Sap S4Hana TRM: Treasury Management and Cash Management

SAP S4HANA TRM
Treasury Management and Cash Management

Treasury Management and Cash Management
Baseline Configuration Design Document
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1 Key data Structures
In the Key data structure determines the master data of the Organisation for implementing the SAP
R/ 3 which has mentioned in the functional design document and the same would be incorporated
in the detailed explanation, coding logic and naming conventions etc.
2.1 General Settings:

2.2 Define Calculation Indicator
IMG Path FSCM—>TRM *Transaction Manager*General
Define Calculation Indicator

Transaction SPRO
In this IMG activity we have to define the calculation indicator for calculating the exchange rates.
In the standard SAP we have to define indicator M for standard translation at average rate.
The Rates mentioned standard in SAP are:
2.3 Define Company Code Additional Data

Setting*Organization+
Define Company Code Additional Data.
Transaction SPRO
In this IMG activity you have to define additional data for the company codes you use.
General Settings
Enter the SWIFT code for the company code here
Settings for exchange rates:

Enter the rate calculation indicator for your exchange rate translations in the current company
code. The rate calculation indicator specifies the debit and credit rate categories and is only used
in the securities and loans areas.
Settings for the securities area:

• Specify whether or not short sales are permitted.
• Define a price type for security prices that you will use for evaluations.
Settings for loans
Enter the factory calendar that the system should use for this company code in loans management.
You can specify the factory calendar that the system should use per default for each condition type
and group when you enter a condition item. If you have not specified a factory calendar here per
condition group for a condition type, the system uses the factory calendar that you have defined in
this IMG activity for the company code.
Company Rate Chart of
Code
Company Name City Currency
calculation Accounts
1000 XYZ Ltd Karachi 1000 PKR
2.4 Define Portfolio
IMG Path FSCM *TRM Transaction Manager *General Setting -5
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Organization Define Portfolio
Transaction SPRO
The portfolio is usually a concept used to group and to structure positions of financial instruments.
In Treasury and Risk Management, the portfolio is also used for this purpose, although in two very
different ways.
One use of a portfolio is as a grouping concept for reporting transactions. You can create a portfolio
for any transaction, activate it in most reports, and use it for your own reporting purposes.
However, in this role it initially classifies transactions and not positions.
In the securities area, the portfolio can have another role for securities positions. The position
management function of the transaction Manager allows your accounting positions to be divided
up in a flexible manner. You can specify that you want to distinguish between securities positions
by portfolio.
In this case, two purchases of the same security with different portfolios, for example, would give
rise to different accounting positions, even if the purchases were made in the same securities
account. The portfolio is therefore a differentiating characteristic of securities position.
Company Code Portfolio Portfolio

1 ooo BONDS Fixed Interest Bonds
1 ooo PCKCR Packing Credit Loans
1 ooo DEBEN Non Convertible Debenture
1 ooo FOREX Foreign Exchange Instrument
1000 HEDGE Hedge Instrument
1 ooo LOANS Gen. Loans
1000 Ml-JFUN Mutual Funds Instruments
1 ooo VRINT Variable Interest Instruments
1000 FXDEP Fixed Deposits
1 ooo SUBLN Loans to Subsidiaries
1000 BUYCR Buyers / Suppliers Credit
2.5 Assign Calendar
IMG Path FSCM—>TRM *Transaction Manager*General Setting* Transaction
Management*Currencies->Assign Calendar
Transaction SPRO
In this step, you assign a calendar to the various currencies. When you enter the transaction, the
system performs a working day check to check all the flows that result from the transaction against
the calendar defined here.
Currency Factory Calendar
PKR OG
The Configuration for the Calendar Currency Code is as below:
2.6 Define Leading Currency
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IMG Path FSCM—>TRM *Transaction Manager*General Setting* Transaction
Management*Currencies->Define Leading Currency
Transaction SPRO
In this step you define the leading currencies for the various currency pairs. The system uses these
settings to determine the rate notation when you enter foreign exchange transactions and foreign
exchange options.
In addition, you can enter the number of days between conclusion of the Forex transaction and the
value date in the Spot day's field. Usually this is two working days. Depending on the currency, there
may be deviations from this rule. You should only make an entry in this field if practices on the
international Forex market follow a different rule to the usual two day rule.
Example
If you enter a Forex transaction amounting to 40,000 USD and enter 1.10 in the exchange rate field,
the system can use the leading currency to calculate the amount in Euros. Leading currency EUR
40,000 USD / 1.10 EUR/USD = 36,363.64 EUR Leading currency USD 40,000 USD * 1.10 USD/EUR =
44,000.00 EUR
Rate notation in Treasury:

Notation: Leading currency/ Following currency
Interpretation: The rate expresses the amount in the following currency for one unit of the leading
currency.
The leading currency will be defined as per ORGN requirement is maintained as USD>PKR.
2.7 Define Valuation Areas

IMG Path FSCM+TRM *Transaction Manager*General
Organization->Define Valuation Area
Transaction SPRO
In this IMG activity you define all valuation areas that you require. You define valuation area 001
that corresponds to the 'operative valuation area', and all other parallel valuation areas.
The valuation area refers to an accounting principle within internal position management. Typical
examples for an accounting principle are the German Commercial Code, the US GAAP and FRS.
The Operative Valuation Area is 001. The Operative and IFRS Valuation area will be configured form
ORGN perspective. The positions in the operative valuation area (with exceptions) are managed
and are valued using the operative valuation area functions.
Valuation Area Name of valuation area
001 Operative Valuation Area - ORGN
002 Parallel Valuation Area - IFRS
003 Parallel Valuation Area - Local GAAP
2.8 Define Accounting Codes
Organization->Define Accounting Code
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Transaction SPRO
The accounting code is the central organizational unit in the parallel valuation areas. Each business
transaction is assigned to a specific accounting code. The accounting code itself corresponds exactly
to a company code (1 :1 relationship). The assignment of accounting code to an Fl Company Code
is done here.
Each business transaction is assigned to a specific accounting code.
co. co
A.C A.C Description
1000 Organization Ltd - Accounting Code 1000

2.9 Assign Accounting Codes and Valuation Areas

Organization->Assign Accounting Codes and Valuation Areas
Transaction SPRO
In this IMG activity you assign the valuation areas to accounting codes. You also make settings for
the Fl update and for valuation.
The valuation area is has to be assigned to the accounting codes. It is important here to ensure
that all valuation areas are assigned to an accounting code.
This assignment also specifies whether a posting to accounting is generated, or which
accounting principle is used. The key assignment to the correct ledger takes place in Fl by means
of the accounting principle.
Each accounting code must also be assigned a currency to make it possible to determine
whether there is a foreign exchange transaction or not.
The Activity of Assignment of Accounting Code to Valuation Area will be performed here.
The Posting to Fl from TR will be enabled for Operative Valuation Area - 001. The Assignment of
Accounting Code is done for all Valuation Areas with respect ORGN.
A.C A. C Description Val. Area Name of valuation area
1000 Organization Ltd - Accounting Code 001 Operative Valuation Area

1000 Organization Ltd - Accounting Code 002 Parallel Valuation Area - IFRS
2.10 Initialization of Parallel Valuation Area

