.
Customer-based views:
Bank details; tax data; control data; account information; account interest; automatic payment
transactions; payment data; dunning data.
To map payment flows in Cash Management, you assign a planning group to the business partner
(Company code data -> Account information). This ensures that payment flows are included in Cash
Management, even if the payment details are missing in the transaction.

(C) SAP AG AC810 4-11
SAP AG 1999
Define Role Types / Role-View Assignment
RoleC Name of role type RType
Name of role category
A001
A002
1000
1000
Treasury partner
Treasury partner
Domestic treasury partner
Foreign treasury partner
RoleC Name of role category View
Description
1000
1000
0100
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.

(C) SAP AG AC810 4-12
SAP AG 1999
Field Modification
... for activities
... for role categories
? ?
q

q
q
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 o
X
X

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

The following options are available for data fields:
- Required
- Optional
- Display only
- Hidden (suppressed)
You can use field selection to configure fields according to activity (create/change/display business
partner) or role category.
(You have to maintain role-view assignment in order to modify the fields for the role category.)

(C) SAP AG AC810 4-13
SAP AG 1999
Business Partners: Relationships
Relationship
Relationship category Relationship category
Relationship types Relationship 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 relationship types.

(C) SAP AG AC810 4-14
SAP AG 1999
Business Partners: Relationship Types
RelTyp Description RelCat Description
SUB2
Important group
subsidiary of
0050 Group subsidiary of

You define relationship types to refine the relationship categories predefined in the system.

(C) SAP AG AC810 4-15
SAP AG 1999
General Customizing Settings
Business partner
In this section you make
additional settings that
determine the selection
options when you enter
business partner data in
the application.
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

(C) SAP AG AC810 4-16
SAP AG 1999
Business Partners: Data Maintenance
Central data
General
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 data
Control 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

(C) SAP AG AC810 4-17
SAP AG 1999
Release Control
Activate release
Define release parameters
BPAR Bus. partner Partner
1000
X
Business partners
Role cat. ReSt Active
X 22

If you activate the release procedure for business partners in Customizing, any business partner data that
is created or changed must be released before you can enter transactions with that partner.

You can apply different release procedures, depending on the role category. For each role category, you
assign the appropriate release status (release by one employee, release by two employees, ).

Above example: If you change the data for a business partner with role category 1000, the change must
be released by two employees before the business partner can be used.

(C) SAP AG AC810 4-18
SAP AG 1999
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
52 A 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 authorizations if the business partner has been released (where
release is required) and is not flagged for deletion.
You use transaction authorizations to control which transactions can be concluded with a particular
business partner. You can assign transaction authorizations at the following levels:
- Contract type
- Product category
- Product type
- Transaction type
You have to assign authorization explicitly to each business partner in each company code.

(C) SAP AG AC810 4-19
SAP AG 1999
Business Partners: Standing Instructions
Payment details Payment details
Business partner A Business partner A
Correspondence Correspondence Derived Derived flows flows

Standing instructions are general agreements made with a business partner for processing similar types
of transactions.

Agreements can cover:
- Payment details
For transactions with business partner A ==> 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.

(C) SAP AG AC810 4-20
SAP AG 1999
Creating a Business Partner with an FI Customer
Business partner
Grouping
Role category
Classification
Organization
.
.
Specifications
Customer
Address ID
?
?
?

You can copy a customer that already exists in FI to create a business partner: The system uses the data
entered in the Specifications section to establish a link between the existing customer and the new
business partner you are creating.

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

(C) SAP AG AC810 4-22
Business Partners Exercises

Unit: Business Partners
Topic: Business Partner Grouping

Creating a new business partner in the system
Assigning a grouping to the business partner

Before you can conclude financial transactions with a business partner,
you must create the partner in the Basic Functions area of the application.
To do this, you must first make the corresponding settings in
Customizing.
1-1 Is it currently possible to create a business partner with the business partner grouping
"TR01" and your own name "BPXX"?

__________________________ YES

__________________________ NO
1-2 In Customizing, create a business partner grouping that allows you to assign an
external business partner name with alphabetic characters (number assignment). Name
the grouping G-XX (choose "DEBI" for the account group).

(C) SAP AG AC810 4-23

Topic: Roles / Functions

Creating a new business partner in the system
Assigning roles and functions to the business partner.

You want to create a new business partner with whom you can conclude
treasury transactions. To do this, you must assign the role "Treasury
partner" to your partner.
2-1 In future, you want to conclude transactions with the business partner BPXX. Create
the partner "BPXX" as an organization (initially without roles). Use your own grouping
G-XX.

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

(Note: Only the Central data and the role overview can be displayed.)
2-3 To conclude money market, foreign exchange and derivatives transactions, assign the
role of Treasury partner to the business partner. Call up the various business partner
views again.

(Note: Now - after adding a role - you can call up the General data and Company code
data views.)

(C) SAP AG AC810 4-24

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. Assign
corresponding authorizations to the partner in the application.

(C) SAP AG AC810 4-25
Business Partners Solutions

Topic: Business Partner Grouping
1-1 Is it currently possible to create a business partner with the business partner grouping
"TR01" and your own name "BPXX"?

_________________________ YES

_______________ X _______ NO

No. The number range assigned to the grouping "TR01" has internal number
assignment. As a result, the system does not permit you to enter your own name.

Application:

= Treasury
= Basic Functions
= Master Data
= Business Partner
= Create

1-2 Creating a grouping

Customizing:

= Treasury
= Basic Functions
= Business Partners
= Control Data
= Define Business Partner Groupings

Choose New Entries (button) or copy the entry "TR02" and make the changes.
Enter G-XX and the number range "02", choose the account group "DEBI", and
save your entries.

(C) SAP AG AC810 4-26

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

Application:

= Treasury
= Basic Functions
= Master Data
= Business Partner
= Create

Enter the business partner name and the grouping G-XX. Do NOT enter a role
category. Then enter the data for your new business partner (name, language,
country, address ID, street, city, postal code and country). Save your entries.

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

Application:

= Treasury
= Basic Functions
= Master Data
= Business Partner
= Create / Change
= Goto ...

Since you have not yet assigned a role category, you cannot display or enter data
in the General data and Company code data views.

(C) SAP AG AC810 4-27
2-3 Assigning the role "Treasury partner" to your partner:

Application:

= Treasury
= Basic Functions
= Master Data
= Business Partner
= Create / Change
= Goto - General data
= Role overview
= Button: Add role category (1000)

Now - after adding a role - you can call up the General data and Company code
data views.

(C) SAP AG AC810 4-28

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

Application:

= Treasury
= Basic Functions
= Master Data
= Business Partner
= Change
= Goto ...

Enter your data and save your entries.

3-2 Business partner authorizations:

Application:

= Treasury
= Basic Functions
= Master Data
= Business Partner
= Standing Instructions
= Transaction Authorizations

Enter your company code and maintain the authorizations using the Change or
Enter buttons.

SAP AG 1999
Banks
Contents:
Banks - general
Business partner - bank details
House banks + corresponding bank accounts
+ general ledger accounts
Transaction - payment details

SAP AG 1999
Banks: Unit Objectives
Configure the whole banking environment
in the SAP System
Differentiate between banks in general, business
partner banks, and house banks
Define the cash management account name for
displaying the account balances in Cash Management

SAP AG 1999
Business Partner
Banks
Information System

SAP AG 1999
Banks: Business Scenario
In order to post flows that involve incoming
or outgoing payments, you have to specify
payment details in the transaction.
Before you can enter payment details in the
transaction, you have to enter bank data in
the system. You then assign the bank details
to the business partners you have already
created. You need these bank details to make
actual payments to a partner.
You create the banks, where your company
keeps it own accounts, as house banks.

module.

SAP AG 1999
Transaction: Payment Details
BP bank details
Bank
Account
House bank
House bank
account
Conclusion of a
transaction with
business partner A
Posting/Payment
Entered in
transaction
manually
+ Payment details
Bank Bank
data data

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).

SAP AG 1999
Banks - General: Master Data
Bank country DE
Bank key Bank key 200 500 00 200 500 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 key Bank key 200 500 00 200 500 00
Address
Bank Bank C
Region
Street
City
......
(Account 889613262)
(Account 12345678)
Partner bank
House bank
... Used as:
Bank Bank
data data

You maintain the business partner bank details and your own bank details centrally in a "bank data
pool.
The bank data you enter is maintained in the bank directory in Financial Accounting. You either enter
the data manually, or have it generated automatically. It can be accessed across the whole system.
Bank master data is contained in the bank directory. This includes the address data for the banks and
control data, such as the SWIFT code or the bank group.
The bank directory must contain the master data of all the banks that you require for payment
processing. This includes your own house banks and the banks of your business partners.
The bank data you have created (name, address, bank number ...) can then be used to maintain:
- Partner banks - bank details of your business partner
- House banks - your own bank details with the corresponding link to R/3 Financial Accounting.

SAP AG 1999
Business Partners:
Central Data - Bank Details
Central data Central data
Ctry Bank key
Bank
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
Bank Bank
data data
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.

SAP AG 1999
House Banks: Master Data
Related bank accounts:
12345678
. . .
Bank country DE
Bank key Bank key 200 500 00 200 500 00
Address
Bank Dt. Bank
Region
Street
City
Branch
Control data
SWIFT code
Bank group
House banks
Bank data Bank data
Bank Bank
data data
Company code 1000
Bank Bank
data data

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.

SAP AG 1999
House Banks: Create Master Data
Chart
of
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 is
identified by an account ID you can assign yourself. This key is unique for each company code, house
bank, and account.

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

An internal general ledger is usually kept in Financial Accounting for each account kept with the house
bank.
You can establish a link in the system between the (external) house bank account and the (internal)
general ledger account by assigning the accounts appropriately.

(C) SAP AG AC810 5-10
SAP AG 1999
General Ledger Accounts
FI general ledger FI general ledger
Company code 1000
G/L account 113100
Chart of accounts Chart of accounts INT INT
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.

(C) SAP AG AC810 5-11
SAP AG 1999
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.

(C) SAP AG AC810 5-12
SAP AG 1999
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 not been maintained:
Account Amount
113150 1,000

If the cash management account name has been maintained:
Account Amount
113150 1,000

(C) SAP AG AC810 5-13
SAP AG 1999
Banks: Unit Summary
You have seen how to enter bank data
in the SAP System manually. You can
also import bank directories from various
countries into the system automatically.
If you conclude financial transactions with
business partners with whom you do not have
a current account (where payments cannot be
settled internally), you must enter the partner
bank details in the partner master record.
You also have to set up the house banks
and the corresponding bank and general
ledger accounts in the system.

(C) SAP AG AC810 5-14
Banks Exercises

Unit: Banks
Topic: Setting up banks / house banks

Setting up the entire banking environment in the SAP System.

After configuring your business partners, you now want to define the
banks in the system. These include general banks and house banks.
House banks are banks with which you have at least one current account.
1-1 Create the banks AXX and BXX. The bank keys must be 8 characters long. The banks
are in Germany.
1-2 Change your business partner "BPXX" by assigning the bank details to this partner.
Enter AXX and BXX as the bank type. These entries are required for the payment
details and the payment program.

1-3 Create the following general ledger accounts.

You create the accounts in the Financial Accounting menu in the General Ledger
section.
Enter your company code and the account number, and copy the relevant account from
company code TR00. Save your entries:
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 bank with the bank accounts GIRUN/UNI (116100)
and GIRUS/USD (116300).

(C) SAP AG AC810 5-15
1-5 Create a fixed-term deposit with business partner BPXX. Check the payment details.

(C) SAP AG AC810 5-16
Banks Solutions

Unit: Banks
Topic: Setting up banks / house banks
1-1 Create the banks AXX and BXX

Application:

= Treasury
= 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
= Basic Functions
= Master Data
= Business Partner
= Change
= Goto - Central Data
= Bank Details

Enter the bank country, the 8-character bank key, an external bank account
number (that you can assign yourself), and a bank type (such as AXX). Set the
collection authorization indicator.

You have now assigned both new banks to your new business partner. The banks
appear under the bank details for the partner. Since the bank details are a
"customer account view", a customer is created in FI automatically when you
save your entries.

(C) SAP AG AC810 5-17
1-3 Create the following general ledger accounts.

Application:

= Financial Accounting
= General Ledger
= Master Records
= Individual Processing
= In Company Code

Use the accounts specified as a reference by choosing the Create with reference
pushbutton. Delete the alternative account numbers.
1-4 Define house bank with bank accounts

Application:

= Treasury
= Basic Functions
= Master Data
= Banks
= House Banks
= Button: Create bank

Enter the house bank CXX and the bank country DE, followed by a bank key. If
you enter a bank key that already exists in the SAP System, the data for this bank
key will appear as a default. If it does not already exist, enter new address data
for your new house bank.

= Button: Create account

Enter the account ID GIRUN or GIRUS and enter a description. You can enter an
external account number of your choice in the bank account field and UNI or
USD in the currency field. In the G/L account field, enter the account 116100 or
116300.

(C) SAP AG AC810 5-18
1-5 Create a fixed-term deposit with business partner BPXX.

Application:

= Treasury
= Money Market
= Trading
= Fixed-Term Deposit
= Create
= Enter your data
= Tab: Payment details

There are no payment details. However, you can create them using the F4 possible
entries function. In the next unit, you will learn how to set up the system so that
this data appears automatically.

SAP AG 1999
Transaction and Position Management: Preparation
Contents:
Standing instructions - Payment details
- Correspondence
- Derived flows
Currencies
Reasons for reversal
Limit management

SAP AG 1999
Transaction and Position Management:
Preparation: Unit Objectives
At the conclusion of this unit, you will be able
to:
Outline the necessary preparations for transaction
and position management in the SAP system and
make the corresponding settings
Set up limit management

SAP AG 1999
Business Partners
Banks
Information System

SAP AG 1999
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.

SAP AG 1999
Standing Instructions: Overview
Assign Assign
Correspondence Correspondence Derived flows Derived flows
Assign
- Derivation procedure - House bank and
related bank account
- Business partner
bank details
Business partner A Business 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 these settings
are relevant. You can assign the payment details at different levels (contract type, product category,
transaction type).
When you conclude a transaction with business partner A, the system automatically inserts the payment
details defined for that particular transaction in the standing instructions. This saves you from making
the entries manually.
The standing instructions for correspondence control how external correspondence with a certain
business partner is processed.
You assign the correspondence medium to be used for this business partner (print, fax, e-mail, IDOC,
SWIFT) to the various transactions at the required level (from the contract type down to the transaction
type). These entries are compulsory if you want to generate correspondence for your business partner.
You can use derived flows in the money market, foreign exchange, derivatives and securities areas to
simplify the calculation of amounts that depend on other flows (such as tax amounts). To generate
derived flows, you must assign a derivation procedure to the relevant partner.

SAP AG 1999
Business Partner Standing Instructions:
Payment Details
Payment
details
Incoming Outgoing
01 01 x x
Assign
Currency Payment
details ID
House
bank
Account
ID
UNI 01
Deuba GIRUN
USD 01 Deuba
GIRUS
......
......
......
......
......
......
BP A BP A
......
......
......
Business Partner: Standing Instructions - Payment Details
Treasury Treasury
Money Market Money Market
Fixed-term deposit
100 Investment
200 Borrowing
Deposit at notice

The system uses the house bank and account ID defined in the standing instructions for the business
partner to identify the relevant bank account for posting.
Once you have created the payment details, remember to ASSIGN them to transactions.
This allows you to direct the postings for different products or payment directions to separate accounts.
The system supports multiple level payment methods. By entering a bank chain, you can make payments
via several banks. Up to 3 intermediate banks are supported.

SAP AG 1999
Standing Instructions: Payment Details
BP bank details
Bank
Account
House bank
House bank
account
Conclusion of
transaction with
business partner A
BP bank details
Bank
Account
House bank
House bank account
BP A:
Standing instructions (SI)
- Payment details -
Posting / Payment
Entered in
transaction
m a n u a l l y
A
s
s
i
g
n
e
d
P r o p o s a l f r o m S I
Payment details in the
transaction
+ Payment details

Standing instructions for payment details:

Example:
Standing instructions for payment details are not maintained: The details for posting and payment
have to be entered manually in the transaction.
Standing instructions for payment details are maintained: When a transaction is created, the system
inserts the payment details that have been assigned to that particular type of transaction for the partner
as proposals.

SAP AG 1999
Transaction: Correspondence
Example:
Confirmations via fax,
e-mail, SWIFT
Fax
Example:
Dealing slip
External
Internal
Confirmation Confirmation

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

SAP AG 1999
Correspondence: Customizing
1) Define correspondence types
2) Define correspondence activities
Correspondence type
Description
General
Internal correspondence type
Archiving (optical archive)
Suppress initial reversal correspondence
Language
...
001
Confirmation
Company code
PTyp
51 A
51 A
51 A
51 A
1000
Product type name TTyp ACat Corr. type Form
Fixed-term deposit: External
100
100
100
100
10
10
11
11
001
002
001
002
F_TR_CONFIRM_ALL
F_TR_DEALER_ALL
F_TR_CONFIRM_ALL
F_TR_DEALER_ALL
Money Market: Forms
...
Aut.cor. CConf.
3) Change message control
Example: : Transaction not yet confirmed and counterconfirmed

You define the relevant correspondence types (such as confirmation, dealing slip) in Customizing for the
relevant area under Functions --> Correspondence --> Define Correspondence Types.
The Internal correspondence type indicator determines whether the correspondence type should be
external (allowing partner-specific settings in the standing instructions) or internal (independent of the
partner).
You then define the correspondence activities for the respective area and company code. In this
Customizing step you also specify whether counterconfirmation is required.
You can change the correspondence forms using the SAP word processing program SAPscript. If you
change the existing forms in SAPscript and save them under a new name, you must maintain the new
forms in the Customizing step Define Correspondence Activities.
Message control enables you to influence transaction processing. You can set up the system to ignore
messages or checks depending on the user, or to block further processing by defining error messages (E
message).

(C) SAP AG AC810 6-10
SAP AG 1999
Correspondence
Correspondence
Print Fax SWIFT Addr. ID CConf.
Treasury Treasury
Fixed-term deposit
100 Investment
200 Borrowing
Deposit at notice
52 A Deposit at notice
100 Investment
200 Borrowing
Correspondence type: External
Assign
BP A BP A

You control the (external) correspondence with a particular business partner by defining standing
instructions for correspondence.
In the standing instructions for correspondence, you assign correspondence media and parameters to the
external correspondence types for a business partner. You can make this assignment at several levels:
contract type, product category, ... down to the transaction type.
You can choose between different correspondence media. You can print the forms, or send external
correspondence directly from the R/3 system (for example as a fax, or in SWIFT format).
Correspondence parameters:
Correspondence is automatically sent to the business partner's standard address. If you want to use a
different address for the partner, enter the correct key in the Address ID field.
If you require counterconfirmation from your business partner, set the CConf. indicator.
(Prerequisite: Your Customizing settings allow automatic correspondence)
In the financial transaction, the system keeps a record of the correspondence that has been created.

(C) SAP AG AC810 6-11
SAP AG 1999
Transaction: Derived Flows
Derivation rule Derivation rule
You can define derivation rules for certain flows to generate
new, dependent flows
Flow 1200 Interest UNI 1,000.00
Flow 1800 Tax 1 UNI 300.00
Flow 1801 Tax 2 UNI 16.50

You use derivation procedures to generate certain flows automatically. These flows are calculated on the
basis of other financial flows in the system.
When you process the original flow, the system generates the dependent (or derived) flows
automatically.
Example: A tax of 30% (tax 1) is deducted from the nominal interest (flow type), and a tax of 5.5% (tax
2) is deducted from tax 1 (in other words, 1.65% of the nominal interest amount).

