Unit 3 Transaction Manager: Money Market (Special functions (BAPIs, Mirror…
Unit 3 Transaction Manager: Money Market
Effective interest rate
Additional of capital
Posting overview/posting journal
Note: Cash and Liquidity Management integration
Interest Rate Adjustment
For financial transactions with variable interest, you carry out an interest rate adjustment periodically. You fix the interest rate to the current value of a reference interest rate.
There are also references which are created by the user (netting).
A reference between transactions documents a relationship between "n" transactions.
To document the connections between Treasury transactions or objects, you can define links in the administrative data of a transaction.
Correspondence overview and
Status management for counterconfrimation can be controlled according to the business partner - in the
Standing Instructions + Customizing
Viewing confirmation status for transaction correspondence under
Correspondence serves to document and match concluded financial transactions.
Settlement = Checking
The transaction history allows you to trace each activity and its relevant details.
The position indicator can be created manually or automatically by the system.
This indicator specifies the position management and valuation parameters at company code level. and allocates the account assignment reference to a position.
You can check, change, or add information that is relevant for posting and payment.
Facilities management and processing
Facilities enable you to map master credit lines between a lender and a fixed business partner for a series of withdrawals against credit (drawings)
Cash flow transaction
The following are supported
Subsequent management in back office and accounting
Entering and processing cash flow transactions
Manual entry of
Cash flow from position changes, expenses, revenues, payments etc.
Flexible representation of a wide range of transactions
Interest rate instrument
To enable the different interest and repayment calculation procedures, you must describe the financial mathematical structure of the interest rate instrument.
Interest rate structure
Transaction amount, currency, and flow type
The interest rate instrument supports the entry and calculations of forms of fixed and variable interest as well as installment-based and full payment on maturity repayment schedules.
Commercial Paper/master agreement
Minimum and maximum transaction terms
Permitted transaction types
Permitted business partners
Permitted company codes
Term of contract
Deposit at notice
With deposits at notice, the cash flow can only be generated for a set period, since the end of term is only fixed when notice is given.
For deposits at notice, there are functions for giving notice or rolling over deposited funds
Rolling over means an
increase or decrease in the amount of original deposit at notice with
, where applicable, different conditions under the same transaction number.
Simulation of Fixed-Term Deposits and Foreign Exchange
Creating a contract from a simulation
Management with a
separate number range
A business partner is not required for simulation
Creating simulated financial transactions
Offers for Fixed-Term Deposits and Foreign Exchange
You have to create a
separate number range
for transactions in the Offer activity category.
The number range for the relevant transaction type is allocated in the Number range for offers field in Customizing for transaction types.
You can create a contract directly from an offer entry.
Using the Offer activity category, you can group and store quotations from different bans with a reference.
Overview of money market transactions which correspond to the relevant selection criteria
Financial Transaction Conditions
of conditions is the
automated generation of flows
the cash flow provides the basis for
Accrual/deferral of expenses and revenues
Effective interest rate calculations
the flow types that you assign to condition types should show changes in the payment flows and should be elements of the cash flow.
Depending on its type, a condition position is characterized by amounts or percentages and calculation bases, as well as calendar data and date updates.
Condition types include different interest, dividend or repayment terms, which ensure that each product type is assigned its appropriate structure characteristics.
Creating a Fixed-Term Deposit: Structure
Creating a Financial Transaction
Entering a Fixed-Term Deposit
can be created with different processing methods
are concluded for a specific product/transaction type
are concluded with a business partner
are assigned to the related organizational unit (company code) within your company
Transaction and Position Management Process
Interest rate adjustment
Introduction to Money Market
Money market transactions
You can make Cash and Liquidity Management decisions in the money market area based on the surpluses or deficits calculated in Cash Management.
short- to medium-term
investments or borrowing capital
Cash flow transactions
This includes position changes, expenses, revenues, and payments.
You enter the term manually and also the cash flow that results from the particular structure of the transaction.
enable you to map master
between a lender and one or more fixed business partners for a series of withdrawals against credit.
Interest rate instruments
are used to
map money market transactions
, which include different forms of
interest payments and repayments
This repayment amount is discounted to the start of the term using the required yield. The investor pays the amount calculated to the debtor at the start of the term.
Issuer and investor enter into a business relationship directly and agree on a repayment amount, which the debtor pays to the creditor at the end of the term.
No interest payments during the term
short-term, discounted bearer bond
Deposits at notice
Due date depends on the period of notice
Concluded for an unspecified period
Fixed interest for the whole term (at least 30 days)
Due date arranged from the outset