Organization->lnitialization of Parallel Valuation Area
Transaction SPRO
In this IMG activity, you must initialize the parallel valuation areas on the basis of the existing
transaction data before you can use the corresponding functions. You initialize the data once for a
certain key date.
After all the settings have been made, the valuation areas are initialized. A separate initialization
has to be carried out for each financial transaction area (loans, OTC transactions, securities). If
changes are carried out at a later time, it is only necessary to carry out a new initialization if the
changes were major (such as a new valuation area).
Before initialization can be carried out, you have to specify a key date. This key date specifies
the point from which the parallel valuation or posting functions can be used.
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Each initialization operation consists of a variety of steps, which you have to process from the
top down. You have to select a step and start it with the "Execute" button.
Position management into different valuation areas is only possible after the initialization has
been carried out. It is very useful to carry out the initialization before entering any transactions
as this avoids position postings.
One must initialize the parallel valuation areas on the basis of the existing transaction data before
the corresponding functions can be used. The Data once is initialized for certain key date.
2.11 Define and Assign Valuation Classes (General Valuation Class)

Setting*Accounting->
Settings for Position Management->Define and Assign Valuation
Classes
Transaction SPRO
The general valuation class specifies in the transaction which valuation area the specified
transaction can be assigned to.
The following asset classes exist:

Long-term Investment
Medium-term Investment
Short-term Investment
Liabilities
2.12 Define and Assign Valuation Classes

Classes
Transaction SPRO
Each valuation area is subdivided into various valuation classes by means of the international
(IFRS) or local accounting principles.
In this step, the valuation areas are linked to the corresponding valuation classes.
2.13 Assignment of General Valuation Class to Specific Valuation Class

Classes
Transaction SPRO
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In the transaction, only the general valuation classes are entered, or they are retrieved
automatically. For the position to be transferred to the valuation classes there is now an
assignment step.
In the "Assign General Valuation Class" menu item, the three functional areas Valuation area,
Valuation class and General valuation class are linked.
In this menu option you define general valuation classes (GVCs) and special valuation classes for
each valuation area and assign these classes to each other.
ORGN following General Valuation Class and Valuation Area will be configured and assigned.
Name of the general Name of the valuation
VA ValCl valuation class class Name of valuation area
At Fair Value Through
001 Short-term investments Profit or Loss Operative Valuation Area
2 001 Short-term investments Trading Parallel Valuation Area - IFRS
Parallel Valuation Area - Local
3 001 Short-term investments Current Assets GAAP
002 Mid-term investments Available for Sale Operative Valuation Area
2 002 Mid-term investments Available for Sale Parallel Valuation Area - IFRS
3 001 Mid-term investments Current Assets GAAP
Held to Maturity / Loans
003 Long-term investments and Receivables Operative Valuation Area
2 003 Long-term investments Held to Maturity Parallel Valuation Area - IFRS
3 002 Long-term investments Fixed Assets GAAP
004 Liabilities Liabilities Operative Valuation Area
2 004 Liabilities Liabilities Parallel Valuation Area -

IFRS
3 004 Liabilities Liabilities GAAP
Valuation area 2 :
Transfer posting At Fair Value Through
001 longterm -> mid-term Profit or Loss Operative Valuation Area
Valuation area 2 :
Transfer posting
2 001 longterm -> mid-term Trading Parallel Valuation Area - FRS
Valuation area 2 :
Transfer posting Parallel Valuation Area - Local
3 002 longterm -> mid-term Fixed Assets GAAP
Valuation area 2 :
Transfer posting
002 longterm -> mid-term Available for Sale Operative Valuation Area
Valuation area 2 :
Transfer posting
2 002 longterm -> mid-term Available for Sale Parallel Valuation Area - IFRS
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Valuation area 2 :
Transfer posting Parallel Valuation Area - Local
3 003 longterm -> mid-term GAAP
The above General valuation classes will be used to classify transactions by asset type and apply
across all valuation areas. Special valuation classes if required will be defined at valuation area level.
The general valuation classes are assigned to the special valuation classes for the valuation areas.
For each transaction, the system can therefore determine the special valuation classes for the
different valuation areas on the basis of the general valuation class.
The General valuation class assignment is made to a position when you enter the financial
transaction. In activity 'Assign Position Management Procedure', the rules for assigning position
management procedures to positions are defined. The valuation class is one of the criteria that you
can use to assign the position management procedure.
2.14 Assign General Valuation Classes to Groups:

IMG Path Financial Supply Chain Management > Treasury and Risk
Management > General Settings > Accounting > Settings for
Position Management > Assign General Valuation Classes to
Groups
Transaction SPRO
One can define here groups and then assign general valuation classes. The groups are assigned per
company code, product type and/or transaction type. When one will use the F4 help for assigning
general valuation classes, then only general valuation classes for groups belonging to the
product/transaction type will be displayed.
2.15 Define Position Management Procedure

Settings for Position Management-> Define Position Management
Procedure
Transaction SPRO
In this IMG activity you define the position management procedures you require. In these you
establish the rules for maintaining the positions, for example, how the positions are to be valued,
and also how the derived business transactions are to be generated in the case of position outflows
or balance sheet transfers.
The position management procedure determines how positions are managed and valued in the
parallel valuation areas.
You first have to define the key date valuation procedures required by the relevant accounting
regulations.
You then set the sequence of the key date valuation procedures within the position
management procedures. In this way, you can combine the relevant procedures for
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amortizations, one-step price valuations, security price valuations and foreign currency
valuations according to the respective accounting rules.
You can assign position management procedures dependent on different factors (for example,
valuation area, valuation class, product type).
The Standard SAP Position Management Procedures are adopted.
2.16 Assign Position Management Procedure

Settings for Position Management->Assign Position Management
Procedure
Transaction SPRO
In this IMG activity you define the rules that govern how the position management procedures are
assigned to the positions. You control the assignment using the parameters Accounting code,
valuation area, valuation class, product category, product type, transaction type, portfolio and
securities account group.
You can define position management procedures dependent on the accounting code, valuation
area, product type and transaction type. This enables you to take different statutory regulations
into account for valuation.
When assigning the position management procedures, you can use the criteria valuation area,
accounting code, product category, product type, valuation class and transaction type, for
example.
For all newly created positions, the position management procedure is initially derived from the
data stored here. You can change this default value manually using the transaction Maintain
Position Management Procedures (TPM50).
To ensure that a position management procedure is found in all cases, you can define a default
procedure (where all influencing factors have their initial value).
If, for example, you do not specify the accounting code area, these settings apply for all areas.
It is important to save a position management procedure for all products to ensure valuation
and position management takes place without errors.
The Assignment of position management procedure will maintain the relationship between
valuation area, class, product type, transaction type and portfolio.
The Standard SAP Position Management Procedures will be adopted.
2.17 Define Update Types and Assign Usages
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Accrual/ Deferral->Update Types->Define Update Types and Assign
Usages
Transaction SPRO
In this IMG activity, you define all the update types that are required to manage the positions in
the parallel valuation areas.
The update type identifies the flow in position management. Both the external and internal position
management link attributes with in update type and enables properties to be assigned to a flow of
the cash flow in this way.
The Standard update types will be considered.
2.18 Define Accrual / Deferral

Accrual/ Deferral->Update Types-> Assign Update Types for
Accrual/ Deferral
Transaction SPRO
In this step, you assign an accrual/deferral procedure and an accrual/deferral method to
the flow types that are subject to accrual/deferral.
In order to determine the profit for the period, revenues and expenses - independent of due date
- must be assigned to the correct economic period. Via the accrual/deferral of expenses and
revenues to a particular key date/period end (e.g. at end of fiscal year), you get the accrued/
deferred expenses and revenues.
When carrying out accruals/deferrals, we differentiate between the reset and difference
procedures. In the reset procedure, the accrual/deferral carried out is withdrawn again on the
next day. In the difference procedure, on the other hand, only the differences to the last
accrual/deferral are posted.
Update types that are relevant to accrual/deferral are defined per accounting code.
The TPM44 transaction is used for all postings.
2.19 Link to Other Accounting Components

