Money Market Transaction - Investment in Fixed deposit

[Former Member]

Summary

This document presents a step by step guide on making a money market transaction using FSCM Treasury and risk management Transaction Manager module. The configuration required for the same has been mentioned in the document  SAP Transaction Manager Customizing Overview

The pre-requisite master data i.e. Business Partner creation has been explained in document Business Partner Creation for Transaction Manager

The money market transaction overview has been explained using the product type 51 A ( Investment in fixed deposit)

Steps

1.  Create (FTR_CREATE/TM01)

To create a financial transaction (FD), enter details like Company Code, Business Partner, Product type,(for FD -51A) and Transaction type.

In the structure tab enter basic data for transaction, like amount, interest rate , start and term end date. In the contract data the contract date should be before term start date.

In the Administration tab as below and enter the Portfolio (FD) and the General Valuation Class (Short term investment). The Portfolio will determine the GL.

Portfolio is a important field, the system will not allow to save the transaction if the Portfolio field is left blank.

In the cash flows tab, we can view the cash inflows and outflows relating to the FD. It will show the FD amount with creation date and maturity date and also the interest amount automatically calculated by system.

The flow type indicates the nature of cash flow. The direction shows if the cash flow is outflow/inflow.

Once everything is correct, save the FD. You will get a message that Fixed term deposit “xxxxxxxxxxxx” created in company code

2. Settlement (TM06)

Settlement is generally done by the back office. This gives an opportunity to check if all data is correct and accurate. If the check is successful the transaction can be saved.

Settlement is a pre requisite before the transaction can be released.

3.Release (TI90)

Once  settled, before the flow can be posted it needs to be released.

4. Accounting Posting (TBB1)

Choose the application as Money Market.

Enter the company code and the FD transaction number.

We can also enter the FD creation date.

Choose test run and see if data is correct then make a ‘Post Run’. It will post an entry as below

4. Accounting Accrual (TBB4)

Choose the area as Money Market.

Enter the date for posting and reset.

The Accrual entry is reversed the next month.

5. Accounting Maturity

All the flows has to be released in TI90 before maturity

Post flows in TBB1

6. Accounting Reversal

Reversal can be done in Transaction TM07

Reversal reason has to be given

Accounting entry has to be reversed in Transaction  TPM10

Correspondence to business partner can be triggered through TBZ11

The steps mentioned in the documents are illustrative, and some more steps can be included based on business/accounting requirements.

This document was co-authored by varun.harlalka