You are on page 1of 92

City of Portland

Treasury Module
User Guide
Front Office and Back Office
SAP Roles

This document created by: EBS Team in consultation with PF&T.

Page 2

This document last modified: 12/8/2014

Treasury Module

Table of Contents
1. Overview..................................................................................................................................... 5
1.1 TRM Roles ........................................................................................................................... 5
1.2 Information needed in order to enter transactions. ......................................................... 7
1.3 TRM Activity Checklist ...................................................................................................... 10
2. Create Security Transactions .................................................................................................... 12
2.1. Create Class (FWZZ)......................................................................................................... 12
A. Fixed-Interest Bonds ...................................................................................................... 14
B. Variable Interest Bonds-- ............................................................................................... 15
C. Zero Bonds, Commercial Paper, Bankers Acceptance .................................................. 18
2.2 Upload Market Prices (TBDM) ......................................................................................... 20
2.3 Edit Security Prices (FW17) .............................................................................................. 21
2.4 Create Transactions (FTR_CREATE) .................................................................................. 22
2.4.1 Create Fixed Interest Bond ........................................................................................ 22
2.4.2 Create Variable Interest Bonds .................................................................................. 25
2.4.3 Create Zero Coupon Bond, Commercial Paper, Bankers Acceptance ...................... 27
3. Create Money Markets (FTR_CREATE) ..................................................................................... 30
3.1 Variable Interest Money Market ...................................................................................... 30
3.2 Fixed Term and Interest and Repurchase Agreements Money Markets ......................... 35
4. Settle the Transaction ............................................................................................................... 40
4.1 Settle the Transaction (FTR_EDIT).................................................................................... 40
5. Daily ActivitiesFront Office (Beginning of Day) .................................................................... 41
5.1 Review Cash Flows for the Day (TPM13) ......................................................................... 41
5.2 Upload market prices (TBDM) See 2.2 for directions ...................................................... 42
5.3 Change the Interest Rate (JBIRM) .................................................................................... 42
5.4 SecuritiesUpdate Planned Records (FWUP) ................................................................. 43
6. Daily ActivitiesBack Office (End of Day) ............................................................................... 45
6.1 Agree security cash flow to custodian (TPM13) .............................................................. 45
6.2 Post to the GL: Post purchase amount (TBB1) ................................................................. 46
6.3 Post to GL: Post interest receipt (FWSO) ......................................................................... 48
6.4 Derived Business Transactions: Clear prepaid interest (TPM18) .................................... 49
6.5 Post Amortization and Update Market Value (TPM1) ..................................................... 49
7. TroubleshootingBack Office .................................................................................................. 52
7.1 Reverse error flows (FTR_Edit)......................................................................................... 52
7.1.1 Reverse a Purchase .................................................................................................... 52
7.1.2 Reverse a Non-Position Flow for a Money Market.................................................... 52
7.2 Reverse TBB1 Errors-Reverse a purchase or non-position flow for a MM (TPM10) ....... 53
7.3 Reverse Valuation--TPM1 (TPM2) .................................................................................... 54
Page 3

Overview

FMLA Workbench

7.4 Reverse FWSO for all or one security (TPM_POSTAUTREV) ............................................ 55


7.5 Reverse TJ05 (Interest Rate Fixing for MMs) .................................................................. 56
8. As NeededFront Office .......................................................................................................... 59
8.1 Create Business Partner (BP)............................................................................................ 59
8.2 Change the Business Partner ........................................................................................... 63
8.3 View changes to Business Partner ................................................................................... 63
8.4 Delete a Business Partner Role ........................................................................................ 64
8.5 Maintain Treasury Administrative Fee ............................................................................. 65
9. As Needed-Back Office.............................................................................................................. 67
9.1 Sell/Call Securities (FTR_Create) ...................................................................................... 67
9.2 Sell Variable Interest Money Market (FTR_EDIT) ............................................................ 68
9.3 Adjust Interest Payment for MM Transactions (FTR_EDIT) ............................................. 68
9.4 Change the Interest Rate (JBIRM) .................................................................................... 70
9.5 Update transaction with new interest rate (TJ13) ........................................................... 71
9.6 Fix Adjusted Interest Rate for MMs (TJ05)...................................................................... 72
9.7 Create Securities Account (TRS_SEC_ACC) ...................................................................... 74
10. MonthlyBack Office ............................................................................................................. 74
10.1 Accrue Interest (TPM44) ................................................................................................ 74
10.2 Verify all relevant flows have posted for the month (TPM13) ...................................... 75
10.3 Review Money Market Interest Receipts (FTR_Edit) ..................................................... 76
10.4 Add LGIP Fees (FTR_EDIT) .............................................................................................. 77
10.5 Calculate Month-End Earnings Allocation...................................................................... 79
10.5.1 Determine the Net Accrued Interest for the Month ............................................... 79
10.5.2 Determine the Actual Monthly Earnings Received.................................................. 81
10.5.3 Calculate Earnings .................................................................................................... 85
10.6 Reconciliation of Earnings .............................................................................................. 85
11. Cash Management ................................................................................................................. 86
11.1 Posting Journal Reconciliation Tool (TPM20)................................................................. 86
12. Reports ................................................................................................................................... 86
12.1 Table of Reports ............................................................................................................. 87
12.2 Treasury Custom Report (ZTR_INVEST_REPORT)........................................................... 89

Page 4

Treasury Module

Overview

1. Overview
The SAP Treasury Module (TRM) includes investment tracking, calculation of interest income,
realized gains/losses and unrealized gains and losses, amortization of premiums and discounts,
general trade information, integration to the GL and basic analytics such as total rate of return,
weighted average maturity, and weighted average maturity to callable date.

1.1 TRM Roles


Role
RP_S_TR_FRONT
OFFICE

Transaction

Description

BP

Maintain Business Partner (create and change)

FTR_CREATE

Create Order

FTR_EDIT

Edit Financial Transaction:


Display
Settle
History
Order expiration

RP_S_TR_BACK OFFICE

FWZZ

Create Security Class

JBIRM

Maintain Table Views (update reference interest rates)

TJ13

Update adjustment dates

TBDM

Import Market Data

ztr_admin_fee

Create/Change/Delete admin fee table

TJ05

Automatic Interest Rate or Commodity/ Security Price


Adjustment

BP

Maintain Business Partner (create and change)

FTR_CREATE

Create Financial Transaction

FTR_EDIT

Edit Financial Transaction:


Change
Display
Reverse
Roll Over
History
Order Expiration

Page 5

Overview

Treasury Module

Role

RP_S_TR_DISPLAY

Page 6

Transaction

Description

FW17
FWSO
FWZZ
JBIRM
TBB1

Give Notice
Execute Order
Enter Market Prices
Securities: Automatic Debit Position
Create Security Class
Maintain Table Views (update reference interest rates)
Treasury: Post Flows

TDBM

Import Market Data

TJ13

Update adjustment dates

ztr_admin_fee

Create/Change/Delete admin fee table

TJ05
TPM_POSTAUTREV
TPM1
TPM10
TPM13
TPM18
TPM2
TPM44
TPM45
TRS_SEC_ACC

Automatic Interest Rate or Commodity/ Security Price


Adjustment
Reverse Automatic Debit Position Run
Execute Valuation
Fix, Post, Reverse Business Transactions (reverse TBB1)
Subledger Cash Flow
Fix and Post Derived Business Transactions
Reverse Valuation
Execute Accrual/Deferral of Expenses and Revenues
Reverse Accrual/Deferral
Create/Edit Securities Account

BP

Display Business Partner

BPCD
FTR_EDIT
FWZZ
S_ALN_01001149
S_ALN_01001150
S_ALR_87015218
S_PLN_16000293
TBCD
TIS1
TJ07
TJ10
TJ12

Change Documents (Business Partner)


Display Financial Transaction
Display Class
Remaining Term Statistics
Share of Position
Posting Journal
Total Commitment
Treasury: Change Documents for Transaction
Overview - Positions
Rate / Price Adjustment Schedule
Treasury: Summary Journal for MM, Securities, etc.
Journal: Transactinos with Cash Flows

Treasury Module

Role

Overview

Transaction
TMR1
TPM12
TPM13
TPM20
TPM40
TPM40a
TPM51
ZTR_INVEST_REPORT

Description
Money Market: Position List
Subledger Positions
Subledger Cash Flow
Posting Journal
Display Cash Flow for Security Account
Display Securities Account Class Position List
Treasury Ledger: Periodic Reporting
Treasury Ledger: Periodic Reporting

1.2 Information needed in order to enter transactions.


When creating, reviewing or changing transactions in the Treasury Module (TRM), it is
important to have all the necessary information available from the Trade Ticket. The table
below gives a description of common SAP fields in (TRM).
SAP Field
Description/Example
Comment
Bond Classification

Business Partner

Close Date:

US Treasuries
US Agencies
US Guaranteed Corp Bonds
Municipal Bonds
Corporate Bonds
Counter Party: Broker/dealer or
Click on Match box
bank. Partners entered in
field. Use Search Tab
transaction
Partners by BP Roles
Issuer: Organization who issues
the bond for securities. Entered on
the Security Class.
Depository Bank (Custodian
Bank): Custodian of the Securities.
Union Bank of California
UB is the security account entered
on the transaction.
Trade Date

For Money Markets this


is on the structure tab.

