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FSC010 SAP Treasury Processes

FSC010 SAP Treasury and Risk Management Processes

THE BEST-RUN BUSINESSES RUN SAP

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SAP Treasury and Risk Management Processes

mySAP ERP 2005 2006/Q2

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Copyright 2006 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in

any form or for any purpose without the express permission of

SAP AG. The information contained herein may be changed

without prior notice.

Copyright

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

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JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.

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SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications

may vary.

The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG.

This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice.

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Target Group

Participant

Project leaders

Project team members Consultants

Users

Duration: 5 days

User notes

The training materials are not intended for self-study but rather as a supplement to the information provided by the trainer. Therefore, you can use the ample space in the material for your own notes.

The exercises are only a supplement to the examples used in this course. There may not be sufficient time to complete all the exercises during the course. If this is the case, you can use the exercises after the course to practice what you have learned.

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Course Overview

Course Goals

Course Objectives

Contents and

Course Overview

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This course will prepare you to

Create and manage process-oriented transactions in

Transaction Manager, Market Risk and Credit Risk

Configure and carry out typical business processes

in these areas.

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Course Objectives

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

Use the support tools for back office processing

Describe the interrelationships in SAP Transaction

Manager

Set up the necessary structures for short, middle

and long term liquidity management

Explain the different ways of monitoring and

controlling market and credit risks

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Course Overview: Overview Diagram

Unit 2 Treasury and Risk Management: Overview

Unit 3 Transaction Manager: Money Market

Unit 4 Transaction Manager: Forex, Derivatives

Unit 5 Transaction Manager: Securities Management

Unit 6 Market Risk Analyzer

Unit 7 Credit Risk Analyzer

Unit 1 Course Overview

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You want to get an overview of the

components of Transaction Manager, Market Risk

Analyzer and Credit Risk Analyzer.

You want to learn about the business processes

within the components.

You are currently using or have successfully

implemented the SAP FI module. You now want to

activate short, medium and long term liquidity

management and make use of risk management

facilities.

Main Business Scenario

You are a member of a project team, which will make both basic and all other settings required for mapping financial transactions in corporate finance management.

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Unit 2 Treasury and Risk Management: Overview

Unit 3 Transaction Manager: Money Market

Unit 4 Transaction Manager: Forex, Derivatives

Unit 5 Transaction Manager: Securities Management

Unit 6 Market Risk Analyzer

Unit 7 Credit Risk Analyzer

Unit 1 Course Overview

Treasury and Risk Management (TRM): Basic

Overview Diagram

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Identifying processes in Treasury

Unit 2: Treasury and Risk Management: Overview

General functions (Treasury and Risk Management)

Market Risk Management Credit Risk Management Reporting

Transaction Manager

Treasury and Risk Management (TRM): Overview

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After completing this unit, you will be able to:

Provide an overview of SAP Treasury and Risk

Management

Explain the various processes within TRM and the

standard functions

Process your SAP business partner

Explain the role categories defined in the business partner

and create business partner relationships

Set up standing instructions and authorize business

partners

Differentiate between banks in general, business

partner banks and house banks

Explain the reporting options

Treasury and Risk Management - Basic Principles:

Unit Objectives

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Overview: Treasury and Risk Management Process

Items Cash Currency Risk Limits … Analysis Reporting Simulation Trading By telephone On the marketplace Internal trade

Back office activities Data control Correspondence Netting and payments

Controlling Risk controlling Compliance Periodic Activities Corporate actions Interest accrual/deferral Position valuation Accounting Parallel Valuation (Local GAAP, IFRS, FAS, …)

Hedge accounting

From a strategic point of view, the analysis and trading process is the starting point for the various Treasury processes. For example, the risk positions of the risk objectives you have set are identified and analyzed.

Once you have decided to complete certain financial transactions, you enter the trading processes for these transactions in Transaction Manager. Transaction Manager also supports the management of other transactions and the generated financial positions.

A range of documentation and control functions are available for all Treasury activities. You can perform evaluations for specific instruments or across the whole system to ensure that the various documentary and control tasks of financial accounting and the treasury are conducted accurately.

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Transaction

Manager

Risk

Management

Priority Priority 1 Ensuring liquidity 95

2 Optimizing finance costs 92

3 Optimizing yields on financial assets 74 4 Securing costs (example: against

possible exchange rate fluctuations) 61

5 Securing turnovers (example: against possible exchange rate fluctuations) 52 6 Profit contribution with active

management of open positions 30

%

Overview: Treasury and Risk Management

Objectiv Objectiv e e Company Company Weighting Weighting

SAP Treasury tasks and their distribution in both areas of Transaction Manager and Risk Management can collectively be derived from the company objectives: with Transaction Manager you can optimize yields and cost structures, and with Risk Management secure against market and credit risks.