The interest condition in the transaction generates an interest flow with the flow type 1200. At the same
time, the system adds the following flows to the cash flow on the basis of the derivation procedure:
- Tax 1 (flow type 1800)
- Tax 2 (flow type 1801)
You can then process all the flow types (original and derived). For example, you could offset the
corresponding amounts when you make the interest posting.

(C) SAP AG AC810 6-12
SAP AG 1999
Derived Flows: Customizing
Define Derivation Procedures Define Derivation Procedures
Proc. Description
Tax1 Capital gains tax
Define Derivation Rules Define Derivation Rules
Effective Inc. FType ID Derived FType DD Perc. rate
01/01/YY 1200 + 1800 - 30.0
01/01/YY 1800 - 1800 - 7.5
01/01/YY+1 1800 - 1801 - 5.5

To define a derivation procedure in Customizing, you first enter a name.
Secondly, you define derivation rules for each derivation procedure.

Specifications:
- Original (incoming) flow (type)
- Direction of the original flow type
- Flow (type) to be derived
- Direction of the derived flow
- Derived flow amount, expressed as a percentage of the original flow

(C) SAP AG AC810 6-13
SAP AG 1999
Derived Flows
Treasury Treasury
Fixed-term deposit
100 Investment
200 Borrowing
Deposit at notice
52 A Deposit at notice
100 Investment
200 Borrowing
Assign
TAX1
Derivation procedure
BP A BP A

In the application you specify when a particular derivation procedure should apply for a certain business
partner. You can assign the derivation procedure at different levels (from the contract type down to the
transaction type).
If you create a transaction with a business partner, and have assigned a derivation procedure to this
partner at the corresponding level, the system generates additional flows on the basis of the derivation
rules you have defined.

(C) SAP AG AC810 6-14
SAP AG 1999
Currency Master Data
From To Trans.ratio
ITL UNI 1000 : 1
1 = Current rate
M = Middle rate
G = Bid rate
Currency Currency Cal Cal. ID . ID
UNI UNI 01 01
Lead. curr Lead. curr. . Foll Foll. curr. . curr.
ITL ITL UNI UNI
Rate types
Translation
ratios
Calendar Calendar
Leading Leading
currencies currencies
Maintain
exchange rates
RType From To Rate
M ITL UNI 1.20
CURRENCY CURRENCY

You use the rate type to define exchange rates for different purposes. This allows you to enter various
rates for the same date.
The system uses the rate type "M" for currency translation when it posts and clears documents. This rate
type must be defined in the currency master data.
The translation ratios denote the measurement units for the exchange rates.
Example: An exchange rate from ITL to UNI with the above exchange ratio means that 1000 ITL cost x
UNI.
In the productive system, you call up the Customizing tables for maintaining exchange rates from the
application (menu: Environment -> Market Data -> Manual Market Data Entry -> Enter Exchange
Rates).
You enter the current exchange rate, specifying the rate type, currency pair, and valid from date. In the
above example, the middle rate for 1000 ITL is 1.20 UNI.
Treasury specific settings affect the calendar and the leading currencies:
- Calendar: You assign a calendar to each currency. When you create a new transaction, the system
uses the calendar assigned to the transaction currency as the basis for the working day check.
- When you enter an exchange rate in a transaction, the system uses the definitions for the leading
currency and following currency to read the rate correctly.
Example: An exchange rate of 1.20 can be read as 1.20 UNI for ITL (leading currency ITL,
following currency UNI), or as the price in ITL for UNI.

(C) SAP AG AC810 6-15
SAP AG 1999
Reasons for Reversal
Reversal due to processing error
Reversal due to Customizing error
Reversal due to condition adjustments
Reversal for other reasons
Treasury: Reversal reasons
Company
Document
M MM
2.500
01
02
03
04

Reversal: Resets the last change made to the transaction (in other words, the last transaction activity
recorded by the system).
To reverse posted flows for a financial transaction, you must first reverse the transaction activity. The
system then earmarks the posted flows to indicate that the corresponding documents have to be reversed.
You have to define the possible reversal reasons in Customizing.
(The FI reversal reasons are relevant for reversing posted documents).

(C) SAP AG AC810 6-16
SAP AG 1999
Limit Management
Limit update dependent on the following characteristics:
Company code
Trader
Business partner
Currency
Portfolio
Limit product group
Country key
Industry key
Rating indicator
Limit utilization
Business partner: Dt.
Limit: 100 m
Utilization: 30 m
Free (+) / Excess (-): 70 m
As an offline report

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

(C) SAP AG AC810 6-17
SAP AG 1999
Limit Management: Examples
Limit type:
Dres. Bank
L1 : Limit characteristic: Bus. partner:
90 m
Dt. Bank 100 m
Total FTD (Fixed-term deposit)
Total FX (Foreign exchange)
Total DE (Derivatives)
70 m
50 m
70 m
Limit type:
Char. values Limits
FTD
FX
DE
40 m
30 m
50 m
Limit type:
L3 L3 : Limit characteristics: Partner / limit product group
Dres. Bank
FTD
FX
DE
50 m
40 m
60 m
Dt. Bank
L2 : Limit characteristic: Limit product group
L1
Dres.
90
Dt.
100
L3
FTD FTD
50 50
L2
70
L1
FTD FTD
40 40

You set limits for a combination of limit characteristics. By combining these limit characteristics in
different ways, you can define a wide range of limits.
For each of the characteristics assigned to a limit type, you specify characteristic values. You then assign
a limit amount to these values (the combination of these values).
Above examples:

L1: Limit type 1 - Business partner limit
With the business partner Deutsche Bank you can conclude transactions up to 100 million UNI (money
market, forex spot, forward exchange, currency options).

L2: Limit type 2 - Limit for product/transaction type
You can conclude fixed-term deposits up to 70 million UNI (total for all partners).

L3: Limit type 3 - Limit for a partner/transaction
You can conclude fixed-term deposits up to 50 million UNI with the business partner Deutsche Bank.

(C) SAP AG AC810 6-18
SAP AG 1999
Limit Management: Overview
- Process limits for limit types:
Limit type L3: BP LPG Amount
Dres. Bank FTD 40 m
Dt. Bank FTD 50 m
Dres. Bank FX 30 m
. . .
- Generate utilizations
- Overview of utilizations
Customizing:
Define limit type: L3
Limit characteristics
- Characteristic 1: Business partner (BP)
- Characteristic 2: Limit product group (LPG)
Prerequisites: 1. Define LPG
2. Assign LPG to product
type / transaction type
Application:
Assign

Customizing:
When you define a limit type, you specify the combination of limit characteristics upon which the limits
and limit utilizations should be based.
You must also specify whether the system should calculate transactions on the assets and liabilities sides
separately when the utilizations are calculated, or whether the amounts should be cumulated or netted.

If you use the characteristic "limit product group" you can restrict the limit to certain transactions.

Application:
For each limit type, you enter values for the combination of characteristics and and set the limit amounts.

The report Generate Utilizations calculates the utilizations for all the limit types for a certain key date.
You can schedule this report as a job. The selections Risk of default and Foreign currency risk determine
how forex transactions are counted towards the utilization amount.
The report Overview of Limit Utilizations shows the limits next to the amounts currently utilized and the
free amounts. Amounts that exceed the limit are highlighted in color.

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

(C) SAP AG AC810 6-20
Transaction and Position Management: Preparation Exercises

Unit: Transaction and Position Management: Preparation
Topic: Business Partner Standing Instructions:
Payment Details

Preparation activities for transaction and position management

You can simplify the entry process by letting the system propose certain
values when you enter transactions. To do this, you define standing
instructions.
1-1 Create standing instructions for your business partner BPXX for the currency UNI.

You want to make payments from your current account with house bank CXX using
the payment request function. The payment details ID is I-XX and applies for all
payments resulting from money market and foreign exchange transactions. The
payer/payee is the business partner itself. You can choose the partner bank (AXX or
BXX). You want to make outgoing payments by bank transfer, and collect incoming
payments by direct debit.

Remember to assign the payment details to incoming and outgoing payments.

1-2 Create another fixed-term deposit with your business partner BPXX. Check the
payment details.

(C) SAP AG AC810 6-21

Topic: House Banks and Business Partners

Creating a house bank as a business partner and making the relevant
settings

Often, a house bank is also a business partner. If this is the case, you
create the bank as a house bank, and then create it as a business partner.
2-1 If you want to conclude transactions with your house bank, you must create your house
bank as a business partner.
Create a partner for your own house bank. Use the business partner name "CXX".

(Grouping G-XX, role category 1000 (treasury partner)

2-2 You intend to conclude money market, foreign exchange and derivatives transactions
with your house bank. Set up the authorizations in the application.

2-3 Define the standing instructions for payment details for your new business partner
CXX - for the currencies UNI and USD.
(Standing instructions for payment details: Since the house bank will debit your
payments from your account itself, the entries for the partner bank and payment
method are not relevant. Relevant fields: Currency, house bank ID, and account ID.
Assignment for incoming/outgoing payments).

(C) SAP AG AC810 6-22

Correspondence

Defining other standing instructions

Once you have made the correspondence settings in Customizing, you
need to define the correspondence details for each business partner.
3-1 Set up standing instructions for correspondence with your business partners BPXX
and CXX for money market and foreign exchange transactions. The principal
correspondence medium in all cases should be the printer.

(C) SAP AG AC810 6-23

Topic: Business Partner Overview

Obtaining an overview of the settings for a business partner

What entries have you made for your business partner?
4-1 Finally, take another overall look at your business partners BPXX and CXX. Call up
the master data, role data, address data, credit standing data, and bank data. Also look
at the standing instructions.

(C) SAP AG AC810 6-24
Transaction and Position Management: Preparation Solutions

Payment Details
1-1 Creating standing instructions for your business partner BPXX:

Application:

= Treasury
= Basic Functions
= Master Data
= Business Partner
= Payment Details
= Enter your data

Field name or data type Values
Currency UNI
Payment details ID I-XX
House bank ID CXX
Account ID GIRUN
Payer/ee BPXX
Partner bank AXX
Payment request Set indicator
Payment method EU

Once you have entered a set of payment details, make the assignment for
incoming and outgoing payments (button: Assign).

(C) SAP AG AC810 6-25
1-2 Creating a fixed-term deposit with your partner BPXX:

Application:

= Treasury
= Money Market
= Trading
= Create
= Enter your data
= Tab: Payment details

The information for the payment details has been entered automatically. These
are proposals that can be overwritten by the user.

(C) SAP AG AC810 6-26

Topic: House Banks and Business Partners
2-1 Creating a house bank as a business partner:

Application:

= Treasury
= Basic Functions
= Master Data
= Business Partner
= Create

Enter the business partner name CXX, the grouping G-XX, and the role category
1000. Then enter the data for your new business partner (name, language,
country, address ID, street, city, postal code and country). Save your entries.

2-2 Assigning authorizations to your house bank - business partner:

Application:

= Treasury
= Basic Functions
= Master Data
= Business Partner
= Transaction Authorizations

Assign the corresponding transaction authorizations.

(C) SAP AG AC810 6-27
2-3 Standing instructions for payment details:

Application:

= Treasury
= Basic Functions
= Master Data
= Business Partner
= Payment Details

Field name or data type Values
Currency UNI and USD
Payment details ID 01 in each case
House bank ID CXX
Account ID GIRUN and GIRUS
Once you have entered a set of payment details, make the assignment for
incoming and outgoing payments (button: Assign).

(C) SAP AG AC810 6-28

Correspondence
3-1 Standing instructions for correspondence:

Application:

= Treasury
= Basic Functions
= Master Data
= Business Partner
= Correspondence

Correspondence type "001 - External confirmation"
In each case, set the Printer indicator.

(C) SAP AG AC810 6-29

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

Application:

= Treasury
= Basic Functions
= Master Data
= Business Partner
= Display

= Treasury
= Basic Functions
= Master Data
= Business Partner
= Payment Details

Call up the master data, role data, address data, credit standing data, and bank
data. Also call up the standing instructions. Look at the differences between these
two business partners: BPXX, to which you actively make payments, and CXX,
which is also a house bank.

SAP AG 1999
Transaction and Position Management: Structure
Contents
Product types/categories
Transaction types/categories
Activity categories
Processing categories
Flow types/categories
Condition types/categories
Cash flow

SAP AG 1999
Transaction and Position Management: Structure -
Unit Objectives
to:
Recognize the main Customizing terms and make
the corresponding settings

SAP AG 1999
Business Partners
Banks
Information System

SAP AG 1999
Transaction and Position Management: Structure -
Business Scenario
Once you have configured the business partners,
you need to make the Customizing settings for the
respective financial transactions before you can
enter transactions in the system.

module.

SAP AG 1999
Financial Transaction and Business Partner
Prerequisites:
Product type
Transaction type
...
Prerequisites:
Data authorizations
Standing instructions
CM MRM
TM / LO
Transaction
Example: Fixed-term deposit with
Business partner Bank X
Trading / Back office / Accounting
Position
concluded
Example: Interest accrual/deferral

Certain transactions are concluded with business partners on the basis of liquidity situation (CM) or risk
situation (MRM) analyses, taking into account the risk and revenue goals predefined.

Example: As a result of excess liquidity, a corresponding amount is created as a fixed-term deposit with
business partner Bank X.

You enter transactions on the basis of both the Customizing settings relating to the transaction
architecture (product types, transaction types ...) and certain application data, such as the information
that exists for the business partner (address, bank details ...).

SAP AG 1999
Example: Create Financial Transaction
Company code 1000 IDES AG
Product type
Transaction type
Partner
60a Forex EXTERNAL
101 Spot transaction
Deuba Deutsche Bank
Specifications
External number assignment
Transaction
Portfolio
Order/Fixing Contract
Business transaction

You create transactions with a business partner in a company code for a certain product type and a
specific transaction type.

SAP AG 1999
Customizing Structure:
Money Market/ Forex/Derivatives
USER LEVEL
SYSTEM LEVEL
Transaction cat.
(Activity cat.)
Processing cat.
Transactn type
Product type
Flow type
Flow category/
Condition cat.
Calculation cat.
Condition type
Product cat.

SAP AG 1999
Product Categories - Product Types
USER LEVEL
SYSTEM LEVEL
- Fixed-term
deposit
- Forex external
- Forex internal
- Cap/Floor
- Currency swap
:
Product type
- Domestic stock
- Foreign stock
- Floater
- Fixed-interest
bond . . .
510 Fixed-term deposit
600 Foreign exchange
610 Cap/Floor
620 Swap
:
010 Stock
:
040 Bond
:
Product category

Product categories cover the basic types of financial borrowing and investment transactions and
represent a classification of financial instruments. Product categories are predefined in the system, apply
to all company codes, and may not be modified by the user.
Product types represent a refinement of the product categories at user level and, unlike the product
categories, they can be defined by the user. When you define a product type, you specify the business
framework that applies to financial transactions of this product type. A product type is assigned to just
one product category, but it is possible to have several product types that refer to the same product
category. You create and process your own financial transactions on the basis of product types.
You use product types to
- Assign various processing methods
- Select reports
- Assign various structure characteristics
- Assign various valuation parameters (such as different yield curves) in Market Risk Management.

SAP AG 1999
Product Categories - Product Types: Examples
Product categories Product types
Foreign exchange
510 Fixed-term deposit Fixed-term deposit
520 Deposit at notice Fixed-term deposit
530 Comm. paper
540 Cash flow transaction
600 Forex Forex 600 Forex Forex EXTERN EXTERN
INTERN INTERN
610 Cap/Floor Cap 610 Cap/Floor Cap
Floor Floor
620 Swap Interest rate swap 620 Swap Interest rate swap
Currency s Currency swap wap
760 OTC Option Swaption 760 OTC Option Swaption
Currency op Currency option (OTC) tion (OTC)
Currency ba Currency barrier option rrier option
IRG IRG
Derivatives
Money market
Financial instruments
630 FRA FRA 630 FRA FRA
700 Futures Securities futures 700 Futures Securities futures
750 Listed options 750 Listed options Stock option Stock option
Index opti Index option on

Product categories are predefined in the system. You can define your own product types for the
individual product categories.

(C) SAP AG AC810 7-10
SAP AG 1999
Define Product Type: Example - Forex
Product type
Text
Product cat. Foreign exchange
60A
Forex external
600

Product types represent the financial transactions that are used in your company. Examples of product
types in the Money Market area are fixed-term deposits or deposits at notice. If you do not want to use
the standard product types delivered with the system, you can define product types of your own. This
allows you, for example, to carry out different evaluations or to specify different processing rules for
internal and external transactions. Product types contain information about the structure characteristics.
When you define a product type, you specify the business framework that applies to financial
transactions of this product type.
You use product types as a basis for managing your positions and for creating and managing your
financial transactions.

(C) SAP AG AC810 7-11
SAP AG 1999
Define Product Type: Example - Currency Option
Product type 76A
Text Currency option (OTC)
Prod. category 760 OTC options
Option / Future
Number range 01
Settlement 1
Quotation type 2
Settlmnt method 1
Exercise type 2
Option category 1
Underlying
Product type 60A
Transactn type 101
No. underlyings 1

When you define product types, the data you enter differs according to which financial instrument you
use. For example, when you define product type "Currency option" , you have to enter data in the fields
for the underlying transaction.

(C) SAP AG AC810 7-12
SAP AG 1999
Financial Transaction Types
USER LEVEL
SYSTEM LEVEL
- Fixed-term
deposit
- Forex external
- Forex internal
- Cap/Floor
- Currency swap
:
Product type
- Investment
- Borrowing
- Spot
- Forward
- Purchase
- Sale
- Swap
:
Transaction type
100 Investment
200 Borrowing
100 Forex
transaction
:
510 Fixed-term
deposit
600 Forex
610 Cap/Floor
620 Swap
:
Product cat.
Transaction cat.

A financial transaction type determines the type of transaction you can execute with a specific product
type. It also controls the transaction and position management process.
Examples of financial transaction types are the investment or borrowing of fixed-term deposits, spot
transactions, or forward exchange transactions.

You can use the basic transaction types delivered with the system, or refine these according to your
company's requirements on the basis of financial transaction categories.

You can define user-specific values for the Money Market, Foreign Exchange, and Derivatives areas. In
the Securities and Loans areas, transaction types such as the sale or purchase of securities, are already
represented in the system.

(C) SAP AG AC810 7-13
SAP AG 1999
Customizing: Financial Transactions
Product type Forex EXTERNAL
Trans. type Spot transaction
Trans. cat.
Number ranges
Transactions Underlyings
Offers Simulations
Back office
Processing category
Automatic posting release
Limit management
Limit group
60A
100
101
01
02
03
00101
.
19

You can uniquely determine a financial transaction by combining a product type with a financial
transaction type, such as product type Foreign exchange with transaction type Spot transaction.
This transaction passes through a series of activities in the company. When you define the transaction
type, you specify a processing category. This determines how the transaction is processed (in other
words, the sequence of activities).

Example: You want spot transactions with product type 60A to be processed with the following
activities: Order - Contract - Settlement.