Link to Other Accounting Components->Define Account Assignment
References
Transaction SPRO
In this menu option you define the account assignment references that you require.
Account assignment references are required for each sub ledger position and also for each class
position in a securities account.
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Treasury and Fl integration is mapped here. One can use the account assignment references to
determine the G/L account in Fl in which the relevant position is to be managed. You assign the G/L
accounts to the account references in the IMG activity Define Account Determination.
You can use the account assignment references to control the posting of the sub ledger positions
in the general ledger. You can use the account assignment reference of the class positions in the
securities account to control the posting of dividend payments, interest payments and repayments
for each securities account class position.
You do this by making the assignment of G/L accounts in Fl dependent on the account assignment
reference for each account symbol (position and interest/ dividend revenue).
You create the account assignment references independent of the valuation areas. You can assign
the account assignment references to positions valuation area-dependent and/or you control the
account determination per valuation area and account assignment reference.
The following Standard Account Assignment references will be considered.

2.20 Define Account Assignment Reference Determination (OTC Transactions)
Link to Other Accounting Components->Define Account Assignment

Reference Determination (OTC Transactions)
Transaction SPRO
In this Customizing item, you can save rules for automatically determining the account
assignment references for the parallel valuation areas. The rules are defined per product group,
where the product groups "Securities" and "Listed options / futures" are grouped together here.
The account assignment reference determination can be controlled by a derivation rule or by
an assignment.
An assignment consists of two parts; the definition and the condition.
The definition specifies which fields or which account assignment reference is used for the
product type controlled in the condition.
In the conditions area, you specify which product type the assignment applies to.
2.21 Indicate Update Types as Relevant to Posting:

Link to Other Accounting Components->lndicate Update Types as
Relevant to Posting
Transaction SPRO
We have now used update types in many areas. Not all update types have to be designated as
posting-relevant. In this Customizing item, you specify for each update type whether it is
considered relevant to posting or not.
If you mark an update type as relevant to posting, a posting document is generated when this
update type is used. If the checkmark is not selected, the update type is not forwarded to
financial accounting.
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The Standard update types will be maintained in SAP.
2.22 Define Account Determination

Link to Other Accounting Components->Define Account
Determination
Transaction SPRO
In order to control the defined account assignment references to various accounts, account
assignment has to be adjusted. The posting schemes and G/L accounts are assigned depending
on the chart of accounts.
First the account symbols are defined in abstract form. These are valid for all valuation areas.
Since the account assignment references in the parallel valuation areas no longer contain the
(original) information as to which account is to be posted to, you must also define an account
symbol for the position.
Double-click on "Definition of Account Symbols". A description and a posting type appear on the
right for each account symbol. You specify that there are to be position postings and profit
postings.
The position postings are entered directly into the balance, the profit postings are entered into
the profit and loss statement.
You can also see that account symbol 3 is specified with the description bank clearing. This is
the same as the posting record "1 1100 Position to bank clearing" that you just saw.
The correct bank clearing account is taken from the house bank stored in the business
transaction.
Before assignment of accounts, one has to define the account symbols. Depending on the
posting area, different account symbols are defined. The following subdivision has been used
1- Position posting
3- Bank clearing
4- Interest revenue/expense
5- Receivables
6-Amortization
Define Account Determination is the step where SAP Fl and Treasury Module will integrate and
GL Accounts will be linked.
One can define account determination settings for the flows in the parallel valuation areas. The
account determination settings define the accounts to be used when the flows are posted to
Financial Accounting. The system only posts flows in the parallel valuation areas if an update
type is set as relevant to posting under Indicate Update Types as Relevant to Posting and posting
specifications have been defined for the corresponding update types in this IMG activity.
One can define different account determination settings for an update type, depending on the
valuation area.
The Account Determination will be decided along with discussion of SAP Fl Team with ORGN
Team. The GL Accounts related to posting will be maintained and assigned.
The following steps will be followed:
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The postings specifications are applied for this update type in all the valuation areas. If one
wants to assign a different set of posting specifications for a particular valuation area, it can
do so in the next step (Valuation Areas -> Assignment of Update Types to Posting Specs).
2. In the step Valuation Areas -> The Assignment of Update Types to Posting Specs you can
assign different posting specifications to the update types for individual valuation areas.
3. In the step Assignment of G/ L Accounts to Account Symbols you define G/L accounts for
each account symbol. You can make the G/L account assignment dependent on the
following criteria:
a. Valuation area
b. Account assignment reference
c. Currency
2.23 Define Account Determination

IMG Path Financial Accounting (New) Bank Accounting Business
Transactions Payment Transactions Payment Request -5 Define
Clearing Accounts for Cross-Country Bank Account Transfers
Transaction SPRO
For payment processes from Treasury (TR), payment orders are sent to Bank Accounting (FI-BL). At
the same time, a document is created in Treasury, and this document contains an item to be
cleared in a technical clearing account from Bank Accounting. In the payment program for
payment orders (transaction Fl 11), the payment order is selected and executed. The payment
document created clears the technical clearing account and posts to the bank subaccount. In the
final process step, the electronic account statement clears this item in the bank subaccount
against the bank account.
Clearing GL Account for Payment requests in Company Code 1000 is 19009020. It will take care of
the payment requests coming from Treasury.
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Money Market
In the following Customizing steps, you define which money market transactions are to be used in
your company, and how they are shown in the system.
2.24 Product Types
2.24.1 Define Product Types

IMG Path FSCM—>TRM *Transaction Manager*Money Market* Transaction
Management->Product Type->Define Product Type
Transaction SPRO
Product types help to differentiate between different Money Market financial instruments.
Differentiation is necessary if the individual instruments are subject to different processing rules or
if you wish to create different levels for evaluation. By assigning different structure characteristics,
various forms of transactions can be predefined.
Only via the combination of the product type with a transaction type is the financial transaction
finally set.
In this step, you maintain the product types you require.
1. Name your product type. You have a 3-character alphanumeric field for this.
2. Specify the long text and short text for your new product type.
3. Assign your product type to a product category. The product category is an internal key
and controls how the product types assigned to it are processed.
Product type helps to differentiate between different Money Market financial instruments. The
differentiation is necessary if the individual instruments are subject to different processing rules or
different levels needs to be created for evaluation. By assigning different structure characteristics,
finally set. The Product type's specific to ORGN will be maintained. The Product type is maintained
with a 3-character alphanumeric field.
Product Cond. Product
Type Type Code Product Type Text Product Cat Text Text
51A 5 510 Fixed-Term Deposit Fixed-term deposit FixTrmDep.
52A 5 520 Deposit at Notice Deposit at notice Dep. notice
Interest rate Interest rate
55A 5 550 instrument instrument IntRtlnst
Buyers / Suppliers Interest rate
ZBC 5 550 Credit instrument BUYERSCRDT
Foreign Currency Interest rate
ZFC 5 550 Loans instrument FRCURRLOAN
Interest rate
ZLS 5 550 Loan to Subsidiaries instrument LOANSUBSI
Interest rate
ZPC 5 550 Packing Credit in FC instrument PCKCRDTFC
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Interest rate
ZPi 5 550 Packing Credit in PKR instrument PCKCRDTPI
Interest rate
ZVL 5 550 Vehicle loan instrument VHICLELOAN
Interest rate
ZLN 5 550 PKR Currency Loans instrument PKRCURLOAN
Interest rate
ZTA 5 550 Trade Advances instrument TRADEADVN
2.25 Transaction Types
2.25.1 Define Number Ranges
IMG Path FSCM—>TRM *Transaction Manager*Money Market*
Transaction Management->Transaction Type->Define Number
Ranges
Transaction SPRO
In this step, you can define number range intervals for your financial transaction types. The financial
transactions generated in the application receive a number comparable with the document number
from Financial Accounting. The number assignment can either be transferred internally by the
system or you can specify the number externally.
The assignment of transactions to a number range takes place in the step entitled Define
transaction types.
2.25.2 Define Transaction Types