Transaction Manager supports financial transaction and financial position management. You can use Market Risk Analyzer to analyze interest rates, currency ands stock risks. Credit Risk Analyzer helps you assess credit risks and includes an Online Limit Check.

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mySAP™ ERP

Overview - SAP Treasury & Risk Management

W S De velo p m e n t s y stem s Tr a d in g pl a tf o rm s Ma rk e t d a ta H o use b a nks etc.

SAP Treasury & Risk Management Portfolio Analyzer

Yield calculations Credit Risk

Analyzer Market Risk Analyzer

FX Der. Sec. MM Transaction Manager Reporting •Simulate rates •Value at Risk •Price calculator •Limit management •Utilization •Data export •Middle office •Manage-ment reports •Results database •Reporting tools •Ad hoc reporting • •AccountingAccounting •

•Back officeBack office •Front - / Middle office

SAP NetWeaver™ Portal, Security,

Business Intelligence, Knowledge Management, eXchange Infrastructure … SAP Business Partner SAP In-House Cash SAP Cash and Liquidity Management Financial Accounting in mySAP ERP Focus Focus

As an integrated subledger, SAP Treasury and Risk Management is closely linked to the remaining product portfolio.

It uses the central business partner so that it is not necessary to manage it in the system unnecessarily.

It is not integrated with the In-House Cash and, if desired, you can use it to centrally manage payments.

The liquidity effects can be evaluated in real time in Cash Management. The items of Cash Management can be evaluated in many standard reports of SAP Treasury and Risk

Management together with the Treasury transactions.

The relevant items and results are directly updated to Financial Accounting.

Using SAP NetWeaver it is possible to integrate other external systems (for example trading platforms, house banks and market data information systems) into mySAP ERP SAP Treasury and Risk Management.

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Requirements of Different User Departments

Security - role concept, authorization concept Internet – Web access

Reporting - new logical databases, analysis functions Integration

Automatic posting Option of financial reporting according to different standards

Hedge accounting – FAS133/138, IAS39 Reliability

Flexible process definition

Process automation

Simple transaction entry

Extensive product categories Cash flow analysis

Information about risk/revenue

Trading

Back office

processing

Accounting

Comprehensive management of financial transactions and positions Trading and back office support

Monitoring, checking, and releasing Data transfer to financial accounting  (including accruals/deferrals and valuations)

Flexible configuration of company-specific transaction and position management processes Assignment of financial transactions to portfolios or management in securities accounts Flexible reporting and portfolio analysis

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Transaction Manager

. . . US GAAP HGB Asset Management Organization Transaction Manager Money market Foreign exchange Securities Derivatives Treasury Organization Front office Middle office Back office

Contracting financial transactions is one of the fundamental tasks of many financial

departments. Depending on corporate policy, emphasis may be placed on providing an internal service for sibling companies or on actively investing liquid funds, financing planned

investments, or hedging existing risks in the financial markets.

Transaction Manager provides you with the necessary tools for all related transactions, from creating to transferring relevant finance accounting data. This supports both conventional treasury departments with a trading-related focus and asset management departments. This gives you the advantage of being able to execute all types of transactions - from short-term financing to strategic long-term investments - all on the same platform.

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Transaction Manager: Functions Overview

Comprehensive management of financial transactions and

positions

Trading and back office support Monitoring, checking, and releasing Data transfer to financial accounting?

(including accruals/deferrals and valuations)

Flexible configuration of company-specific transaction and

position management processes

Assignment of financial transactions to portfolios or

management in securities accounts

Flexible reporting and portfolio analysis

Datafeed Interface

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Central Functions

Examples: trader/user, currencies, correspondence, financial mathematics, posting logic, payment transactions, workflows, archiving, market data,

information system FI FI Financial accounting AM AM Investment accounting CO CO Controlling Central Data

example: business partner, banks

Financial Transactions Structure

Money market trading

Forex

Derivatives

Transaction Manager: Basic Functions

The central functions of Transaction Manager are:

Structuring financial transactions (example: the product categories Deposits, Overnight Money and so on)

Central data (example: business partner with all authorizations and the bank data for the business partner's payment details)

Central functions (see slide).

Transaction Manager also supports standardized interfaces for Financial Accounting, Cash and Liquidity Management, Market Risk Analyzer, Credit Risk Analyzer, Market Data Binding.

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Within short-term transactions, money market or foreign exchange transactions provide the option of bridging liquidity deficits or surpluses. For mid- and long-term, investments and borrowings are represented by securities transactions.

