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Treasury and Working Capital with SAP S/4HANA offers an E2E treasury processes enabling collaboration with funders and suppliers. An example of this strategy is the offer of service SAP Trading Platform Integration which provides smart trading and seamless integration to various trading partners.
For this to be possible SAP Treasury and Risk Management has also evolved to support a larger variety of financial instruments.
For a long time, customers have reported the impossibility to initiate Investments Funds deal in SAP Treasury and Risk Management for Money Market Funds when prices fixed after the payment. In this scenario, transaction would have to be included in the system long after actual outgoing/incoming cash have been executed.
This feature have been released in SAP S/4HANA 2021 as explained here Money Market Funds: Fix Price and Units After Payment | SAP Help Portal.
In the above link it has been explained that the effect on configuration is a new processing category (00003 Order - Contract - Contract Priced) and 00004 Order - Contract - Settled - Contract Priced - CP Settled) for money market funds with variable net asset value (VNAV).
That means that a new transaction type can be created, which also can be used in existing securities positions in productive systems.
Further effects on configuration:
The intention of this post is to provide further details about this improvement in Money Market Investments Funds to accelerate adoption by the customer as one the steps to have an integrated treasury process.
For the new transaction type, two new flow types must be created:
The usual flow type to increase/decrease funds position with the corresponding flow category type:
And a flow type to process the payment:
For the above-mentioned flow type, new flow categories have been created, one for purchase and other for sale.
For this scenario, it is important to mention that a position clearing account is necessary.
Effects on end-user operations:
When the transaction is created, the payment amount will be posted by the flow type with the new categories (50 for purchase and 51 for sale).
This flow type will affect bank account or payment request account.
When the price is provided by the financial institution, the fixing action will allow number of units and price to be edited.
And in this step, the flow type with principal increase/decrease category will update the financial instrument position.
Note that in the above picture the number of decimals has increased for both number of units and price. This feature is available as of SAP S/4HANA version 2023. See Price and Unit Field Length Extension for Securities | SAP Help Portal for details.
After this action the flow can be posted, and position will be updated.
See also: Best Practice Money Market Mutual Fund Management (2UN), which already includes this feature as an optional step.