Management->Transaction Types-> Define Transaction Types
Transaction SPRO
In this step, you define your financial transactions and assign them to your product types. You also
specify the considerable technical administrative functions that you can carry out with the product
types you have defined.
Transaction types are financial transactions and are assigned to product types. From ORGN
Perspective following transaction types will be maintained.
Name of
Transaction Processing Tran. Rel. Cont. Cond.
Type Type Type Category Cat ease Type Text Type
51A 100 Investment '00002 100 x 5 Fixed-Term Deposit 5
55A 100 Investment '00002 100 x 5 Interest rate 5

instrument
'00002 Investment in
ZLS 100 Investment 100 4 x 5 Subsidiaries 5
51A 200 Borrowing '00002 200 5 Fixed-Term Deposit 5
ZBC 200 Borrowing '00002 200 2 5 Buyers / Suppliers 5

Credit
ZFC 200 Borrowing '00002 200 3 5 Foreign Currency Loans 5
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55A 200 Borrowing '00002 200 x 5 Interest rate 5
instrument
ZPC 200 Borrowing '00002 200 5 x 5 Packing Credit in FC 5
ZVL 200 Borrowing '00002 200 4 5 Vehicle Loan 5
ZLN 200 Borrowing '00002 200 5 5 PKR Currency loans 5
2.26 Flow Types

Flow types control how the individual financial flows are handled in the system.
2.26.1 Define Flow Types

IMG Path FSCM—>TRM *Transaction Manager*Money Market*
Transaction Management->Flow Types-> Define Flow Types
Transaction SPRO
In this step, you define the necessary Flow types for your product types. A flow type must be
defined for all possible flows in a transaction so that they can later be assigned.
Flows describe various payment flows arising from transaction conclusion, valuation and
accrual/deferral functions as well as transfer postings. They are classified through flow types that
you define in Customizing.
The sum of all transaction flows forms the basis for generation of the cash flow and describes
possible changes to the updated payment flows. They also form the basis for updating transactions
in Fl and Cash management and for analysis in Market risk management.
Possible flow types include interest rates, repayments, principal increases and commissions.
A flow type determines all possible flows in a transaction so that they can later be assigned to
transactions. In Flow types, one can assign a classification, flow category and calculation category.
The classification divides the flow types according to business criteria. The flow category allows the
system to interpret settings and the calculation category determines the representation in the cash
flow.
Following flow types are identified for ORGN

Cont. Flow type and Condition
Flow Type - Name Calculation
Type Name
5 1100 Investment / Increase Principal Increase Inflow (generic)
5 1105 Borrowing / Increase Principal Increase Inflow (generic)
5 1110 Decrease Principal Decrease Outflow (generic)
5 1120 Final repayment Final Repayment Final repayment
5 1130 Installment repayment Installment Repayment Installment repayment
5 1 140 Annuity Repayment Annuity Repayment Annuity repayment
5 1150 Interest capitalization Interest Capitalization Interest not settled
5 1200 Nominal interest Nominal Interest Nominal interest
5 1 901 Charges Other Flow/ Condition Fixed amounts
5 1 902 Commission Other Flow/ Condition Fixed amounts
Withholding tax 1 (e.g.
5 1905 Other Flow/Condition Fixed amounts
state)
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Withholding tax 2 (e.g.
5 1906 Other Flow/Condition Fixed amounts
region)
5 5000 Taxes 1 Other Flow/ Condition Fixed amounts
5 5001 Taxes 2 Other Flow/ Condition Fixed amounts
2.26.2 Assign Flow Types to Transaction Type
Management->Flow Types-> Assign Flow Types to Transaction Type
Transaction SPRO
In this step, you assign flow types to each product type at the transaction type level that is necessary
in order to completely portray a financial product.
The ORGN Specific Assignment of Flow Types to transaction Types is attached herewith.
Assign Flow Types to
Transaction Type.xls
2.27 Derived Flows

Transaction SPRO
You can set up the transaction management area of the system to generate additional flows
automatically on the basis of an original flow. You do this by defining derivation procedures and
then assigning rules to each procedure. The rules determine how one flow is generated from
another.
The derived flow can either be a specified fixed amount, or a percentage of the original flow
amount. You can also set up the system to calculate the derived flow amounts differently according
to the currency and original flow amount.
These rules determine the flow type from which they are derived and the structure that they have.
You must also make additional setting in business partner administration for the business partners
in the counterparty role in the corresponding company code.
Assign the derivation procedure to the produce type on the Sl: Derived Flow Tab.
2.27.1 Define Calculation Procedure for Derived Flows

Management->Flow Types->Derived Flows->Define Calculation
Procedure for Derived Flows
Transaction SPRO
In this IMG activity, you can define the calculation procedures for generating derived flows.
By defining calculation procedures, you can control the amount of the derived flows in relation to
the currency and the amount of the original flow.
By choosing 'Define Derivation Procedures and Rules', you can then select one of the calculation
procedures when you define the derivation rules.
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2.27.2 Define Derivation Procedures and Rules
Management->Flow Types->Derived Flows->Define Derivation
Procedures and Rules
Transaction SPRO
another.
You create the necessary calculation procedures in the IMG activity Define Calculation Procedure
for Derived Flows. These calculation procedures are then available when you define derivation
procedures and rules in the IMG activity Define Derivation Procedures and Rules.
This function is available for the money market, foreign exchange, securities and derivatives areas.
You define the calculation and derivation procedures globally for all applications. This means that
you always see all the calculation and derivation procedures that have been defined, regardless of
the IMG section you are in. By contrast, the derivation rules are specific to a particular area, and
can only be created or changed within the IMG for that area. If, for example, you define rules for a
tax on interest in the securities area, these settings are not visible in the money market, foreign
exchange and derivatives areas.
2.28 Update Types

Management->Update Types-> Define Update Types and Assign
Usages
Transaction SPRO
Like flow types, update types correspond to cash flows. Update types control the posting of
individual flows.
A wide variety of update types are available in the system. The names of the types have been
clearly selected so that all update types that start with MM belong to the money market area.
Double-clicking on the "Assign update type to usages" folder takes you to the subsequent
display. The possible usage types are:
1 -Transaction management
2-Securities account management
3-Securities account transfer
4-Corporate action
5-Exercising rights
6-Accrual/ deferral
7-0ther flows
18
The name and update type of the usages (such as transaction management or valuation) are
assigned here.
The update types are no longer module-dependent and have an implicit direction. This means,
for example, that incoming and outgoing charges must be represented as two different update
types.
The new update types consist of the definition itself and a language-dependent text. No
further indicators are defined directly with the update types.
The Standard SAP Update Types maintained in System are as attached.
MM Assign Update
Types to Usages.xlsx
2.29.1 Assign Flow Types to Update Types
Management->Update Types-> Assign Flow Types to Update Types
Transaction SPRO
• The link to Accounting is created via assigning the flow types to update types. When creating a
new update type, make sure that inflows and outflows are taken into account. In certain cases,
you can use different update types for these.
2.30 Condition Types
In this section, you define the condition types for Money market and assign them to the transaction
types
2.30.1 Define Condition Types