Derivative financial instruments, on the other hand, help you secure against interest rate and currency risks

©SAP AG 2006

Sample of a Range of Financial Instruments

Fixed - term

deposits

Deposits at

notice

Commercial

paper

Interest rate

instrument

Cash flow

transaction

Facilities

Product Types

Derivatives Foreign exchange Securities Money market trading

Stock

Subscription

rights

Investment

certificates

Bonds

Convertible

bonds

Warrant?

bonds

Warrants

ABS

MBS

Spot

exchange

transactions

Forward

exchange

transactions

Foreign

exchange

swaps

Cap / Floor

FRA

Swaps

- Interest rates

-

Cross currency

interest

rates

OTC options

- Currencies

-

Interestrates

- Securities

- Swaption

Futures

Listen

options

Hedging instruments Investment/Borrowing instruments

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Transaction Manager:

Transaction and Position Management Process

Trading

Back

office

Accounting

Postings Payment transactions Reversals Accrual/deferral Valuation Create new order/contract Exercise/expiration Terminations Rollovers Exercising rights

User authorization

Limit management

Re

lea

se

Settlement/control Interest rate adjustment Netting

Referencing

Confirmation letters

Securities transfer postings Corporate actions

In transaction and position management, the following areas are differentiated: In Trading, you create transactions and exercise rights.

In Back Office, you settle transactions, that is, you check entered transactions and carry out position management-related processes, such as securities transfers.

In Accounting, you carry out all bookkeeping for relevant activities in the subledger and transfer posting information to the Financial Accounting general ledger.

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Resets in the key date valuation enable year-end closings and end-of-quarter closings to be prepared

Mapping International Accounting Rules

Definition of several parallel valuation areas

Definition of Position Management procedures to prepare financial statements in the parallel valuation areas, on the basis of IAS and/or US GAAP, for example

Lot accounting support for securities and listed derivatives

Position management procedure: defines how the position management is to be handled in the parallel area

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Currency risk Interest rate risk Stock risk

Market risk procedure

Cash flow analysis Value at Risk Sensitivities Mark-to-market Interest/Currency exposure

Organizational Elements

Reporting characteristics Structured products

Flexible portfolio hierarchies Business areas

Decision support and simulation

Market data scenarios Fictitious transactions

Market Risk Analyzer

In addition to conventional financial management tasks, such as cash management, ensuring liquidity, and liquidity management, controlling market risk plays a crucial role in ensuring a company's competitiveness. The Market Risk Analyzer offers comprehensive position analysis functions, such as mark-to-market valuation for financial transactions,

Additionally, risk or performance figures, such as exposure, future value, effective interest rate and effective rate, internal rate of return, sensitivity, and value at risk can be determined. When you run these reports, you can incorporate both contracted positions and fictitious financial transactions in the calculations,

Valuations can be based on either real or simulated market prices. As well as a high level of flexibility for organizing reports, Market Risk Analyzer provides a reliable valuation basis for market risk controlling.

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Characteristics

Credit Risk

Analyzer

Transaction conclusions: updating limits OK Limit check CFM Transaction Manager Exposure 8.5 632.3 688.1 12.3 Limit 10.5 700.7 716.7 4.8 Partner Euro Bank United Bank Carlton Brightline Reporting Reporting Util. in % 80.9% 90.3% 96.0% 256.3% Avail. Limit 2.0 68.4 28.6 -7.5

Credit Risk Analyzer

Integrated online limit check Analysis, measurement and control of credit and settlement risks

Company-wide limit attribution Determining attributable amounts with flexible formulas Netting & collateral

The tightening of regulations on risk control confirms the growing importance of analyzing and limiting insolvency risk (KonTraG - German Business Supervision and Transparency Act). System support is also necessary for measuring, analyzing, controlling and limiting

counterparty default risk for other business considerations.

Credit Risk Analyzer is designed to meet all of these requirements with the objective of providing you with comprehensive support for controlling counterparty default risks. The first release covers the specific risks related to your company's financial transactions. Further releases will concentrate on integrating the sales/accounts receivable area. This will enable company management to recognize credit risks when they arise and avoid them.

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Classic drilldown report

A B C 18.234,97 27.276,08 87.751,84 29.932,07 38.373,42 32.756,44 ... ... ...

Object list

Graphical reports

0 20 40 60 80 100 A B C S

reports

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Before you can conclude financial transactions with a

business partner, you must create the partner in the

system.

SAP Business Partner will help you do this.

In addition, you want to authorize specific business

partners for certain transactions only.

How can you automatically get suggestions for business

partner settings when creating transactions?

Business Partner: Standing Instructions

You are a member of a project team, which will make both basic settings and all other settings required for mapping financial transactions in Treasury and Risk Management.

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A business partner is a person or legal entity with

whom/which you have a business relationship.

There are three different business partner categories:

Business Partner: Definition

A business partner is a person, organization or group of persons/organizations with which your company can have a variety of relationships.

