T2_TRM_01.02._Money Market Transactions

Project HARMONY
Business Blueprint
Project – Harmony
Title
Business Blue Print
Treasury: Money Market Transactions
D:\01_M&M Treasury Configuration\01_M&M Porcess wise Ver. No. :1.0 Issue Date: Page 1 of 19
Blueprint\Versin 3.d\T2_TRM_01.02._Money Market 25.09.2009
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Document Change Control:
Change Record
Date Date Author Version Change Reference

Created Updated
20.09.2009 30.09.2009 Yatish Dhakappa 1.0 First Version
Reviewers
Name Company Representing Signature
Approvals
Name with Company Representing Process Signature

Designation
Money Market Transactions
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Table Of Contents
1. General explanations..................................................................................... 4
2. Requirements/Expectations ........................................................................... 4
2.1 Product types.......................................................................................... 4
2.2 Investments of Surplus and Non Surplus Fund. ..................................... 5
2.3 Fixed Term Deposit Group ..................................................................... 5
3. Explanation of functions and events .............................................................. 5
3.1 Transcation Processing –Front Office: Capturing of Offer .................... 6
3.2 Transcation Processing –Front Office: Capturing of Contract Details... 6
3.2.1 Derived Flows for Tax Deducted at Source (TDS)........................... 6
3.3 Back Office –Settlement. ........................................................................ 6
3.4 Back Office –Correspondence................................................................ 6
3.5 Accounting.............................................................................................. 7
3.6 Payment to Counter party wide Bank Transfer, RTGS, Cheque (From
FI-Banking)........................................................................................................ 7
3.7 Alert Monitor Reports.............................................................................. 7
3.8 Period End Closing:................................................................................ 7
3.9 Part Pre payment of Deposits – Change in Deposit Structure ................ 7
3.10 Rollover of Deposits................................................................................ 8
3.11 Deposit at Notice- Give Notice................................................................ 8
4. Business Model ............................................................................................. 8
5. Description of functional deficits .................................................................... 8
6. Approaches to covering functional deficits..................................................... 8
7. Changes to existing Organization .................................................................. 8
8. Description of Business Process improvements............................................ 8
9. Authorization and user roles .......................................................................... 8
10. System Configuration Considerations............................................................ 9
11. Data Migration Considerations..................................................................... 10
12. Training Considerations............................................................................... 10
13. Developments.............................................................................................. 10
13.1 Reports ................................................................................................. 10
13.2 Interfaces.............................................................................................. 11
13.3 Conversions.......................................................................................... 11
13.4 Enhancements...................................................................................... 11
13.5 Forms ................................................................................................... 11
14. Annexure-J: Money Market Transactions Process Mapping........................ 13
15. Annexure-K: Flow Charts for Money Market Transactions. ......................... 17
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T2_TRM_01.02._Treasury: Money Market Transactions
Version # Changes in Brief Release Date
1.0 First Version 25.09.2009
1. General explanations
Mahindra & Mahindra Ltd., as part of Project Harmony, is implementing Treasury and Risk
Management (TRM) in the SAP ERP 2005 and General Loans module for its Loans Taken.
TRM has following sub modules functionalities:

Limit Management
Money Market
Securities.
Foreign Exchange
Derivatives
Market Risk Analyzer
Portfolio Analyzer
The General Loans Module will be used by M&M to capture all types of
Loans Taken.
This Process document covers the End to End Process in Money Market transactions.
2. Requirements/Expectations
Treasury and Risk Management Module will be activated in Mahindra and Mahindra Company
code.
2.1 Product types

The following types of Investment product types will be defined in Money Market:
Money Market –Product types

Code Name Details.
511 ICD Non Group ICD invested in Corporate Outside Group
512 ICD Grp ICDs within Group companies.
513 Fixed Term Bank Deposits with Banks. FD invested in Banks.
521 Deposit at Notice Deposits at notice outside Group
522 Deposit at Notice GRP. Deposits at notice with Group
Investments will be mainly in INR. However, there certain group companies outside India, ICDs
are placed in Foreign Currency.
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2.2 Investments of Surplus and Non Surplus Fund.