Management->Condition Types-> Define Condition Types
Transaction SPRO
Condition types control how flows calculated by the system are handled, such as interest,
repayments and charges. They enable you to individually control interest rate flows, for
example.
There is a 1:1 relationship between the condition types and flow types. In other words,
precisely one flow type has to be created for each condition type. However, a flow type does
not have to be assigned to a condition type if no cash flows that are to be calculated are
mapped using the flow type.
Conditions can be classified using the following attributes:

Structure characteristics
Accrual/ deferral
Valuation
Transfer
The Standard SAP conditions are attached herewith.
19
MM Maintain
Condition Types. xlsx
2.30.2 Assign Condition Types to Transaction Type

Management->Condition Types-> Assign Condition Types to
Transaction Type
Transaction SPRO
• After condition types have been defined, they have to be assigned to the product categories or
transaction types.
• You have to fill the drop-down menu for the classification in the same way as for the flow types.
• The condition, calculation and profile type control how the amounts are calculated, depending
on the conditions recorded in the transaction.
The Condition Types standard as well as ORGN specific requirements will be configured.
20
Foreign Exchange
2.31 Product Types
2.31.1 Define Product Types
Product types help to differentiate between different Money Market financial instruments.
Differentiation is necessary if the individual instruments are subject to different processing rules or
if you wish to create different levels for evaluation. By assigning different structure characteristics,
finally set.
In this step, you maintain the product types you require.

1. Name your product type. You have a 3-character alphanumeric field for this.
2. Specify the long text and short text for your new product type.
3. Assign your product type to a product category. The product category is an internal key
and controls how the product types assigned to it are processed.
The Product types applicable to ORGN are:
From ORGN Standpoint, Product Type 60A will be configured as below.
Product Product
Cond. Product Type Text Product Type Text
Type Code
60A 4 600 Foreign exchange (FX) Foreign exchange
2.32 Number Ranges

2.32.1 Define Number Ranges for Transaction
In this step, you can define number range intervals for your financial transaction types. The financial
transactions generated in the application receive a number comparable with the document number
from Financial Accounting. The number assignment can either be transferred internally by the
system or you can specify the number externally.
transaction types.
2.32.2 Define Number Ranges for Underlying Transaction
In this step, you can define number range intervals for your underlying transactions. The number
assignment can be carried out internally by the system or you can specify the number externally.
Define transaction types are the step used to assign the underlying to a number range.
2.32.3 Define Transaction Types
In this step, you define your financial transactions and assign them to your product types. You also
specify the considerable technical administrative functions that you can carry out with the product
types you have defined.
IMG Path FSCM—>TRM *Transaction Manager*Foreign Exchange*Transaction
Management->Transaction Types-> Define Transaction Types
Transaction SPRO
21
2.32.4 Assign Forex Attributes
IMG Path FSCM+TRM *Transaction Manager*Foreign Exchange* Transaction

Management->Transaction Types-> Assign Forex Attributes
Transaction SPRO
The Characteristics attributes are assigned to the FOREX products transactions.
2.32.5 Assign Fixing Spreads
The Characteristics attributes are assigned to the FOREX products transactions.

IMG Path FSCM+TRM *Transaction Manager*Foreign Exchange* Transaction
Management->Transaction Types-> Assign Fixing Spreads
Transaction SPRO
In this step, you maintain the spreads for fixing transactions which determine the difference
between bid and ask rates and between middle and ask.
2.33 Flow Types


IMG Path FSCM—>TRM *Transaction Manager*Foreign Exchange*Transaction
Management->Flow Types-> Define Flow Types
Transaction SPRO
defined for all possible flows in a transaction so that they can later be assigned
The Standard Product types are maintained for ORGN.

IMG Path FSCM—>TRM *Transaction Manager* Foreign Exchange *Transaction
Transaction SPRO
in order to completely portray a financial product.
2.34 Derived Flows
22
another.
in the counterparty role in the corresponding company code. Assign the derivation procedure to
the produce type on the Sl: Derived Flow Tab.

IMG Path FSCM—>TRM *Transaction Manager* Foreign Exchange
*Transaction
Transaction SPRO

*Transaction
Transaction SPRO
another.
23
2.35 Update Types

*Transaction
Usages
Transaction SPRO
individual flows.
clearly selected so that all update types that start with MM belong to the money market
area.
2-Securities account management
4-Corporate action
5-Exercising rights
6-Accrual/ deferral
7-0ther flows
assigned here.
The update types are no longer module-dependent and have an implicit direction. This
means, for example, that incoming and outgoing charges must be represented as two
different update types.
The new update types consist of the definition itself and a language-dependent text. No
further indicators are defined directly with the update types.
The Standard configuration for Update types will be maintained and configuration other than
standard will be worked on if required specific to ORGN.

Transaction SPRO
24
The link to Accounting is created via assigning the flow types to update types. When creating a
Securities
2.37 Basic Settings
2.37.1 Define Currency Units
IMG Path FSCM—>TRM *Transaction Manager*Securities+ Basic Settings->
Product Type-> Define Currency units
Transaction SPRO
The ratio of currency units to a currency is maintained. When you enter transactions in the
Securities area, you assign a currency unit to the security price. The system uses this ratio between
the currency unit and the corresponding currency to calculate the currency amount using the
formula "price * no. of units".
The currency unit is required for technical reasons and must be maintained for each exchange rate
you use.
2.37.2 Define Exchange

IMG Path FSCM—>TRM *Transaction Manager*Securities+ Basic Settings->
Product Type-> Define Exchange
Transaction SPRO
The relevant exchanges are maintained here. The ORGN specific entries are as below:
2.37.3 Define Security Price Types

IMG Path FSCM—>TRM *Transaction Manager*Securities+ Basic Settings-
> Product Type-> Define Security Price Types
Transaction SPRO
The
In Define Security Price Types, the various price types for securities are maintained. individual
security prices are maintained here.
2.38 Product Types

2.38.1 Define Number Ranges for Security Classes
IMG Path FSCM—>TRM *Transaction Data-

>
Product Type->Define Number Ranges for Security Classes
Transaction SPRO
In this section you define number ranges which you later assign to product types. Within this
number range interval, you define the class data for the individual product types.
2.39 Condition Types
25
2.39.1 Define Condition Types
IMG Path FSCM—>TRM *Transaction Data->
Product Type->Condition Types->Define Condition Types
Transaction SPRO
In this step you define your condition types for the securities area.
For each condition type, you create a three-character key and assign the appropriate flow type to
it. The system then assigns the flow category and the FiMa calculation category from the flow type
to the condition type automatically.
In order to ensure correct cash flow processing, you must enter a reference condition type for some
condition types. For floaters, for example, the interest rate adjustment date or the fixing of the
maximum or minimum interest rate refers to the variable interest rate. You must enter the indicator
of the corresponding reference condition type.
Cont. Type CTyp Condition Type Text RefC Docu FiMa
2 100 Int. (perc. -quoted)
2 101 Variable interest
2 111 Dividend
2 113 Bonus
2 116 Profit distribution
2 118 Repayment rate
2 119 Repayment price
2 133 Additional payment
2 1 34 Int. (unit-quoted) TZST