Business partners are divided into various categories, which each have different attributes. FM differentiates between

- Persons (examples: private individual, broker) - Organizations (examples: bank, company)

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Overview of Extracted Business Partner Data

Company Code

Data

General

Data

Account

Accountmanagementmanagement Payment

Paymenttransactionstransactions

Account

Accountinterestinterest

Payment

Paymentdatadata Autom

Autom. . paymentpayment transactions

transactions

Dunning

Dunningdatadata Correspondence

Correspondencedatadata

Business

Partner

Address overview Address overview Credit profile Credit profile Identification/Branches Identification/Branches Control Control Bank

Bank detailsdetails Payment

Paymenttransactionstransactions//

Valuations

Role

Roledatadata

Legal

Legal datadata

Fiscal

Fiscal yearyearinformationinformation

Personal

Personal datadata Employment

Employmentdatadata

Additional

Additional datadata Credit

Credit standingstanding

Fiscal

Fiscaldatadata

Reporting

Reporting datadata

Role

Descript

-

-ions

ions

In Treasury and Risk Management, you conclude financial transactions with a business partner. Typical partners include banks or a central treasury department. You create a master record for each business partner.

The user interface for business partner data was fully revised as part of the Enjoy project. The screen layout has been restructured and you can now navigate between several tabs containing individual business partner views.

The data you can maintain for a business partner is split into two areas: - General role data

is centrally stored for all roles. The amount of accessible data may vary according to role category, depending on the settings in Customizing.

- Company code-dependent data 

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Process Business Partner

Characteristics for Processing a New Business Partner: • Person

• Organization • Group • Grouping • BP Role

To create a new business partner, you must enter a BP role, the business partner type and the grouping on the initial screen.

The grouping is defined in Customizing and is used to classify business partners according to any criteria.

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Business Partners: Relationships

Relationship Parent company Example:? Subsidiary Dependent on classification Outgoing relationship "subsidiary of"

Rel. Type Description Rel. Cat Description

SUB2 V. important_?subsidiary 0050 Subsidiary of Subsidiary

Relationsh.Cat.

Relationship Types

Relationships can exist between different business partners. You can map these relationships on the Relationships tab page.

The relationship categories you can choose from are predefined in the system and depend on the business partner classification. Example: "Is subsidiary of" for an organization, or "Is married to" for a person.

You can refine the relationship categories by defining different relationship types. The specific relationship type is dependent on the relationship category already chosen.

Ingoing relationships of a business partner are all the relationships entered in the master data for the other partner.

Outgoing relationships are all the relationships with other business partners entered in the master data for that particular business partner.

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Company Code-Dependent Business Partner Data:

Standing Instructions

Payment

details

Transaction

authorizations

Derived

flows

Correspondence

Business partner A

Standing Instructions are master agreements concluded with a business partner. Standing instructions for business partners concerning payment details, correspondence and derived flows are included in tab pages in the maintenance of business partners. By integrating standing instructions in the business partner data, they have also been linked to release workflow - business partner. You can also access the standing instructions with a separate menu path.

Master agreements can be made according to: Authorizations

Which types of financial transactions are permitted with a business partner? Payment details

For transactions with business partner A => Payment details of BP A as default values for the transaction

Correspondence

For transactions with business partner A => predefined: For which transaction is which correspondence created?

Derived flows

For transactions with business partner A => predefined: If in the transaction with BP A, flow X is generated, tax/commission in the amount of y% is to be calculated

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Standing Instructions:

Business Partner Authorizations

Assign Business partner A Partner authorizations Authorization X

Transaction Manager

Money market trading FT deposit 51 A Fixed-term deposit 100 Investment 200 Borrowing Deposit at notice 52 A Call money 100 Investment 200 Borrowing

In order to make use of a business partner (BP), you must  - Create the BP,

- Release the BP for use and

- Authorize the BP as a partner for specific financial transactions.

You can only grant transaction authorizations if the business partner - once set up - is released and is not designated for deletion.

Transaction authorizations control which financial transactions are permitted with a business partner. You can assign transaction authorizations at the following levels:

- Contract type - Product category - Product type - Transaction type

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Financial Transaction: Standing Instructions

Payment

PaymentDetailsDetails

Assign Assign

Correspondence

Correspondence DerivedDerivedflowsflows

Assign

• Derivation procedure • House bank and

corresp. bank account

• Business partner bank details • Confirmation ? - Print - Fax - SWIFT, IDoc? - E-mail - Counterconfirmation Business

Business partnerpartnerAA

Payment details include all information required to conclude payments, that is, your own (house bank) account data and, where applicable, business partner bank details.

You can process different payments in different currencies for each business partner.

You can assign any payment details as standing instructions for a transaction. You can assign your instructions on the contract type, product type up to transaction type levels.