(C) SAP AG AC810 7-14
SAP AG 1999
Number Ranges for Transactions
No From number To number Current number Ext.
X 01 0000000000001 0000000099999 13
X 02 0000000100000 0000000199999 100000
X 03 0000000200000 0000000299999 200001
X 04 0000000300000 0000000399999 300028
X 05 0000000400000 0000000499999 400014
Number range object Fin. transaction
Ranges

The transactions entered in the application are managed with a transaction number in the system. When
you define transaction types in Customizing, you enter a number range interval that corresponds to the
number assignment in the application. You have to define this range beforehand and specify, for
example, whether the numbers are to be assigned internally (by the system) or externally (by the user).

(C) SAP AG AC810 7-15
SAP AG 1999
Activity Categories
USER LEVEL
- Fixed-term
deposit
- Forex external
- Forex internal
- Cap/Floor
- Currency swap
:
Product type
- Investment
- Borrowing
- Spot
- Forward
- Purchase
- Sale
- Swap
:
Transaction type
100 Investment
200 Borrowing
:
01 Order
02 Contract
03 Settlement
:
SYSTEM LEVEL
510 Fixed-term
deposit
600 Forex
610 Cap/Floor
620 Swap
:
Activity cat. Transaction cat. Product cat.

In the Money Market, Foreign Exchange, and Derivatives areas, transaction activity categories control
the activities that are possible for a particular transaction category.

Example:

Product category Transaction category Activity category

510 Fixed-term deposit 100 Investment 10 Contract
11 Rollover
20 Contract settlement
21 Rollover settlement

600 Foreign exchange 101 Forex spot transaction 10 Order
15 Order expiration
20 Contract
30 Settlement

The activity categories are displayed for information purposes in the financial transaction.
They form the basis for the history. Even correspondence is managed on the basis of activity categories.

(C) SAP AG AC810 7-16
SAP AG 1999
Transaction Types - Activity Categories: History
Company code
Transaction
Product type
Transaction type
Active status
1000 IDES AG
15001
60a Forex EXTERNAL
0 Active
Acty
0001
0002
0003
0004
0005
Activity category
Contract
Settlement
Status
Replaced
Active
Transition function
New entry
Activity transition

When you process a financial transaction, it passes through several activities, which are indicated by
activity information.

Example: The activity "contract" indicates that a transaction is legally binding.
The activity "settlement" indicates that the transaction data entered has been checked.

(C) SAP AG AC810 7-17
SAP AG 1999
Processing Categories
USER LEVEL
- Fixed-term
deposit
- Forex
- Cap/Floor
- Currency swap
:
Product type
Product cat.
510 Fixed-term
deposit
600 Forex
610 Cap/Floor
620 Swap
:
- Investment
- Borrowing
- Spot
- Forward
- Purchase
- Sale
- Swap
:
Transaction cat.
100 Investment
200 Borrowing
:
Activity cat.
10 Contract
11 Rollover
:
101 Order - Contract
- Settlement
102 Order - Contract
SYSTEM LEVEL
Transact. type
Processing cat.

The processing sequence of a financial transaction is determined by processing categories (Money
Market, Foreign Exchange, Derivatives, Securities) or status transfers (Loans).

Processing categories or status transfers determine the sequence of the individual activities within a
financial transaction. They describe the processing steps involved in the respective areas of the company
- from entering a transaction in the trading area, via processing it in the back-office area, through to
transferring the data to Financial Accounting.

As a result, you determine the company-specific chain of activities that a particular transaction has to
pass through.

(C) SAP AG AC810 7-18
SAP AG 1999
Customizing: Transaction Types - Processing
Categories
60A
100
101
01
02 03
.
19
00101 Processing category
00101 = Order - contract -
settlement
00102 = Order - contract
Automatic posting release
Limit management
Limit group
Trans. type Spot transaction
Trans. cat.
Number ranges
Transactions Underlyings
Offers Simulations
Back office
Processing cat.

Processing categories are predefined in the system based on the product category and the transaction
category. You select one processing category for the individual transaction types from a series of
alternatives proposed by the system.

Example:

Fixed-term deposit Product category Processing category
510 00001 Without settlement activities
510 00002 With settlement activities
Foreign exchange 600 00101 Order - contract - settlement
00102 Order - contract

(C) SAP AG AC810 7-19
SAP AG 1999
Flow Types
USER LEVEL
10 - Principal increase
A - Inflow
TD - Dividend
AA- Inflow
TD - Dividend
- Dividend
- Bonus
- Variable interest
- Repayment
- Int. rate adjustment
- Repayment rate
:
Condition type
Nominal interest
Final repayment
:
SYSTEM LEVEL
Product
category
Transaction
category
Product type
Transact. type
1000 - Buy foreign
exchange
2000 - Sell foreign
exchange
....
Flow type
Condition cat.
Flow category
Calculation cat.

Flow types describe possible changes in cash flows. Flows are the basis for generating the cash flow in
financial mathematics as well as further processing, such as posting. The cash flow contains all the flow
records in chronological order and is used as a basis for updating transaction data to Financial
Accounting, Cash Management, and Market Risk Management.
Examples of typical flow types are fixed or variable interest, increases in nominal amount, or
commission.
You assign each flow type to just one flow category. However, several flow types can refer to the same
flow category. For example, you can assign both variable and fixed interest to the flow category Interest.
Payment flows for the cash flow and for posting are controlled by two indicators, which you have to
assign to each flow type. The calculation category controls the financial mathematical processing of the
flow for the cash flow. The flow category controls the way the flow is processed for accounting
purposes.
Flows are generated by the following: Conditions (e.g. interest flows), manual entries (e.g. charges),
accrual/deferral runs (e.g. interest accruals/deferrals), or valuation runs (e.g. write-ups/write-downs).
Examples of flow categories are accounting flows such as inflows (e.g. security purchase), outflows (e.g.
repayment), expenses, or revenues. Examples of cash flows are purchases security purchases/sales,
interest, repayment, or charges.

(C) SAP AG AC810 7-20
SAP AG 1999
Customizing: Flow Types
Flow type
Name
Control
Classification
Flow category Principal increase
Calculation cat. Inflow (generic)
Relevant to CM Relevant to position Relevant to valuation
Relevant to posting Relevant to P/L Rel. for accrual/deferral
Payment request ...
Individual payment ...
1000
Buy foreign exchange
Structure characteristics
10
AA
.
.
. .

You define flow types in Customizing:
Classifications are predefined in the system and they subdivide the flow types according to their
different business criteria (structure characteristic, accrual/deferral, valuation ...).
The Relevant to CM indicator tells you whether the flow is updated in Cash Management.
The Relevant to posting indicator tells you whether the flow is transferred to Financial Accounting.
You select the Relevant to position/Relevant to P/L indicator to display the flows in drilldown
reporting.
The Relevant to valuation/Relevant for accrual/deferral indicator tells you whether the flow is
included in a valuation run or an accrual/deferral run.
The Payment request indicator tells you whether a payment request may or may not be generated for
this flow.
The Individual payment indicator tells you whether this flow requires only a single payment for a
payment request.

(C) SAP AG AC810 7-21
SAP AG 1999
Assign Flow Types to Transaction Types
Transaction type Spot transaction
Flow type Buy foreign exchange
Direction Incoming
60A
101
1000
2

(C) SAP AG AC810 7-22
SAP AG 1999
Condition Types
USER LEVEL
SYSTEM LEVEL
- Dividend
- Bonus
- Variable interest
- Repayment
- Interest rate adj.
- Repayment rate
:
Condition type
Nominal interest
Final repayment
:
Product
category
Transaction
category
Product type
Transaction
type
N
o
t
f
o
r
f
o
r
e
ig
n
e
x
c
h
a
n
g
e
N
o
t
f
o
r
f
o
r
e
ig
n
e
x
c
h
a
n
g
e
Condition cat.

Within SAP Treasury, financial transactions are represented on the basis of flow and condition concepts.
Conditions are elements of a financial transaction that are defined in a contract. You can define different
forms of interest, dividend, or repayment methods as condition types. By assigning condition types to
product types/transaction types, you can ensure that the appropriate structure characteristics are assigned
to each product type. Condition types therefore control which structure characteristics are displayed
when you create a transaction (for a particular product type).

Condition categories are the basis for processing condition types, and they refine the classification of
flows and conditions. Examples of condition categories are principal increases, final repayments, or
nominal interest.
You define condition types on the basis of condition categories, and assign them to the related
product/transaction type.

(C) SAP AG AC810 7-23
SAP AG 1999
Customizing: Condition Types
Condition type
Name (short)
Condition type text
Name (long)
Control
Classification
Condition category Nominal interest
Calculation category Nominal interest
Generated flow type Nominal interest
20
Structure characteristics
TZ
1200
Nom. interest
Nominal interest
Nominal interest
1200
N
o
t
f
o
r
f
o
r
e
ig
n
e
x
c
h
a
n
g
e
N
o
t
f
o
r
f
o
r
e
ig
n
e
x
c
h
a
n
g
e

You require conditions mainly for generating flows automatically. This means you must assign the flow
types, which are elements of the cash flow, to condition types.

As you do this, remember that condition types may exist, which do not generate any flows (for example,
interest rate adjustment, repayment settlement).

(C) SAP AG AC810 7-24
SAP AG 1999
Assign Condition Types to Transaction Types
Product type
Transaction type
Condition type
Direction
100 Investment
1200
0 Incoming and outgoing
Nominal interest
51A Fixed-term dep. EXTERNAL
0
N
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ig
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a
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e

You can set up product/transaction types in a flexible way by assigning condition (and flow) types to
them.

(C) SAP AG AC810 7-25
SAP AG 1999
Financial Product "Fixed-Term Deposit": Example
1. Define product type PXX
2. Define transaction type TXX = Investment
TZZ = Borrowing
with processing category
3. Define flow types FXX1 = Principal increase
FXX2 = Principal decrease
FXX3 = Final repayment
FXX5 = Interest
4. Define condition types 2xx1 = Final repayment
2xx2 = Interest
"Assign"

You can set up product/transaction types in a flexible way by assigning condition (and flow) types to
them.

(C) SAP AG AC810 7-26
SAP AG 1999
Financial Transaction Architecture
Conditions Conditions Conditions
Conditions Conditions Conditions
Product type
Transaction type
Business partner
Transfer flow
Valuation flow
Accrual/deferral flow
Flows describing
structure
characteristics
Payment
information
Posting
information
Calculation
bases
C
u
r
r
e
n
c
i
e
s
B
a
l
.
s
h
e
e
t

a
c
c
t
T
r
a
d
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T
e
r
m
I
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t
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s
t
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p
a
y
m
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n
t
General info History
Conditions
Conditions

When you create a financial transaction, its structure characteristics are used to determine the cash flow
via the condition and flow types. This cash flow contains all the information that is relevant to a
financial transaction in the form of flow records. For instance, the amount invested, the interest
payments, and the repayments are concentrated in one or more flow records. The cash flow of a
transaction is made up of flow records that can be generated in various ways:
- Flows entered manually, such as charges:
- Automatically generated flow records are generated, for example, from conditions (via the flow
types assigned to the condition type) as well as on the basis of accrual/deferral or valuation runs.

(C) SAP AG AC810 7-27
SAP AG 1999
Financial Transactions: Cash Flow
Basis for
Updating Cash Management
Updating Financial Accounting
using flexible account
determination
Triggering payments
Updating items
Accrued/deferred interest
Foreign currency valuation
Yield calculation
Investment 4/1/YY 1m DEM made
Interest 7/1/YY 10 000 DEM anticipated
Repayment 7/1/YY 1m DEM anticipated
Cash flow (example)
Transaction
Amount
invested/
borrowed
Condition
PLANNED
ACTUAL

The cash flow of financial transactions forms the basis for all trading, transaction management, and
position management processes. It is also used for evaluation activities within Treasury.
Financial mathematics are used to determine the cash flows in Treasury.
You can display the cash flow both with posting information or with payment information. You can
display the calculation bases for the amounts displayed, if required.
The system provides a range of formulas based on the "building block principle", which take account of
the flexible organization of the Treasury application.
In Treasury Management, application-specific control programs call up central financial mathematical
function modules, for instance, to calculate interest and repayment schedules.
These FiMa function modules generate and calculate a series of flows known as a cash flow (payment
flow) for a financial transaction in the application (e.g. stock purchase, swap) on the basis of the
conditions assigned to a financial transaction and the specified calculation period.

(C) SAP AG AC810 7-28
SAP AG 1999
Flow records Conditions Flow records
of SAP - FiMa SAP - FiMa or SAP - FiMa
Generation of a
Control cash flow
parameters in the form of
FiMa flow records
Calculate effective Alternative effective Execute
interest rate calculations accrual/deferral
SAP Financial Mathematics in Treasury
Management: Process Flow
FLOW RECORDS CONDITIONS FLOW RECORDS
E.g. Principal E.g. Interest E.g. Principal
increase increase
Nominal interest
Final repayment
INPUT INPUT INPUT INPUT OUTPUT OUTPUT
USER LEVEL
SYSTEM LEVEL
Functions

You either enter flow records manually or you let the system generate them from condition items as it
does in other areas, such as discount calculation or accrual/deferral. The system first generates planned
records, which become actual records as a result of posting activities.
A flow record is defined by

- its type (e.g. interest or repayment)
- its calendar days (calculation, due date, planning date, calculation period)
- an amount defined in local currency (and foreign currency)

It also contains posting information as an application flow record.
Not only does a flow record have a flow type and a flow category as business characteristics, it also has
a financial mathematical calculation category, which determines how it is processed in SAP's financial
mathematics.
When flow records are generated, dated 'flow record shells' are created. These incorporate all the data
you need (such as the calculation period, period, interest calculation method).

(C) SAP AG AC810 7-29
SAP AG 1999
Structure - Unit Summary
By configuring the transaction master data,
you have fulfilled additional requirements for
creating financial transactions in SAP Treasury.

(C) SAP AG AC810 7-30
Transaction and Position Management: Structure Exercises

Unit: Transaction and Position Management - Structure
Topic: Creating a New Product (Fixed-Term Deposit)

Creating the master data to configure new product types.

You want to configure your own financial instruments in Customizing.
1-1 Set up your own fixed-term deposit product. Assign the product type the following ID:
PXX (XX = your group number); with product category 510.

1-2 Define your own transaction types:
Check beforehand whether number ranges for transaction types have been defined for your
company code.
Create a transaction type for a fixed-term deposit using TXX (XX = your group name) as the
transaction type ID.
Do not settle the fixed-term deposit.
Use the number range 01 for the transactions. You do not want users to be able to make
offers or perform simulations.
You do not want the posting to be released by a second user, but released automatically. Set
the indicator accordingly.

(C) SAP AG AC810 7-31
1-3 Define the following flow types of your own for your fixed-term deposit:
ID
- Principal increase FXX1 (XX = your group ID)
- Principal decrease FXX2
- Final repayment FXX3
- Interest capitalization FXX4
- Nominal interest FXX5
- Charges FXX6
- Commission FXX7

Defining flow types using the copy function:
You can copy the entries for the following flow types to your new flow types:
Flow type
- Principal increase 1100
- Principal decrease 1110
- Final repayment 1120
- Interest capitalization 1150
- Nominal interest 1200
- Charges 1901
- Commission 1902

Defining flow types without using the copy function:

-> Use suitable flow categories (with the corresponding calculation categories).
When you define flow types, you are defining the structure characteristics of
the transaction.

(C) SAP AG AC810 7-32
-> Assign your flow types to the following categories:

Relevant Princ.inc. Princ.decr. Final rept Int. cap. Nom. int. Charges Commission
Cash Mgmt x x x x x x
Posting x x x x x x x
Position x x x x
P/L x x x x
Valuation x x x
Accr./def. x x
Eff.int.calc. x x x x x

1-4 Assign all the new flow types FXX ... - except for interest and repayment - to your
new transaction type TXX (together with your new product type PXX).

1-5 Set up the following condition types:

Final repayment Nominal interest
ID: 2XX1 ID: 2XX2
- Structure characteristics - Structure characteristics
- Flow category: - Flow category:
Final repayment Nominal interest
- Flow type generated: - Flow type generated:
FXX3 Final repayment FXX5 Nominal interest

You can use the following condition types to copy the data for your condition types:

1120 Final repayment
1200 Nominal interest

(C) SAP AG AC810 7-33

1-6 Assign the condition types

"Final repayment"(2XX1) and
"Nominal interest" (2XX2)

to your transaction type fixed-term deposit TXX (together with your product type
PXX).
Both condition types apply for the incoming and the outgoing sides of the transaction.
1-7 Create a fixed-term deposit with your house bank using your new product type.
Check the cash flow and add other flows (such as charges). Does the transaction need
to be settled?

(C) SAP AG AC810 7-34
Transaction and Position Management - Structure Optional Exercises

Topic: Creating a New Product (Currency Option)

Creating the master data to configure a different product type.

Your Treasury department wants to purchase a currency option (OTC) to
hedge against the falling US dollar. Your company has not used currency
options before. Make the necessary settings in the system to allow your
traders to use this product.
2-1 Create the product type for the currency option. Assign the following ID to the product
type: OXX (XX = your group number).
Assign the product type to the number range "01".
You want the currency option to be exercised physically (no cash settlement).
The option is price-quoted and will be settled once (normal style).
It is a standard option that can be exercised on any bank working day.
Use the product type 60A (external forex transaction) and transaction type 101 (spot
transaction) as the underlying..

2-2 Define your own transaction type:

For your product type currency option OXX (XX = your group name), define the
transaction type Purchase OXX (XX = your group name).

(C) SAP AG AC810 7-35
Assign the processing category 00101 to your transaction type: Order-cont.-settl.-
exercise/Expir.-settl.-term.-term. settl.
Assign the transaction type to number range '03'. The number range for the underlying
corresponds to the second number range for the forex spot transaction (number range 19). You
do not want currency options to be released for posting automatically.

2-3 Assign the following flow types to your transaction type:

- 1301 Option premium (OTC)
- 1310 Cash settlement
- 1320 Premium transfer on expiration
- 1321 Premium transfer on exercise
- 1900 Charges

2-4 Create a transaction in the application using the new product type for currency options.
Remember that your business partner will need to be authorized for OTC options.

(C) SAP AG AC810 7-36
Transaction and Position Management- Structure Solutions

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

Customizing:

= Treasury
= Money Market
= Transaction Management
= Product Types
= Define Product Types

Button: New entries
1-2 To define transaction types:

Customizing:

= Treasury
= Money Market
= Transaction Types
= Define Number Ranges

You do not need to enter any new data here, just check what is there.