2 209 Int. rate adjustment 101 ZA
2 260 ABS/MBS Inst.Repayt TTRA

2 261 Annuity repayment TTAN
2 262 Installment repayment TTRA
2 263 Final repayment TTEN
2 300 Issue: Interest
2 301 Issue: Var. Interest
2 309 Issue: Int. Adjust. 301 ZA
2 310 Issue: Ann. Repayment TTAN

2 31 1 Issue: Inst. Repayt. TTRA
2 312 Issue: Final Repayt TTEN
2 318 Issue: Payoff
2 900 IS-B: Blank condit.
26
2.39.2 Define Condition Groups
Product Type->Condition Types->Define Condition Groups
Transaction SPRO
In this step you define the various condition groups, to which you then assign your condition types.
The Standard SAP Configuration will be adopted for grouping of condition types.
2.39.3 Assign Condition Types to Condition Groups

Product Type->Condition Types->Assign Condition Types to Condition
Groups
Transaction SPRO
In this step, you assign the required condition types to condition groups.
2.40 Define Product Types

Product Type->Define Product Types
Transaction SPRO
In this IMG activity you define product types and assign each one to a condition group, a product
category, and a number range. All the entries you make here are valid for all company codes. By
assigning product types to condition groups, you ensure that only certain conditions types can be
maintained or displayed as standard conditions for each product type.
The product category is an internal key that controls how the product type assigned to it is
processed. By assigning the product type to a number range, you can control how numbers are
assigned when you create class data. If you opt for external number assignment, the system assigns
numbers sequentially from the predefined interval. If you opt for external number assignment, the
system checks whether the number entered manually is already being used for a class within this
number range.
Product Cond. prod.

Product Type Text Text Product Cat Text
Type Code
Type
NCD 2 40 Debentures DEBENTURES Bond
Investment
ZMF 2 20 Mutual Funds - Short Term
certificate
2.41 Assign Repayment Types to Product Types
IMG Path FSCM—>TRM *Transaction
Data->
Product Type->Define Company Code-Dependent Settings for the
Product Type
Transaction SPRO
In this menu option you enter the possible repayment types for each product type. The repayment
types are defined under an internal key. The following are supported for securities at present:
1 = Final repayment
2 = Installments
27
3 = Annuity
4 = Perpetual bond
2.42 Define Company Code-Dependent Settings for the Product Type

Data->
Product Type->Define Company Code-Dependent Settings for the
Product Type
Transaction SPRO
In this section you make the following settings for your product types for each company code:
Cash Management
• Enter a planning type for updating Cash Management.
• Enter an update period for Cash Management (CM period). For securities without a term
end (such as stocks or perpetual bonds), this period indicates how many years in advance
you want the system to generate planned records for conditions with a frequency.
Accounting
• Fl posting indicator: Determine whether and, if so, how flows relating to a product type in
a company code are to be posted to the Fl General Ledger.
The following values are supported for securities:
0 2: no postings in Fl General Ledger
0 3: posting in Fl General Ledger with customer
0 4: posting in Fl General Ledger without customer
Automatic posting
• In the posting control field, specify whether flows relating to a product type in a company
code are to be posted by the automatic posting function.
Generating incoming payment flows
• In the incoming payment field, you decide if incoming payment flows are to be generated.
Generating taxes
• You can decide whether taxes are to be generated (according to the rules you defined for
tax generation) for a product type in a company code.
2.43 Securities Account Management
2.43.1 Define Securities Account Categories

IMG Path FSCM+TRM *Transaction Manager*Securities+Position Management -
> Define Securities Account-> Define Securities Account Categories
Transaction SPRO
28
You can define securities account types for the securities account master data. You
therefore determine several categories for the securities account types. You have to
determine a securities account category for every securities account type. The category
contains information on which positions can be managed in the relevant securities
accounts.
The following categories are available as choice:
Asset Securities Account: For securities accounts in this category, you can manage all
positions that do not belong to liability positions or securities lending transactions.
Liability Securities Account: Liability securities accounts only contain positions for securities
issues. The system makes sure that liability securities accounts cannot be transferred to
asset securities accounts or lending securities accounts. It also ensures that asset positions
or positions from securities lending transactions are not transferred to a liability securities
account.
Lending Securities Account: For a securities lending transaction, you transfer the lent
securities at the start of the term from the asset securities account to a lending securities
account. At the end of the term, you return the securities to the original asset securities
account. The system ensures that the positions in the lending securities account cannot be
sold or cleared during the term of the securities lending transaction.
The Standard settings will be adopted from ORGN perspective.
2.43.2 Maintain Field Selection for Security Account Master Data

IMG Path FSCM+TRM *Transaction Manager*Securities+ Position
Management -> Define Securities Account-> Maintain Field Selection
for Security Account Master Data
Transaction SPRO
The SAP Standard field selection is maintained here.
2.43.3 Define Blocking Flags
It is the standard SAP Setting. Blocking indicators can be entered for securities account. One can
specify why a securities account is blocked for the beneficiary, if required.
IMG Path FSCM—>TRM *Transaction Data-> Define
Securities Account-> Define Blocking Flags

Transaction SPRO
2.44 Number Ranges

2.44.1 Define Number Ranges for Transaction
Management-> Transaction Types->Number Ranges->Define
Number Ranges for Transaction
Transaction SPRO
In this step, you can define number range intervals for your financial transaction types.
29
The financial transactions generated in the application receive a number comparable with the
document number from Financial Accounting. The number assignment can either be transferred
internally by the system or you can specify the number externally.
transaction types.
2.44.2 Define Number Ranges for Underlying Transaction

Management-> Transaction Types->Number Ranges->Define
Number Ranges for Transaction
Transaction SPRO
In this step, you can define number range intervals for your underlying transactions. The number
assignment can be carried out internally by the system or you can specify the number externally.
Define transaction types are the step used to assign the underlying to a number range.
2.45 Transaction types:

Management-> Transaction Types-> Define Transaction Types
Transaction SPRO
Transaction types controls the transaction in securities. From ORGN Perspective, following product
types are maintained.
Transaction Types in
Securities
Prod. Tran. Name of Trans Pro. Cont. Cont.
Text
Type Type Type Cat Cat Type Type
ZDB 100 Purchase 2 100 2 Debentures 2
ZDB 200 Sale 2 200 2 Debentures 2
ZMF 100 Purchase 2 100 2 Mutual Funds - Short Term 2
ZMF 200 Sale 2 200 2 Mutual Funds - Short Term 2
02A 100 Purchase 2 100 2 Investment certificates 2
02A 200 Sale 2 200 2 Investment certificates 2
2.46 Flow Types

Management-> Flow Types (Transaction)
Transaction SPRO
defined for all possible flows in a transaction so that they can later be assigned
30

Transaction SPRO
in order to completely portray a financial product
The Standard SAP configuration is recommended for ORGN.
2.47 Derived Flows
another.
in the counterparty role in the corresponding company code. Assign the derivation procedure to
the produce type on the Sl: Derived Flow Tab.