Page 7

Overview

Treasury Module
SAP Field

Description/Example

Company Code
Date Details:
Pos. Value Date
Calculat. Date
Payment Date
End of Term
Fund

COP1
All are the settlement date

Gen Val Class

Short Term = up to and including 1


year
Long Term = 1 year +
Not-relevant (always)
CUSIP #
USD
1st Settlement Date
Unless 1st interest accrual date is
before interest start datethen
use 1st interest accrual date.
Issuer of the Security
Example: RBS Securities Inc.
One year +
Par Value
COP1
Market Price determination date
Market Price as a % of PAR
Example: 100.1%
04H-Variable rate bonds
04I-Fixed-interest bonds
04J-Zero bonds
51A-Fixed Term Deposit
51B-Portland Posterity
51C-Repurchase Agreements

Grant
ID Number
Issue Currency
Issue Start Date

Issuer
Long Term
Nominal Amounts
Portfolio
Price Date
Price/Rate
Product Type

Page 8

Maturity Date
850400

Comment
For Securities this is on
the Trading Data tab.
Can set to default

Except for:
LGIP5073850301
Portland Posterity-850208

Treasury Module
SAP Field

Securities Acct.
Short Term

Overview
Description/Example
04B-Bankers Acceptance
04C-Commercial Paper
55A-Variable interest MMs
55C-LGIP

Comment

Custodian--UB
Up to and including one year

Page 9

Overview

Treasury Module

1.3 TRM Activity Checklist

Daily
Front Office: Beginning of Day
TPM13Review cash flows for the day
TBDMUpload market prices (FW17 for manual input or review)
JBIRMUpdate Variable Bond Interest Rates
Back Office: (End of Day)
TPM13Agree security cash flow to custodian
TBB1Post flows to accounting
FWSOPost security interest and repayment flows
TPM18Post derived business transactions
TPM1Post amortization and update market value
Trouble-shooting:
FTR_EditReverse error flows (notemust execute TPM10 after reversal)
TPM10Reverse TBB1 errors (note must adjust transaction first)
TPM2-Reverse TPM1Reverse all or one security
TPM_POSTAUTREV-- Reverse FWSO for all or one security
TJ05_REVReverse TJ05 (MM interest rate fixing)

As needed:
Front Office:
FWZZCreate Security Class
FTR_EditSettle transactions created by back office
BPCreate Business Partner
ZTR_ADMIN_FEEMaintain Treasury Administrative Fee
Back Office:
FTR_CreateCreate transactions and sell/call
FTR_EditAdjust interest flows, increase principle, decrease principle, roll-over fixed
term deposits, reverse transactions or individual non-position flows.
JBIRMUpdate variable money markets interest rates (must run TJ13 and TJ05 to fix
new rates)
TJ13update transaction with new interest rate (after JBIRM for money markets)
TJ05 fix interest adjustments for MMs (after TJ13 update)
TRS_SEC_ACCCreate or edit custodian (contact EBS)
ZTR_ADMIN_FEEMaintain Treasury Administrative Fee

Page 10

Treasury Module

Overview

Monthly:
Back Office:
TPM44Execute accrued interest
TPM13Verify all relevant flows have posted for the month
Calculate month-end earnings allocation
Reconcile earnings distribution
FTR_Edit--Review money market interest receipts
FTR_EditAdd LGIP Fees
Cash management:
Review LGIP and Custodian Clearing accounts are zero for the month
TPM20Posting Journal Reconciliation tool
Reporting:
ZTR_INVEST_REPORT Summary and detailed data in City custom format
TPM13Review flow details by transaction/Security ID
TPM12Standard Position List
TPM20GL Posting journal, shows all TRM postings to the GL with account and
document number.
Create Security:
FWZZ
FTR_Create
FTR_Edit (Settle)
Create MM:
FTR_Create
FTR_Edit (Settle)

Page 11

2. Create Security Transactions

Treasury Module

2. Create Security Transactions


To Enter Security Transactions there are three steps:
2.1. Create ClassTransaction Code FWZZ
2.2. Upload Market PricesTransaction Code TBDM (this is an upload from a .txt file).
(FW17 can be used for manual input or review)
2.3. Create TransactionTransaction Code FTR_Create

2.1. Create Class (FWZZ)


Transaction FWZZ is used to create financial instruments such as bonds.
Step 1: Enter the transaction code FWZZ in the SAP Easy Access field.
Note: All of these transactions can be set up as favorites!
Step 2: Open the transaction.
Step 3: Click on the Create

button.

Step 3: Complete the following:


ID Number: CUSIP Number
Product Type:
04H: Variable Bonds
O4I: Fixed Interest Bonds
O4J: Zero bonds (Discount bonds)
O4B: Bankers Acceptance
O4C: Commercial Paper
Shrt: Use Treasury convention (15
character limit)
Long: Long description of the security (50
character limit)
Make sure the Without reference radio
button is checked.

Page 12

Treasury Module

2. Create Security Transactions

Step 4: Click on the Create


button.
Step 5: On the Search Terms Tab select the correct Bond Classification. The Bond Category is
used to determine the correct Balance Sheet G/L account.

Step 6: Click on the Basic Data Tab. The Basic Data Tab contains the main information of the
security. The data is the same for all product types. Enter the following information:
Issuer: Issuer of the Security
Issue Currency: USD
Issue Start Date: 1st Settlement Date of Security. (Use 1st interest accrual if comes before 1st
Settlement Date.)
End of Term: Maturity date
Interest Incl. Indicator: Select Inclusive Indicator if maturity date is included in Interest
calculation, which is not usually the case. (It is unchecked by default.)

Step 7: Click on the Conditions Tab.


Page 13

2. Create Security Transactions

Treasury Module

The directions below are for all three types of securities and Bankers Acceptance and
Commercial Paper. When you have completed the conditions for the class you are creating, go
to STEP 8.
A. Fixed-Interest Bonds
Enter the following information:
Int. Calc. Method:
Use the Interest Calculation Method of the Bond. Use the following SAP
methods depending on the Security information:
Security
SAP Calculation Method
Information
30/360
360/360
Act/Act
Act/Act(P)
Act/360
Act/360
Repayment Type:
Interest Condition:

Maturity
Int (Perc-quoted)
Field
Description
Eff. from
The Issue Start date.
Percent
Calc. Date
Calendar
Rule
Due Date
Frq
MEID

Final Repayment:

Page 14

Coupon / Interest Rate


End Date of the Interest
Calculation
Payment working day
shift usually 1
Interest Payment Due
Date
Frequency

Example
Issue date: 11/28/11; Effective
Start Date: 11/28/2011
Day before the 1st Coupon
date
Next business day convention =
Next working day shift
1st Coupon date
6 = Interest Payable every 6
months

If checked, interest
payment always on
month end

Final Repayment
Field
Description
Eff. from
Issue date (1st
Settlement Date)

Example
Issue date: 11/28/11;

Treasury Module

2. Create Security Transactions


Calc. Date

Calendar
Rule
Due Date
MEID

Day Before Maturity


Date if inclusive
indicator unchecked.
Maturity Date if
inclusive indicator is
checked.
Payment working day
shift usually 1
Maturity Date
If checked, interest
payment always on
month end

Next business day convention =


Next working day shift

1
1

B. Variable Interest Bonds--The Conditions Tab contains the Interest Calculation Method,
Interest rate, Frequency and Due Dates.
Enter the following information:
Int. Calc. Method:
Use the Interest Calculation Method of the Bond. Use the following SAP
methods depending on the Security information:
Security
SAP Calculation Method
Information
30/360
360/360
Act/Act
Act/Act(P)
Page 15

2. Create Security Transactions


Act/360
Repayment Type:
Variable Interest:

Treasury Module
Act/360

Maturity
Variable Interest Rate
Field
Description
Eff. from
Usually issue start date
Reference
Rate

Choose the Reference


Rate

Calc. Date
Calendar
Rule
Due Date

Day before maturity


Working day shift rule if
any
Interest Payment Due
Date
Frequency

Frq
MEID

Example
Issue date: 11/28/11; Effective
Start Date: 11/28/2011
The reference rate is created in
configuration.
Example: LIBORUSDO33
month Libor
1st Coupon date
Next business day convention =
Next working day shift
1st Coupon date
6 = Interest Payable every 6
months

If checked, interest
payment always on
month end

Int. Rate Adjustment: This dictates the conditions when the interest rate changes.
Note: May need prospectus to determine these dates.