Customizing:

= Treasury
= Money Market
= Transaction Types
= Define Transaction Types

Button: New entries

(C) SAP AG AC810 7-37
1-3 To define flow types:

Customizing:

= Treasury
= Money Market
= Flow Types
= Define Flow Types

Button: New entries
1-4 To assign your flow types to transaction types:

Customizing:

= Treasury
= Money Market
= Flow Types
= Assign Flow Types to Transaction Type

Button: New entries
1-5 To define the condition types:

Customizing:

= Treasury
= Money Market
= Condition Types
= Define Condition Types

Button: New entries

(C) SAP AG AC810 7-38
1-6 To assign the condition types to the transaction types:

Customizing:

= Treasury
= Money Market
= Condition Types
= Assign Condition Types to Transaction Type

Button: New entries
1-7 To create a fixed-term deposit:

Application:

= Treasury
= Money Market
= Trading
= Create

(C) SAP AG AC810 7-39
Transaction and Position Management- Structure Solutions

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

Customizing:

= Treasury
= Derivatives
= Product Types
= Define Product Types

Button: New entries
2-2 To define a transaction type:

Customizing:

= Treasury
= Derivatives
= Transaction Types
= Define Transaction Types

Button: New entries
2-3 To assign your flow types to the transaction types:

Customizing:

= Treasury
= Derivatives
= Flow Types
= Assign Flow Types to Transaction Type

Button: New entries

(C) SAP AG AC810 7-40
2-4 To create a currency option:

Application:

= Treasury
= Derivatives
= Trading
= OTC Option
= Create

SAP AG 1999
Transaction and Position Management: Process
Contents:
Trading
Back office
Accounting

SAP AG 1999
Transaction and Position Management: Process:
Unit Objectives
to:
Enter financial transactions in the SAP Treasury
Management system from start to finish - from the
trading stage through to the back office and on to
financial accounting.

SAP AG 1999
Business Partners
Banks
Information System

SAP AG 1999
Transaction and Position Management: Process -
Business Scenario
After learning the basic settings you need to make
to represent your financial transactions in SAP
Treasury Management, you will now learn about
the entire transaction process and how it is
represented in the system.

module.

SAP AG 1999
Financial Transaction - Overview
Forex - Administration
configured in R/3
Master data:
4 Business partners
4 Transaction authorizations
4 Payment details
4 Correspondence
4 Currencies
4 Transaction management
Customizing
Evaluation reports in the Information System
Execute
financial
transactions
R/3 Financial Accounting R/3 Financial Accounting

Before you can use the foreign exchange management functions, for example, you are required to enter
master data (such as create business partner, set up product types and transaction types).
You can then enter entire foreign exchange transactions.
You can also use the reporting functions within transaction and position management.
Flows relevant for posting are transferred to the R/3 Financial Accounting component.

SAP AG 1999
Transaction and Position Management Process:
Trading Functions
Postings
Payment
transactions
Reversals
Accruals/deferrals
Valuation
Create new offer/
order/contract
Exercise/expiration
Notice
Rollovers
Exercise rights
User authorization
Limit management
Release
Settlement/control
Netting
References
Sec. account transfers
Corporate actions
Trading
Back office
Accounting

Within the transaction and position management process, a distinction is made between the following
areas:

- In the trading area, you enter offers and transactions, and exercise rights.
- In the back office area, you settle transactions, which means you check existing transactions and
perform position management-related processes, such as securities account transfers.
- In the accounting area, you process the relevant account-based activities in the subledger and
transfer posting information to the general ledger in Financial Accounting.

You can set up your system so that a transaction must be released by one/several (other) people before it
can be posted.

SAP AG 1999
Trading
Financial transactions
Are assigned to their organizational entity (company code)
in the enterprise
Wide range of different options to reflect the organizational
structures of group companies
Are concluded for a specific product type/transaction type
You are free to define product types and transaction types
that suit your requirements
Are concluded with a business partner
Internal and external (banks) business partners
Can be created with different processing categories

The main functions for entering and changing financial transactions are grouped together in the trading
area. To represent financial transactions in the system efficiently, you first have to make basic settings:

Which organizational unit (company code) is concluding the financial transaction? This setting
enables companies with complex organizational structures, such as Treasury headquarters, to
differentiate between the various company areas.

Which financial transaction is being concluded? Here, you specify the product and transaction
types along with the relevant processing rules.

With whom are you concluding a certain financial transaction? Each financial transaction is
linked to a business partner. The data you define for the business partner offers a large amount of
scope for rationalization. If, for example, you always use the same bank and payment details with a
business partner, they can be added automatically to the financial transaction. You can also set up
restrictions, for example, which allow you to only trade certain product types with a given business
partner.

SAP AG 1999
Example: Creating Transactions
Product type
Transact. type
Partner
60a Forex EXTERNAL
Deuba Deutsche Bank
Specifications
External number assignment
Transaction
Portfolio
Order/Fixing Contract
Business transaction

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

SAP AG 1999
Offers for Fixed-Term Deposits and Foreign
Exchange
Offer
no.1
2.4%
Offer
no.2
2.7%
Offer
no.3
2.5%
Offer
no.2
2.7%
Contract
Sorting according to quality

The activity category Offer allows you to group together and store quotations from different banks with a
reference.
This enables you to sort the offers according to their quality. You have the option of creating a contract
directly from an offer.
You have to create a specific number range for transactions with the activity category Offer. In
Customizing for transaction types, you assign this number range to the relevant transaction type in the
number ranges for offers field.
You can use this function in the Money Market area for fixed-term deposits and in the Foreign Exchange
area for forex spot transactions and forward exchange transactions.
A special Evaluation report for offers, which you can set up yourself, tells you how many offers were
submitted, and how many of these resulted in a contract.
You can use the Journal to display offers..

(C) SAP AG AC810 8-10
SAP AG 1999
Simulation of Fixed-Term Deposits/Forex
Transactions
MRM
You can create simulated transactions
No business partner is required for the simulation
Simulations are managed with their own number range
You can create a contract from a simulation
You can add a business partner

For forex transactions and fixed-term deposits, you can create simulated transactions with the activity
category Simulation.
You use simulated transactions for analysis purposes in Market Risk Management.
You can create a contract from a simulated transaction using the change function. To do this, however,
you must add a business partner, since simulated transactions are created without a business partner.
You manage simulations under a number range of their own. You must assign this number range to the
relevant transaction type in the number ranges for simulations field in Customizing for transaction types.
You can use the Journal to display simulations.

(C) SAP AG AC810 8-11
SAP AG 1999
Financial Transactions in Cash Management
Assign planning levels
IDES AG 1000
Forex external 60A
Forex banks DB
Contract 20
10/02 10/03 10/03 later 10/05
Cash Management: Display Levels
Le
Banks Banks
Description 10/02 10/03 10/04 later 10/05
DB Forex banks 150,000 xxx,xxx xxx,xxx xxx,xxx xxx,xxx
. . . . . . . . . . . . . . . . . . . . . . . . . . .
B5 B5 Clearing Clearing 150,000
. . . . . . . . . . . .
F0 F0 Banks Banks
Balance
. . . . . . . . . . . . . . .
xxx,xxx xxx,xxx xxx,xxx xxx,xxx
150,000 xxx,xxx xxx,xxx xxx,xxx xxx,xxx
xxx,xxx xxx,xxx xxx,xxx xxx,xxx xxx,xxx

Each activity category (status) within a business transaction (order, contract, settlement, etc.) can be
displayed automatically in Cash Management and, if required, can be viewed at separate levels.
In this way, cash flows particularly from Treasury transactions that have not yet been posted, but whose
value date is known, can be used by the cash manager for forecasting and planning.
For the relevant product types and activity categories (Money Market, Foreign Exchange, Derivatives)
or statuses (Securities, Loans), you maintain the planning levels for G/L and/or subledger accounts on
which the information is to be displayed in Customizing.

Example: Product type: 60A - Forex
Activity cat: 20 - Contract
Level: DB - Forex (bank known)

(C) SAP AG AC810 8-12
SAP AG 1999
Trading: Transaction Data
Basic data
(Amount/Interest rate/Price ...)
Conditions (overview)
(Condition category / Effective from / Cond. type /
Description ... )
Cash flow (Payment data / Payment amount / Flow type ... )
(Direction / Currency / House bank / Account ID ... )
Administration data
(Activity category ... )
N
o
t
f
o
r
f
o
r
e
x
N
o
t
f
o
r
f
o
r
e
x
Payment details

(C) SAP AG AC810 8-13
SAP AG 1999
Interest Calculation Methods
Method
Characteristics
Numerator
(days)
30 days
per month
31st - 30th >
Actual
calendar days
Denominator
(day basis)
360 days
per year
Actual
calendar days
of a period
Actual calendar
days of a
calendar year
252 work days
per year
Example 06/16 -
12/31/YY 194 days 198 days 198 days 141 days (*)
(*) Example: Factory calendar Germany
Method
Characteristics
30 days/month
360 days/year
Actual calendar
days
Actual calendar
days
360 days
per year
360 days
per year
365 days
per year
366 days
per year
195 days 198 days 198 days 198 days
Work days of
an interest rate
calendar
N
o
t
f
o
r
f
o
r
e
x
N
o
t
f
o
r
f
o
r
e
x
Numerator
(days)
Example
06/16/ -
12/31/YY
Denominator
(day basis)
360/360 actual/360 actual/365 actual/366
Actual
calendar days
Actual
calendar days
360E/360 actual/ actualP actual/ actualY actualW/252

The following are defined as DAY BASIS:
1. 360
Based on a year with 360 days.
2. 365
3. 366
4. 252
Based on a year with 252 days (work days).
5. actP
P stands for period and means that the actual number of days in a period is used to calculate the
interest. The number of days per period is multiplied by the number of periods per annum to give the
number of days per year.
6. actY
Y stands for Year and indicates that the actual number of days in a calendar year (365 days in a
normal year and 366 in a leap year) is used. If a calculation period comprises two calendar years, and
one of them is a leap year, the calculation is done in two parts.

(C) SAP AG AC810 8-14
SAP AG 1999
Conditions of a Financial Transaction
Nominal interest 4% interest / Frequency: 6 months
Final repayment
Example: Fixed-term deposit
Payment date Int. Amount
Nominal interest 10/31/YY 4% 3,333.33 UNI
Nominal interest 04/30/YY 5% 4,166.67 UNI
Condition change:
N
o
t
f
o
r
f
o
r
e
x
N
o
t
f
o
r
f
o
r
e
x

You can assign different, flexible user-defined agreements using the "building block principle" for the
term of a financial transaction.
Depending on the condition type, a condition item is characterized by
- Amounts or percentage rates and calculation bases
- Calendar dates and the frequency.
Within a given period, you may require different values for a condition type (such as a change in the
interest rate or frequency). This means that the contract conditions for a condition type are each tied to
an "Effective from" date. Each condition is valid until the effective date of the following condition is
reached.

(C) SAP AG AC810 8-15
SAP AG 1999
Fixed-Term Deposits and Deposits at Notice:
Changes in Capital Structure
At the start of term During rollovers During the term
Changes in capital structure
N
e
w
N
e
w
Advantage:
Higher degree of flexibility when mapping
transactions (e.g. creating repayment schedules)
Button next to amount field
Automatically included in cash flow

For fixed-term deposits and deposits at notice, you can enter other principal increases and decreases
during the term in addition to the main flows at the start of term or on the rollover date. This enables you
to represent repayment schedules, for example.

(C) SAP AG AC810 8-16
SAP AG 1999
Effective Interest Rate Calculation and Update
The effective interest rate is
Calculated by the system and
Updated to the database
Prerequisite: You must enter an effective interest method
when you define the product type
Effective interest rate is available for evaluations
in reporting
You can calculate and display the effective interest rates
(using all the effective interest methods available) when
you process transactions

Definition of the Effective interest rate:
Expression of the profitability/costs of a capital investment or borrowing. Alongside the nominal
interest, charges, clearing dates, discount/premium, and repayment modalities are also used in the
effective interest rate calculation, for example.
In the Money Market area, the effective interest rate is calculated and updated to the database during
transaction processing provided that you entered an effective interest method when you defined the
respective product type. In this case, the effective interest rate can be used for evaluations in reporting.
For transactions that were entered before Release 4.6A, a report is available (RFTMEZ00) that you can
use to calculate and update the effective interest rate.

(C) SAP AG AC810 8-17
SAP AG 1999
Roll Over Contract: Fixed-Term Deposit
Interest structure
. . .
. . .
Transaction
created
Roll
over
Term
Start
Rollover
End
Principal change
Flow type
Amount
1100 Principal increase
1110 Principal decrease
. . .
11/06/YYYY
10/10/YYYY
?

You can roll over existing transactions using the same transaction number, and, if required, with
different conditions.
You can display the status of the current business transaction or display its history with all the related
details.
Using the memo function, you can specify additional information for each activity.
By choosing Extras --> Amount overview, a list appears showing the capital and interest flows that are
due before or on the relevant key date, which are related to the transaction and sorted by their amounts.

(C) SAP AG AC810 8-18
SAP AG 1999
Transaction History
History: Activity Sequence History: Activity Sequence
Activity Act. category Date
Active
status
Settlement Settlement
Administration data
CoCd
PTyp
TTyp
0001
51a
100
SAP AGTransaction
Activity
Act.cat Order
4711
1 Basic data
CoCd
PTyp
TTyp
0001
51a
100
SAP AGTransaction
Activity
Act. cat. Order
4711
1
Administration data
CoCd
PTyp
TTyp
0001
51a
100
SAP AGTrans.
Activity
Act. cat. Cont.
4711
1 Basic data
CoCd
PTyp
TTyp
0001
51a
100
SAP AGTrans.
Activity
Act. cat. Cont.
4711
1
Administration data
CoCd
PTyp
TTyp
0001
51a
100
SAP AG Trans.
Activity
Act. cat. Cont.
4711
1 Basic data
CoCd
PTyp
TTyp
0001
51a
100
SAP AG Trans.
Activity
Act. cat. Cont.
4711
1
Administration data
CoCd
PTyp
TTyp
0001
51a
100
SAP AGTransaction
Activity
Act. cat. Settlement
4711
1 Basic data
CoCd
PTyp
TTyp
0001
51a
100
SAP AGTransaction
Activity
Act. cat. Settlement
4711
1
10/01/YY
10/02/YY
10/31/YY
1
2
4
3
Order
Contract
Rollover
Settlement 10/02/YY
Replaced
Replaced
Replaced
5 Settlement
Replaced
11/30/YY 5 Settlement Active
. . . . . . . . .
Order Order Contract Contract Rollover Rollover Settlement Settlement
Administration data
CoCd
PTyp
TTyp
0001
51a
100
SAP AGTrans.
Activity
Act. cat. Sttlmt
4711
1 Basic data
CoCd
PTyp
TTyp
0001
51a
100
SAP AG Trans.
Activity
Act. cat. Sttlmt
4711
1
. . .

In the transaction history you can call up each activity (status) with the corresponding details.

(C) SAP AG AC810 8-19
SAP AG 1999
Overview of money market transactions that correspond
to the selection criteria entered
Process the relevant transactions
Create
Change
Display
Roll over
Give notice
Settle
Reverse
History
Branch directly to the individual transaction
Connection to the ABAP List Viewer
Collective Processing: Money Market

The collective processing function helps you manage your transactions systematically by displaying a
list of all the transactions with common selection criteria. The list includes key information about each
transaction as well as a range of processing functions.
From this processing list, you can branch directly to the individual transactions at any time.
The connection to the ABAP List Viewer provides you with a whole range of display options. You can
structure your list by column or row, sort the list, and display totals.You can save these display variants
for later use.
When you have finished processing a transaction, a Processing indicator appears.

(C) SAP AG AC810 8-20
SAP AG 1999
Transaction Management:
Worklist and Collective Processing
Processing financial transactions for all product
categories
User-specific managing of financial transactions
Selecting and displaying Treasury financial transactions
Branching to individual transaction processing
Representing transactions using the SAP List Viewer

You can process financial transactions across all of the following product categories:
Fixed-term deposits and deposits at notice
Commercial Paper
Cash flow transactions
Forex spot transactions and forward exchange transactions
Interest derivatives
OTC options
Futures
Securities
You can store any number of selections as variants and manage these in a tree structure either user-
specifically or for all users.
The display variant controls the structure of the list. You can store the following information in a display
variant:
Column structure
Sorting criteria
Filter conditions

(C) SAP AG AC810 8-21
SAP AG 1999
Cash Flows in Cash Management
Treasury Management cash flow
Jun 19 1000+ Forex purchase 1,000
Jun 19 2000- Forex sale 1,800
E2 domestic customer + USD DB GIRUN
- USD DB GIRUN
Subledger accounts JUN 19 JUN 19 Bank accounts
DP Forex + 1000 - 1800 DB Forex
E2 Domestic customers DBGIRO
Alternative 1 Alternative 1
unknown unknown
Alternative 2 Alternative 2
known known
Business partner
Planning groups
Business partner / transaction
Payment details and house banks

Alternative 1:
If no payment details have been entered in the transaction, i.e. the bank accounts are unknown, the cash
flow cannot be displayed for a bank (clearing) account. The amount relating to subledger accounts is
displayed, so that the cash flow can still be seen in Cash Management. The system uses the planning
group entered in the master record of the business partner.

Alternative 2:
If payment details have been entered in the transaction, i.e. the bank accounts are known, the cash flow
is displayed in Cash Management at the level that is assigned to the corresponding bank (clearing)
account.

(C) SAP AG AC810 8-22
SAP AG 1999
Back-Office Functions
Postings
Payment
transactions
Reversals
Accruals/deferrals
Valuation
Create new offer/
order/contract
Exercise/expiration
Notice
Rollovers
Exercise rights
User authorization
Limit management
Release
Settlement/control
Netting
References
Corporate actions

In the back office area you settle transactions, in other words, you check existing transactions and
perform position management-related processes, such as securities account transfers.

(C) SAP AG AC810 8-23
SAP AG 1999
Back Office
Correspondence Correspondence
Accounting
Collective processing
Netting
References
Interest rate changes
Sec. account
transfers
Capital structure
changes
Confirmation
management
(incoming
/outgoing)
Payment details
Curr. Bank Acct
. . . . . . . . .
Settlement/control
Payment details
Back office
Confirmation Confirmation
Position management Position management Settlement of Settlement of
transactions transactions

Depending on how your company is set up, you can transfer transactions you have entered in the trading
area to the back office area. The back office area includes functions for checking and changing
transactions. Some of the key postprocessing activities include:
- Enhancing transaction data, for example, adding information that is relevant for the back office.
- Preparing postings and payments, for example, checking the accounts that are used later on in the
automated processes. This is the last opportunity you have of assigning an account assignment
reference and payment details to the transaction. You need this information in order to post the
Treasury flow to Financial Accounting (see account assignment reference).
- Generating correspondence in the form of dealing slips, letters of confirmation, or confirmation
files.
- Position management tasks, such as securities account transfers.
By saving the settlement activity the system changes the activity category of the transaction to record
that has been checked and processed in the back office.

(C) SAP AG AC810 8-24
SAP AG 1999
Transaction Settlement
Company code 1000
Product type 51A Fixed-term deposit
Transaction type 100 Investment
D Curr. Effective FTyp House bk Acct ID Payment Pmnt req.
- UNI Deuba GIRUN
+ UNI Deuba GIRUN
Transaction: Payment details
Account assignment reference
DB000001 Deutsche Bank
Fixed-term deposit
G/L account: 113113

You can check, change, or add information that is relevant for posting and payment. This is the last
opportunity you have of assigning an account assignment reference and payment details to a transaction.
You need this information in order to post the Treasury flow to Financial Accounting.
Depending on how you set up your system, you can have the account assignment reference or the
payment details for the particular business partner appear as default values, which you can then change
or enhance.
The system supports multiple level payment methods. By entering a bank chain, you can process
payments via several banks. Up to 3 intermediate banks are supported.