*Transaction
Transaction SPRO
The TDS Procedure according to the law requirements will be configured specific to ORGN.
*Transaction
31
Transaction SPRO
another.
2.48 Update Types

*Transaction
Usages
Transaction SPRO
individual flows.
clearly selected so that all update types that start with MM belong to the money market area.
2-Securities account management o
4-Corporate action
5-Exercising rights o 6-
Accrual/ deferral
7-0ther flows
assigned here.
32
The update types are no longer module-dependent and have an implicit direction. This means,
for example, that incoming and outgoing charges must be represented as two different update
types.
The new update types consist of the definition itself and a language-dependent text. No further
indicators are defined directly with the update types.
The Standard Update Types will be configured for ORGN. The List of Update types is attached.
Define Update Type

for SEC.xlsx

Transaction SPRO
The link to Accounting is created via assigning the flow types to update types. When creating a
Hedge Management
2.50 Number Ranges
2.50.1 Define Number Ranges for Hedges

IMG Path FSCM+TRM *Transaction Manager*General Setting* Hedge
Management* Number Ranges->Define Number Ranges for Hedges
Transaction SPRO
In this step, you can define one or several number range intervals for hedge transactions or hedge
items for each company code. A hedge item is generated the moment you decide to save an
exposure that has been entered in the application. The number for uniquely identifying this hedge
item either assigned internally by the system, or you assigns the number externally.
2.50.2 Assign Hedge Number Ranges to a Company Code

Management* Number Ranges->Assign Hedge Number Ranges to
a Company Code
Transaction SPRO
In this step, you can assign a number range interval that is already defined for hedge transactions
or hedge items to a company code.
2.50.3 Define Number Ranges for Hedging Relationships

Management* Number Ranges->Define Number Ranges for
Hedging Relationships
Transaction SPRO
In this step you can define one or number range intervals for hedging relationships in each company
code. Numbers to uniquely identify the hedged item are assigned either automatically or manually
33
2.50.4 Assign Hedging Relationship Number Ranges to a Company Code
Management* Number Ranges->Assign Hedging Relationship Number
Ranges to a Company Code
Transaction SPRO
In this step you can assign a pre-defined number range interval for a hedging relationship to a
company code.
2.50.5 Define Number Ranges for Hedge Plans

Hedge
Plans
Transaction SPRO
In this IMG activity you can define one or number range intervals for hedge plans in each company
code. The numbers uniquely identify the hedge plans and can be assigned either automatically or
manually.
2.50.6 Assign Hedge Plan Number Ranges to a Company Code

Management* Number Ranges->Assign Hedge Plan Number Ranges
to a Company Code
Transaction SPRO
In this IMG activity you can assign a previously defined number range interval for a hedge plan to a
company code.
2.50.7 Define Number Ranges for Transactions

Transactions
Transaction SPRO
In this IMG activity you can define one or number range intervals for hedge transactions in each
company code. The numbers uniquely identify the hedge transactions and can be assigned either
automatically or manually.
2.50.8 Assign Transaction Number Ranges to a Company code

Management* Number Ranges->Assign Transaction Number Ranges
to a Company code
Transaction SPRO
In this IMG activity you can assign a previously defined number range interval for hedge
transactions to a company code.
2.51 Valuation Area-Dependent Settings for Hedge Management
34
IMG Path FSCM—>TRM *Transaction Manager*General Setting* Hedge
Management* Valuation Area-Dependent Settings for Hedge
Management
Transaction SPRO
In this step you can define whether you want a hedge relationship that is regarded as ineffective in
the future to be dissolved or de-designated.
The following two valuation areas are considered from ORGN point of view.
2.52 Settings for Automatic Creation of Hedge Management Data

IMG Path FSCM—>TRM *Transaction Manager*General Setting* Hedge
Management* Settings for Automatic Creation of Hedge Management
Data
Transaction SPRO
The Exposure rollover, premature settings will be configured here for Product Types specific to
ORGN.
Settings for Automatic Creation of Hedge Management Data
Prod. Tran. Pro. Company

Text Code
Type Type Cat Cat
60A 102 4 600 Foreign exchange (EX) 1000
Cash Management
2.53 Currencies
IMG Path SPRO + Financial Supply Chain Management + Cash & Liquidity
Management Cash Management Market Data Master Data
Currencies Check Currency Codes
Transaction SPRO
The Currency will be defined in currency settings view as below.
2.54 Check rate Type

Management Cash Management -5 Market Data Master Data
Currencies Check Rate types
Transaction SPRO
Exchange rates for different purposes for the same date are defined in the system as exchange rate
types. The currency conversion rate type maintained is M as maintained below.
2.55 Define Source Symbol

Management -5 Cash Management -5 Basic Settings -5 Define source
symbols
Transaction SPRO
The source symbol divides the planning level according to the sources that supply them with data.
In ORGN, following source symbols are being used.
35
Bank accounting (BNK)
ORGN Cash Flow
Sub ledger accounting (PSK)
Materials management (MME)
Sales and distribution (SDF)
Treasury and Risk Management (TRM)
Cash position field should be selected for source symbol 'BNK' so that the data is shown under cash
position.
2.56 Define Planning Level
Management -5 Cash Management -5 Master Data -5 GL Accounts
Define Planning Levels
Transaction SPRO
In this step, you specify planning levels for your bank GL accounts or sub-ledger accounts and
allocate these planning levels to the cash position or liquidity forecast by using the corresponding
source symbol.
In the standard R/ 3 System, separate levels are intended for updating data from Sales and
Distribution (SD) and Materials Management (MM). Thus, the liquidity forecast display is easier to
analyze.
The G/L Account and sub-ledger-account relevant to planning levels is maintained and is assigned
to the planning level to the cash position or liquidity forecast by using the source symbol. The typical
financial transactions in Cash Management are displayed using planning levels, which explain the
opening and closing balances. The Planning levels are already created with standard SAP ERP.
The following list provides all planning levels which are reused in SAP Best Practices without any
change. This is indicative list and detailed list be integrated with Fl, SD and MM Modules as per
requirement from the Core Team.
Level Sym Short Text Planning Level long text

AB BNK Advice, c. Payment advice (confirmed)
PSK Agcy bus. Agency business
BNK Advice, uc Payment advice (unconfirmed)
BNK Out. check Outgoing checks
BNK Dom trans Outgoing transfer, domestic
83 BNK For. trans Outgoing transfer, foreign

B4 BNK Bank coll. Bank collection
85 BNK Int posts Other interim postings
86 BNK Liability Own-accepted liabilities
87 BNK Cl. bill Cl. acct for bill payment
88 BNK Inc checks Incoming checks
89 BNK Cash rec Customer cash receipt
36
CB BNK Comm. paper Commercial paper - bank
CL BNK Concentration Cash concentration
PSK Comm. Paper Commercial paper - sub ledger
DB BNK TR Forex Bank foreign exchange

DE BNK Loans Loan revenue
DI PSK Planned General planning
PSK TR Forex Sub ledger Forex
BNK Fl Banks Posting to bank account
PSK Posting of purchasing & sales

Fl
PSK Fl DP req Down payment request
PSK Fl DP req Advance pymts (offsettg entry)
PSK FRA FRA Personnel

FW PSK Fl bill Fl bill of exchange
BNK Int. Deriv Interest Derivatives Bank
PSK Int. Deriv Interest Derivatives People
KB BNK Dep.at not Deposit at notice

PSK Dep.at not Deposits at notice - subledger
LB BNK Loans Bank loans

PSK Loans Personal loans
Ml MME Purch.Req. Purchase requisition
MME Pur. Order Purchase order
MME SchedAgree Scheduling agreement
ME BNK Rents Rent received
MP PSK Noted itms Planning - Noted items
0B BNK TR Bk crcy TR currency option, bank
PSK TR SL crcy TR currency option, subledger
RE PSK RealEstate Real Estate
REM Rent Res. Rent Result
REM Rents rcvb Rents Receivable
SDF Order Sales Orders
BNK Investment Deposit/loan mgmt: invest
BNK Deps/loans Time deposits: banks
BNK Dep. Fixed-term deposit management
37
BNK Borrowing Deposit/loan mgmt: borrow
PSK Deps/loans Time deposits: subledger

