Investment pools that are established at institutions, such as universities, are used to manage cash donations or other assets. The revenue earned from the investment of these funds represents a secure and long-term financial source (for research projects or scholarships, for example). If there are many investment pool participants at an institution, they are often grouped in investment pools. Grouping reduces administrative work and its associated costs, and the greater amounts of investment result in higher yields.
But this is only a small part of possible investment pools. For more reffer to wiki.
To have a share in an investment pool, an investment pool participant purchases pool certificates. The pool certificates held by a participant confirm the investment pool share. The value of the investment pool is determined periodically on selected key dates, such as the end of the month. The price for each certificate is also determined. An investment pool participant can only buy or sell certificates on these key dates.
In the Transaction Manager, the investment pool certificates are mapped using securities from the Investment Certificate product category (product type 02A).
Configuration Prerequisites: Basic steps. Detailed description of Security configuration is a matter of other article.
We'll need two Position managment procedure. One for pool participants (managed as Asset) and other for fund managers (managed as Liability). Choose the right ones or create new.
Master data prerequisites:
Invesment pool management:
The participants and the investment pools are entered in the master data. An investment pool is characterized by its company code and securities ID number. An investment pool participant is characterized by the company code, fund, and grant (optional).
SAP Menu -> Accounting -> Financial Supply Chain Management -> Treasury and Risk Management -> Transaction Manager -> Special Functions from Public Sector -> Investment Pool ...
First define Permitted investment pools using company code, fund, grant (optional) and Security created at Master data prerequisites step (ID Number - product type 02A).
If you specify a date under Entry Effective From and Entry Effective To, the investment pool participant can only invest in the pool within this period.
If you only specify a date for Entry Effective From, the investment pool participant can invest in the pool from this date onwards. It is open-ended.
If you only specify a date for Entry Valid To, the investment pool participant can invest in the pool until the specified date.
If you do not specify a date under Entry Valid From or Valid To, the investment pool participant can invest in the pool at any time.
Second, we define and edit additional fund data for investment pool participants. An investment pool participant is represented in the system using the combination of company code, fund, grant (optional parameter) and Investor's security account. It means we show in what investment pool investor wants to invest.
The business partner defined as the depository bank for this securities account is used as the counterparty of the investment pool participant transaction.
When purchasing investment pool certificates, the system always rounds down. Sales, however, are always rounded up. This ensures the the amount to be invested is never exceeded and the amount to be withdrawn is reached.
Investment pool participant A intends to invest an amount of 500 000 at a rate of 1 100 000 for the pool certificate. The number of units is calculated as 0.45454545454545 recurring. By rounding to three decimal places, 0.45 units are purchased at a value of 495 000, whilst 0.46 units are sold at a value of 506 000. See screenshot in Edit Investments and Generate Transactions for Investment Pool Participants paragraphs.
The involvement of a participant in an investment pool is mapped in the system by the purchase (transaction type 100) of an investment pool certificate and its mirrored issue (transaction type 300). If there are only a few investment pool participants at an institution, you can enter the corresponding transactions manually. For a greater number of investment pool participants, the transactions can be generated automatically. In this case, you specify for each investment pool participant the amounts that are to be invested in the pools.
You can use this function to enter changes to investments made by investment pool participants in one or more investment pools. The system uses the data to automatically generate the required securities transactions in one final processing step. The system maps increased pool investments using certificates purchased (transation type 100) by the investment pool participants and certificates issued (transaction type 300) by the investment pool. A decrease in investment share is mapped using the sale (transaction type 200) of certificates by the investment pool participants and the simultaneous repurchase of certificates (transaction type 400) by the investment pool.
Enter the position number if more than one entry is required for the position value date, investment pool, and investment pool participants combined. This may occur if transactions generated for a particular entry are reversed and new transactions are to be created.
You should use a consecutive number for the position, which is unique for each combination of position value date, investment pool, and investment pool participant.
For existing table entries for which securities transactions were not yet generated, you can change the fields "Payment Amount in Investment Pool Currency" and "Purchase/Sale". If you want to make changes to one of the other fields, you need to delete the table entry and enter a new one.
For table entries for which the system has already generated securities transactions, the "Transaction Created" field is selected. It is not possible to delete or change these table entries.
With this function, the system automatically generates transactions for investment pool participants (investors and/or fund managers). These transactions are based on the data that you entered under Edit Investments.
The payment amount defined in the data for each investment pool and investment pool participant is used together with the security price in the system to determine the traded number of investment pool certificates.
Specify the company code and position value date (usually equal to Position Value Date in Edit Investments) for which transactions should be generated. You can use the selection criteria to restrict the transactions to be created.
Enter the transaction calculation date or payment date if it is different to the position value date.
You can simulate the generation of the transactions first by setting the Test Run indicator.
Execute transaction.
Generated transactions can be reversed individually or together:
If you want to reverse only an individual transaction, you can use the reversal function in the Transaction Management area by choosing Start of the navigation path Treasury and Risk Management Next navigation stepTransaction Manager Next navigation stepSecurities Next navigation stepTrading Next navigation step Edit Financial Transaction End of the navigation path.
To reverse multiple transactions, choose Start of the navigation path Treasury and Risk Management Next navigation stepTransaction Manager Next navigation stepSpecial Functions from Public Sector Next navigation stepInvestment Pool Next navigation stepBack Office Next navigation step Reverse Transactions for Investment Pool Participants End of the navigation path (TPM87).
Specify the company code and position value date of the transactions to be reversed, as well as the reason for reversal.
You can use the selection criteria to restrict the transactions to be reversed.
You can use the BAdI Investment Pool Participant Transactions (BADI_TPM_TRANSACTION_TRE) to change the data of the transactions to be created.
IMG -> Financial Supply Chain Management -> Treasury and Risk Management -> Transaction Manager -> Securities -> Transaction Management -> Special Functions from Public Sector -> BAdI: Transactions for Inv. Pool Participants (badi BADI_TPM_TRANSACTION_TRE)
Once the system has generated the investment pool transactions and participant transactions, you can edit them manually (change or reverse them, for example). Make sure that the data remains consistent in the corresponding transactions. You can check this using the overview of transactions of investment pool participants
The transactions to be displayed can be restricted using the selection criteria or by using the following three indicators:
The system displays all the investment pool transactions and participant transactions that have not been reversed.
The system displays transactions for the investment pool and its participants that have been completely reversed.
The system displays data that you entered using the Edit Investments function (TPM90), but for which transactions have not yet been generated.
Choose Execute.
The transaction list appears. From this list, you can branch to the individual transactions and you can make overview of all transaction's parameters.
In addition to the transaction data, you can display other information:
This field uses the symbols "No Differences" and "Differences Exist" to show whether there are any differences between the transaction for the investment pool participants and the corresponding transaction for the investment pool, with regard to the number of units, price, payment amount, payment currency, activity category, or active status.
Differences may arise from transactions being manually changed or reversed after generation. Such differences need to be checked and eliminated since it is most likely that they have arisen due to incorrect entries during manual processing.
more about Invesment pool help.sap.com
more about Public Sector Management account assignment Fund and Grant reffer to help.sap.com
more about Theory of Investment pool reffer to wiki.
More information about TRM-PSM integration inTRM-PSM integration (Index)
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