(C) SAP AG AC810 8-25
SAP AG 1999
Correspondence: Confirmation Management
Differentiates between outgoing confirmation and
counterconfirmation
Confirmation status for correspondence can be seen in
the financial transaction - under 'Status'
Status management for counterconfirmation can be
controlled according to the business partner - in the
standing instructions + Customizing
Monitors overdue counterconfirmations
Optical archiving of correspondence
Correspondence overview and correspondence monitor

You can define for each business partner (in the standing instructions) whether counterconfirmation is
required for external correspondence.
The system updates the confirmation status of the business transaction on the Status tab.
--> Executed, matched (counterconfirmation has been received and matched).
You can archive correspondence letters optically. To do this, you must have set the 'Archiving (Optical
archiving)' indicator in Customizing (by choosing "Define Correspondence Types") for each
correspondence type you require. However, you need to use an external optical archive for this. You
access the archived correspondence from the transaction display. If you are in the display/change mode
for a transaction, you can also display the correspondence activities by choosing Goto. By double-
clicking a line, you activate the archive link monitor and display the document.
The correspondence monitor provides new functions that enable you to process and monitor your
correspondence. These functions have been developed on the basis of the existing correspondence
overview.
Overview function of the current processing status
Option of setting the counterconfirmation status to matched directly from the monitor (manual
match)
Function for executing planned correspondence directly from the monitor
Function for repeating correspondence that has already been generated ...
The correspondence monitor has been developed using the ABAP List Viewer.

(C) SAP AG AC810 8-26
SAP AG 1999
Confirmation Letters
Create Correspondence on Basis of Planned Records
Selections
Company code
Transaction to
Correspondence type
Product category
Product type
Transaction type
...
Business partner
Portfolio
Trader
End of term/due date to
Entered/changed on to
Entered/changed by
...
1000
?

The generation of correspondence is built up from planned records, which are created on the basis of
your Customizing settings and standing instructions for correspondence when you create, change, or
reverse transactions, for example.
You go to the selection screen for calling up confirmation letters by choosing Back office -->
Correspondence --> Outgoing Correspondence from the menu.
You can select transactions that are to be confirmed.
The confirmation letters that are generated appear in chronological order in the display. You can print
them out, if required.

(C) SAP AG AC810 8-27
SAP AG 1999
Accounting Functions
Postings
Payment
transactions
Reversals
Accruals/deferrals
Valuation
Create new offer/
order/contract
Exercise/expiration
Notice
Rollovers
Exercise rights
User authorization
Limit management
Release
Settlement/control
Netting
References
Corporate actions

In the accounting area, you process the relevant account-based activities in the subledger and transfer
posting information to the general ledger in Financial Accounting.

You can set up your system so that a transaction must be released by one/several (other) people before it
can be posted.

(C) SAP AG AC810 8-28
SAP AG 1999
Automatic / Manual Posting Release
Product type
Transaction type
Posting release X
Trading
Back office
Posting
Release
Automatic !

In the Money Market, Foreign Exchange, and Derivatives areas, transactions either do not require any
release, or they must be released by a second employee.

If you want the transactions to be released for posting automatically (i.e. not explicitly), you have to put
a cross in the "posting release" field in Customizing (according to the product type and transaction type).
In this case the transactions can be posted without being released.

Manual posting release: If you want the transactions to be released for posting by a second user, leave
this field blank.

(C) SAP AG AC810 8-29
SAP AG 1999
Release Workflow - Overview Graphic
1st approval
or rejection
1st approval
or rejection
1st approval
or rejection
Start workflow
release
One-level
approval
Two-level Three-level
approval approval
2nd approval
or rejection
2nd approval
or rejection
3rd approval
or rejection
G A
R
A
A
R
G
A
A
A
R
R
Inbox
Inbox
Inbox
If a transaction is rejected, it can be changed/reversed

The TR transaction release process includes the following key components:

Integration or organization management in the SAP Business Workflow
(Organizational plan, task distribution according to responsibilities and job descriptions, dynamic task
distribution for the runtime from the context of the workflow and the objects processed)
Integration of the release management in the SAP Business Workflow
(Organizational plan for the release, consideration of the release strategies that can be customized in
Treasury for the runtime of the workflow)

The release procedure includes approval or control procedures with organizational conditions.
If a release is rejected, the person who last processed the transaction is informed by the release point, and
the transaction can be changed or reversed. The transaction may then have to be released again.

(C) SAP AG AC810 8-30
SAP AG 1999
Release Workflow - Customizing I
Release procedure
Release conditions
.
Release conditions
E
Product type 51B Fixed-term dep. internal
Transaction type 100 Purchase
ACat Act. Rel. nec. Rel. steps Trans. processing
10 01 1 1
Release procedure
Release conditions
.
Release procedure
PTyp TTyp Rel. proc.
51A 100
51B 100
60A 101
E
E
E

You can specify in Customizing the procedure you want to use according to the company code, product
type, and transaction type. This is why you define release procedures and release conditions.
In the release conditions you enter the release step and information relating to the transaction release
according to the activity category and activity.
The release steps define how many people are required to release an object (for example, 1 release step:
2 employees (1 employee, 1 person responsible for the release).
You use the transaction release to define what the application does while the transaction is in the release
workflow (for example, ongoing transaction during the release workflow is not permitted).

(C) SAP AG AC810 8-31
SAP AG 1999
Release Workflow - Customizing II
of to
1000
51B
100
1
2
Activate event linkage
Agent assignment
Create responsibilities
Display standard role 20000034 (TRTMTR_DEAL)
Example:
Activate event linkage
Description
Company code
Product type
Transaction type
Mom. approval level
Release steps

Make the standard Customizing settings for the workflow.
Display standard role 20000034 (TRTMTR_DEAL): The standard role describes the responsibilities for
the individual approval steps.

The agents must be found in the system for the individual approvals. To do this a standard role has been
built into the workflow definition, which is still empty. To define the agents for an approval level, you
have to create a responsibility in the standard role and assign a user/position to it.
(Change the responsibilities so that the "momentary approval level" is set to the corresponding value,
and the "release steps" are set to the maximum number).
You have the option of entering several users/positions, which are notified if deadlines are exceeded
(standard role 20000035).
Since this workflow is triggered by an event, you must activate the event linkage of the workflow used.
For more information about the release workflow, see the IMG documentation.
A reporting overview is available that enables you to see for each Treasury transaction the release that
was processed, when it was processed, and by whom.

(C) SAP AG AC810 8-32
SAP AG 1999
Accounting
Forex spot transaction Purchase USD - Rate 1.80
FI interface
Selection of the
transactions and flows
relevant for posting
Oct 01 1000 + Forex purchase 1,000,000
Oct 01 2000 - Forex sale 1,800,000

The Treasury information that is required for posting is passed on to Financial Accounting via an
interface. The posting logic is based on the flow types generated and the account assignment reference
that belongs to the financial transaction as well as the account determination defined by the user.
You can post individual flows either via G/L accounts or via customer accounts. If you want to trigger
actual payment activities, you can use the FI payment program on the basis of posting via customer
accounts. You also have the option of using an extended payment program for payment requests via
which active payments can be made on the basis of postings via non-customer accounts. In this case,
payment requests are first generated in Treasury, and are then paid individually or jointly via the TR
payment program. The following four posting alternatives are possible:
1. G/L accounts without payment requests: flows are posted to bank clearing accounts and cleared
via manual or automatic bank statements.
2. Customer accounts without payment requests: flows are posted to customer accounts and cleared
by active payment triggering by the FI payment program.The bank clearing accounts that have
been posted to are cleared via the bank statement.
3. G/L accounts with payment requests: (see Unit 8)
4. Customer accounts with payment requests: a payment request is generated per flow and posting is
initiated via the payment requests clearing account or customer account. The subsequent payment
run performs the posting to the bank clearing accounts.

(C) SAP AG AC810 8-33
SAP AG 1999
Transaction: Posting
... via G/L accounts
FT dep. bal. sheet acct
(Deuba)
House bank account
(Deuba)
C
100 m
C
100 m
Bank clearing account
C
100 m
C
100 m
House bank
DEUBA
IDES
FT dep.
investment
? Fixed-term dep. inv.
? Statement from bank

In the case of financial transactions that are concluded with business partners that are also the house
bank of the company, active payments are not usually made.
Rather the corresponding postings on the business partner side (= the house bank) are posted to the
bank account. The flows 'preposted' from Treasury Management to the bank clearing accounts are
cleared when the bank statement is received.

Example: G/L account posting without payment request

(C) SAP AG AC810 8-34
SAP AG 1999
Posting a Transaction: Overview
Example: Fixed-term deposit investment
Posting record (= "Posting specifications"):
for (40) bal. sheet acct to (50) bank clearing account
for 113113 to 113105
Bal. sheet account TR clearing
Fixed-term deposit
Bal. sheet account Bank clearing acct
from from
transaction transaction
Account assignment ref. Account assignment ref.
- fixed - - changeable -

To post transactions:

You define the balance sheet account in the account assignment reference. This includes the account
number for the balance sheet account and additional information (such as the business area).
In turn, you enter the account assignment reference in the transaction in the Administration data.

You cannot change the balance sheet account within account determination for posting transactions.

The bank clearing account is read from the payment details entered in the transaction. You can change
this account for posting within account determination.

(C) SAP AG AC810 8-35
SAP AG 1999
Posting: Account Assignment Reference
Acct ass.ref. Short text
DB000002 Deutsche Bank deposit at notice
DB000001
Deutsche Bank fixed-term deposit
.
.
.
Business area
Cost center
G/L account
.
.
113113
Company code 1000
Fixed-term deposit
Date Sept 01
1,000,000.00 Term 1 month
Nominal interest 3.5% Deutsche Bank
UNI
Details Details

The account assignment reference determines the G/L account (balance sheet account) to which the
current financial transaction is posted. You can structure the position differently using various account
assignment references.

As well as entering the account for position management in the account assignment reference, you can
also assign a cost center (only relevant for posting category 4) and a business area.

The account assignment reference is part of account determination, which you can set up in Customizing
according to the currency and/or account assignment reference. This flexibility enables you to structure
postings in different ways. For example, in the account assignment reference for revenue and expense
postings in securities you can see whether affiliated or unaffiliated companies (depending on the account
assignment reference) issued the respective securities.

In the Money Market, Foreign Exchange, Derivatives, and Loans areas, you define the account
assignment reference directly in the relevant financial transaction. In the Securities area, however, you
enter the account assignment reference in the position indicator.

(C) SAP AG AC810 8-36
SAP AG 1999
Determining the Account Assignment Reference:
Overview
Value group > Values
1
2
A
B
C
D
E
.
.
.
(all) value group combinations
Select as required for automatic determination
of account assignment reference
Assign account assignment references to the
combinations selected
Characteristic 1 Characteristic 2

When you create a transaction, you require information about the balance sheet account to be posted for
(later) posting activities.

You can enter the account assignment reference in the transaction or position indicator manually, or you
can have the system generate it automatically. The automatically generated account assignment
reference is a default value, but you can change it.

When you have the system determine the account assignment reference automatically, it reads certain
characteristics in the transaction and uses these to determine the account assignment reference
accordingly.

(C) SAP AG AC810 8-37
SAP AG 1999
Account Assignment Reference Determination:
Characteristics/Values
Company code 1000
Contract type 2 Securities
Product cat.
Stock type
Execution type (American or European)
Type of shareholding
Holding share comp. code position
Holding share sec. acct position
Shareholding indicator comp. code
Shareholding indicator sec. acct position
Balance sheet indicator sec. acct position
Industry key
Stock form indicator
SCB asset group indicator comp. code
SCB asset group indicator sec. acct position
Foreign Investment Law indicator
Balance sheet grouping indicator comp. code
Selectable characteristics
Issue currency
Product type
Selected characteristics
ValGrp Comment
ValGrp Comment
Value groups
Values
E
x
a
m
p
l
e
1
2
3
Local currency
Europe
Other
UNI
CHF
FRF
ITL
*
Universal currency
Swiss franc
French franc
Italian lira
Other
Double-click

You can have the system determine the account assignment reference automatically on the basis of
certain characteristics you select in Customizing. The characteristics available come from business
partner management or position data.

You have to define values for the characteristics. These are then grouped together to form evaluation
groups.

You define the automatic determination of the account assignment reference in the company code either
for selected product categories and/or for the entire securities contract type, in other words, for all
product categories.

The account assignment reference is determined at two levels:

1. If a corresponding entry is available at product category level, the system uses this account
assignment reference.
2. If no corresponding entry is found in 1, the system uses the relevant specification for the contract
type.

If no account assignment reference is determined in 1 or 2, you have to enter one manually in the
position indicator.

(C) SAP AG AC810 8-38
SAP AG 1999
Determine Account Assignment Reference:
Allocation
Issue currency ValGrp Product type
Acct assignment ref. allocation
Combinations
Acct ass.
ref.
ValGrp Issue currency ValGrp Product type
ValGrp
Select and Copy
Enter and save
0001 Local currency 0001 Bonds
0001 Local currency 0002 Stocks
0002 Europe 0001 Bonds
0002 Europe 0002 Stocks
0003 Other 0001 Bonds
0003 Other 0002 Stocks
ANL-IN 0001 Local currency 0001 Bonds
AKT-INL 0001 Local currency 0002 Stocks
ANL-EUR 0002 Europe 0001 Bonds
ANL-REST 0003 Other 0001 Bonds

Using the values and value groups defined for the selected characteristics, the system displays all the
value group combinations that can be used to determine the account assignment reference automatically.

You then assign account assignment references to the combinations you have chosen .

(C) SAP AG AC810 8-39
SAP AG 1999
Customizing: Account Determination
Money Market
Functions
Define Settings
Check
Accounting
Account Determination
Application 0105
Treasury: Money market
Flow type Payment transact. 1100 +
Direction - Comp.
Debit
Credit
Document type
40 1 Balance
50 3 Bank clearing
SA Posting cat. 13
Application 0105 Treasury: Money market
Chart of accts INT International chart of accounts
Acct symbol Acct assignment ref. Currency G/L acct
3
4.1.1
4.1.3
4.2.2
4.2.3
4.2.2
+
+
+
+
+
+
+
+
+
+
+
+
++++++++++5
273100
220000
479100
465000
465001
Account assignment
Accounts Symbols
Chart of accounts
Acct symbol Description
...
3 Bank clearing
4.1.1 Interest received
...
Account symbols
Posting specifications

You define the account determination for the relevant application in Customizing.

You use the account determination function to determine which accounts you want to use for posting
activities. It includes the posting specifications, the account symbols used for this, and the accounts
assigned to the symbols.

The following requirements must be met before you can post transactions to Financial Accounting:
- You must have created all the necessary accounts and made the correct settings.
- The document types must appear in the document types table and allow the required account types
to be posted.
- The number range linked to the document type must have internal number assignment in Financial
Accounting.
- The posting periods must be open for posting.

(C) SAP AG AC810 8-40
SAP AG 1999
Account Determination: Posting Specifications (1)
Field selection
Accounts Symbols
Application 0105 Treasury: Money market
Flow type 1100
Debit 40 1 Balance
Comp.
Credit 50 3 Bank clearing
Document type SA Posting category
1100
Debit 40 1 Balance
Comp.
Credit 50 2 Subledger accounts
Flow type
Document type Posting category
1200
Debit 40
4.1.1
Bank clearing
Comp.
Credit 50
3
Interest received
Flow type
Document type Posting category
SA
SA
13
Payment transact. x
12
Payment transact. +
34
Payment transact. +
Direction -
Direction -
Direction +

The posting details are an abstract description of the posting type and are independent of the chart of
accounts. You also have to specify the document type, posting key, account symbols, and posting
category.
Account determination takes place here on the basis of the flow type, the direction of the flow, and the
payment transaction.

Direction: + for inflow
- for outflow
Payment transaction: x for postings via customer accounts
+ for postings via non-customer accounts (pure G/L account postings)

You define debit/credit postings using the corresponding posting keys (40: debit position posting to a
G/L account; 50: credit position posting to a G/L account).

The document type controls how the postings to Financial Accounting are made (SA: G/L account
document).

(C) SAP AG AC810 8-41
SAP AG 1999
Account Determination: Posting Specifications (2)
1100
FTyp Name
Principal increase
:
:
:
:
Flow Types
PT Name
11 Bal. sheet to bal. sheet
12 Bal. sheet to subledger
13 Bal. sheet to bank
14 Bal. sheet to profit/loss
15 Bal. sheet to G/L account
21 Subledger to bal. sheet
:
31 Bank to bal. sheet
32 Bank to subledger
33 Bank to bank
34 Bank to profit/loss
35 Bank to G/L account
41 Profit/loss to bal. sheet
42 Profit/loss to subledger
43 Profit/loss to bank
44 Profit/loss to profit/loss
45 Profit/loss to G/L account
51 G/L account to bal. sheet
:
:
Posting category
Payment transaction
x via customer accts
+ not via customer accts
1200 Nominal interest

Accounts are determined in two stages:

1. The posting details are determined on the basis of the flow type, the payment transaction, and the
direction of the flow. The posting specifications are an abstract description of the posting type, and are
independent of the chart of accounts. You also have to specify each document type, posting key, account
symbol, and posting category.
The posting category describes (both for debit and credit postings) the category of account you are
posting to:
1: Balance sheet account (from account assignment reference)
2: Subledger account (customer account)
3: Bank clearing account
4: Profit/loss account (G/L account with cost center)
5: G/L account (G/L account without cost center)

2. The account symbols are replaced by actual G/L accounts, but you can change them, if required.
Posting category 1 is an exception to this. The account symbol for the balance sheet account is replaced
by the balance sheet account defined in the account assignment reference, but it cannot be changed.

(C) SAP AG AC810 8-42
SAP AG 1999
Account Determination : (Account) Symbols
Accounts Posting specs
Application Treasury: Money market
Account symbol Description
:
:
2
3
4.1.1
1
:
:
:
:
:
Balance
Subledger accounts
Bank clearing
Interest received
:
:
Account symbols
Symbols
0105

An account symbol describes a group of general ledger accounts. You can use it to group together
similar types of postings (such as interest paid for write-downs).

The symbols can be used for a large number of posting specifications. You fine-tune posting activities
by setting different control parameters for assigning G/L accounts.

(C) SAP AG AC810 8-43
SAP AG 1999
Account Determination: Accounts (Allocation)
Accounts
Chart of accts INT
Posting specs Symbols
Application
0105
Treasury: Money market
Account symbol
Chart of accounts
Acct assign.ref. Currency G/L acct
INT
:
:
3
3
:
:
4.1.1
:
:
+
+
+
+
USD
+
+++++++++5
++++++++19
273100
Account assignment

You assign one or several G/L accounts to the account symbol for the corresponding chart of accounts.
You assign several accounts on the basis of the currency and/or the account assignment reference. This
enables you to make different control settings for all posting activities.

When you post a transaction, the G/L account specified in the house bank account field for the
transaction is read. This G/L account is then transferred to the corresponding sub-account using the
account symbol from the posting details based on the account assignment reference and/or currency.

Example:
You conclude a fixed-term deposit in USD, in which the USD current account 113150 is defined as the
account ID in the payment details via the house bank. If the payment is made in USD, the account
113150 is replaced the bank clearing account 113155 in the account determination; for payment amounts
in all other currencies, the posting is made to the account 113105.