Page 16

Field
Eff. from

Description
Usually issue start date.

Calendar
Rule
Interest
Rate
Fixing
Date

Working day shift rule if


any
Usually (-) x number of
days from interest rate
adjustment date.

Example
Issue date: 11/28/11; Effective
Start Date: 11/28/2011

Treasury Module

2. Create Security Transactions

Double click to update the condition


details

Note: If specific dates or Regular is set,


the Interest rate has to be maintained
at these dates using transaction JBIRM.

Final Repayment:

Final Repayment

Field
Eff. from
Calc. Date

Due Date

Description
Issue date (1st Settlement
Date)
Day Before Maturity Date
if inclusive indicator
unchecked.
Maturity Date if inclusive
indicator is checked.
Maturity Date

Example
Issue date: 11/28/11

Page 17

2. Create Security Transactions

Treasury Module

C. Zero Bonds, Commercial Paper, Bankers Acceptance


The Conditions Tab contains the Interest Calculation Method, Interest rate, Frequency and Due
Dates.
Enter the following information:
Int. Calc. Method:
Use the Interest Calculation Method of the Security. Use the following
SAP methods depending on the Security information:
Security
SAP Calculation Method
Information
30/360
360/360
Act/Act
Act/Act(P)
Act/360
Act/360
Discounted:
Repayment Type:

Discounted on exponential basis (always)


Repayment of Security

Final Repayment:

Final Repayment
Field
Description

Page 18

Example

Treasury Module

2. Create Security Transactions


Issue Date (1st
Settlement Date)
Day Before Maturity
Date if inclusive
indicator unchecked.
Maturity Date if
inclusive indicator is
checked.
Maturity Date

Eff. from
Calc. Date

Due Date

Step 8: Click on the Exchanges Tab.


Step 9: Click on the Insert Row

button. Enter NYSE in the Exchange field.

Page 19

2. Create Security Transactions

Treasury Module

Step 10: Click on the Notice Tab.


For Callable bonds enter the Notice dates.
Note: In the case of a premium, the notice From date is used to calculate the amortization
for premiums.
Step 11: Review Cash Flow. Verify dates are accurate and amounts make sense. If not,
condition details need to be updated.

Step 12: Click the Save

button.

2.2 Upload Market Prices (TBDM)


This is the automated way to upload market prices from a .txt file. The format is very specific
for the file to properly upload. For a manual process and/or review you can use transaction
Step 1: Enter the transaction code TBDM in the SAP Easy Access field.
Step 2: Enter the following:
a. Browse for the File name where your .txt file is stored.
b. Leave Manual Entry selected
c. Error file
Check the Generate error file and Download checkboxes
File name: Browse to where youd like SAP to generate and save an error file once
the transaction is updated.
Page 20

Treasury Module

2. Create Security Transactions

d. Output control
Check Test Run.
Select All

Click on the Execute

button.

If no errors, uncheck the test run box and execute again. If errors, check output
results, correct errors, and execute again.
Note: You can verify Market Prices have been uploaded by checking FW17 (2.3)

2.3 Edit Security Prices (FW17)


FW17 can be used for manual input or
review.
Step 1: Enter the transaction code FW17 in
the SAP Easy Access field.
Step 2: Enter the Id number and Exchange.
(If you have just created the Class the ID #
will default). Click on the Change button.
Step 3: Enter the Price date.
Step 4: Price type will always be Closing.

Page 21

2. Create Security Transactions

Treasury Module

Step 5: Enter the Price/Rate (always the rate).

Step 6: Click the Save button.


NOTE: This is the Price TPM1 refers to when updating Market values.

2.4 Create Transactions (FTR_CREATE)


2.4.1 Create Fixed Interest Bond
Step 1: Enter the transaction code FTR_CREATE in the SAP Easy Access field.
Step 2: Open the transaction.
Step 3: Enter the following on the Create Financial Transaction screen:
Transaction Type: 100
Partner: Enter the appropriate business partner (broker from trade ticket).
ID Number: CUSIP#
Note: These fields will infer if you go to the transaction after FW17-Editing the Security Prices
or FWZZ-Creating the Class.
Step 4: Hit Enter or the button.
Step 5: Enter the following on the Structure Tab based on the Trade Ticket:

Page 22

Treasury Module

2. Create Security Transactions

Securities Acct:
UB (Custodian)
Gen Val Class:
Short Term or
Long Term
Date Details: All
are settlement
dates.
NOTE: Calculat.
Date is the date
used to calculate
accrued interest.
Nominal Amount:
Par Value
Price: Price
Step 6: Hit Enter
or the button.
Note: Check that
the Payment
Amount equals
the Principal on
the Trade Ticket
and the Accrued
Interest Payment
Amount equals the Accrued Interest on the Trade Ticket.
Step 7: Click on the Trading
Date Tab:
Step 8: Enter the following:
Close Date: Trade Date
Trader: Name of Trader
Step 9: Click on the
Administration Tab:
Step 10: Enter the
following:
Portfolio: COP1
Fund: 850400
Grant: Not-Relevant

Page 23

2. Create Security Transactions


Step 11: Click on the Position cash flows

Page 24

Treasury Module
button.

Treasury Module

2. Create Security Transactions

Step 12: Select Valuation Area: Operative Valuation Area US Gaap

Step 11: Select Create Automatically.

NOTE: Review flows for all dates and amounts to agree with trade ticket.
Step 13: Click the green back arrow
.
Step 14: Click on the Cash Flow tab.
You should see payment flows for the transaction.
Step 15: Click the Save

button.

2.4.2 Create Variable Interest


Bonds
Step 1: Enter the transaction code
FTR_CREATE in the SAP Easy Access
field.
Step 2: Open the transaction.
Step 3: Enter the following in the Create Financial Transaction screen:
a. Company Code: COP1
b. Transaction Type: 100
Page 25

2. Create Security Transactions


c. Partner: Enter the appropriate business partner number.
d. ID Number: CUSIP #
Step 4: Hit Enter.
Step 5: On the Structure Tab
enter the following:
Securities Acct: UB
Gen Val Class: Short or Long
Term
Date Details: All are settlement
dates
Uncheck the Incl. check box.
Nominal Amount: Par value
Price Percent: Premium or
Discount %
Step 6: Hit Enter or the
button.
Note: Check the payment
amount to make sure it
calculated correctly.
Note: Leave the Int.CalcMethod
field blank as it pulls from the
class.
Step 7: Click on the Trading Date Tab:
Step 8: Enter the following:
Close Date: Trade Date
Trader: Name of Trader

Page 26

Treasury Module

Treasury Module

2. Create Security Transactions

Step 9: Click on the Administr. Tab.


Enter the following data:
Portfolio: COP1
Fund: 850400
Grant: Not-Relevant
Step 10: Click on the Position Cash Flows
button.

Step 11: Click on Valuation Area; Operative


Valuation Area US Gaap
Step 12: Click on Create Automatically.
Step 13: Click on the green back button
.
Step 14: You should see payment flows for
the transaction.