When concluding a transaction with BP A, the payment details assigned to the relevant transaction are drawn automatically from the standing instructions and proposed as default values. This saves you making many manual entries.

Standing instructions for correspondence control how external correspondence, that is, correspondence with a (particular) business partner is to be handled.

You can choose - by determining any level from contract type to transaction type - whether correspondence with the business partner for a particular transaction should be in print, by fax, e-mail, IDoc or Swift form. These details must be specified if correspondence is to be

exchanged with a business partner.

You can use derived flows in the money market, foreign exchange, derivatives and securities areas to simplify calculation of taxation amounts. To generate derived flows, you must assign a derivation procedure to the relevant partner.

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Standing Instructions in SAP Business Partner

Payment Information Correspondence Derived Flows Receivables Business Partner Printer Fax e

Printer Fax e--mail mail IDocIDoc

X

Curr

Curr., BANK, Account, …., BANK, Account, …

EUR, CHAS, ACC3, …

USD, CITI, ACC1, …

X Rules Rules Withholding tax 1 Withholding tax 2 X X Standing Instructions Payment Information UBS, Acct no. 3, … Details 1,000,000.00 EUR Investment 03.04.05 Payoff 03.05.05 … Correspondence

E-mail confirmation to...

Derived Flows Apply tax 1 Apply tax 2

For straight-through processing of financial transactions, it is important to maintain the standing instructions in the business partner.

You can maintain standing instructions for payment details, correspondence, transaction authorizations and the derived flows.

Standing instructions principally serve to minimize the effort required for entering data in the financial transaction. The information about payment details and correspondence serve as the default value and can be changed when entering the transaction.

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Business Partner: Standing Instructions - Payment

Details

Assign Currency Pay. det. ID House? bank Account? ID

EUR 01 Deuba GIRUN

USD 01 Deuba 1050 ... ... ... ... ... ... ... ... ...

Business Partner: Standing Instructions - Payment Details

BP A Payment details ID Incoming Outgoing Transaction TransactionM.M. Money Market Money Market Fixed-term deposit 51 A Fixed-term dep 100 Investment 200 Borrowing x 01 x 01

The system uses the house bank and the account ID defined in the business partner payment details to determine the bank account to which the posting is being made.

After creating the payment details, you must not forget to assign them.

This allows you to control separate accounts for different products and payment directions. The system supports multiple payment methods levels. By entering a bank chain, you can process payments using several banks. Up to three intermediate banks are supported.

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Transaction: Correspondence

Example: Confirmations by fax, e-mail, SWIFT

Fax

Example: Dealing slip

External

Internal

Confirmation Confirmation

Correspondence serves to document and match concluded financial transactions.

You can define correspondence as 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 print the generated data or have it sent directly from the system by fax. You can also use the correspondence media of 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 external correspondence types with partner-specific standing instructions for correspondence. Control of internal correspondence types is not partner-specific.

You can determine when correspondence is carried out with the Customizing settings for product and transaction types and activities. You can also specify whether correspondence should be generated automatically when a transaction is created, changed, or reversed (that is, as soon as the transaction is saved). Correspondence that has been generated is stored in the financial transaction data.

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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 user, the form used, and the output type of incoming or outgoing confirmations.

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Business Partner: Standing Instructions

-Correspondence

Correspondence

Counter- Print Fax SWIFT IDoc E-mail conf. Transaction TransactionM.M. Money Market Money Market Fixed-term deposit 51 A Fixed-term dep 100 Investment 200 Borrowing Deposit at notice 51 B Call money 100 Investment 200 Borrowing Correspondence type: External Assign BP A

You control the (external) correspondence with a 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 up to transaction type.

You can choose between different correspondence media. You can also print, send by fax or SWIFT external correspondence directly from the R/3 system.

Correspondence parameters: 

Correspondence is automatically sent to the business partner's standard address. If you want to use a different address for a business partner, save it in the Alternative address field.

If you require counterconfirmation from your business partner, flag the Counterconf. field. (Prerequisite: Customizing is set up to allow automatic correspondence).

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Transaction: Derived Flows

Derivation Rule Interest income tax

Depending on certain flows, you can

generate new flows by

defining derivation rules

Flow 1200 Interest rate

EUR 1,000

Flow 1800 Tax 1

EUR 300

Flow 1801 Tax 2

EUR 16.50

Derivation procedures enable you to automatically generate and calculate certain financial flows (which result from other financial flows).

When you process the original flow, the system automatically generates the flows to be derived.

Example: An interest income tax of 30% (tax 1) is deducted from the nominal interest (flow type), and a reunification tax of 5.5% (tax 2) is deducted from tax 1 (in other words, 1.65% of the nominal interest amount).

