Functions in the Parallel Valuation Areas (SAP Library - Functions in the Parallel Valuation Areas)

Functions in the Parallel Valuation Areas

The functions that are available for editing the positions in the parallel valuation areas are described below. The listed derivatives positions (futures) are treated differently. The functions of the parallel valuation areas are also used for the listed derivatives positions in the operative valuation area 001.

Note Therefore, these functions are only of relevance if you have one or more parallel valuation areas or if you are managing listed derivatives.

Use

The Transaction Manager and Loans Management are FI subledgers in which the information on the various financial transactions and finance positions is held. Previously it was only possible to manage the positions according to a single set of accounting principles, this means that only one valuation area was possible. Now, with parallel position management, it is possible to manage the various financial transactions and positions in parallel in additional valuation areas according to other accounting principles.

Features

Parallel valuation areas can be used for all product types in the money market, foreign exchange, derivatives, securities and loans areas.

Restriction:

The amortization function according to LAC and SAC is not released for loans with annuity or installment repayments, or for securities with annuity or installment repayments.

Using the parallel valuation areas, it is possible to manage the positions in parallel according to different valuation guidelines. This means that you can produce quarterly and annual accounts according to different accounting principles, for example, HGB (German Commercial Code) and US-GAAP.
The position management in the parallel valuation areas contains functions for valuation, account assignment reference, and for valuation class transfer. For each valuation area, the values of the positions are stated depending on how the position components are managed.

Note

A new position management component has been developed for managing the positions in the parallel valuation areas. This is different to the position management in the operative valuation area.

In order to use the parallel valuation areas, you have to make the corresponding Customizing settings. These settings are cross-application and they control the management of the parallel positions in the application functions described below.

Example Example

In Customizing, you determine the criteria according to which the positions are established, you define the position management procedures, and you also determine the rules for assigning the position management procedures to the positions. The application function valuation then carries out the key date valuation for each valuation area at the level of the positions. The exact steps are defined in the position management procedures.

Application Functions in the Parallel Valuation Areas

Transaction Posting

Derived Business Transactions

Update Derived Business Transactions

Fix Derived Business Transactions

Execute Key Date Valuation and Reverse Key Date Valuation

Execute Valuation Class Transfer and Reverse Valuation Class Transfer (only in the Securities area)

Account Assignment Reference Transfer and Reversal of Account Assignment Reference Transfer

Functions for editing the master data of the positions

Edit Position Management Procedure

Edit Account Assignment Reference Allocation

You can also use the following evaluation reports:

Positions

Flows

Posting Journal.

Integration

The operative valuation area is valuation area 001. This valuation area is obligatory, this means that new customers must also set up operative valuation area 001. The functions for managing the positions in the operative valuation area are the same as before.

All the existing functions for managing positions in the operative valuation area [with the exception of the valuation area-dependent functions such as key date valuation and period-end closing, etc.] are linked to the parallel position management if you have set up at least one parallel valuation area. This means that you enter the valuation area-dependent operative business transactions in the parallel valuation areas and these are managed there according to the valuation area-dependent settings.

Note Since the parallel position management is based on update types and not on flow types, the flow types must be assigned to the corresponding update types.

Note In Loans, the position-changing flows are transferred to the parallel valuation areas on a debit position basis. This means, for example, that the incoming payment function in the Loans area is not linked to the parallel valuation areas.

This graphic is explained in the accompanying text

Overview: Integration of the Operative Business Transactions

In the Securities area, the functions for securities account management, security rights, and corporate actions have been switched to update types. This means that, even if you do not use the parallel valuation areas, you must define update types and assign them to corresponding flow types in order to manage securities.

In the Derivatives area the futures account management is based on update types.

For existing customers that had already been using Treasury Management in Release 4.6, and now wish to install parallel valuation areas for CFM 1.0, there are initialization reports available. You can find these in Customizing under Transaction Manager ® General Settings ® Tools ® Initialization of the Parallel Valuation Areas (with Support Package 4 for CFM 1.0).

Before you initialize the positions, you must carry out Customizing for the parallel valuation areas (see below).

See the documentation on the initialization reports.