Note: If you double-click on the interest flow you can see the number of days on which the
interest calculation is based.
Step 15: Click the Save button.
2.4.3 Create Zero Coupon Bond, Commercial Paper, Bankers Acceptance
Step 1: Enter the transaction code FTR_CREATE in the SAP Easy Access field.
Step 2: Open the transaction.
Step 3: Enter the following on the Create Financial Transaction screen:
Transaction Type: 100
Partner: Enter the appropriate business partner
ID Number: CUSIP#
Note: These fields will infer if you go to the transaction after FW17-Editing the Security Prices
or FWZZ-Creating the Class.
Step 4: Hit Enter or the button.
Step 5: Enter the following on the Structure Tab based on the Trade Ticket:
Securities Acct: UB
Gen Val Class: Short Term or Long Term

Page 27

2. Create Security Transactions

Treasury Module

Date Details: All are settlement dates.


Nominal Amount: Par Value
Price: Price

Step 6: Hit Enter or the

button.

Note: Check that the Payment Amount equals the Principal on the Trade Ticket. .
Step 7: Click on the Trading Date Tab:
Step 8: Enter the following:
Close Date: Trade Date
Trader: Name of Trader

Page 28

Treasury Module

2. Create Security Transactions

Step 9: Click on the Administration Tab:


Step 10: Enter the following:
Portfolio: COP1
Fund: 850400
Grant: Not-Relevant
Step 11: Click on the Position cash flows
button.
Step 10: Select Valuation Area:
Operative Valuation Area US Gaap

Step 12: Select Create Automatically.

NOTE: Review all dates and amounts for all flows.


Step 13: Click the green back arrow
.
Step 14: Click on the Cash Flow tab.
You should see payment flows for the transaction.
Step 15: Click the Save

button.

Page 29

3. Create Money Markets (FTR_CREATE)

Treasury Module

3. Create Money Markets (FTR_CREATE)


3.1 Variable Interest Money Market
Step 1: Enter the transaction code FTR_CREATE in the SAP Easy Access field. You can also
create a favorite.
Step 2: Open the transaction.
Step 3: Enter the following in the Create Financial Transaction screen:
a. Company Code: COP1
will infer.
b. Product Type:
55A-Variable Interest,
without maturity
55C-LGIP
c. Transaction Type: 100
d. Partner: Enter the
appropriate business
partner number.
Step 4: Hit Enter or the
button.

Page 30

Treasury Module
Step 5: Enter the appropriate information in the
following:
Amount: Enter the dollar
amount
Start: when account opens
End: current fiscal year
end (update each year
before the end of current
for the next fiscal year)
Inclusive: Start Inclusive
Interest form: Variable
Condition type: 1150
Ref.Int.Rate: Select the
appropriate interest rate
1st Int. Rate: Enter the
first interest rate from
bank statement
Int. calc. method: Act/ActY
(ISDA)
Frequency:
WrkgDaysDueDate: Select
either No shift or
Previous Work Day
Repayment form: Final
repayment
Condition type: 1120
Contract Date: Trade Date
Trader: Name of Trader

3. Create Money Markets (FTR_CREATE)


fields on the Structure Tab. Note the

Page 31

3. Create Money Markets (FTR_CREATE)

Treasury Module

Step 6: Enter the appropriate information in the

Step 7: Click on the Conditions

Page 32

fields on the Administr. Tab.

button. Double click on Condition Type 1150.

Treasury Module

3. Create Money Markets (FTR_CREATE)

Step 8: Check the indicated boxes on the Condition Details: Interest screen:

Page 33

3. Create Money Markets (FTR_CREATE)

Treasury Module

Step 9: Click the green back arrow


.
Step 10: Double-click on Condition type 1210.
Step 11: Change Interest Rate Adjustment to For Reference interest rate entry.

Step 12: Click the


green back arrow
twice.
Step 13: Click on the
Cash Flow tab. You
will see all related
cash flows for the
transaction based on
the end term
entered: investment,
month-end interest
payments and final
repayment.

Page 34

Treasury Module

3. Create Money Markets (FTR_CREATE)

Note: You can double-click on the interest flow to see the number of days on which the
interest calculation is based.

Step 14: Click the Save

button.

3.2 Fixed Term and Interest and Repurchase Agreements Money Markets
Step 1: Enter the transaction code
FTR_CREATE in the SAP Easy Access field. You
can also create a favorite.
Step 2: Open the transaction.
Step 3: Enter the following in the Create
Financial Transaction screen:
e. Company Code: COP1.
f. Product Type:
51A-Fixed-Term Deposit
51B-Portland Posterity
51C-Repurchase Agreements
g. Transaction Type: 100
h. Partner: Enter the appropriate business partner number.

Page 35

3. Create Money Markets (FTR_CREATE)


Step 4: Hit Enter.
Step 5: Click on the Structure Tab.
Step 6: Enter the appropriate information in the
Payment Amount: Enter
the par amount
Term Start:
Term End:
Percentage Rate: %
Int. calc. method:
Act/ActY (ISDA)
Frequency: At end of
term
Check Shift due date
back to end of term box
Note: Capitalized
interest means interest
isnt paid out but added
to the value of the
investment.
Click on the
button.
Enter appropriate shifts
and indicate whether on
rollover, interest is paid
out (payment) or rolled
into new balance
(capitalization), or
deferred to a particular
paid out date (deferral).
Contract Data: Trade
Date
Trader: Name of Trader

Page 36

Treasury Module

fields on the Structure Tab.

Treasury Module

3. Create Money Markets (FTR_CREATE)

Step 6: Click on the Administr. Tab. Enter the following:


Portfolio: COP1
Fund: 850400 (Portland Posterity: 850208, LGIP5073: 850301
Grant: Not-Relevant

Step 7: Click on the Conditions

button. Double click on Condition Type 1200.


Page 37

3. Create Money Markets (FTR_CREATE)

Treasury Module

Step 8: Check the appropriate boxes on the Condition Details: Interest screen for End of
Interest Period and Due Date. For Working Day, Click in the field and hit F1 for information to
determine the shift.

Step 9: Click the green back arrow

Page 38

Treasury Module

3. Create Money Markets (FTR_CREATE)

Step 10: Click on the Cash Flow tab. You should see all related cash flows for the transaction.

Note: If you double-click on the


interest flow you can see the number
of days on which the interest
calculation is based.

Step 11: Click Save

Page 39

4. Settle the Transaction

Treasury Module

4. Settle the Transaction


When a Transaction has been created, someone with the Front Office Role must review what
has been entered and then Settle the transaction.

4.1 Settle the Transaction (FTR_EDIT)


Step 1: Enter the transaction code FTR_EDIT in the SAP Easy Access field. You can also create a
favorite.
Step 2: Enter the transaction number.
Step 3: Click on the Settle button.
Step 4: Review the transaction.

Step 5: Click the Save

Page 40

button.

Treasury Module

5. Daily ActivitiesFront Office (Beginning of Day)

5. Daily ActivitiesFront Office (Beginning of Day)


5.1 Review Cash Flows for the Day (TPM13)
This is a detailed listing of all flows related to a transaction; both those that post to the General
Ledger (GL) and those that dont (i.e.accrued interest). This report can be used to reconcile
to the custodian daily, review all flows have posted/fixed at month end, and other detailed
review at the flow level.
Step 1: Enter the transaction code TPM13 in the SAP Easy Access field.
Step 2: Enter/delete/check the following:
Product Groups:
Check both Securities and OTC Trans.

Securities:
Securities Account: Delete UB

Selection of TRL flows


TRL Date: Enter
todays date
Step 3: Click on the Execute
button.

Page 41

5. Daily ActivitiesFront Office (Beginning of Day)

Treasury Module

Note: You can drill into a transaction by clicking on the TRL Date.

Once the report has executed there is a toolbar to point out:

Below are three buttons from the above toolbar and descriptions of their use:
1.
Use this to refresh the report. This is useful if youre executing transactions and want
to update your results without having to leave the report.
2.
Use with a particular flow highlighted and you can drill into the posting
journal (TPM20) and see the posting details.
3.
Use with a particular flow highlighted and you can press list and drill
into the position list (TPM12) based on that flows date.

5.2 Upload market prices (TBDM) See 2.2 for directions


5.3 Change the Interest Rate (JBIRM)
This will be done on a daily basis to update the Variable Bond
Interest Rates and on an as needed basis for other interest
rates.
Note: Subsequent to this transaction you will need to run tcode FWUP. See 5.4
Step 1: Enter the transaction code JBIRM in the SAP Easy
Access field. You can also create a favorite.