Each Investment (Deal) in Money Market Instruments will be classified at Portfolio Level to
indicate whether it is investment of Surplus fund or Non Surplus fund. Further classification of
Surplus fund is done sector wise, to identify the source of surplus fund. Following Portfolio will be
defined for classification purposes:
Portfolio
Code Name
110 Surplus –Auto
120 Surplus- FES
130 Surplus- SBU
140 Surplus- SSBU
150 Surplus- SSG
160 Surplus-MDS
170 Surplus- PTL
180 Surplus- Corporate
190 Surplus -Others
500 Non Surplus -Corporate
Portfolio will be a mandatory field in the transaction.
2.3 Fixed Term Deposit Group

Inter Corporate Deposits (ICD) in Group companies is presently maintained on Excel spreadsheet
and deals are not entered in SAP. The same will be captured in Product Type 512.
Inter Corporate Deposits in Group requires process of part payment. In ECC 6.0, Part payments
can be captured as part of Capital Structure changes, in the transaction.
3. Explanation of functions and events

This section details out the processes as will be done in the system going forward. The detailed
activity step listing and requisite Transaction codes and roles are listed below in the section:
Annexure-J: Money Market Transactions Process Mapping
The end to end business process in Fixed Deposit (Product type 511 to PT 513) will cover the
following:
Capturing of Offers received for Investment.
Contract
Back Office Validation and Settlement
Correspondence
Accounting including accounting of TDS Receivable entries, where applicable.
Payment to Counter party wide Bank Transfer, RTGS, Cheque (From FI-Banking)
Alert Monitor
Period End Closing: Interest Accruals and Foreign Currency Valuation
Part Repayment of Deposits – Change in Deposit Structure
Rollover of Deposits: for any changes in amount and capitalization of interest
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For Deposit at Notice (Product type 521 and Product type 522): Following additional process is
defined:
Give notice - for calling back the deposit (for calling back the deposit)
3.1 Transcation Processing –Front Office: Capturing of Offer

Offers details will be captured for following product types:
Money Market -Product types
Code Name Details.
511 ICD Non Group Inter Corporate Deposit Outside Group
Inter Corporate Deposits within Group
512 ICD Grp companies.
3.2 Transcation Processing –Front Office: Capturing of Contract Details

Transactions will be recorded by Front Office as and when the contracts are entered into with the
Counterparty. The Contract will capture the deal structure and other relevant information.
A separate Transaction type – “Investment wide Mergers” will be created in the system to capture
investment acquired wide “Mergers / Amalgamation of companies”
3.2.1 Derived Flows for Tax Deducted at Source (TDS)

In cases where TDS is applicable the relevant TDS Derivation Procedure will be defined in
customization and the same will be mentioned in Business Partner Master Data. TDS Rates of
10% as applicable will be defined.
3.3 Back Office –Settlement.

Validation of Deal will take place as part of Settlement in back office. Accounting can take place
only after the deal is settled.
3.4 Back Office –Correspondence

Currently, no confirmations are sent to the counterparties. Following external correspondence
types will be generated from the system:
1. FD Placement Letter / ICD Placement Letter.
2. Maturity Letter
3. ICD Advice
4. Rollover –Correspondence.
5. Year End Confirmation Letter
Outgoing correspondence to be generated after the transaction is posted and settlement activity
takes place.
Back Office –Incoming Confirmation: Incoming Confirmation will be not applicable for Money
Market transactions.
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3.5 Accounting
GL Accounts will be as per the new chart of Account for M&M.
Investment Investment Interest Interest TDS Maturity
Money Market -Product Act Payable Receivable Income Receivable O/s
types Act Act Act Act
Code Name
511 ICD Non Group 25110001 16440007 24510003 43120001 26040002 24540001
512 CD Grp 25010001 16440007 24510003 43120001 26040002 24540001
513 Fixed Term Bank 16440007 24510003 26040002 24540001
Deposits with
Banks. 24120000 43120001
521 Deposit at Notice 25110001 16440007 24510003 43120001 26040002 24540001
Deposit at Notice 25010001 16440007 24510003 26040002 24540001
522 GRP. 43120001
As part of period end closing interest accruals will be posted to GL 24510099 and TDS onto GL
26040001
For the above product types.
The above account determination for transactions will be automatic.
For FD investment in foreign currency following additional accounts need to be defined:

Revaluation Gain / Loss.
3.6 Payment to Counter party wide Bank Transfer, RTGS, Cheque (From
FI-Banking)
Investment deal on posting to Accounting will generate an Investment payable entry as follows:
Investment XX
To Investment
Payable XX
This will paid wide FI Payment Process as follows:

Investment Payable XX
To Bank XX
Similar entries will be passed for Interest Receivables.
3.7 Alert Monitor Reports.