The interest condition of the transaction generates an interest flow of type 1200. At the same time, due to the derivation procedure, the system adds other flows to the cash flow: - Interest income tax (flow type 1800)

- Tax 2 (flow type 1801)

You can then process all flow types (original and derived). For example, you could offset the appropriate amounts when you make the interest posting.

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Business Partners: Standing Instructions

Derived Flows

Assign Transaction TransactionM.M. Money Market 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

Interest income tax

Derivation procedure

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 contract type to transaction type).

If you create a transaction with a business partner, to which you have assigned a derivation procedure (at the corresponding level), the system generates additional flows on the basis of the derivation rules you have defined.

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Banks – General: Master Data

Bank country DE Bank key Bank key 200 500 00200 500 00 Address Deutsche Bank Region Street City Branch Control data SWIFT Bank group Post office Acct Bank number

Banks: General Information

Bank country DE Bank key Bank key 200 500 00200 500 00 Address Deutsche Bank C Region Street City . ... (Account 889613262) (Account 12345678) Partner bank House Bank ... Function:

Bank

Data

Bank details, which are required for your own and the business partner bank, are maintained centrally in a bank data pool.

Entered bank data is maintained in the Financial Accounting bank directory, that is, automatically or manually stored and accessible throughout the system.

The bank directory contains the bank master data. This includes bank address data and control data, such as swift codes and bank groups.

The bank directory must contain the master data of all banks required for processing payments. These include your own house banks and the business partner banks. You can use entered bank data (name, address, bank code)

- as “Partner bank” to maintain business partner bank details and

- as “House bank” to maintain your own bank details with the appropriate link to Financial Accounting.

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Banks: Payment Details

BP Bank Details? Bank account House bank H bank account Contract Financial trans. with

business partner A Posting/Payment entered manually in transaction + payment details

Bank

Data

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Business Partners:

Central Data - Bank Details

Central

Central datadata

Ctry Bank Key Bank

Account Partn. bank

EN 600 501 01 5214561 A1 EN 100 500 00 18889 B1 Bank A Bank B EN 200 500 00 889613262 C1 Deutsche Bank Business partner A

Bank

Data

Bank Details

The bank details of each business partner are maintained by entering the relevant bank details;

such as the country, appropriate bank key and account.

Each individual bank detail is identified with the partner bank key (Partn. bank).

Example: Entering “B1” encodes that: Business partner A has account number 18889 with bank B with bank key 100 500 00.

When maintaining business partner bank details, you can enter the bank country and key to draw the bank description from the bank data pool, if this data has already been created. If in bank details, a bank (country and bank key), which has not yet been created in the bank data pool, is entered, a dialog-box enabling the creation of general bank data appears automatically, so that the new bank can be added to the pool.

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House Banks: Master Data

Corresponding bank accts: 12345678 . . . Bank country DE Bank key Bank key 200 500 00200 500 00 Address Deutsche Dt. Bank Region Street City Branch Control data SWIFT Bank group

House banks

Bank

Bank DataData

Bank

Data

Company code 1000

Bank

Data

Banks, with which you have current accounts, should be entered as house banks.

When maintaining business partner bank details, you can enter the bank country and key to draw the bank description from the bank data pool, if this data has already been created. If data (country and bank key) is entered for a bank, which is not in the bank data pool, a dialog box enabling the creation of general bank data appears automatically to add the bank to the bank data pool.

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House Banks: Create Master Data

Chart of Accts

Bank account data

G/L account: 113100 Account?

ID

Currency

Company code 1000

Corresponding bank accounts

House bank Bank country Bank Key GIRUN 12345678 EUR DEUBA DE 200 500 00

House banks identified with a specific house bank ID are maintained in the company code. Each account held at a house bank must be created. Each bank account is identified by a unique key of the account ID to be assigned. This account identification is unique to each each company code, house bank and account.

These short names help to simplify use of your own bank details in transactions.

As a rule, an internal general ledger is kept in Financial Accounting for each house bank account.

The link between the (external) house bank account and the (internal) general ledger is created by the appropriate assignment.

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House Banks: House Bank Accounts

FI

-

General

Ledger

Company code 1000 G/L acct 113100 Chart of

Chart of accountsaccounts EUREUR Description Dt. Bank

:

Account currency EUR :

:

Bank/Financial data

House Bank Deuba Account?ID 1000 Cash mgmt level F0

Create the master data of the house bank general ledger in FI to maintain it. Here, you can set definitions, such as account currency and the cash management level on which the amounts posted to this account are displayed in Cash Management.

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Cash Management Account Name: Definition

CoCd 1000 . . . CM acc. name DB Dollars G/L Acct 113150 Bank Account 110113150 Description Deuba Dollar account Cash position/Group

Account CoCd 04.04.YY

DB Dollars . . . 1000 04.03.YY 1.000.-

1.011.-IMG: Cash Management

In Cash Management, the amounts posted to general ledger accounts are displayed on the cash management levels assigned in the FI Accounts master data.

