Business Process Flow-Securities and Interest

[former_member217547]

Hi Gurus,

Can any one explain about business process flow about securities and interest in TRM-Money market.

Thanks

S.Sivakumar.

[contacteskay]

Hi Siva,

Contracting financial transactions is one of the fundamental tasks of any financial department. To complete certain financial transactions(could be Money Market, Securities, Forex etc.) in SAP, you will need to enter the trading processes for these transactions in Transaction Manager. Transaction Manager supports the management of these transactions and the generated financial positions. It

provides you with the necessary tools for all related transactions, from creating to transferring relevant finance accounting data thereby, supporting both conventional treasury departments with a trading-related focus and asset management departments. It also gives you the advantage of executing all types of transactions - from short-term financing to strategic

long-term investments - all on the same platform.

Main functions of Transaction Manager are:

• Trading and Back office support
• Monitoring, checking and releasing
• Data transfer to financial accounting (This includes accruals/deferrals and valuations)
• Position Management
• Portfolio Management and Analysis
• Reporting

Money Market transactions are typically for short to medium-term investments or borrowings. If the authorized business partners and relevant payment details are already defined in the system, the only necessary entries are structure characteristics and conditions. Based on these and the assignment of flow types, update types, product types, transaction types etc.,  the system generates periodic cash flows automatically. These cash flows include installment repayments, interest payments, final repayments etc.

Following are some of the financial instruments that fall under the Money Market category:

• Fixed-Term Deposits
• Deposits at notice
• Commercial Paper
• Interest Rate Instrument
• Cash Flow Transaction
• Facilities

Typical Business process steps for a Money Market transaction are as follows:

• Create (FTR_CREATE)
• Settle (FTR_EDIT)
• Post to accounting (TBB1)
• Fix Derived business transactions (if applicable) (TPM18)
• Period end/Day end processes  (Amortization - TPM1, Interest Accruals - TPM44 etc)
• Treasury Payments (F111)

Hope this helps.

Regards

Santhosh K.