- In this section you define per company code which flow types are to be
accrued/deferred and assign offsetting flow types to them.
The reset procedure is supported in the securities area for accruals/deferrals. You therefore enter the related offsetting flow
types for the accrual/deferral for each flow type you want to accrue/defer.
- You also define the flow types you want to generate to capitalize the
interest on a discounted bond (zero bond) when you execute the 'Amortized Cost' function and also when you sell it.
You assign the flow types for the interest capitalization to the flow
types of the position inflow. You do this for all purchase flow types and all inflow flow types of the securities account transfer.
When you perform an accrual/deferral, the original flow is an interest
debit position. If the due date of the interest debit position falls before the interest period it relates to, and you perform an
accrual/deferral run within the current interest period, the affected
flow is deferred. The system determines which accounts to use via the
flow type that you have entered as the offsetting flow type for the interest debit position flow type for deferral.
of the interest capitalization entries
In the sample customizing delivered with the system, there is a flow
type for a purchase and a flow type for the inflow when you perform a securities account transfer. You enter the following data:
|Flow type|| Int.cap.on key date|| Int.cap.upon sale|
|1000|| 8995|| 8996|
|1020|| 8995|| 8996|
The following entries are valid:
|FType|| Name|| FCat|
|1000|| Purchase|| A|
|1020|| Sec.acct trns:Inflow|| AD|
|8995|| Int.cap.for key date|| EAZB|
|8996|| Int.cap.outflow|| EAZS|
When you execute the amortized cost function for discounted bonds, the
system generates interest capitalization flows on the key date. It also
generates interest capitalization flows for position outflows (sales,
securities account transfers, repayments) as planned records which are
then transformed into actual records when you perform period-end closing.
You must create all flow types which you enter here correctly in
Define Flow Types.
It is also important that you maintain the Account Determination for the flow types.
On the initial screen Display View "Company Codes": Overview, select a company code and switch to
Flow types to be accrued/deferred.
The screen headed Change View "Securities: Accrual/Deferral Flow Types": Overview appears.
To add a new flow type, choose the New Entries function. The screen headed
New Entries: Details of Added Entries appears.
Proceed as follows depending on whether you are entering a flow type to be accrued/deferred or a flow type for a position inflow.
1. Defining the flow types for accrual/deferral
a) Enter the flow type to be accrued/deferred
b) Assign an accrual/deferral method to the flow type
The securities area currently only supports the linear method
for accruals/deferrals. This method accrues/defers the securities revenues pro rata.
c) Enter the flow types for the reset procedure.
The following flow types are delivered with the system:
- 8991 Accrual: Accrued revenue
- 8992 Accrual: Write back accrued revenue
- 8993 Deferral: Write bank deferred revenue
- 8994 Deferral: Deferred revenue
2. Defining the flow types for the interest capitalization when you
execute the 'Amortized Cost' function for discounted bonds (zero bonds) and when you sell them.
a) Enter the flow type of the position inflow.
b) Assign the accrual/deferral method to the flow type for financial mathematics.
The following 'rules' apply when you calculate the interest capitalization:
- the repayment rate is assumed to be 100%
- the acquisition value forms the basis of the calculation
- the position value data is treated 'inclusively'
Note: If the actual repayment takes place at a rate other than 100%,
the difference between the actual repayment amount and the nominal amount is displayed as a price gain or loss.
c) In the area headed Flow types for interest capitalization, enter
the flow type for the interest capitalization on the key date and upon sale.
The following flow types are delivered with system:
- 8995 Interest capitalization for key date
- 8996 Interest capitalization outflow
See the following chapters in the R/3 library under AC -> Treasury -> Treasury Management -> Securities
3. Save your entries.