Payment of variation margin

[former_member583013]

Hello friends,

I have setup Initial Margin and calculate variation margin through PMVM.

The client wants to pay these margins. Any idea how to do it? Customizing or exection details will be helpful.

My analysis:

1. The house bank details are given in TPM4 ( Futures account master ).

2. Unlike security account master (TRS_SEC_ACC), this does not have currency based payment details.

3. Also BP payment details SI are maintained.

But unable to pay the variation flows and these flows do not have the payment details.

Can you advise where i am going wrong?

Best Regards!

Sandip

[Former Member · Accepted solution]

Hi,

In the standard way for variation margin, it picks the house bank from the futures account master data. However, you cannot create a payment request from here by standard. You can post to a bank clearing account through PMVM for posting variation margin and clear it the normal way.

In case if you want to create a payment request, then you have to use a BAPI to create the request by coding your logic in the BADI TPM_ACCIF_TRAC.

There is a note regarding payment for futures and an enhancement in TPM4. Note number is 1587841. But this is only for EH5 and also I am not sure what are the functionalities added like whether posting to customer or a payment request option added.

Regards,

Ravi

Edited by: Ravishankar Ramamurthy on Jun 23, 2011 3:24 PM

[former_member583013 · Accepted solution]

Hi Ravi,

Thanks for the helpful answer.

One basic question - What does PMVM do by picking house bank details? Just to add in accounting document while posting? The standard flows only have the payment details defined in BP? Is it customizble like by making update type Payment relevent?

Coming back to our discussion:

- Currently the system posts variation gains in margin account against P/l. And you say i make it position posting in margin account against bank clearing?

Thanks for the BADI update also. I think i have options now to achieve it.

Best Regards!

Sandip

[former_member583013 · Accepted solution]

Hi Ravi,

I think i now understand what you meant.

Payment details are taken for creating payment request only for the main transaction flows. But for variation margin flows, it is only posted. But no payment request created. We can create it by using the BADI.

I hope this is correct.

The other solution of bank clearing account i still have doubt, if it will be correct posting, as written in previous reply.

I am closing the message as i think Solution 1 is the way we would like to go.

In case my understanding is wrong, please don't hesitate to reply ( though message is answered ).

This will be beneficial for thread visitors.

Best Regards!

Sandip