Alert Monitor reports can be generated to monitor investments due, etc.
3.8 Period End Closing:

Following Process will be covered as part of Period End Closing.
Interest Accruals
Valuation of foreign Currency Investments.
3.9 Part Pre payment of Deposits – Change in Deposit Structure

Part Payment of Fixed Deposits can be entered in the Deal at the time of the contract or after the
deals are posted. Wide capital structure –changes –part maturity can be entered and the same
accounted.
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3.10 Rollover of Deposits.

Rollover of deposits can take place before the maturity is posted to accounting. Incase of
rollover, new dates will be entered in the transactions and rollover correspondence generated.
3.11 Deposit at Notice- Give Notice

The notice days will entered in the system and the end date of the deposit will also be
determined.
4. Business Model
TRM and R3 will be on the same system. Document Transfer wide Automatic Link enabling
(ALE) Mode will not be required.
Please refer Annexure K: Process flow charts.
5. Description of functional deficits
None
6. Approaches to covering functional deficits

None
7. Changes to existing Organization
M&M will be one single company code.

Treasury module will be activated in M&M company code.
Portfolios have been defined to identify surplus and Non surplus fund.
8. Description of Business Process improvements
The Treasury Module and Financial Accounting Module will be under a single system and
the use of Document transfer wide ALE will be eliminated.
Fixed Term Deposit in Group requires process of part payment. In ECC 6.0, Part
payments can be captured as part of Capital Structure changes.
In ECC 6.0, additional functionalities are provided for Compounding of Interest.
At present, Interest receivable accounts are not used to book interest receivables. All
Interest dues will be posted to Interest receivables and on receipt of payment, the interest
receivable account will be squared.
9. Authorization and user roles
To execute TRM transactions / reports, users will have to be provided with adequate
authorizations.
Roles envisaged for Treasury Transaction and user wise role is attached below.
Sr Role Description
1 TR_MASTER_CREATE Activities include creation of Business Partner Master,
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Security Id, and Security Account.
2 Display authorization of Masters created in Treasury

TR_MASTERS_DISPLAY
(as in above role
3 Creation of Money Market and Securities Contracts.
TR_INVESTMENT_FRNT_OFF Entering, executing, rollover, giving notice on &
reversing orders/ front office transactions
4 TR_INVESTMENT_BCK The back office processor confirms and checks
OFF_SETTLEMENT transaction activities carried out by the Front Office.
5 Generate and Monitor Correspondence of
TR_BCK OFF_CORRESPONDENCE
transactions executed by Front Office.
6 The post to accounting function activity can be carried
out in the system. Secondly, display authorization of
TR_ACCOUNTING_TRANSACTIONS
the treasury transaction and the accounting details
display is available in this role
7 View Money Market and Securities Information
TR_INVESTMENT REPORTS system reports pertaining to Transactions and
Positions
8 Display authorisation of Limits Masters created (as in
TR_LIMITS_DISPLAY& REPORTS
role 3) and Limit utilisation reports.
Following Users/ Core team and Process Owner will be using the module:
Type of User –Process Roles Envisaged. (As in