Page 42

Treasury Module

5. Daily ActivitiesFront Office (Beginning of Day)

Step 2: Select Ref. interest rate. Click on the green check


or hit the enter key.
Step 3: Click in the Ref. interest rate From field and use the matchbox dropdown menu to
choose the appropriate reference interest rate.
Step 4: Click on the green check
Step 5: Click the Display>Change
button.
Step 6: Click the New Entries button.

Step 7: Enter the Reference interest rate, the beginning validity date and the actual rate.

Step 8: Click the Save

button.

5.4 SecuritiesUpdate Planned Records (FWUP)


This transaction updates planned records between the security ID and the Security transaction.
Run after interest rate adjustments, but also would need to be run if the City ever needed to
add or change conditions on the security once transactions are created.
Step 1: Enter the transaction code FWUP in the SAP Easy Access field.
Page 43

5. Daily ActivitiesFront Office (Beginning of Day)

Treasury Module

Step 2: Input security ID and click on execute

You will see the Results Log with the message: Update was carried out successfully.

Page 44

Treasury Module

6. Daily ActivitiesBack Office (End of Day)

6. Daily ActivitiesBack Office (End of Day)


6.1 Agree security cash flow to custodian (TPM13)
This is a detailed listing of all flows related to a transaction; both those that post to the General
Ledger (GL) and those that dont (i.e.accrued interest). This report can be used to reconcile
to the custodian daily, review all flows have posted/fixed at month end, and other detailed
review at the flow level.
Step 1: Enter the transaction code TPM13 in the SAP Easy Access field. Choose the Cash Flow
Layout.
Step 2: Enter/delete/check the following:
Product Groups:
Check Securities

Securities:
Securities Account: Delete UB

Selection of TRL flows


TRL Date: Enter
todays date
Step 3: Click on the Execute
button.

Page 45

6. Daily ActivitiesBack Office (End of Day)

Treasury Module

Note: You can drill into a transaction by clicking on the TRL Date.

Once the report has executed there is a toolbar to point out:

Below are three buttons from the above toolbar and descriptions of their use:
1.
Use this to refresh the report. This is useful if youre executing transactions and want
to update your results without having to leave the report.
2.
Use with a particular flow highlighted and you can drill into the posting
journal (TPM20) and see the posting details.
3.
Use with a particular flow highlighted and you can press list and drill
into the position list (TPM12) based on that flows date.

6.2 Post to the GL: Post purchase amount (TBB1)


Step 1:
Step 2:
Step 3:
Step 4:

Enter the transaction code TBB1 in the SAP Easy Access field.
Enter the transaction number.
In the Up To And Including Due Date field enter the Date for flows you want to post.
Check the Test run box.

Page 46

Treasury Module

Step 5: Click on the Execute

6. Daily ActivitiesBack Office (End of Day)

button.

Step 6: Review results. If all is correct, Click the green back arrow

, uncheck the Test Run

box and Click on the Execute


button.
Note: You should see purchase amount and appropriate GL accounts.
Note: Click on the select layout button and choose the \EBS_1 layout.

Page 47

6. Daily ActivitiesBack Office (End of Day)

Treasury Module

6.3 Post to GL: Post interest receipt (FWSO)


Step 1: Enter the transaction code FWSO in the SAP Easy Access field.
Step 2: Enter the
following:
Company Code: COP1
ID Number: CUSIP#
Up To and Including Due
Date: First interest
payment
Step 3: Check the Test
run box.
Step 4: Click on the
Execute
button.
Step 5: Review results. If
all is correct, Click the
green back arrow
,
uncheck the Test Run box
and Click on the Execute

button.

Note: This posting will be the entire amount of the interest receipt offset to Deposits
payable. The next step (TPM18) removes the portion that was in prepaid interest to clear out
the prepaid interest.
Note: Related TBB1 or FWSO flow must post before TPM18 will post.

Page 48

Treasury Module

6. Daily ActivitiesBack Office (End of Day)

6.4 Derived Business Transactions: Clear prepaid interest (TPM18)


This needs to be run every
day!
Step 1: Enter the transaction
code TPM18 in the SAP Easy
Access field.
Step 2: Enter the following:
ID Number: CUSIP#
TRL Date: First interest
payment
Step 3: Check the Test run
box.
Step 4: Click on the Execute
button.
Step 5: Click on the Fix button.

Step 6: Review results. If all is correct, Click the green back arrow
box and click on the Execute

, uncheck the Test Run

button.

6.5 Post Amortization and Update Market Value (TPM1)


This transaction is only relevant for the Securities Product Group as Money Markets dont
amortize or record market prices.
Step 1: Enter the transaction code TPM1 in the SAP Easy Access field.
Step 2: Enter or choose the following:
Product Groups: Always select Securities
Securities Account: Delete UB
Valuation parameters:
Key Date for Valuation: Date you are valuing
Valuation Category: Always select Mid-Year Valuation Without Reset
Posting Control: Check Test Run box.

Page 49

6. Daily ActivitiesBack Office (End of Day)

Step 4: Click on the Execute


button
Step 5: Click on Execute valuation button.

Step 4: Click the green check at the bottom of the messages window.

Page 50

Treasury Module

Treasury Module

6. Daily ActivitiesBack Office (End of Day)

Step 5: Click on Valuation messages to see any errors. Click on Logs + Messages to see
accounting postings. Use the green back arrow
screens.

to toggle between the two message

Note: You can drill into the accounting document by clicking on the document number. The
document number will always start 37##########.

Step 6: Review results. If all is correct, Click the green back arrow
box and click on the Execute

, uncheck the Test Run

button.

Page 51

7. TroubleshootingBack Office

Treasury Module

7. TroubleshootingBack Office
7.1 Reverse error flows (FTR_Edit)
This transaction must be done to reverse a purchase or a non-position flow for a money
market.
Note: Must execute TPM10 after reversals to post to accounting.
7.1.1 Reverse a Purchase
Note: If you are trying to reverse an entire transaction and dependent transactions have
already posted, they will need to be reversed prior to this action.
Step 1: Enter the transaction code FTR_Edit in the SAP Easy Access field.
Step 2: Enter the transaction number
Step 3: Select Reverse
Step 4: Select Reversal Reason
Step 5: Click on the Execute
button.
This puts the transaction into to-be-reversed status.
Step 6: Run transaction TPM10 (7.2)
7.1.2 Reverse a Non-Position Flow for a Money Market
Step 1: Enter the transaction code FTR_Edit in the SAP Easy Access field.
Step 2: Enter the transaction number
Step 3: Select Change
Step 4: Go to Cash Flow Tab.
Step 5: Change from edit to reverse
mode by using the drop down on the
edit/reverse icon.
Step 6: Select the flow youd like to
reverse.
Step 7: Select Reverse from the
dropdown on the Flows icon.
Step 8: Click on the Save button.

Page 52

Treasury Module

7. TroubleshootingBack Office

7.2 Reverse TBB1 Errors-Reverse a purchase or non-position flow for a MM (TPM10)


To reverse a purchase you have to reverse the entire transaction.
Step 1: Enter the transaction code TPM10 in the SAP Easy Access field.
Step 2: Enter the following information:
Product Groups: Securities and/or OTC Transaction
General Selections:
Company Code: COP1 (will default)
Limit by Transaction Number: Check the Limit by Transaction Number box and enter the
transaction you want to reverse.
Limiting of Bus. Transactions: Box must be checked
Posting Control:
Reason for Reversal: Select the reason using the match code
Test Run: Leave checked for first run to check for errors and correct
Output Control: Check Display and Select Business Transactions

Page 53

7. TroubleshootingBack Office

Treasury Module

Step 3: Click on the Execute


button.
Step 4: Review Posting Log. If no errors, uncheck test run and execute. If errors, troubleshoot
and correct errors, rerun as test run. When no errors, uncheck test run and execute.

7.3 Reverse Valuation--TPM1 (TPM2)


Use this transaction to reverse all or one security.
Step 1: Enter the transaction code TPM2 in the SAP Easy Access field .
Step 2: Enter the following information depending on what you need to reverse:
Product Groups: Securities and/or OTC Transaction
General Selections:
Company Code: COP1 (will default)
Securities:
ID Number: Enter the ID # only if you are reversing particular securities. If reversing all,
leave blank.
Securities Account: Delete UB
Valuation Parameters:
Key Date for Valuation: Date you want to reverse
Posting Control:
Reason for Reversal: Select the reason using the match code
Test Run: Leave checked for first run to check for errors and correct
Output Control: Check Display Positions

Page 54

Treasury Module

7. TroubleshootingBack Office

Step 3: Click on the Execute


button.
Step 4: Review Posting Log. If no errors, uncheck test run and execute. If errors, troubleshoot
and correct errors, rerun as test run. When no errors, uncheck test run and execute.