(C) SAP AG AC810 8-44
SAP AG 1999
Posting a Transaction: Summary
Fixed-term dep. 1 month 4.5 Acct assignment ref. DB000001
Sept 01 1100 - Fixed-term dep. 1,000,000
Oct 01 1120 + Final repayment 1,000,000
Oct 01 1200 + Nominal interest 3,750
Investment
Final
repayment
D
1,000,000
C
1,000,000
Balance sheet account
acc. to acct assignment reference
Interest received 273100
Nominal
interest
D C
3,750
Bank clearing acct 113105
FT deposit
Nom.interest
Final
repayment
D C
1,000,000
3,750
1,000,000
Debit Balance Credit Bank
Debit Bank Credit Balance
Debit Bank Credit Int. received
Flow type
1100 -
1120 +
1200 +
Fixed-term dep. acct 113113

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

(C) SAP AG AC810 8-45
SAP AG 1999
Cash Flows in Cash Management
Transaction entered
Product type PXX
Payment details (PD) maintained Payment details not maintained
From PD: House bank Deuba
Account: DBGiro
From Cust.: Prod.Type PXX: Level TB
Transaction is posted
Account DBGiro:
FI account master: Level B5
From business partner/customer
Group: E2
From Cust.: ProdType PXX: Level TP
Transaction is posted
Payment details added !!!

It is essential that you enter payment details if you want to post a transaction, since you also enter the
house bank and your own account you want to post to in the payment details.

When you make a posting the payment details are entered, in other words, the bank accounts are known,
so that the cash flow is displayed in Cash Management at the level that is assigned to the corresponding
bank (clearing) account in the account master record.

(C) SAP AG AC810 8-46
SAP AG 1999
Financial Transactions and Cash Management
Cash Management: Display Levels
Banks
Le Description 10/02 10/03 10/04 later 10/05
DB Forex
. . . . . . . . . . . .
B5 TR clearing
. . . . . . . . . . . .
F0 Banks
Balance
xxx,xxx xxx,xxx xxx,xxx xxx,xxx xxx,xxx xxx,xxx
150,000 xxx,xxx xxx,xxx xxx,xxx xxx,xxx
. . . . . . . . . . . . . . .
. . . . . . . . . . . . . . .
xxx,xxx xxx,xxx xxx,xxx xxx,xxx
xxx,xxx xxx,xxx xxx,xxx xxx,xxx 150,000
150,000

You can set up your system to display cash flows from Cash Management transactions so that you can
display the payment at another level per activity category or status. This enables you to enter qualitative
information about the status of the transaction via the different level.

Example: Concluded forex transaction: DB level - foreign exchange

(Pre)posted foreign exchange transaction: B5 level - bank clearing account

After receipt of bank statement: B0 level - bank account

(C) SAP AG AC810 8-47
SAP AG 1999
Treasury Management and Cash Management
Fixed-term deposit
investment
Via activity at
fixed-term deposit level
Change to clearing
accounts
Change to bank
account level
Clearing entry
via account statement
Post flows
to clearing account

The above slide represents an ideal process, which describes how the system represents the relationships
between Treasury Management and Cash Management as well as postings to Financial Accounting.
Payments are usually triggered by the business partner (bank) and processed further via automatic bank
statements in Cash Management.

(C) SAP AG AC810 8-48
SAP AG 1999
Basic Principles of Archiving
Motivation
Steady increase in volume of data for the end user
Poor performance due to database overload
Costs of investing in new hardware
Archiving requirements
Store financial transactions outside the R/3 System
Delete and reload archived data to the R/3 System
Automatic conversion if table structures are changed
Online archiving and archive management
Compressing of data
Connection to external archiving system

Archiving data allows you to remove mass data that is no longer required in the system from the
database, yet to store it where it can be evaluated. Transactions are written to archive files by Archiving
objects, which describe the structure and composition of the data. These files can be stored in other
media.
SAP's archiving concept is based on the Archive Development Kit (ADK). If you start the archive
management function via the application, the special features that are specific to the application
(archiving objects, programs) are already preconfigured.
The archiving program first generates an archive file. The files to be archived are then read as
background processing and written to the archive file.
Once the archive file has been closed a program is started - automatically or manually - which reads the
archived data from the archive file and deletes it in the database. This procedure guarantees that only the
data that has been stored correctly in the archive file is deleted in the database.
Archive files, whose contents were removed from the database by the deletion program, can be stored
externally. There are several options available (depending on the hardware you have), for example
ArchiveLink. If the archive system of a third provider is connected via ArchiveLink, this system has to
automatically store the processed file at the conclusion of a successful deletion program. You can also
store this file manually at a later date.

(C) SAP AG AC810 8-49
SAP AG 1999
Archiving Money Market / Forex / and Derivatives
Transactions
Before transactions can be archived, they must
fulfil the following criteria:
Reach the minimum retention period specified in
Customizing:
Define Company Code-Dependent Minimum Retention Period
Define Product Type-Dependent Minimum Retention Period
The current business transaction must have been settled
(if necessary, see Customizing for transaction types) or
reversed
All flows relevant for posting must have been posted
The transaction must have reached the required
confirmation status

You can enter the minimum retention period of financial transactions in Customizing using the following
Customizing activities:
Define Company Code-Dependent Minimum Retention Period
Define Product Type-Dependent Minimum Retention Period
Using selection criteria, you can restrict the number of financial transactions to be archived. Remember
that financial transactions can only be archived in a certain status. The archiving object TRTM_FTR is
set up so that you have to start the Deletion report manually. You can change this using the transaction
AOBJ.
This transaction allows you to make further technical settings for the archiving object TRTM_FTR, such
as the name and path of the archive file.
The financial transactions to be archived are stored in a physical file according to a platform-
independent file name and path name.
Note that the archiving function deletes archived financial transactions from the R/3 System. We
recommend therefore that you start a test run before you perform the update run of an archiving activity,
in order to identify any errors that may occur. You can only reload financial transactions that have been
archived correctly.

(C) SAP AG AC810 8-50
SAP AG 1999
Process-Oriented Archiving Checks
Product category 510/520/530 +
600
Posting status
Not posted
Confirmation status
Not confirmed
Archive
Order (600)
Expiration
Archive
Contract

You can archive TR-TM financial transactions in the Money Market, Foreign Exchange, and Derivatives
areas. The functions available use the R/3 standard functions of the Archive Development Kit (ADK).
This ensures that the data in the archive files relating to the database conversion is retained consistently.
The ADK easily supports the connection of external archiving systems via the Archive Link. The
archiving of financial transactions includes the following functions:
Archiving and deleting financial transactions
Reloading archived financial transactions
Managing archive files
When you archive financial transactions, they undergo a whole range of technical and business checks,
which ensure that the data is retained consistently in the system.
You can now also archive orders that have not been executed (such as order expiration) when you
archive financial transactions. This function is useful if the due date of the order has been exceeded and
the transaction is therefore no longer relevant. To prevent orders from being archived or deleted
unintentionally, the system checks the minimum retention period of the transaction.

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

(C) SAP AG AC810 8-52
Transaction and Position Management: Process Exercises

Unit: Transaction and Position Management: Process
Topic: Trading

Transaction processes in SAP Treasury

You want to gain an overview of the complete transaction process, from
the trading stage through to back office and accounting.
1-1 Assignment to cash management levels:

Assign your product type PXX for fixed-term deposits to cash management levels for
your company code:
Make the assignment for the activity category:

10 Contract
Assign your product type PXX to the following levels:

Level: "TB" Time deposits: Banks
Level: "TP" Time deposits: Subledger
You can use the following entries as a basis:

- Product type 51A
- Activity category 10
1-2 Create another fixed-term deposit (term: 3 months) in the application using your
product type PXX.

Check the cash position of your fixed-term deposit in Cash Management for the level

(C) SAP AG AC810 8-53
"Time deposits: Banks".

(C) SAP AG AC810 8-54

Topic: Back Office


2-1 Correspondence
Check the possible correspondence types for money market transactions in
Customizing.

Assign the following forms to your fixed-term deposit product type PXX. Pay attention
to the different activity categories:
Confirmation letter Form: F_TR_ CONFIRM_ALL
Dealing slip Form: F_TR_ DEALER_ALL

Generate a dealing slip and a confirmation letter for a newly-created transaction in the
application.

If necessary, match the counterconfirmation for external correspondence.

(C) SAP AG AC810 8-55

Topic: Accounting


3-1 Account assignment reference
Define an account assignment reference for fixed-term deposits in UNI and USD:
CXX00001 (XX = your group ID) for fixed-term deposits in UNI
(fixed-term deposits in UNI FI G/L account 116113)
CXX00002 (XX = your group ID) for fixed-term deposits in USD
(Fixed-term deposits in USD FI G/L account 116114)

Create fixed-term deposits in UNI and USD in the application. Use the account
assignment references you have just defined.

(C) SAP AG AC810 8-56
3-2 Automatic account assignment reference
Define automatic account assignment references for fixed-term deposits in UNI and
USD:
- For your company code, choose product category 510 for fixed-term deposits.
- Select the following additional characteristics:
- Product type
- Currency of financial transaction.

Define a new characteristic group for business partner CXX, and enter a valid
characteristic value (CXX).

Define a new characteristic group for product type PXX, and enter a valid
characteristic value (PXX).

Define two new characteristic groups for the currency of the financial transaction
and enter the valid characteristic values (UNI and USD).

Reassign the account assignment reference using the new characteristic groups for
the business partner, the product type, and the currencies. The characteristic
transaction type is not taken into consideration.

Use the account assignment reference CXX00001 for fixed-term deposits in UNI
with business partner CXX.
Use the account assignment reference CXX00002 for fixed-term deposits in USD
with business partner CXX.

Check the possible combinations.

Create fixed-term deposits in UNI and USD in the application. Does the system
default to the correct account assignment reference?

(C) SAP AG AC810 8-57
3-3 Account determination
Create a fixed-term deposit in UNI with the following conditions:
- Nominal interest
- Full repayment upon maturity
Check the account determination settings for your fixed-term deposit in the chart of
accounts INT.
Define account determination for your own flow types:

- BXX1 Principal increase
- BXX3 Full repayment upon maturity
- BXX5 Nominal interest
Copy the following sample flow type settings (menu: Edit -> Copy):

New setting Copy reference
FType FType Direction Pmnt trans.
BXX1 Principal increase 1100 - +
BXX3 Repayment upon maturity 1120 + +
BXX5 Nominal interest 1200 + +

Create a fixed-term deposit in UNI in the Treasury application. Check the cash flow.
Post the transaction in Financial Accounting (update run).
To which G/L accounts are postings made? What changes can you see in Cash
Management?

(C) SAP AG AC810 8-58
Transaction and Position Management: Process Solutions

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

Customizing:

= Treasury
= Money Market
= Product Types
= Assign Planning Levels

Only enter your company code!

1-2 Creating a fixed-term deposit:

Application:

= Treasury
= Money Market
= Trading
= Create

Checking the cash position in Cash Management:

Application:

= Treasury
= Cash Management
= Information System
= Reports on Cash Management
= Liquidity Analyses
= Cash Position

(C) SAP AG AC810 8-59

You may need to use the variant AC805-TFS-Bank and change the company code.

(C) SAP AG AC810 8-60

Topic: Back Office
2-1 Checking correspondence types:

Customizing:

= Treasury
= Basic Functions
= Define Correspondence Types

Assigning forms:
Customizing:

= Treasury
= Money Market
= Functions
= Correspondence
= Define Correspondence Activities

Button: New entries

Generating dealing slips and confirmation letters:

Application:

= Treasury
= Money Market
= Back Office
= Correspondence
= Outgoing Correspondence

(C) SAP AG AC810 8-61

(C) SAP AG AC810 8-62
Matching counterconfirmations:

Application:

= Treasury
= Money Market
= Back Office
= Correspondence
= Incoming Confirmations

Enter the data you receive from the bank or your business partner. The system
matches the confirmations and assigns the transaction to you. Save your entries.

(C) SAP AG AC810 8-63

Topic: Accounting
3-1 Defining the account assignment reference:

Customizing:

= Treasury
= Money Market
= Functions
= Accounting
= Account Assignment Reference
= Define Settings

Button: New entries

Creating fixed-term deposits in UNI and USD

Application:

= Treasury
= Money Market
= Trading
= Create

3-2 Automatic account assignment reference:
Customizing:

= Treasury
= Money Market
= Functions
= Accounting

(C) SAP AG AC810 8-64
= Account Assignment Reference
= Define Automatic Determination

Create fixed-term deposit investments in UNI and USD. Does the system default to the
correct account assignment reference?

Application:

= Treasury
= Money Market
= Trading
= Create

Button: Administration
3-3 Checking account determination for fixed-term deposits in the chart of accounts INT:
Customizing:

= Treasury
= Money Market
= Functions
= Accounting
= Account Determination
= Define Settings

Define account determination for your own flow types.

SAP AG 1999
Contents:
Posting via G/L accounts
Standard payment program
Payment program for payment requests

SAP AG 1999
Payment Program for Payment Requests:
Unit Objectives
to:
Explain the various posting options in SAP Treasury
Management
Configure and run the payment program for
payment requests

SAP AG 1999
Business Partners
Banks
Information System

SAP AG 1999
Business Scenario
You want to familiarize yourself with the various
options for transferring the Treasury data that is
relevant for posting to Financial Accounting.
In addition to making preliminary postings to
bank clearing accounts, you can also use two
payment programs to make actual payments.
These payment programs will now be explained
in more detail.

module.

SAP AG 1999
Processing Payment Transactions
House bank
- Posting to bank clearing accounts
- Clearing on basis of bank statement
SAP AG
- Active payment using the payment
program
Example: Subsidiary
Business partner
USD
Business partner

If you conclude financial transactions with business partners that are also one of the company's house
banks, you do not usually make active payments.
In this case, the business partner (= house bank) makes the corresponding postings to your bank account.
The flows posted to the bank clearing accounts by Treasury Management are cleared when the bank
statement is received.
If you conclude financial transactions with business partners that are not house banks, you have to make
an active payment (triggered by your company or your business partner). Two programs are available for
making payments in the Treasury area:
You can use the FI payment program, which is based on postings to customer accounts. The business
partner must have been created in the system as a customer. The postings from TR-TM generate open
items in the customer account, which are then settled using the FI payment program ("Automatic
payment transactions".).
Alternatively, you can use the Payment program for payment requests, which processes payments on
the basis of G/L accounts. In this case, the posting generates "payment requests", which are then
settled by the payment program for payment requests ("Automatic payment transactions for payment
requests").

SAP AG 1999
Processing Payment Transactions: Overview
Four alternatives:
1) Post to G/L accounts - -
2) Post to G/L accounts with payment request - x
3) Post to customer accounts x -
[ 4) Post to customer accounts with payment request - x ]
FI pmnt program Pmnt prog. for PR

Use of the four alternatives - Examples:
1) Transactions with the house bank are usually processed as pure G/L account postings.

2) Transactions with a partner that is not a house bank, without using a customer account Payment
using the payment program for payment requests. Payment requests are documents used to generate
payment media. They are usually generated automatically when you post flows that are due. The
payments are then made individually or jointly using the payment program for payment requests
(F111).

3) Transactions with a partner that is not a house bank, using a customer account. Payment using
the FI payment program.

4) Transactions with a partner that is not a house bank, using a customer account. Payments
made with the payment program for payment requests in order to use the netting option.

SAP AG 1999
1) Posting to G/L Accounts
Business
partner
Bank
House bank
Standing
instructions
Currency D
Payment
activity
House
bank
Acct
ID
UNI +
DB
GIRUN
UNI - DB GIRUN
...
...
...
Transaction Transaction - - Payment Details Payment Details
Payment
request

In the transaction, you enter the information required for processing payments on the Payment details
tab.

In the case of a pure G/L account posting, you must enter the following:

- D: Direction of the flow (inflow, outflow)
- Currency: Currency of the flow
- House bank: House bank key (ID)
- Account ID: Key for the account with the house bank

SAP AG 1999
1) Posting...
House bank
DEUBA
IDES
C Fixed-term deposit
C Statement from bank
... via clearing accounts
Fixed-term deposit position
(Deuba)
House bank account
(Deuba)
C
100 m
C
100 m
Fixed-term
deposit
Bank clearing acct
C
100 m
C
100 m

If you conclude financial transactions with business partners that are also house banks, you do not
usually make active payments. In this case, the corresponding flows are posted to the bank account by
the business partner. The flows posted to the bank clearing accounts by Treasury Management are
cleared when the bank statement is received.

SAP AG 1999
3) Posting to Customer Accounts
Business
partner
Bank
House bank
Transaction Transaction - - Payment details Payment details
Currency D Payer/ee PBank Pmnt
mth.
Payment
activity
House
bank
Account
ID
Standing
instructions
UNI
+ Recipient B1 U X DB GIRUN
UNI - DB GIRUN
...
...
... B1 U X
Recipient

In the transaction, you enter the information required for processing payments on the Payment details
tab.
The entries required for payment using the FI payment program on the basis of customer accounts
include:
- Payment acty: X = Posting to customer account
- Payer/ee: Person receiving the payment (usually the business partner)
- PBank: Partner bank ID (encodes the bank details - bank and account - of the
payee)
- Payment method: Procedure used to process payments (in the payment run), for example U =
transfer
If you make postings to customer accounts and use the FI payment program, the system uses the house
bank specified for the customer. If no house bank has been specified for the customer, the system uses
the house bank defined in account determination for the FI payment program. The entries on the
Payment details tab in the transaction are not used.

(C) SAP AG AC810 9-10
SAP AG 1999
3) Processing Payment Transactions...
via customer accounts
Payment
order
Payment
Fixed-term deposit
IDES
House bank
DEUBA
Broker Broker
C 1st fixed-term deposit
C 2nd fixed-term deposit
Fixed-term deposit
position (broker)
House bank -
Current account (Deuba)
C
100 m
C
150 m
Customer (broker)
Bank clearing account
C
150 m
C
150 m
C
50 m
C
100 m
C
50 m
C
150 m
C Payment
(Trigger PR run)
C Bank statement

If you want to make active payments using the FI payment program, you must post the payment flows to
customer accounts. In other words, you have to create the business partner as a customer. The postings
from TR-TM generate open items on this customer account, which are then settled by the FI payment
program ("Automatic payment transactions").

(C) SAP AG AC810 9-11
SAP AG 1999
3) Automatic Payment: FI Payment Program
Current
parameters
Payment
advice
note
Bank transfer
Eurocheck
Check
Proposal data set
Print data set
Payment
summary
IDOC
Proposal run Proposal run
Payment run
Edit
proposal
Payment
control
Documents Master
Print program Print program

One of the options is to make postings to customer accounts and use the FI payment program. This
option is used in the loans area, for example.
In connection with account determination in the Treasury posting interface, you can control whether
payment activities involve a flow of funds. You can post transactions directly to the payer/ee in order to
generate corresponding payment documents using the payment program.
Functions of the payment program:
- Automatic selection of the items to be paid and any exceptions (such as blocked items)
- Generation of payment documents (customer accounts / vendor accounts)
- Generation of payment data
- Generation of payment lists and logs
- Generation of payment media (such as checks) for this payment data by print programs
You usually carry out a payment proposal run first. This run creates a proposal data set, which you can
edit prior to the actual payment run.