Owner/ Core Team / Present Activities/ Access Section 9)
User End User details required.
Front Office, Information Roles in 2, 7 and 8
Nikhil R. Sohoni Process Owner System
Core Team / Front Front Office, Limits Reports, Role 1,2,3,7 and 8
Amol Tawde Office and Information System.
Settlement, Role 2,4,5, 7 and 8
Correspondence, Alert
Monitor and Information
Suresh Kotian Back Office -User System.
Accounting Transactions, Role 2 ,6 ,7 and 8
Information Systems and
Golgota Jayant Accounting. Display transaction.
Vinay Potdar Accounting. -do-
Nayak Jawahar Accounting. -do-
Sengupta
Debanjana Accounting. -do-
Bharucha Nozar Accounting. -do-
Geeta Vazirani Accounting. -do-
Arpita Mehta Accounting. -do-
Chaturvedi Shubha Accounting. -do-
10. System Configuration Considerations
Portfolio will be defined as per Section 2.1

Product types defined in Section 2.2 will be configured in the system.
Various correspondence types (in line with Section 3.4) to be created and assigned to the
activities and product types.
Derivation Procedure for Tax Deducted at Source will be configured.
Separate payment method to be created for treasury related transactions.
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Separate Cheque lots to be created for treasury payments.

Print programs used by FI-AP for Cheques /RTGS/ Bank Transfer will be used here as
well.
11. Data Migration Considerations
1. All Investment as on go live date will be migrated.
2. On upload of above contracts, the settlement will be executed for all transactions as this
transaction are already settled in earlier system.
3. Status of flow types will be changed to Posted wide Transaction TBB1_LC (Legacy Data
Transfer –Not Relevant to Accounting) for flows which are already posted to Accounting
in the previous system.
4. Data Migration will be wide Migration Tool and file format for upload to be developed.
12. Training Considerations
End User Training will be required covering new features of ECC 6.0.
13. Developments
Alert Reports to be send to Email account

Correspondence identified in Section 3.4
Investment Confirmation Letter
13.1 Reports
Total Investment Reports covering Money Market and other asset class will be required by
Front Office and Accounting. Information system reports provide reports on Transactions and
Positions. Details of the same are as follows:
In addition, BI reports have been envisaged for money market as follows:

Business Intelligence (BI) Report Requirements
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Product wise Investment Reports

12 Fixed Deposit Holding Report
13 ICD Holding Report
13.2 Interfaces
None
13.3 Conversions
None
13.4 Enhancements
None
13.5 Forms
Forms for Correspondence in Section 3.4 will be developed.
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Role Name Signature with date

Core Team Member - Amol Tawde
Treasury
Core Team Member - Debanjana Sengupta

Accounting
SAP Consultant Yatish Dhakappa
Team Lead Nikhil Sohoni
SAP Lead Madhav Pai

Amit Verma
Process Owner Nikhil Sohoni
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14. Annexure-J: Money Market Transactions Process Mapping
Business process (TRM-01.02._Money Market Transactions): Money Market Transactions
Sub-process : 01.02 Money Market Transactions
Business Partner Master Creation

Offers
Contract
Settlement
Correspondence
Post to Accounting
Update Cash Management
Accrual / Deferral
D – Direct fit, W – Work around, N – Not in SAP, C – Customization
Activity Step Data input Data output Transaction Fitness Responsibility/ Remarks Processing
Code in SAP D/W/N/C Authorization system
(SAP, non-
SAP etc.)
Creation of Business 1 BP Name, Business BP D TR_MASTER_ SAP
Partner. address, Roles Partner No. CREATE
,Credit Ratings,
authorizations,
Payment
Details
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Creation of Offers 2 Business Offer No. TMCATM07 D SAP

Partner, Offer
Rate, Deal
Amount
3 Bp, Product Deal No. SAP
Type, TR_INVESTME
Transaction TM01 D NT_FRNT_OF
Create Fixed Deposit (FD) / type, condition F
ICDs Structure.
Create Deposit at Notice 4 Bp, Product Deal No. SAP
Type,
Transaction TM11 D
type, condition
Structure
5 Deal No Activity Status TR_INVESTME SAP
TM06 D
Settlement of FD/ ICDs is changed. NT_BCK
Settlement of Deposit at 6 Deal No Activity Status OFF_SETTLE SAP
TM16 D
Notice is changed. MENT
Correspondence Monitor 7 Deal No. Transaction TR_BCK SAP
TBZ11 D
wise details. OFF_CORRES
Create Correspondence 8 Deal No. Correspondenc PONDENCE SAP
TBZ1 D
Object e Form
Rollover of FD/ ICDs 11 Deal No. and Activity TR_INVESTME SAP
Rollover End category is NT_FRNT_OF
TM04 D
Date. changed to F
rollover.
Rollover Deposit at Notice 12 Deal No. and Activity TR_INVESTME SAP
Rollover End category is NT_FRNT_OF
TM14 D
Date. changed to F
rollover
Give Notice 13 Deal No. and Date Captured TR_INVESTME SAP
Date of Notice in the Deal. NT_FRNT_OF
TM15 D
F
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Collective Processing 14 Product type, Details of TR_INVESTME SAP