7.4 Reverse FWSO for all or one security (TPM_POSTAUTREV)


Use this transaction to reverse FWSO postings.
Step 1: Enter the transaction code TPM_POSTAUTREV in the SAP Easy Access field.
Step 2: Enter the ID Number.
Step 3: Securities Account: Delete UB
Step 4: Position Value DateEnter the date range of desired reversals.
Note: Related GL Accounting period must still be open for this to post.
Step 5: Select the Reason for Reversal using the match code.
Step 6: Check Test Run Box.

Page 55

7. TroubleshootingBack Office

Treasury Module

Step 7: Click on the Execute


button.
Step 8: Review Posting Log. If no errors, uncheck test run and execute. If errors, troubleshoot
and correct errors, rerun as test run. When no errors, uncheck test run and execute.

7.5 Reverse TJ05 (Interest Rate Fixing for MMs)


This transaction is used when you determine that your variable interest MM had a different
interest rate then you thought and you must reverse the interest rate fixing.
Note: You must first use transaction JBIRM and correct the rate for the most current date.
Even though youve done this, the transaction referencing that rate wont update because
youve already fixed the interest rate. Once youve completed the reversal you will need to
run TJ05 again to fix the new rate before you are able to post the related interest payment
(TBB1).
Step 1: Enter the transaction code TJ05_REV in the SAP Easy Access field.
Note: Use FTR_Edit and the Int.rate.adj tab get the necessary information to complete the
reversal if you dont already have it. See screen shot below:

Page 56

Treasury Module

7. TroubleshootingBack Office

Step 2: Complete the following:


a. Choose Interest Rate Adjustment
b. Enter Fixing Date
c. Enter Reference Interest Rate
d. Uncheck All Transactions
e. Enter Single Transaction #
f. Check Test Run

Page 57

7. TroubleshootingBack Office

Treasury Module

07

Step 3: Click on the Execute

button.

Step 4: If there are no errors, click the green back arrow


click on the Execute

Page 58

button.

, uncheck the Test Run box, and

Treasury Module

8. As NeededFront Office

8. As NeededFront Office
(See Sections 2, 3 and 4 for instructions on Creating Security Class and Settling Transactions)

8.1 Create Business Partner (BP)


Business Partner
Business Partners are created for each of the organizations with whom Treasury does business,
such as counterparties, issuers, and custodial banks. Treasury will have its own unique group of
business partners to maintain. These business partners will be numbered externally, meaning
Treasury will enter the number when creating the business partner. The business partner
numbering scheme is TRXXXX and will be used in numerical order (e.g. TR001, TR002, etc).
Business partners are assigned roles based on the business process. All business partners start
with the General Business Partner role.
Step 1: Enter the transaction code BP in the SAP Easy Access field.
Step 2: Open the transaction.
Step 3: Click on the Organization button.
Step 4: Complete the following:
Business Partner: Enter the next
available Treasury BP number (TRXXXX).
Grouping: Treasury
Create in BP role: Business Partner
(Gen.)

Step 5: Complete the following on the Address Tab:


Name: (1st line): Name of organization
Name: (2nd line): Name of contact person
Search Term:
House No.:
Street
City/State/Zip
Language: English
Fax:
E-mail:
Website: Click Other communication, double-click on URl, enter the website.
Page 59

8. As NeededFront Office

Treasury Module

Step 5: Click on the Control Tab.


Step 6: Enter the Authorization Group: TR01 (Treasury).
Step 7: Select the appropriate role in the Create in BP role field by selecting from the dropdown list:
A. Counterparty
B. Depository Bank
C. Issuer
Step 8: Click on Save when the Change to another BP role in create mode window appears.

Page 60

Treasury Module

8. As NeededFront Office

Step 9: Complete the following based on the role selected:


A. Counterparty
a. Click on Company
Code
b. Click on the
SI:Authorizations tab
Page 61

8. As NeededFront Office

Treasury Module

c. Enter Company Code: COP1


d. Hit Enter
e. Check the four authorization boxes

f. Click the Save

button.

B. Depository Bank
Click the Save button.
C. Issuer
a. Click on the Ratings Tab
b. Select the appropriate rating agency using the match code in the Rat. Proc. Column.
c. Select the appropriate rating using the match code in the Rating Column.
d. Enter the date the rating was issued in the Rated on field.
Note: The Valid from and Valid to dates will default when you hit Enter.

Click the Save

Page 62

button.

Treasury Module

8. As NeededFront Office

8.2 Change the Business Partner


Step 1: Enter the transaction code BP in the SAP Easy Access field.
Step 2: Click on the
Open BP icon.

Step 3: Enter the Business Partner number. Click on the


green check or hit Enter.
Step 4: If in Display mode, switch to Change mode by
clicking on the pencil icon
.
Step 5: Change the fields that need to be changed.
Step 6: Click the Save

button.

8.3 View changes to Business Partner


Step 1: Enter the transaction code BP in the SAP Easy Access field.
Step 2: Click on the Open BP icon.

Step 3: Enter the Business Partner number. Click


green check or hit Enter.

on the

Step 4: From the top menu bar, click


Extras>Change History>For this Partner

Page 63

Treasury Module
Step 5: Click on the Select All icon. Click on the green check mark or Hit Enter.

All changes to the


business partner will be
displayed.

8.4 Delete a Business Partner Role


Step 1: Enter the transaction code BP in the SAP Easy Access field.
Step 2: Select the relevant Business Partner.
Step 3: Click on change display
Step 4: Click on the Role detail

Page 64

button.
button.

Treasury Module
Step 5: Highlight the role you want to delete.
Step 6: Click on the delete button.

8.5 Maintain Treasury Administrative Fee


The Treasury Administrative Fee is tracked in SAP via a custom table that is maintained by
Treasury. The fee is captured on a daily basis and is included in the SAP Treasury Investment
Report, where it adjusts the Interest/Amortization per Day totals (producing a Net amount).
The amount is also used when calculating the monthly earnings to be allocated to the bureaus.
Procedure:
Transaction code: ZTR_ADMIN_FEE
The admin fee table includes three columns:
Date: This field acts as an effective date. When a date and fee is entered, the fee will
remain effective until a new date is entered. Therefore it is not necessary to
enter a fee amount for every single day. This is true for both the Fixed Expenses
and the Admin Fee Adjustment.
Fixed Expense: This is the daily Treasury Administrative Fee.
Admin Fee Adjustment: The adjustment field is used to increase or decrease the admin
fee and is used when truing-up the fee to actual expenditures.

Page 65

Treasury Module

To add a new Fixed Expense amount:


1. Click
2. Enter the effective date
3. Enter the amount in the Fixed Expenses column
4. Click Save
This amount will be used as the daily admin fee from this date forward.
To add an Admin Fee Adjustment:
1. Click
2. Enter the effective date
3. Enter the appropriate Fixed Expense Amountif you do not enter a fixed expense
amount, the system will consider this amount as 0.00.
4. Enter the amount of the adjustment in the Admin. Fee Adjustment column. Add a
positive amount to increase the fee or a negative amount to decrease the fee.
5. Click Save
The system will sum the Fixed Expenses and Admin Fee Adjustment amounts and include
the total amount in the Treasury Investment Report under Treasury Admin Fees.

Page 66

Treasury Module

9. As Needed-Back Office

Note: This procedure can also be done by those with the Back Office role.

9. As Needed-Back Office
(See sections 2 and 3 for directions for create transactions)

9.1 Sell/Call Securities (FTR_Create)


The steps to sell/call securities are the same as create transactions (sections 2 and 3) except for
the following:
Transaction Type: 200
Click on the Position Cash Flows button
The Manual Assignment to Single Positions window will open.
If only one lot, click on the green check mark.
If multiple lots, as in the screen shot below, the assigned nominal column will be blank. You
will need to allocate the amount from the lot you are selling. Then click on the Copy button
and review.

Page 67

9. As Needed-Back Office

Treasury Module

Review flows for correct calculations of gain or loss, amortization, accrued interest and sale
amount.

