Assign Update Types for Derived Business Transactions
In this IMG activity, you assign the required update types for derived business transactions. You make the assignment for each position management procedure. In Customizing for Treasury and Risk Management, choose Transaction Manager ® General Settings ® Accounting ® Derived Business Transactions ® Update Types ® Assign Update Types for Derived Business Transactions.
The selected position management procedure determines which update types are required.
It is possible that a tab is empty or only needs a few fields with entries.
Example: For a position management procedure where amortization is not planned, you do not have to fill the Amortizations tab.
● You have created position management procedures in Customizing for Treasury and Risk Management by choosing Transaction Manager ® General Settings ® Accounting ® Settings for Position Management ® Define Position Management Procedure.
● You have selected and assigned the Derived Business Transactions usage type in Customizing for Treasury and Risk Management by choosing Transaction Manager ® General Settings ® Accounting ® Derived Business Transactions ® Update Types ® Define Update Types and Assign Usages.
You assign the update types on the following tab pages:
● Position Outflows
In the case of position outflows that are not transfer postings, the system proportionally clears the position components (such as purchase value, security valuation, amortization). You then define corresponding update types for these clearing flows (translation flows). For more information, see Position Outflows.
● Reconciliation Flows
If you change the local currency, issue currency, or contract currency, the system uses reconciliation flows so that the position is correctly valuated on a key date.
○ After you have changed the position currency and valuation currency, the amounts should match.
○ If a position is zero, the position component values must also be zero.
● Currency Swap
This tab page only applies to issue currency changeovers for securities or contract currency changeovers for loans.
For each position component, you define update types for flows so that the system posts the entire position value in the new currency and clears the position value in the old currency. The system generates two flows for all components, except for clearing components and foreign exchange valuation components. These flows do not change the position. They are only used for posting to the general ledger To determine the position amounts in the old currency, the system uses the function module TPM_GET_CURRENCY_SWAP_AMOUNTS (backup table BCKTRLT_FLOW).
If the position valuation does not affect profit and loss, but involves a write-up in position valuation and a write-down in valuation currency (or vice versa), the system generates additional adjustment flows for the posting and reversal (posting to a prior period). For this reason, the transfer postings tab page provides the update types in fields 81, 82, 87, and 88. For more information, see Transfer Postings.
On this tab page, you define update types for the derived business transactions that the system generated from interest flows.
Instead of posting the accrued interest relating to a bond purchase directly to the profit and loss account, the system initially posts the interest to a netting account. The netting account balance is cleared completely to the profit and loss account when the next interest payment is made, or cleared proportionally in the case of a previously sold bond. In the case of an interest payment, you can define an update type relevant for posting so that the system can clear the accrued interest for this flow. To do this, you need to select the option Netting Accrued Interest in the Derived Business Transactions for Interest field for the selected position in the position management procedure. In Customizing for Treasury and Risk Management, choose Transaction Manager ® General Settings ® Accounting ® Settings for Position Management ® Define Position Management Procedure.
This function is only available for interest payments at the end of the period. In other words, the system only takes into account accrued interest that has been paid. Ignore the field Accrued Interest Received.
○ The update types used for price/rate gains or losses and amortizations are relevant for posting. You also make account determination settings for the update types in Customizing for the Transaction Manager by choosing General Settings ® Accounting ®Link to Other Accounting Components ®Define Account Determination.
○ We provide you with predefined position management procedures and update types already assigned to derived business transactions.
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