The relevant account is indicated in CM either by the (general ledger) account number or - when maintaining a cash management account name for this account - with the cash management account name.

In cash management, the cash management account name replaces the account number with a proper name. It is used here in all transactions and reports, such as cash positions, instead of the account number.

Example: Amounts in G/L account 113150 are displayed in Cash Management: a.) Without maintaining the cash management account name:

Account Amount 113150 1.000,--

b.) With maintaining the cash management account name Account Amount

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Transaction: Payment Details - Data

Payment details ID Regu-lar Partner ?bank ID Payment method Payment process House? bank Account? ID 01 DB Checking 01 DB USD Company Code 1000

Product Type 51A Fixed-term deposit Transaction Type 100 Creation

R Crcy Eff. FType HBank Account ID Pmnt Regular Part. Bank

- EUR Deuba GIRUN

+ EUR Deuba GIRUN

Transaction: Payment Details

Conclusion Financial trans. with

business partner A

Posting

+ Payment details

Example: Fixed-term deposit investment

In addition to business data entries, Transaction and Position Management also processes payment details, that is, data required for processing payments:

R: Payment flow direction (“+”: incoming payment; "-": outgoing payment) HBank: Enter the house bank, with which the payments for this transaction are to be

processed, in the form of the defined house bank ID

Acct ID: Enter account of house bank, with which the payments for this transaction are to

be processed, in the form of the defined account ID

Partner bank: Enter bank account (bank key and account) of the business partner, with which the payments for this transaction are to be processed, in the form of the defined partner bank ID

The system supports multiple payment methods levels. By entering a bank chain, you can process payments using several banks. Up to three intermediate banks are supported.

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SAP offers different reporting tools for different

requirements

Meta information, OLAP features Data Warehouse

Drilldown

Reporting

"individual"

"Tool-supported" SAP BW

Query

Defined report categories

Drilldown Maximum flexibility

"Anything is possible"

New logical database Views and DB tables

no

yes no

1 2

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A query with the SAP List Viewer (ALV) can,

for example, also be exported for MS Excel

Report header

Values

Display variants Totals and subtotals

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Basic list

Ranking list

Statistics

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Look and Feel:

Drilldown Reporting

Key figures

Drilldown characteristics

Expanded characteristic (here with characteristic hierarchy)

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Reporting using the SAP Business Warehouse

Web Items

(54)

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Exercises 1

Unit 2: Transaction Manager – Overview

Topic

Master Files: Roles/Functions/Business

Partner Standing Instructions

After completing these exercises, you will be able to:

• Create a new business partner to which you can assign

appropriate roles and functions.

You want to create a new business partner with which you can

conclude financial transactions. To do this, you must assign the

role "Counterparty" to your partner.

1-1 In future, you want to conclude transactions in your company code FS## with

business partner BP##.

In order to do so, create a business partner called “BP##” (business partner “BP##”

is an organization). Use the GPEX grouping (external number assignment) and

select role “TR0151 - Counterparty.”

Save the entry for your new business partner. Then enter the following data:

Field Name or Data Type

Value

Name as

appropriate

Street, house number

as appropriate

Search Term 1

as appropriate

Postal Code, City

as appropriate

Country DE

Select “English” as the language in the communication field.

Then let the system check your entries.

1-2 You now want to navigate through the tab pages and get an overview of the other

available fields for your business partner.

Click the different tab pages to get an overview of the other fields.

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1-3 To add more data to the master data of business partner BP## take the following

steps:

1-3-1

If your business partner has a second, official address in addition to its

business address:

Enter the additional address. Then define your first entered addresses as

STANDARD/Default and your new address as BUSINESS. (Tab Address

Overview).

1-3-2

Assign credit standing "Preferable Credit Standing” to your business

partner (Tab Credit Profile).

1-3-3

The legal form of your business partner is a joint-stock company. Enter

this in your system. (Tab Identification/Organisation data).

1-3-4

Your business partner's legal HQ is in Germany. Record this in the master

data (tab Legal Data).

1-4 You have another business partner, BP##A. Repeat exercise step 1-1 to create this

second business partner as an organisation, but this time use the General role

(000000 – General Business Partner).

1-5 Your business partner BP## became a subsidiary of business partner BP##A at the

beginning of the month. Enter this in the system.

1-6 You can conduct all money market and foreign exchange transactions with business

partner BP##. The derivatives area only permits interest rate swaps with BP##:

Assign appropriate transaction authorizations to the BP in Applications under

Special Functions → Standing Instructions

(Use your company code FS##).

(Alternatively, you can also assign transaction authorizations in change/display

mode using the “Counterparty” role (“Company Code” button).)