(C) SAP AG AC810 9-12
SAP AG 1999
2) + 4) Automatic Payment: Payment Program for PR
Business
partner
Bank
House bank
Currency D Payer/ee Partn.
bank
House
bank
Account
ID
Standing
instructions
UNI
+
B1 DB GIRUN
UNI - DB GIRUN
...
...
... B1
Pmnt
mth.
Pmnt
request
ESU X
ESU X
Indiv.
pmnt
X
...
...
...
Recipient
Recipient
Business partner Business partner - - Payment details Payment details

To use the payment program for payment requests, you must enter the following data:
- Payment activity: Blank = G/L account posting, or X = customer account posting
- Payer/ee: Person receiving the payment (usually the business partner)
- Partner bank: Partner bank ID (encodes the bank details - bank and account - of the
payee)
- Payment request: Blank = Do not generate a payment request
X = Generate a payment request
- Individual payment: Blank = This payment flow may be settled together with other flows,
for example for netting purposes
- Payment methods: List of payment methods used to process payments in the payment run
If you post payments using the payment program for payment requests, you can define in Customizing
which bank account should be used - the bank account specified in the payment details for the
transaction, or the bank account found using account determination for the payment program.

(C) SAP AG AC810 9-13
SAP AG 1999
Processing Payment Transactions
C 1st Fixed-term deposit
C 2nd Fixed term deposit
2)+4)...via a clearing account for payment requests
Fixed-term deposit
position (broker)
House bank -
Current account (Deuba)
C
100 m
C
150 m
Payment
order
2) Clearing acct for PR
4) Customer account Bank clearing account
C
150 m
C
150 m
C
50 m
C
100 m
C
50 m
C
150 m
C Payment
(Trigger PR run)
C Bank statement
Payment
Fixed-term deposit
IDES
House bank
DEUBA
Broker Broker

If you conclude transactions with a partner that is not a house bank, and you want to make active
payments, you have the option of generating "payment requests". Payment requests are processed using
a special payment program - the payment program for payment requests.
Example:
- You conclude several transactions with a partner that is not a house bank.
- When you post the fixed-term deposit, the system automatically generates a payment request.
- Payment requests are managed in the clearing account for payment requests.
- You can group/net the payments from payment requests.
- To make the payment, you trigger a payment run in accounting, and the system transfers the
payment amount to the bank clearing account.
- At the same time, it generates a payment medium, which is passed on to the house bank.
- When the bank statement arrives, the payment is posted to the bank account.

(C) SAP AG AC810 9-14
SAP AG 1999
2) + 4) Automatic Payment: Payment Program for PR
Current
parameters
Payment
advice
note
Bank transfer
Eurocheck
Check
Proposal data set
Print data set
Payment
summary
IDOC
Proposal run
Payment run
Edit
proposal
Payment
control
Documents
Payment
request Master
Print program

Functions of the payment program for payment requests:
- Generation of payment requests (PR): Automatic request selection
- Generation of payment documents (customer accounts / vendor accounts / G/L accounts): Transfer
posting to the corresponding bank (sub-)accounts for each house bank and currency
- Generation of payment data
- Generation of payment lists and logs
- Generation of payment media (such as checks) for this payment data by print programs
You usually carry out a payment proposal run first. This run creates a proposal data set, which you can
edit prior to the actual payment run.

(C) SAP AG AC810 9-15
SAP AG 1999
Prerequisites
You must maintain the relevant Customizing settings for the standard
payment program.
You must make additional settings for the payment program for
payment requests.
Use
The payment program settles payment requests (PR).
It can be used in conjunction with postings to:
Customer accounts
Vendor accounts
G/L accounts

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

(C) SAP AG AC810 9-17
SAP AG 1999
Payment Program: Parameters
Automatic Payment Transactions: Parameters
Run date
Identification
Payments control
Company code
Payment methods
Selections
Origin
G/L account
Customer account
Vendor account
Further selections
Posting date
Next payment run on
to
to
to
to
bis
MM/19/YYYY
Documents entered up to
Documents up to
1423
MM/19/YYYY
MM/20/YYYY
1000 0001
UE
TR-LO
MM/19/YYYY
/
Payment medium Additional log Dynamic selections
TR-TM

You can use field selection control to show or suppress the fields for the input parameters.
In Customizing for bank accounting, you can define which of the following fields should appear and be
ready for input when payment parameters are entered:

- Vendor accounts
- Customer accounts
- G/L accounts
- Created on
- Origin

You can use Origin indicator to define the applications for which payments should be generated.

(C) SAP AG AC810 9-18
SAP AG 1999
Origin Indicator
New Origin indicator to specify the application for which
payments are to be generated
Possible values: TR-CM-BT, TR-TM, TR-LO
If payment requests have different origins:
Payment requests can be netted
You control how payment requests are netted in
Customizing for bank accounting
The payment program only uses the attributes of the
indicator for which the Grouping flag is set.

The origin indicator is a new field. You use it to specify the application for which you want to generate
payments, and to determine how the payment should be processed. Origin indicators for the following
applications that generate payment requests are delivered with the system:
TR-CM-BT (Bank account transfers from Cash Management)
TR-TM (Transactions from the Treasury Management areas money market, foreign exchange,
securities, and derivatives)
TR-LO (Transactions from Loans Management)

(C) SAP AG AC810 9-19
SAP AG 1999
Payment Program: Field Selection Control
Created on
G/L accounts
Selections
Customer accounts
Vendor accounts
Origin
Distribution
ALE active
You can determine which fields are
shown or suppressed on the screen
for entering the payment
parameters:
Vendor accounts
Customer accounts
G/L accounts
Created on
Origin

In the global settings for bank accounting in Customizing, you can define which of the following fields
should appear and be ready for input in the screen for entering payment parameters:

- Vendor accounts
- Customer accounts
- G/L accounts
- Created on
- Origin

If you do not want to make any restrictions, and always want to make payments for all the items that are
due, do not select any of the fields.

(C) SAP AG AC810 9-20
SAP AG 1999
Customizing: Origin Indicator
Display View "Origin Settings": Overview
Origin settings
Treasury Management
Loans Management
Available amts
Bank account transfers
Name Origin
TR - TM
Account determ. Grouping Collective posting
TR-CM-BT
TR - LO
Customizing settings for each origin indicator:
Do not check available amounts (Y/N)
Account determination from application or payment program
(to determine bank clearing account)
Grouping flag: Use the attributes of this indicator (Y/N)

The Customizing settings for the origin indicator let you control how the payment transactions are
processed:
Should the payment program check the available amounts? If you set this indicator, the payment
program for payment requests does not check the available amounts.
Should the bank clearing account for the payment be taken from account determination for the
application or account determination for the payment program? If you do not set this indicator, the
system takes the bank clearing account from account determination for the payment program. The
result of account determination in the application is ignored.
If payment requests with different origins are netted, should the system use the attributes defined for a
certain origin? If you set this indicator, the payment program uses the attributes for this origin when
you net payment requests with different origins.
If you want to net payment requests with different origins, you must assign these origins to each other in
Customizing (IMG step: Bank Accounting -> Business Transactions -> Payment Transactions ->
Payment Handling -> Assign Origin to Combination of Payments).

(C) SAP AG AC810 9-21
SAP AG 1999
Payment Program: Other New Features
You can edit the following in the payment proposal:
Payments (block)
Payment methods (change)
House banks (change)
Reversing payments:
Reset clearing posting, reverse payment document
Reset clearing postings for payment requests
Reverse original transaction

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

(C) SAP AG AC810 9-22
SAP AG 1999
Netting - General Information
If you conclude transactions with business partners that
are not house banks, in other words, where payments are
actually exchanged, there may be cases where you want to
settle several transactions together.
Example: Fixed-term deposit in UNI and fixed-term loan in UNI
The open payment amounts are netted out and only the net amounts are
actually paid.
Advantage: Reduced transaction costs and bank charges
For this purpose, you can group transactions in "netting
units".

You can currently net transactions in the money market, foreign exchange, derivatives and securities
areas, or across several of these areas.
You can either net G/L account payments using G/L account payment requests, or payments posted to
customer accounts using customer account payment requests.

(C) SAP AG AC810 9-23
SAP AG 1999
Netting - Process
Making a netting arrangement
All netting arrangements are explicit agreements
between business partners in order to simplify payment
processing.
The transaction confirmation (correspondence) contains a
reference to the other related transactions.
Result after creating a netting unit
Changes to the relevant transaction fields are blocked
(particularly due date, amounts, house bank data and payment
data).
The transactions and corresponding payment requests are
assigned a common grouping reference.
Confirmation

Payment requests have a special Grouping term field. You can use this field to control which payment
requests you want to separate from others (application).
All the payment flows and payment requests linked to the same netting unit are given the same unique
grouping term which separates them from other payment requests. This indicates that they should not be
grouped together with other requests.

(C) SAP AG AC810 9-24
SAP AG 1999
Netting and Payment Requests
Administrative Data
CoCd
PType
TType
0001
51a
100
SAP AG Transaction
Activity
Act.cat. Contract
4711
1 Basic Data
CoCd
PType
TType
0001
51a
100
SAP AG Transactn
Activity
Act.cat. Contract
4711
1
Administrative Data
CoCd
PType
TType
0001
51a
100
SAP AG Transactn
Activity
Act. cat. Sttlmnt
4711
1
Basic Data
CoCd
PType
TType
0001
51a
100
SAP AG Transactn
Activity
Act.cat. Sttlmnt
4711
1
Netting Netting
Create Netting Transaction: Data
Cat.
No.
Partn
KMP
001
DB
Netting
Deutsche Bank
Val.dte 01/01/YY
Posting Posting
Treasury: Posting of Flows
Testmandant
Walldorf
Treasury: Buchungen
Protokoll
TR TR
TR TR
Netting Netting
Accounts Accounts
FI FI
Payment Payment
requests requests
FI FI
Settlement Settlement
Contract Contract
Transactions Transactions

Netting is a special form of joint payment of transactions. As a rule, all transactions can be paid jointly.
Netting represents a specific part of these transactions.

The decision to create a netting transaction is not usually taken until shortly before the due date of cash
flows. This normally takes place the day the transactions involved are posted. Only then do you know
which transactions (e.g. forward exchange and spot exchange transactions) are suitable for net payment.

You can group flows together in netted transactions provided they have

- the same company code
- the same business partner
- the same payment date
- the same payment methods

- and other payment program criteria

(C) SAP AG AC810 9-25
SAP AG 1999
Unit Summary
You now have an overview of the various
posting and payment options in SAP Treasury
Management.
In addition, you have learned the procedure for
netting financial transactions in the SAP
System.

(C) SAP AG AC810 9-26
Payment Program for Payment Requests Exercises

Unit: Payment Program for Payment Requests
Topic: Executing a Payment Run

Executing a payment run in SAP Treasury Management

You do not have a current account with your business partner, and must
therefore instruct your house bank to make a payment to your business
partner's bank. You make the payment using the payment program for
payment requests.
1-1 Create a new fixed-term deposit (Product type 51A, Transaction type 100). The start of
the term is today. The business partner is the CITIBANK-BROKER (CITI). Since the
Citibank broker is not a house bank, you need to make a physical payment from your
house bank account at Deutsche Bank. You could also use your partner BPXX.
Look at the payment details in the transaction (the payment details have been proposed
by the system on the basis of the standing instructions entered for Citibank). Pay
particular attention to the settings for the payment program for payment requests.

1-2 Settle the transaction and enter an account assignment reference.

1-3 Post today's principal increase resulting from the transaction. Look at the accounting
document (balance sheet account to clearing account for payment requests).

1-4 Look at the open items in the clearing account for payment requests in Financial
Accounting.

(C) SAP AG AC810 9-27
1-5 Carry out the payment run.

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

Enter the parameters:

- Posting date: TODAY
- Due by: TODAY
- Payment methods: U = Transfer (outgoing payment only)
- Bank account: 118888
- Docs entered up to: TODAY

Also enter the details for the additional log:
- Opt for payment method selection in all cases for account 118888.

Save your parameter entries.

Schedule a proposal run to start immediately, and then display the log.

Now schedule the actual payment run (start immediately) and display the log.

The status message "Posting orders: 1 generated, 1 completed" should appear.

1-6 Look at the cleared items in the FI clearing account for payment requests.
The payment run has cleared the clearing account for payment requests and posted the
payments to the bank clearing account 113105. This account will be cleared when the
bank statement is posted.

(C) SAP AG AC810 9-28
Payment Program for Payment Requests Solutions

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

Application:

= Treasury
= Money Market
= Trading
= Create

Check the payment details in the transaction.

Tab: Payment details

DB is entered as the house bank, and GIRUN as the house bank account. The
payee is CITI. The key for the payee bank details is LZB01. The Payment requests
indicator is set. The possible payment methods are direct debit for incoming
payments, and checks and transfers for outgoing payments.

(C) SAP AG AC810 9-29
1-2 Settling the transaction and entering an account assignment reference:

Application:

= Treasury
= Money Market
= Back Office
= Settle

1-3 Posting the principle increase for the transaction:

Application:

= Treasury
= Money Market
= Accounting
= Posting
= Execute

1-4 Viewing the open items in the clearing account for payment requests in Financial
Accounting:
Application:

= General Ledger
= Account
= Display/Change Line Items
= Enter: Account 118888
= Select Open items field

(C) SAP AG AC810 9-30
1-5 Performing the payment run:

Application:

= Treasury
= Money Market
= Accounting
= Payment
= Payment Request

Enter the parameters

Button: Parameters

Enter the details for the additional log

Button: Additional log

Save your parameter entries.

Schedule a proposal run to start immediately, and then display the log.

Button: Proposal
Button: Proposal run log

Now schedule the actual payment run (start immediately) and display the log.

Button: Payment run
Button: Payment run log

The status message "Posting orders: 1 generated, 1 completed" should appear.

(C) SAP AG AC810 9-31

1-6 Viewing the cleared items in the clearing account for payment requests in Financial
Accounting:
Application:

= General Ledger
= Account
= Display/Change Line Items
= Enter: Account 118888
= Select Cleared items field

The original posting document now contains information on the clearing posting.

The payment run has cleared the clearing account for payment requests and
posted the payments to the bank clearing account 113105. This account will be
cleared when the bank statement is posted.

(C) SAP AG AC810 10-1
SAP AG 1999
Contents:
Data: overview
Manual maintenance
Market data transfer from spreadsheets
Market data file interface
Datafeed interface
Market data monitoring

(C) SAP AG AC810 10-2
SAP AG 1999
Market Data Management: Unit Objectives
Explain the various options for entering and
importing market data into the SAP system

(C) SAP AG AC810 10-3
SAP AG 1999
Business Partners
Banks
Information System

(C) SAP AG AC810 10-4
SAP AG 1999
Market Data Management: Business Scenario
Before you can conclude certain
transactions (such as forex or securities
transactions), you must fill the market data
tables in the SAP system.
You can fill the tables in different ways:
Manually
Using a spreadsheet
Using a file interface
Using a datafeed link

module.

(C) SAP AG AC810 10-5
SAP AG 1999
Market Data: Overview
The following market data can be imported into
the SAP system:
V
i
a

d
a
t
a
f
e
e
d
V
i
a

f
i
l
e

i
n
t
e
r
f
a
c
e
Rates and prices:
Statistics data:
Exchange rates
Securities prices
Reference interest rates (such as
LIBOR, EURIBOR)
Indexes (not used in MRM)
Indexes (not used in MRM)
Commodities (not used in MRM)
Volatilities
Correlations
Beta factors (not used in MRM)

The datafeed function groups the above rate and price information into instrument classes:

Instrument class Name
01 Currencies
02 Securities
03 Interest rates
04 Indexes
05 Commodities
21 Forwards (swap rates)
31 Currency volatilities
32 Securities volatilities
33 Interest rate volatilities
34 Index volatilities

(C) SAP AG AC810 10-6
SAP AG 1999
Market Data: Current Exchange Rates
Type
0011 : UNI USD 01/01/YYYY 0.57143 1 1
From To
0011 : USD UNI 01/01/YYYY 1.75000 1 1
0012 : UNI USD 01/01/YYYY 0.57143 1 1
0012 : USD UNI 01/01/YYYY 1.75000 1 1
0013 : UNI USD 01/01/YYYY 0.57143 1 1
0013 : USD UNI 01/01/YYYY 1.75000 1 1
0014 : UNI USD 01/01/YYYY 0.55555 1 1
0014 : USD UNI 01/01/YYYY 1.80000 1 1
0021 : UNI USD 01/01/YYYY 0.57143 1 1
0021 : USD UNI 01/01/YYYY 1.75000 1 1
0022 : UNI USD 01/01/YYYY 0.57143 1 1
0022 : USD UNI 01/01/YYYY 1.75000 1 1
0023 : UNI USD 01/01/YYYY 0.57143 1 1
0023 : USD UNI 01/01/YYYY 1.75000 1 1
0024 : UNI USD 01/01/YYYY 0.55555 1 1
0024 : USD UNI 01/01/YYYY 1.80000 1 1
Valid from Rate Translation ratios

One way of entering market data in the SAP system is to enter it manually.
You first have to define the different types of market data in Customizing.

Examples:
- Define the rate types for exchange rates
- Define the reference interest rate names for interest rates (such as LIB_6_UNI)
- ...
You then maintain the current market data, either in Customizing or in the application.

(C) SAP AG AC810 10-7
SAP AG 1999
Market Data: Current Reference Interest Rates
Reference Int. rate
DM_MRM_3MG
Short text
DM_MRM_4JB
Eff. from
06/10/YYYY 6.0000000
6.0000000
6.0000000
6.0000000
6.0000000
6.0000000
6.0000000
6.0000000
6.0000000
7.0000000
5.2500000
5.5000000
5.7500000
DM_MRM_7JB
DM_MRM_7JG
FIB_6
HYPZINS
HYPZINS
HYPZINS
06/10/YYYY
06/10/YYYY
06/10/YYYY
06/10/YYYY
06/10/YYYY
06/10/YYYY
06/10/YYYY
06/10/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
01/01/YYYY
6.5000000
6.0000000
8.1000000
HYPZINS
HYPZINS
LIB_6
01/01/YYYY
01/01/YYYY
01/01/YYYY
DM_MRM_4JG
DM_MRM_5JB
DM_MRM_5JG
DM_MRM_6MB
DM_MRM_6MG
Position... Entry 16 of 66

You can use the Spreadsheet function (report program RFTBDF_OLE) to call up market data in a
spreadsheet directly from R/3 and transfer this data to the system.
The former workaround using the file interface is no longer necessary.
A template for Microsoft Excel 97 is delivered with the system. If you use a different spreadsheet or
version, you will need to adjust the template.

(C) SAP AG AC810 10-8
SAP AG 1999
Market Data File Interface
1. Generate request list
2. Enter data: - manually
- from data provider
3. Import market data file

Another way of entering market data is by importing it to the SAP System using a file interface.
You collect the rates and prices for which you would like to request the current values (in file format) in
a request list in R/3.
You then fill the request file with current data, either manually or via a data provider.
Subsequently, you import the updated file to the R/3 System, and the SAP tables are automatically filled
with the new values.

(C) SAP AG AC810 10-9
SAP AG 1999
Market Data File: Generate Request List
File name /usr/sap/trans/tmp/request.dat
Currencies
Instrument class
Output
Securities
Interest rates
Indexes
Key 1
Selection
to
Key 2 to
Instrument property to

This function provides a file interface that can generate a list of market data required by R/3. Within the
request list, data is grouped according to instrument class (currencies, securities, interest rates and
indexes).
Check that the directory path of the output file you have specified is valid before you call up the report.
If no file with the given file name exists, the report creates one. If a file already exists, the report deletes
the contents and fills it with the current request data.