WB BNK Securities Bank securities
BNK Sec rev Security revenue
PSK Block ID A Blocked for payment
XR PSK Block ID R Invoice verification

PSK Block ID X Block indicator X
ZB BNK All fields All fields of bank records
PSK All fields All fields, subledger records
The Screen shot for the Planning Levels in SAP System.
2.57 Define Planning Groups
Management -5 Cash Management -5 Master Data -5 Sub ledger
Accounts Planning Groups
Transaction SPRO
In this step, you define the planning groups for customers and vendors and assign them to
appropriate planning level. A planning group represents particular characteristics, behaviors or risks
of the customer or vendor group. You can break down incoming and outgoing payments according
to the amount, the probability of the cash inflow or outflow, and the type of business relationship.
Planning Groups will be integrated with SAP-FI, SD and MM Modules. The ORGN Specific master
data will be incorporated as per needs from ORGN Core team. This is indicative list and detailed list
be integrated with Fl, SD and MM Modules as per requirement from the Core
Team.
2.58 Define Groupings and maintain headers
Management Cash Management Structuring Groupings Define
Groupings and Maintain Headers
Transaction SPRO
In this step you define the groupings, and stipulate the main headings and the line headings that
the system displays in the cash management position or liquidity forecast. Basically this involves
creating a name and specifying its description for the report that one proposes to use for the
purpose of Cash Position and Liquidity Forecast.
Groupings created for are as per attached screen shot. The ORGN Specific Grouping will be created
as below.
2.59 Maintain Structure
38
Management Cash Management -5 Structuring Groupings
Maintain Structure
Transaction SPRO
In this step, you specify grouping structures. These structures enable you to group together bank
and sub-ledger accounts in the cash position or the liquidity forecast.
For the cash position and the liquidity forecast, you specify:
• The accounts you want to see in the grouping and those you want to exclude
• The summarization term under which you want to group together the lines for levels and
the lines for groups in the display
• The line type, whereby "E" stands for level and "G" for the account or planning group
2.60 Prepare production startup for Cash Management
Management -5 Cash Management -5 Tools -5 Prepare production
start up and data setup
Transaction SPRO
This menu supports you when you are implementing the cash management and forecast (CM&F).
You can activate company codes for the CM&F update: tables are checked in the process.
2.61 Activate company code

When a company code is activated for CM&F, the first effect is that CM&F data can be updated
when CM-relevant funds movements or planning takes place. There are further indicators enabling
data to be recorded from the logistical applications MM and SD.
During activation, all the necessary table settings are verified and, if necessary, made.
2.62 Define Value Date Default

The Value Date is current date as the default value date when one has to enter line items. This
setting is maintained for the company codes in which one is implementing Cash Management. The
company code has to be configured first and then the functions for cash management and
forecast are activated.
IMG menu Financial Supply Chain Management + Cash and Liquidity

Management Cash Management + Basic Settings + Define
Value Date Default
Transaction code SPRO
Following values will be maintained for the value date.
Co. Code Company Name City Proposed Value Date

1000 XYZ Ltd. Karachi x
2.63 Integration with other Modules.
39
The Treasury and Cash Management module will have integration with Fl, SD and MM module.
The following are key integration points with respect to integration with modules.
FI-TR Integration:
• Account Groups in CM
• Planning Levels in CM
• Planning Groups in CM
• Integration of Bank Statement with CM via EBS or Bank Statement Upload.

• Account Symbols/ Updates will be used as integration point with Financials at COA
Levels.
SD-TR Integration:
• Account Groups in Cash management
• Planning Levels in Cash management
• Sales Area
MM_TR Integration:
• Account Groups in Cash management
• Planning Levels in Cash management
• Purchasing Area
40

Sap S4Hana TRM: Treasury Management and Cash Management

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SAP S4HANA TRM

Treasury Management and Cash Management

2.1 General Settings:

Define Calculation Indicator

The Rates mentioned standard in SAP are:

2.3 Define Company Code Additional Data

IMG Path FSCM—>TRM *Transaction Manager*General

Settings for exchange rates:

Settings for the securities area:

Company Code Portfolio Portfolio

Rate notation in Treasury:

2.7 Define Valuation Areas

1000 Organization Ltd - Accounting Code 1000

IMG Path FSCM+TRM *Transaction Manager*General

1000 Organization Ltd - Accounting Code 001 Operative Valuation Area

IMG Path FSCM+TRM *Transaction Manager*General

2.11 Define and Assign Valuation Classes (General Valuation Class)

The following asset classes exist:

2.12 Define and Assign Valuation Classes

IMG Path FSCM—>TRM *Transaction Manager*General

2.13 Assignment of General Valuation Class to Specific Valuation Class

2 004 Liabilities Liabilities Parallel Valuation Area -

2.14 Assign General Valuation Classes to Groups:

2.15 Define Position Management Procedure

IMG Path FSCM—>TRM *Transaction Manager*General

The Standard SAP Position Management Procedures are adopted.

2.16 Assign Position Management Procedure

The Standard SAP Position Management Procedures will be adopted.

2.17 Define Update Types and Assign Usages

IMG Path FSCM—>TRM *Transaction Manager*General

2.19 Link to Other Accounting Components

The following Standard Account Assignment references will be considered.

Link to Other Accounting Components->Define Account Assignment

2.21 Indicate Update Types as Relevant to Posting:

2.22 Define Account Determination

IMG Path FSCM—>TRM *Transaction Manager*General

2.23 Define Account Determination

2.24 Product Types

2.24.1 Define Product Types

2.25.2 Define Transaction Types

55A 100 Investment '00002 100 x 5 Interest rate 5

ZBC 200 Borrowing '00002 200 2 5 Buyers / Suppliers 5

ZVL 200 Borrowing '00002 200 4 5 Vehicle Loan 5

ZLN 200 Borrowing '00002 200 5 5 PKR Currency loans 5

2.26 Flow Types

2.26.1 Define Flow Types

Following flow types are identified for ORGN

2.27 Derived Flows

IMG Path FSCM—>TRM *Transaction Manager*Money Market* Transaction

2.27.1 Define Calculation Procedure for Derived Flows

2.28 Update Types

2.30 Condition Types

2.30.1 Define Condition Types

Conditions can be classified using the following attributes:

2.30.2 Assign Condition Types to Transaction Type

In this step, you maintain the product types you require.

2.32 Number Ranges

2.32.2 Define Number Ranges for Underlying Transaction

2.32.3 Define Transaction Types

IMG Path FSCM+TRM *Transaction Manager*Foreign Exchange* Transaction

2.32.5 Assign Fixing Spreads

The Characteristics attributes are assigned to the FOREX products transactions.

2.33 Flow Types

IMG Path FSCM—>TRM Transaction ManagerGeneral

IMG Path FSCM+TRM Transaction ManagerGeneral

IMG Path FSCM+TRM Transaction ManagerGeneral

IMG Path FSCM—>TRM Transaction ManagerGeneral

IMG Path FSCM—>TRM Transaction ManagerGeneral

IMG Path FSCM—>TRM Transaction ManagerGeneral

IMG Path FSCM—>TRM Transaction ManagerGeneral

IMG Path FSCM—>TRM Transaction ManagerMoney Market* Transaction

IMG Path FSCM+TRM Transaction ManagerForeign Exchange* Transaction

IMG Path FSCM+TRM Transaction ManagerGeneral Setting* Hedge