1-7 You want to print correspondence confirmations for all money market and foreign

exchange transactions with business partner BP##, Assign the appropriate

correspondence type “PRINT” to the BP in the application using Special Functions

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Solutions 1

Unit 2:

Transaction Manager – Overview

Topic

Master Files: Roles/Functions/Business

Partner Standing Instructions

1-1

In future, you want to conclude transactions in your company code FS## with

business partner BP##.

In order to do so, create a business partner called “BP##” (business partner

“BP##” is an organization). Use the GPEX grouping (external number

assignment) and select role “TR0151.”

Save the entry for your new business partner. Then enter the following data:

Field Name or Data Type

Value

Name as

appropriate

Search Term 1

as appropriate

Street, house number

as appropriate

Postal Code, City

as appropriate

Country DE

Select English as the language in the communication field.

Then let the system check your entries.

On the SAP Easy Access screen, choose

Accounting

Financial Supply Chain Management

Treasury and Risk Management

Business Partners

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In the standard toolbar, choose “Organization”.

Enter the following data:

Field Name or Data Type

Value

Business Partner

BP## (## is your PC or Group Number)

Grouping

GPEX External Number Assignment

Create in GP Role

TR0151 Counterparty

You will be asked “Do you want to save the business partner?” Click YES to

save the data. The message “Business Partner BP## created” will appear in the

status bar.

Now enter the remaining data for your new business partner:

Field Name or Data Type

Value

Name as

appropriate

Street, house number

as appropriate

Search Term 1

as appropriate

Postal Code, City

as appropriate

Country DE

Select English as the language in the communication field.

Check your entries using the Check button (“scales” symbol). The message,

“Data of business partner is error-free”, should appear in the status bar.

Save your data.

1-2

You now want to navigate around the tab pages and get an overview of the

other available fields for your business partner.

Click the different tab pages to get an overview of the other fields.

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1-3

To add more data to the master data of business partner BP## take the

following steps:

1-3-1 If your business partner has a second, official address in addition to its

business address:

Enter the additional address. Define the second address as BUSINESS.

(Tab Address Overview).

Go to the “Address Overview” tab page in change mode. You will see

that an address has already been entered.

Choose "Create" to call the dialog box Counterparty Change: Address.

Enter a complete, new address with the appropriate data. Make sure

that the country is DE Germany and the language is English.

Confirm these settings with Enter (green checkmark). You return to

the Address Overview tab.

Assign the relevant address usage to the second address. This is

available in the lower area of the screen (you may need to scroll

down).

Double-click the required address usage. This would be STANDARD

for the first address. You will see all addresses entered so far. Select

Address 1 and confirm the dialog box with Continue. The first address

has now been assigned to the STANDARD address usage. Repeat the

procedure for the second address, but this time assign it to the business

address usage.

Save business partner BP## by choosing the “Disk” button in the

standard toolbar.

The message, “Changes have been saved”, will appear on the status

bar.

1-3-2 Assign credit standing "Preferable Credit Standing” to your business

partner.

Go to the Credit Profile tab page in change mode.

Enter the following values:

Field Name or Data Type

Value

Credit Standing

0 - VIP – Preferable Credit

Standing

Save business partner BP## by choosing the “Disk” button in the

standard toolbar.

1-3-3 The legal form of your business partner is a joint-stock company.

Enter this in your system. (Indentification tab, under Organisation).

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Enter the following values:

Field Name or Data Type

Value

Legal form

01 - Co- Joint-stock company

Save business partner BP## by choosing the “Disk” button in the

standard toolbar.

1-3-4 Your business partner's legal HQ is in Germany. Record this in the

master data.

Go to the Legal Data tab page.

Enter the following values:

Field Name or Data Type

Value

Country

DE - Germany

Save business partner BP## by choosing the “Disk” button in the

standard toolbar.

1-4

You have another business partner, BP##A. Repeat exercise step 1-1 to create

this second business partner, but this time use the General role. (000000 –

General Business Partner).

Follow the instructions of solutions 1-1.

Fill in the required fields as usual and make sure to select the “General” role.

Note 1: To get from one business partner to another, choose Goto

→

Initial

Screen.

Note 2: There is no credit data to be maintained for this business partner.

1-5

Your business partner BP## became a subsidiary of business partner BP##A

at the beginning of the month. Enter this in the system.

In change mode, choose Relationships in the application toolbar. No

relationships are found.

Enter the following values:

Field Name or Data Type

Value

Relationship Cat.

FFSB002 “Is subsidiary of”

Relationship to BP

BP##A

From

First of the current month

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Confirm the dialog box with Continue (green checkmark).

You return to the overview screen showing the connection between BP## and

business partner BP##A.

Save business partner BP## by choosing the “Disk” button in the standard

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