For certain analyses and evaluations in Market Risk Management, it can be useful to perform calculations based on fictitious transaction data. Simulated money market or forex transactions are used for this.

You can use the data from a simulated transaction as a reference for concluding a contract.

Simulations are managed with their own number range. You assign this to the relevant transaction type in Customizing for transaction types in the Number range for simulated transaction field.

You can display simulations with the journal. To do this, enter active status ‘5’ on the selection screen.

To enter simulated transactions, an entry screen is used which has the following input fields for the respective product category:

• Money Market: Product type, transaction type, currency, amount, start of term, end of term, percentage and calculation method
• Foreign Exchange: Product type, transaction type, purchase currency, purchase amount, sale currency, sale amount, rate, spot rate, swap rate, value date

Entering characteristics and assignment information also allows you to group simulated transactions.

With money market transactions, the input parameters for the interest structure are predefined like the parameters for entering contracts. However, you can change these. You cannot enter the business partner or the payment details.

When you save the simulation, the transaction and activity data is stored with the active indicator (active status 5) simulated. The data record is assigned a number from the number range for simulated transactions.

If you decide to turn a simulated transaction into a legally binding contract, choose Execute simulation. A dialog box appears on which you enter the related business partner. The standing instructions are also added for the payment details and the required correspondence data is read. The complete data record is saved as an active financial transaction in the Contract activity with a new transaction number.