(C) SAP AG AC810 10-10
SAP AG 1999
Market Data File: Import File
Name /usr/sap/trans/tmp/file
Test run
Other
Generate error file
File

This function inserts data from an input file with a specific file format into the operative SAP market
data tables. Make sure you adhere to this format, since incorrect entries can only be corrected by making
time-consuming manual amendments (format: see report documentation).

(C) SAP AG AC810 10-11
SAP AG 1999
Market Data File: Customizing
1. Source of market data: Which provider?
2. Conversion tables:
Example: Exchange rates
Rate type M Rate type M = = LAST
Rate type B Rate type B = = ASK
... ... ...
R/3
Data provider
Enter
manually
Fill automatically
Create Tables for Code Conversion

Define the data providers for the file interface.

For each data provider, you must make the settings for converting the codes used by the R/3 System
into the codes used by the data provider for the following:

- Currencies (currency names, exchange rate types)
- Securities (exchanges, security price types, security ID)
- Reference interest rates (interest rate definitions)
- Indexes (index definitions, index types)

The market data names you have defined in R/3 need to be entered in the conversion tables.
You can either enter the names manually, or let the system fill the conversion tables with all or some of
the names automatically (IMG step: Create Tables for Code Conversion).

To make the conversion settings, ask your data provider how the names you have defined in R/3 are
defined externally, in other words, what the related instrument properties are called.

(C) SAP AG AC810 10-12
SAP AG 1999
Datafeed Architecture
SAP R/3
Datafeed provider
Refresh
Request
R
e
q
u
e
s
t
Reply
Internet/
RFC
TR applications
Information
providers
External
interface
program
Datafeed
Log
Datafeed
server
Translation
table
Market
Risk
Mgmt
Securities Forex . . .
Operative
SAP tables
R
e
p
l
y
Market
data
buffer

You can also use the datafeed interface to import market data into the SAP system.
To do so, you must install a stock exchange information system and a corresponding partner program
with which the R/3 datafeed interface can communicate.

(C) SAP AG AC810 10-13
SAP AG 1999
(save, if required)
Datafeed Interface
1. Refresh current data
2. Display current data
R/3 Data provider
Data
Refresh
market data
Ref. int. rates
LIB_6_UNI 3.4
...
Ref. int. rates
LIB_6_UNI 3.4
...
Ref. int. rates
LIB_6_UNI 3.4
...
...
.........
Buffer
Display
market data

You can "update" selected market data by importing current values via the datafeed interface and writing
them to a market data buffer.
To save the updated values to the market data tables, set the corresponding flag when you request the
market data. (prerequisite: you have also set the relevant flag in the Customizing settings for the
translation table)

You can update the values for all instrument classes, or just selected classes (currencies, securities,
interest rates, indexes, forwards, volatilities for currencies/interest/securities/indexes).

The Display Market Data function displays the market data last imported into the buffer.

(C) SAP AG AC810 10-14
SAP AG 1999
Datafeed: Customizing
Technical settings
Define datafeed name
Define RFC destination, assign
Mode (type of connection): - synchronous
- asynchronous (= transactional)
Conversion tables / translation table
Schedule market data retrieval

Technical Settings: Settings for communication between the R/3 System and the external partner
program; settings for the results/error log.
Translation Table: Definition of the required market data and the external datafeed notation; settings for
requesting and updating market data.
Schedule Market Data Retrieval: Definition of the market data to be requested and the request times.

(C) SAP AG AC810 10-15
SAP AG 1999
Define Datafeed Name
Position... Entry 1 of 1
Data provider Description
TELERATE
REUTERS
Bridge Telerate TTRS/RFE
Reuters SSL Interface

In this IMG step, you define the datafeed name. You use this name to make requests from the
application.

(C) SAP AG AC810 10-16
SAP AG 1999
Define RFC Destination
RFC destination
Connection type
Registration Start Activation type Trace
Application server Explicit host Front-end workstation
Program
Target host
/usr/aws/bin/rfc_datafeed
hw1455.wdf.sap-ag.de
Explicit host
Start on
Description
Datafeed connection: Dow Jones Telerate to R/3
RFC_DATAFEED_SYNC
T TCP/IP connection
Technical settings
Gateway

In this IMG step, you define all the logical links between the external partner program of the datafeed
provider and the R/3 System. These logical links are called RFC (Remote Function Call) destinations
and can be set up synchronously or asynchronously.

(C) SAP AG AC810 10-17
SAP AG 1999
Synchronous Communication
External
communication
T
i
m
e
Activity
Activity
SAP R/3 process External interface
program
R
e
q
u
e
s
t
R
e
p
ly
External
communication
Data transfer is not repeated
if an error occurs!
Unnecessary Unnecessary
waiting time waiting time
Activity

If data is transferred synchronously, the external program is responsible for keeping the communication
channel to the R/3 function module requesting the data open, since the R/3 module waits until it receives
the requested values or an error message. Once the requested data has been transferred, the connection is
deactivated.

(C) SAP AG AC810 10-18
SAP AG 1999
Asynchronous (Transactional) Communication
2
n
d
a
tte
m
p
t / 1
s
t p
a
r
t
R
e
q
u
e
s
t
Activity
T
i
m
e
SAP R/3 processes External interface
program
Activity
External
communication
External
communication
R
e
p
l
y
1
s
t
a
t
t
e
m
p
t

/

2
n
d

p
a
r
t
R
e
p
ly
1st
attem
p
t / 1st p
art
R
e
p
ly
Network
error
Activity
Activity
Activity
Activity
waiting waiting
time time

If the data is transferred synchronously, the request table is transferred to the external program. The
connection is then deactivated. Once the external program is ready to deliver data, it dials into the R/3
System independently and sends the reply. To use asynchronous communication, you must set up a
special R/3 user (user type CPIC, authorization F_DTFEED_ALL).

Advantages:
Large requests do not block R/3 batch jobs and online processes.
Error situations are minimized (network problems, feed problems, ...).
If an error occurs, R/3 automatically repeats the data transfer.
Market data can be delivered in blocks according to priority.

(C) SAP AG AC810 10-19
SAP AG 1999
Conversion Tables / Translation Table
Conversion tables
Maintain manually
or
generate automatically
Translation table
Maintain manually
or
generate automatically ( = copy master data)
Special case - Securities:
Import Securities Information from Datafeed Provider
Check translation table

(C) SAP AG AC810 10-20
SAP AG 1999
Datafeed: Conversion Tables
Example: Securities
Security price Security price type type External security price type
05 05 Closing price Closing price = = CLOSE
... ...
R/3 Data provider
Enter
manually
Fill automatically
Create Tables for Code Conversion

For each data provider, you must make the settings for converting the codes used by the R/3 System into
the codes used by the data provider for the following:
Currencies (exchange rate types)
Securities (security price types)
Volatilities (volatility types)
Indexes (index types)
To make the conversion settings, ask your data provider how the names you have defined in R/3 are
defined externally, in other words, what the related instrument properties are called.

(C) SAP AG AC810 10-21
SAP AG 1999
Datafeed: Translation Table
Example: Securities
Security price Security price type type = = CLOSE
Security ID no. Security ID no.
Exchange Exchange
... ... ...
R/3 Data provider
Enter
manually
Fill automatically
Automatic Entry of Data in the Translation Table
(= copy master data)
= = FSAG

The translation table links the R/3 notations for the market data to the corresponding datafeed notations
used by the external partner program.
The R/3 notation can be derived automatically from the existing master data in R/3.
You must enter the datafeed notation and any additional information manually.
If you have already defined conversion codes, and fill the translation table automatically, the system
converts the corresponding data and enters the instrument property in datafeed notation as the default
value in the translation table. Defining the conversion codes beforehand saves you from having to
maintain the translation table manually.

(C) SAP AG AC810 10-22
SAP AG 1999
Fill Translation Table Automatically
(= Copy Master Data)
Currencies
Securities
Interest rates
Indexes
Name TELERATE
Datafeed
Select master data
1st key definition
Selection
to
2nd key definition to

(C) SAP AG AC810 10-23
SAP AG 1999
Maintain Translation Table: Securities
0000000815512 BRIDGE XETRA
Security Instrument
0000000716460
Exchange
0000000716460
RT
Instr. class 02
Datafeed
FRANKFURT 01 BRIDGE
=FSAG
=FSAG
LQSAG
LQSAG
=FSAG3
=FSAG3
LQSAG3
LQSAG3
LQDBK
=KCKST
LQCKST
=FCKSV
LQCKSV
0000000716460
0000000716460
0000000716463
0000000716463
0000000716463
0000000716463
0000000804010
0000000815510
0000000815510
0000000815512
FRANKFURT BRIDGE
BRIDGE
BRIDGE
BRIDGE
BRIDGE
BRIDGE
BRIDGE
BRIDGE
BRIDGE
BRIDGE
BRIDGE
XETRA
XETRA
FRANKFURT
FRANKFURT
XETRA
XETRA
XETRA
FRANKFURT
XETRA
FRANKFURT
05
01
05
01
05
01
05
01
01
01
01
01

In the translation table you maintain the external datafeed notations and all the necessary parameters for
the data provider.

Example:

R/3 notation:
- Security name: 716463 (SAP preference)
- Exchange: Frankfurt
- Rate type: 05

Datafeed notation (example for Dow Jones, April 1998):
- Instrument name: =FSAP3
- Data source: BRIDGE
- Instrument property: CLOSE

In the detail screen, you can set an indicator for each class to determine whether the user should have the
option of saving the imported security prices permanently. If this is the case, the user can set an indicator
in the application to actually save the updated values.

(This save option is available for all types of datafeed data.)

(C) SAP AG AC810 10-24
SAP AG 1999
Import Securities Information from Datafeed
Provider
Name
TELERATE
Security name
Securities selection
Datafeed
to
Exchange to
File name
Datafeed provider file to be imported
R/3 name
Names for security price type
05
Datafeed name
CLOSE
/usr/sap/trans/tmp/germany

Import Securities Information from Datafeed Provider:
If the datafeed provider supports this function, you can import a file for each security price you request,
which automatically translates the R/3 notation into the datafeed notation in the translation table and
adds the relevant datafeed parameters.

Prerequisites: You must use the same name in the security class data in R/3 as the datafeed provider
uses, and the datafeed provider must make an input file available.

(C) SAP AG AC810 10-25
SAP AG 1999
Check Translation Table
Name TELERATE
Datafeed
1st key definition
Market data selection
2nd key definition to
Instrument class 02
0000000716460
FRANKFURT
to 0000000716463
to

This report checks whether the translation table is fully configured. Incorrect and incomplete entries are
displayed in an error list.

(C) SAP AG AC810 10-26
SAP AG 1999
File Interface / Datafeed: Market Data Monitoring
Class Percent
01 5
02 5
03 5
04 5
31 5
33 5

You can define a maximum tolerance limit for price deviations per instrument class. When you import
market data, the system checks whether the price deviations fall within these limits. If the difference
between the new price and the most recently imported price exceeds the defined range, the error log
contains a warning message. This allows you to identify incorrect prices, which you can then adjust
manually.

(C) SAP AG AC810 10-27
SAP AG 1999
Market Data Management: Unit Summary
You are now familiar with the various options
for managing market data in the SAP System.
By configuring the datafeed interface, you can
import external market data to the SAP system
upon request.

(C) SAP AG AC810 11-1
SAP AG 1999
Information System
Overview of reporting options
Standard reports
Contents:

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

(C) SAP AG AC810 11-3
SAP AG 1999
Business Partners
Banks
Information System

(C) SAP AG AC810 11-4
SAP AG 1999
Information System: Business Scenario
You have created various transactions in
the SAP Treasury applications and now want
to gain an overview of the reporting options
the module offers, including drilldown reporting.

module.

(C) SAP AG AC810 11-5
SAP AG 1999
Information System Structure: Example - Journal
Journal - Money Market
Area-specific journal
Cross-application journal
... Accounting
Treasury
Treasury Management
Money Market
Information System
Transaction
Information System Transaction Overview
Treasury Reports
Treasury: Strategic View
Treasury: Operative View
Transaction
Transaction Overview
Journal: Money Market,
Forex, Derivatives, Securities

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

(C) SAP AG AC810 11-6
SAP AG 1999
Money Market: Journal
Transaction Counterparty Portfolio Fin. project Trader OutConf. IncomConf. ContDate Chgd/Entd on
Act. categ. Status Curr. Amount StartTerm StartRoll. EndTerm Int. rate Valid since Chgd/Entrd
1 1000 Deutsche Bank 1 required 1 required 09/06/YYYY 09/06/YYYY
Contract Active UNI 100,000.00 09/06/YYYY 11/06/YYYY 2.5 09/06/YYYY BAUERT
Company code 1000 IDES AG Ent./Changed on 09/06/YYYY
Product type 51A Fixed-term deposit Transaction type 100 Investment
Company code 1000 IDES AG Ent./Changed on 09/06/YYYY
Product type 52A Deposit at notice Transaction type 100 Investment
Transaction Counterparty Portfolio Fin. project Trader OutConf. IncomConf. ContDate Chgd/Entd on
Act. categ. Status Curr. Amount StartTerm StartRoll. Int. rate Valid since Chgd/Entrd
3 1000 Deutsche Bank 1 required 1 required 09/06/YYYY 09/06/YYYY
Contract Active UNI 100,000.00 09/06/YYYY 2.6 09/06/YYYY BAUERT
Overview list of Money Market transactions
Information on

The Money Market journal enables you to call up an overview of the money market transactions stored
in the system using any number of selection criteria. For each selection, you can define selection options
(single values or ranges, incl./excl.).
You can use the journal to select transactions, for example, that were concluded with certain traders or
with certain business partners.

(C) SAP AG AC810 11-7
SAP AG 1999
Payment Schedule
Area-specific payment schedule Cross-application payment schedule
Payment schedule:
Money Market
Company code
Payment date, payment amount, payment currency
Transaction, name
Product type, transaction type
Posting status, posting release
Bank key of house bank, bank account of house bank
Bank key of business partner bank, business partner bank
account
...
Payment schedule:
Money Market, Forex,
Derivatives, Securities

You use the payment schedule to call up incoming and outgoing payments within a specified period.
Considerable enhancements have been made to the payment schedule. You can now use the ABAP List
Viewer to output lists flexibly, and have the option of:

- Defining and saving your own display variants
- Sorting by any field
- Filtering according to any values
- Forming group totals
The payment amounts for a payment date are added together automatically, provided all the amounts for
this date are in one currency. The layout of the payment schedule is flexible. You can have a maximum
width of 255 characters, you can define new column characteristics, or delete existing ones.

(C) SAP AG AC810 11-8
SAP AG 1999
Money Market - Position List
Connection to the ABAP List Viewer
CoCd Trans. PrC TCat PTypTTypPartner TCurr. Amount Int. rate StartTerm EndTerm ...
1000 1 510 100 51A 100 1000 UNI 100,000.00 2.5 09/06/YYYY11/06/YYYY
1000 3 520 100 52A 100 1000 UNI 100,000.00 2.5 09/06/YYYY
1000 4 510 100 51A 100 1000 UNI 100,000.00 2.7 09/07/YYYY11/07/YYYY

You can use the position list to carry out profit/loss checks for traders or business partners, by listing
transaction types sorted by conditions. The positions for money market transactions are displayed in the
position list for specific key dates.
You can also select money market transactions that are due as of a certain start of term or up to a certain
end of term.
The connection to the ABAP List Viewer means you have a whole range of options for generating lists,
as regards the row/column layout, and sorting and totaling lists. You can save these as display variants
and use them later.

(C) SAP AG AC810 11-9
SAP AG 1999
Drilldown Reporting Principle
P
o
r
t
f
o
l
i
o
BOND
MM
FX
Currency
Product type
FLOOR
CAP
FRA
JPY
USD
EUR
Term
Fr om To
Basic
transaction
MMkt/Sec./
Loans
Forex/
Derivatives
Open
item
as a list (list viewer)
as a drilldown report
as a graphic
Data Data
output output

You use the drilldown reporting tool to prepare your own reports and process them interactively.
Functions for analyzing the results graphically, or transferring them to PC applications, as well as
features that enable you to link reports and assign them to a hierarchical tree structure, all contribute to
make drilldown reporting an extremely flexible reporting instrument.
Drilldown reports enable you to represent the information available in different business views by
selecting a useful combination of characteristics and key figures.
The idea behind drilldown reporting is to make the information you require available in a
multidimensional dice. Each cell (= each part of the dice) is specified by characteristics. The
characteristics correspond to the dimensions (example: 3 characteristics: portfolio, product type,
currency).
Each cell contains n key figures (example: 2 key figures: investment/purchase; borrowing/sale). By
linking the characteristics and key figures, you can generate different views from the possible
combinations of the corresponding values.

(C) SAP AG AC810 11-10
SAP AG 1999
Drilldown Reporting Principle
WCreate
WChange
WExecute
Report
index
save
Lists Lists
Graphics Graphics
Navigation/ Navigation/
Drilldown Drilldown
save
Batch
list
...
Forms
Report
Key figures Characteristics
Mail Winword
Excel

You can use characteristics, key figures, and forms to define reports. A report compiles a number of lists
that you can access interactively and display on your screen. You can also print reports, export them to
MS Word or Excel, or enter them in a file.
Forms describe the contents and format of reports. Forms provide the basis for reports, which you
complete later when you define the reports.
Characteristics define the different ways in which the dataset can be classified, for example, by company
code, business partner, portfolio. You can include characteristics both in forms and reports.
Key figures can be amounts and quantities; you can use a key figure transaction to define additional key
figures from existing key figures (key figure tree).
You can select key figures in forms or in reports.
Note: For more detailed information, see the general documentation on Drilldown Reporting.

(C) SAP AG AC810 11-11
SAP AG 1999
Functions of Drilldown Reporting
Navigation to all levels (characteristics)
Exception reporting provides a visual warning when
critical values deviate from expectations
Hierarchy processing shows external hierarchies
(such as flow type hierarchy)
Graphics improve visualization of the figures
Analysis functions allow you to classify your data
Data mining enables you to identify conspicuous values
in the dataset automatically
Currency translation determines currency influences

(C) SAP AG AC810 11-12
SAP AG 1999
Form Report
Form report Form report
For reports prepared individually with For reports prepared individually with
form form- -oriented layout oriented layout
specific formatting (colors, etc.) specific formatting (colors, etc.)
integration of variables integration of variables
complex selection complex selection

The general maxim for creating reports is that simple tools are available for generating simple reports,
while more sophisticated tools are available when you need to generate more complex reports.
In the Treasury area, you create form reports. These are reports based on forms and are suitable for
printing reports.
Drilldown reporting is always related to the business objects of an application.
Reports
- are complex structures, which comprise many subcomponents
- are language-dependent and can therefore be translated
- can be transported and delivered
- contain authorization checks and can therefore be blocked for a specific user.
It is now possible to define "Basic reports". When you use these types of reports, you do not need to
create forms.

(C) SAP AG AC810 11-13
SAP AG 1999
Drilldown Reporting: Overview
Create form
Create reports
Link report to report tree
Execute report
Treasury Management;
Application
Treasury Management;
Customizing
Treasury Management:
Application; Customizing
Treasury Management:
Application; Customizing

(C) SAP AG AC810 11-14
SAP AG 1999
Information System: Unit Summary
The reporting functions provide you with
additional options for monitoring and
evaluating financial transactions in SAP
Treasury Management.
The drilldown reporting tool, in particular,
offers a high degree of flexibility for evaluating
your transactions.

'AC810 - Basic Functions in Treasury PDF

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