9.2 Sell Variable Interest Money Market (FTR_EDIT)


Step 1:
Step 2:
Step 3:
Step 4:
Step 5:

Enter the transaction code FTR_EDIT in the SAP Easy Access field.
Enter the transaction #.
Click on Change.
Change End Date (maturity date) to Sell Date.
Click on the Save button

9.3 Adjust Interest Payment for MM Transactions (FTR_EDIT)


Step 1: Enter the transaction code
FTR_EDIT in the SAP Easy Access field.
Step 2: Enter the Transaction #.
Step 3: Click on Change.
Step 4: Click on the Cash Flow tab.

Page 68

Treasury Module

9. As Needed-Back Office

You will see all related cash flows for the transaction based on the end term entered:
investment, month-end interest payments and Final repayment.

Step 5:
Step 6:
Step 7:
Step 8:

Click the Flows


button.
Go to Edit Flow
Change Pmnt amount to actual bank receipt.
Click the Copy button.

Page 69

9. As Needed-Back Office

Treasury Module

9.4 Change the Interest Rate (JBIRM)


Step 1: Enter the transaction code JBIRM in the
SAP Easy Access field.
Step 2: Select Ref. interest rate. Click on the
green check
or hit the enter key.
Step 3: Click in the Ref. interest rate From field
and use the matchbox dropdown menu to choose
the appropriate reference interest rate.

Step 4: Click on the green check


Step 5: Click the Display>Change button.
Step 6: Click the New Entries button.

Page 70

Treasury Module

9. As Needed-Back Office

Step 7: Enter the Reference interest rate, the beginning validity date and the actual rate.

Step 8: Click the Save

button.

9.5 Update transaction with new interest rate (TJ13)


This is required after interest rate updates (JBIRM) to money market transactions so the
transaction recognizes that the new rate is available.
Note: This step can be substituted for an individual transaction by going into FTR_EDIT in
change mode and saving.
Step 1: Enter the transaction code TJ13 in the SAP Easy Access field.
Step 2: Enter or select using the match code the relevant Reference Interest Rate.
Step 3: Leave All Transactions box checked.
Step 4: Check Test Run Box.

Page 71

9. As Needed-Back Office

Treasury Module

Step 7: Click on the Execute


button.
Step 8: Review Posting Log. If no errors, uncheck test run and execute. If errors, troubleshoot
and correct errors, rerun as test run. When no errors, uncheck test run and execute.

9.6 Fix Adjusted Interest Rate for MMs (TJ05)


Every time an interest rate is changed, the interest flow needs to be adjusted.
Step 1: Enter the transaction code TJ05 in the SAP Easy Access field.
Step 2: Uncheck the All Transactions box.
Step 3: Enter the transaction you want to adjust in the Single Transactions field.
Step 4: Check the Test run box and Click on the Execute

button.

Step 5: If successful, remove the check from the Test run box and Execute

Page 72

Treasury Module

9. As Needed-Back Office

Page 73

Treasury Module

9.7 Create Securities Account (TRS_SEC_ACC)


This is the transaction used to create a new custodian. If a new custodian needs to be created,
contact EBS as creating a new custodian necessitates other changes in TRM.

10. MonthlyBack Office


10.1 Accrue Interest (TPM44)
Step 1: Enter the transaction code TPM44 in
the SAP Easy Access field
Step 2: Enter the following:
Product Group: Check Securities and OTC
Transaction
Company Code: COP1
ID Number: CUSIP#
Securities Account: Must be blank
(sometimes an account will default; delete it).
Transaction: Transaction #
Accrual/Deferral Key Date: Enter
Check Including Key Date box and Test
Run box.
Check Immediate Posting
Step 3: Click on the Execute

button.

Step 4: Review results. If all is correct,


click the green back arrow
, uncheck
the Test Run box and click on the
Execute
button.
Note: Run TPM13 to see subledger
report with accrued interest updates
types with Status fixed.

Page 74

Treasury Module

10. MonthlyBack Office

10.2 Verify all relevant flows have posted for the month (TPM13)
This is a detailed listing of all flows related to a transaction; both those that post to the General
Ledger (GL) and those that dont (i.e.accrued interest). This report can be used to reconcile
to the custodian daily, review all flows have posted/fixed at month end, and other detailed
review at the flow level.
Step 1: Enter the transaction code TPM13 in the SAP Easy Access field.
Step 2: Enter/delete/check the following:
Product Groups:
Check both Securities and OTC Trans.

Securities:
Securities Account: Delete UB

Selection of TRL flows


TRL Date: Enter the beginning and end date of the entire month
Uncheck the Fixed Flows box.

Page 75

10. MonthlyBack Office

Treasury Module

Step 3: Click on the Execute button.


Step 4: Review for scheduled flows that havent posted during the month.

10.3 Review Money Market Interest Receipts (FTR_Edit)


Step 1: Enter the transaction code FTR_EDIT in the SAP Easy Access field.
Step 2: Enter the Transaction #.
Step 3: Click on Display.

Step 4: Click on the Cash Flow tab.


You will see all related cash flows for the transaction based on the end term entered:
investment, month-end interest payments and Final repayment.
Page 76

Treasury Module

10. MonthlyBack Office

Step 5: Verify that SAP scheduled interest payment agrees with the actual bank receipt. If not,
see Adjust Interest Payment for MM Transactions (section 9.3)

10.4 Add LGIP Fees (FTR_EDIT)


At the end of the month LGIP charges fees for administering the account. Use this transaction
to recognize the fees.
Step 1: Enter the transaction code FTR_EDIT in the SAP Easy Access field.
Step 2: Enter the transaction number.
Step 3: Click on Change.

Page 77

10. MonthlyBack Office

Step 4: Click on the Other Flows Tab.


Enter the following:
FTYPE: 1901 (always)
Amount: Amount of the fee
Payment Date: Date the fee hit the City LGIP account.

Step 5: Click the Save


Page 78

button.

Treasury Module

Treasury Module

10. MonthlyBack Office

10.5 Calculate Month-End Earnings Allocation


The majority of the City of Portlands investment earnings are pooled and allocated to bureaus
each month-end based on an average-daily-cash balance. This is tracked in a Special Purpose
Ledger (SPL) in SAP. Treasury calculates the amount to allocate from a combination of reports.
Note: There are two streams of earnings that currently arent pooled with the other City
earnings, but instead are individually allocated through separate Journal Entries by
TreasuryPortland Posterity and LGIP-Multnomah Transient Tax. These can be distinguished
for exclusion in the pooled earnings allocation by:
Portland Posterity: Product Type: 51B Trans# 103
LGIPTransient Tax: Trans#: 120 External Reference: #5073
There are three steps to determine the amount to allocate:
10.5.1 Determine the net Accrued Interest for the month
10.5.2 Determine the actual Monthly Earnings received
10.5.3 Calculate Earnings
10.5.1 Determine the Net Accrued Interest for the Month
The calculation to determine the Net Accrued Interest for the month is to compare the accrued
interest-to-date on the first day of the month to the accrued interest-to-date on the last day of
the month; the difference between these two numbers is the Net Accrued Interest for that
particular month.
Step 1: Enter the transaction code TPM13.
Step 2: Product Groups: Select Securities and OTC.

Step 3: Selection of TRL flows:


TRL date: Enter the 1st and last day of the relevant month.
Note: Use the Multiple Selection screen to enter the dates, rather than a date range. The
report will run faster this way.

Page 79

10. MonthlyBack Office

Treasury Module

Select Fixed and Reversed Flows


Step 4: Layout: /earnAccInt

Note: This layout filters for update types AD1000 and AD1001 and excludes product type
51B-Portland Posterity and trans#120LGIP Transient Tax.
Step 5: Click on the Execute

Page 80

button.

Treasury Module

10. MonthlyBack Office

Step 6: Calculate the net accrued interest by taking the subtotal for AD1000 (net accrued
interest-to-date at the end of the month) and reducing it by the subtotal for AD1001 (net
accrued interest-to-date at the start of the month).
Example:
Accrued interest-to-date at end of month
AD1000
1,835,990.08
Accrued interest-to-date at beginning of month AD1001
(1,496,196.35)
Net Accrued Interest for the month
339,793.73

10.5.2 Determine the Actual Monthly Earnings Received


A. To determine all earnings except LGIP:
Step 1: Enter the transaction code TPM20
Step 2: Product Groups: Select Securities and OTC.