Dates, Activity transactions as NT_BCK
category, per variant TM00 D OFF_SETTLE
variant. MENT
Post flows 15 Deal No or Accounting TR_ACCOUNT SAP

TBB1 D
Date, entries ING_TRANSA
Reverse Contract 16 Deal No Activity status CTIONS
TM07
is reversed.
Reverse Posting to 17 Deal no Accounting SAP
TPM10 D
Accounting entries
Execute Accrual 18 Date, Test run, Interest Accrual SAP
final Run. report and TPM44 D
posting.
Reverse Accrual 19 Date TPM45 D SAP
Business process documentation schedule and allocation
Start date: 25.09.2009 Planned end date: 29.09.2009 End date: .09.2009
Prepared by: Yatish Dhakappa Team Leaders Approval: Date: .09.2009
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15. Annexure-K: Flow Charts for Money Market

Transactions.
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Project HARMONY

Business Blue Print

Treasury: Money Market Transactions

Document Change Control:

Date Date Author Version Change Reference

20.09.2009 30.09.2009 Yatish Dhakappa 1.0 First Version

Name Company Representing Signature

Name with Company Representing Process Signature

Money Market Transactions

T2_TRM_01.02._Treasury: Money Market Transactions

Version # Changes in Brief Release Date

1.0 First Version 25.09.2009

TRM has following sub modules functionalities:

2.1 Product types

Money Market –Product types

2.2 Investments of Surplus and Non Surplus Fund.

Portfolio will be a mandatory field in the transaction.

2.3 Fixed Term Deposit Group

3. Explanation of functions and events

3.1 Transcation Processing –Front Office: Capturing of Offer

3.2 Transcation Processing –Front Office: Capturing of Contract Details

3.2.1 Derived Flows for Tax Deducted at Source (TDS)

3.3 Back Office –Settlement.

3.4 Back Office –Correspondence

The above account determination for transactions will be automatic.

For FD investment in foreign currency following additional accounts need to be defined:

This will paid wide FI Payment Process as follows:

Similar entries will be passed for Interest Receivables.

3.7 Alert Monitor Reports.

3.8 Period End Closing:

3.9 Part Pre payment of Deposits – Change in Deposit Structure

3.10 Rollover of Deposits.

3.11 Deposit at Notice- Give Notice

Please refer Annexure K: Process flow charts.

5. Description of functional deficits

6. Approaches to covering functional deficits

7. Changes to existing Organization

M&M will be one single company code.

8. Description of Business Process improvements

9. Authorization and user roles

Security Id, and Security Account.

2 Display authorization of Masters created in Treasury

Type of User –Process Roles Envisaged. (As in

10. System Configuration Considerations

Portfolio will be defined as per Section 2.1

Separate Cheque lots to be created for treasury payments.

11. Data Migration Considerations

1. All Investment as on go live date will be migrated.

12. Training Considerations

Alert Reports to be send to Email account

In addition, BI reports have been envisaged for money market as follows:

Product wise Investment Reports

Forms for Correspondence in Section 3.4 will be developed.

Role Name Signature with date

Core Team Member - Debanjana Sengupta

SAP Consultant Yatish Dhakappa

Team Lead Nikhil Sohoni

SAP Lead Madhav Pai

Process Owner Nikhil Sohoni

14. Annexure-J: Money Market Transactions Process Mapping

Business process (TRM-01.02._Money Market Transactions): Money Market Transactions

Sub-process : 01.02 Money Market Transactions

Business Partner Master Creation

D – Direct fit, W – Work around, N – Not in SAP, C – Customization