Prerequisites

IMG activity		Comments
To set up the parallel valuation areas, you have to make settings in the following IMG activities in Customizing. Choose Transaction Manager ® General Settings ® Accounting ® Parallel Valuation Areas:
Organization Define Valuation Areas Define Accounting Codes Assign Accounting Codes and Valuation Areas Product Categories to be Excluded - Parallel Valuation Areas	Here you define which valuation areas you wish to have. Valuation area 0001 is always the operative valuation area. Here, in the case of listed derivatives, forwards and repos only, you use the functions of the parallel valuation areas to manage the positions. You create the Accounting codes and assign them to the valuation areas. For the update of the parallel valuation areas into Accounting, you can extend your chart of accounts and post directly to the general ledger or you can use the FI special ledger. If you wish to use the special ledgers, see the application documentation in the SAP Library under Accounting ® FI ® Special Ledger. The documentation on the IMG activity Assign Accounting Codes and Valuation Areas describes how to create a special ledger and link it to the parallel valuation areas.
Settings for Position Management Define and Assign Valuation Classes Define and Assign Differentiations Assign Consumption Sequence Procedure Set the Effects of the Update Types on the Position Components Key Date Valuation Define Amortization Procedure Define One-Step Price Valuation Procedure Define Security Valuation Procedure Define Foreign Currency Valuation Procedure Define Price Valuation Procedure for Forward Exchange Transactions Define Position Management Procedure Assign Position Management Procedure Define Securities Account Groups	Make you make all the basic settings for managing positions in the parallel valuation areas. Under Define and Assign Differentiations, you determine how the positions are to be defined in the Securities area. Under Set the Effects of the Update Types on the Position Components, you must assign a position change category to the update types that are not generated using the parallel valuation area functions, but that are used there. Flows for an update type, to which no position change category has been assigned here, are not taken into account when the position components are determined in the parallel valuation areas. Examples of update types (from the Customizing settings delivered with the system) for which an assignment must be made: SE1000 Purchase ® Post purchase value SE2000 Sales ® Incoming payment at position outflow SE3001 Brokerage capitalized ® Post costs to purchase value component ... There are also some update types that cause no changes to position components but which must be linked to the parallel valuation areas. The position change category No position change is assigned to these update types. Also, you define here all the valuation procedures you require. Then under Define Position Management Procedures, you combine these position management procedures for a specific position management category and under Assign Position Management Procedure you define the rules according to which the position management procedures are to be assigned to the positions. If you have opted for representing the positions in the Securities area at the level of securities account groups (under Define and Assign Differentiations), you create the required securities account groups under Define Securities Account Groups. When you create a securities account in the application, you must assign it to a securities account group. The securities account groups in the parallel valuation areas differ from those in the operative valuation area. In the operative valuation area, the securities account groups are created at the level of the ID number, this means that the securities account groups may differ depending on the ID number. Here in the parallel valuation areas, the securities account groups are defined and then the securities accounts are created and assigned to one of the groups. [The securities account group in the parallel valuation areas corresponds, therefore, to the portfolio of the operative valuation area.]
Update Types Define Update Types Assign Update Types to Usages Assign Update Types for Valuation Assign Update Types for Derived Business Transactions Alternative Assignment of Update Types for Position Outflows Assign Update Types for FAS 133 Distribution Assign Update Types for Account Assignment Reference Transfer Assign Update Types for Valuation Class Transfer Assign Update Types for Initializing Positions Assign Update Types for Local Currency Determination Assign Update Types to Usages in the Securities Area Under Transaction Manager ® Securities ® Position Management ® Securities Account Transfer ® Update Types ® Assign Update Types for Securities Account Transfer Securities Account Management ® Update Types ® Specify Update Types for Securities Account Management Securities Account Management ® Update Types ® Assign Update Types to the Functions of Security Account Management Corporate Actions ® Update Types ® Assign Update Types to the Corporate Action Categories Rights ® Update Types ® Assign Update Types to the Rights Category Specify and Assign Update Types for Futures Account Management In the Listed Derivatives area Customizing under Position Management ® Futures Account Management ® Update Types ® Specify Update Types for Futures Account Management Assign Update Types for Margin Management per Product Type Assign Update Types for Transaction Management - OTC Derivatives In the OTC Derivatives Customizing under Transaction Management ® Update Types ® Assign Update Types for Position Update Assign Update Types to Flow Types In Loans Management Customizing under Transaction Management ® Update Types ® Assign Loan Flow Types to Update Types In Customizing for the Money Market, Foreign Exchange, Securities and OTC Derivatives areas under Transaction Management ® Update Types ® Assign Transaction Flow Types to Update Types In the Securities area Customizing under Accounting in Operative Valuation Area ® Flow Types ® Assign Flow Types to Update Types	Update types carry the information for a flow in the parallel valuation areas. They roughly correspond to the flow types in the operative valuation areas. Once you have defined and assigned the update types to the various usages, you have to carry out the usage-specific IMG activities. You can find the relevant IMG activities, Define Update types and Assign Update Types to Usages in all those parts of the IMG where they are required. You have to assign some update types to the corresponding flow types to enable the transfer of valuation area-dependent business transactions into the parallel valuation areas. This assignment is necessary in the Securities and Listed Derivatives areas even if you do not have any parallel valuation areas. If an update type is to be posted, you define the posting rules for the update type in Customizing under Transaction Manager ® General Settings ® Accounting ® Parallel Valuation Areas ® Link to Other Accounting Components ® Define Account Determination. See the documentation on the update types in the IMG and also the Customizing settings delivered with the system.
Derived Business Transactions Control of Processing of Derived Business Transactions	Here you determine whether the derived business transactions are to be generated online or offline. If you have a large amount of data, it can be useful to opt for offline processing and schedule the update run for derived business transactions [RTPM_TRL_DERIVE_TRANSACTIONS] as a batch job, for example, every evening.
Link to Other Accounting Components Define Account Assignment Reference Define Account Assignment Reference Determination (OTC Financial Transactions) Define Account Assignment Reference Determination (Securities/Listed Derivatives) Define Account Assignment Reference Determination (Loans) Define Account Determination	Here you define account assignment references and establish rules for determining the account assignment references automatically. You also define the account determination for the update types in FI. The flow types in the operative valuation area have the indicator relevant to posting. The Customizing check report allows you to check whether an account determination was defined for all the flow types indicated as relevant to posting. Update types do not have this indicator. As soon as an account determination is defined for an update type, the update type is relevant to posting. Similarly, as long as no account determination has been defined for an update type, the update type is not relevant to posting.
In Loans Management Customizing under Basic Settings ® Parallel Valuation Areas
Initialization Date per Company Code	You do not make any manual settings here. Rather, you can see if, and since when, loan positions have been held in the parallel valuation areas. The indicator is set automatically by the system when the parallel valuation areas are initialized for the loans positions.

Note

You can use the Customizing settings delivered with the system as a guide.

See also:

See the documentation on the individual IMG activities.