Page 81

10. MonthlyBack Office

Treasury Module

Step 3: General Selections: Enter Fund 850400-Treasurers Interest


Step
4:

Posting Data FI:


Posting Date: First day to last day of relevant month (Enter the date range)
G/L Account: 281100-Deposits Payable
Step 5: Other Selections: Select Posted and Reversed Business Transactions
Select Layout /EARNINGS

Page 82

Treasury Module

10. MonthlyBack Office

Step 6: Click on the Execute button.


Step 7: Copy total amount into accrued interest spreadsheet.
B. To determine LGIP earnings:
Step 1: Enter the transaction code TPM20
Step 2: Product Group: Select OTC
Step 3: OTC Transactions: Transaction 119
Step 4: Posting Data: Update Type: MM1150Step 5: Posting Data FI:
Posting Date: First day to last day of relevant month (Enter the date range)
G/L Account: 120060-Local Govt Investment Pool clearing account
Step 6: Other Selections: Select Posted and Reversed Transactions

Page 83

10. MonthlyBack Office

Page 84

Treasury Module

Treasury Module

10. MonthlyBack Office

Step 7: Click on the Execute button.


Copy total amount into accrued interest spreadsheet.

10.5.3 Calculate Earnings


In the Accrued Interest Spreadsheet:
Accrued Interest + Monthly Earnings + LGIP Earnings Admin Fee Fiscal Year-to-Date= Monthly
Earnings

A. Once the earnings amount is calculated, the earnings are allocated using transaction
ZFICM01.
Debit: 137100 Accrued Interest Receivable-year end
Credit: Interest Revenue
B. Once fund 850400 has enough cash balance, the allocated interest is distributed to the
bureaus
Debit: 281100 Deposits Payable, fund 850400
Credit: 137100 Accrued Interest Receivable-Year End
C. At each month-end, the balances undistributed and allocated is matched in the GL is
compared to the amount outstanding in the Treasury Module. Any differences must be
researched by the Treasury Division. Differences are usually erroneous or unknown entries
effecting earnings amounts.

10.6 Reconciliation of Earnings


See section 10.5 for description of earnings allocation process.
To do monthly reconciliation:
Sum1: Calculate the GL available accrued interest using the following amounts:
Outstanding accrued interest, including current month
NOTE: This is interest allocated but not distributed. It should be the balance of account
137100 for all funds unless erroneous entries have been posted.

Page 85

11. Cash Management

Treasury Module

Add: Treasury Admin Fee fiscal year- to-date


Subtract: Current month-end balance for GL Acct 281100, fund 850400
Note: This can be obtained by running t-code FAGLB03
YEAREND NOTES:
Treasury Admin Fee: Add/subtract the yearend true-up fee/rebate amount.
GL Acct 281100, fund 850400 balance: Determine if Treasury Division has reduced this
balance by allocating to the Treasury Division Cost Center and add the amounts of those
entries.
Next:
Sum2: Identify the available accrued interest from the Treasury Module.
Follow the steps from 10.5.2, and note the subtotal for update type AD1000.
Next:
Sum3: Calculate the difference between the GL available accrued interest (Sum1) and the
available accrued interest from the Treasury Module (Sum 2).
Note: This difference should be s/b zero. If there is a difference the analyst must research
and correct.

11. Cash Management


11.1 Posting Journal Reconciliation Tool (TPM20)
This report shows all the flows that have already posted to the GL based on a particular date
range and product group, or transaction, or Security ID #. Results show the posting date,
document number, and debits/credits of the posting. Transactions which have not yet posted
will not show on this report.
Step 1: Enter the transaction code TPM20 in the SAP Easy Access field.
Step 2: Enter the appropriate data in the following fields to filter the report:
ID Number or Transaction Number (See text field from GL document)
G/L Account
Posting Date
Step 3: Click on the Execute button or hit Enter.

12. Reports
On the initial input screen of most reports in TRM you will see Product Groups at the top of the
screen. The City of Portland uses two Product groups: Securities and OTC Transaction (Money

Page 86

Treasury Module

12. Reports

Markets). When you select a product, all transactions in that group show in the report.
Without selecting a product no matter what selections you make in the selections below, no
transactions will populate the report.

From here you enter data in the initial input screen fields based on the results you want to see
and the type of report.

12.1 Table of Reports


Below is a table of available reports, a brief description, and the page # where you can find
information on running the report, if available in guide.
Report
Description
Page #
TPM13Detailed
Flows

TPM20Posting
Journal

TPM12Position List

Detailed listing of all flows related to a transaction,


both those that post to the General Ledger (GL) and
those that dont (i.e.-accrued interest). This report can
be used to reconcile to the custodian daily, review that
all flows have posted/fixed at month end, and other
detailed review at the slow level.
This report shows all flows that have already posted to
the GL based on a particular date range and product
group, or transaction, or Security ID #. Results show
the posting date, document number, and debits/credits
of the posting. Transactions that have not posted will
not show on the report.

P. 40 and
P. 43

P. 71

This is a position list, meaning it is executed based on a


particular date, key date, and amounts are summarized
to the transaction level for activity relative to that key
date.

Page 87

12. Reports
Report

Treasury Module
Description

ZTR_INVEST_REPORT- This is a custom Treasury Module report and is a


Treasury Investment multiple tab report. It is executed based on a key date,
Report
like TPM12. It contains yield calculations, weighted
maturity, reporting on Treasury admin fee, interest per
day, issuer details by investment type, maturity details
by transaction, and then detailed tabs based on the
type of investment: Bond positions, commercial paper,
bankers acceptance, repurchase agreements, LGIP, and
deposits. The final tab, ratings, is a detail of ratings by
issuer based on the key date. The goal of this report is
to present a consolidated view of Treasury activities,
meeting the needs of daily users as well as high level
decision makers.
Summary Tab
This is fairly static tab where the rows are fixed. It
shows a summarized view based on the category. This
is currently the only report showing: Net Portfolio Yield
w/o Admin Fee, Net Portfolio Yield, WEIGHTED
AVERAGE MATURITY, and AVERAGE EFFECTIVE
MATURITY, in the Treasury Module.
Maturity Overview
This is detail by maturity date. All Variable Interest
Money Markets, maturities have been overridden from
the SAP default to always be one day, with a maturity
the day before the key date the report is executed.
Issuer
Shows a summary by amount, based on market value,
and category, with a total and percentage by issuer.

Page 88

Page #
Screen
shots
below
P. 73

Treasury Module

12. Reports

12.2 Treasury Custom Report (ZTR_INVEST_REPORT)


This report is primarily a position based report. It reports a snapshot of the Citys investment
portfolio based on a give date. It includes yield calculations and weighted maturity calculation
that can only be found in this report. The data is on actual postings for all values except for
Interest per Day and Accrued Interest.
Step 1: Enter ZTR_INVEST_REPORT in the SAP Easy Access Screen
Step 2: Enter the date in the Date field.
Step 3: Click on the Execute

button.

Page 89

12. Reports

Treasury Module

Summary tabDisplays data as of the date entered.


Int/Amort per Day:
Total (Gross): This is a combination of Daily Interest Earnings and net Amortization
Earnings. NOTE: this does include LGIP Transient Tax and Portland Posterity earnings.
Total (Net): Gross Treasury Admin Fee
Net Portfolio Yield w/o Admin Fee : (Int/Amort per Day-Total (Gross)*365) / Book Value Total
(Gross)
Net Portfolio Yield : (Int/Amort per Day-Total (Net)*365) / Book Value Total (Gross)
Weighted Average Maturity: (Each Trans#-BookValue * Days to Maturity)/Total Book Value
Average Effective Maturity: (Each Trans#-BookValue * Days to Call Date(or Maturity if no
call)/Total Book Value

Page 90

Treasury Module

12. Reports

Maturity Tab
Days to Maturity: securities = maturity date from security class key date
Money markets = maturity date from trans key date.
~for product type 55a and 55c maturity is always key date + 1 day
Days to call date: only securities, Next Call Date key date
~Make Whole Bonds= if First call date=Next call date=Maturity date then days to next call date
= 1day

Page 91

12. Reports

Treasury Module

Issuer Tab: This tab is used to validate compliance with issuer limits set in the City
Investment Policy. Amounts are based on the Market Value of the investment.

Ratings Tab: This tab presents current (based on key date) ratings of all business partners
with the Issuer Role.
Other Tabs:
Bond Positions
Commercial Paper
Bankers Acceptance
Repurchase Agreement (REPO)
LGIP
Deposits

Page 92