Cash Flow Transactions 

Use

With cash flow-based transactions you can manage transactions whose structural characteristics cannot be mapped by the standard product categories.

You can enter and process transactions by entering their cash flow. A cash flow is a chronological sequence of flows: you enter the term alongside the cash flow that results from the transaction structure. This enables you to map your financial transactions flexibly.

Integration

On the basis of this, the system not only supports the processes for entering and processing these types of transactions in the trading area, but also the processes that build on these in the back office and accounting areas.

Prerequisites

Before you can use the Money Market component, you have to maintain master data. You have to

·        You have to create your Business Partners, assign the corresponding roles to these partners and maintain the transaction authorizations.

·        You have to set up the Standing Instructions (correspondence, payment details) and release the business partner.

You also have to make the following settings in Customizing:

·        Define the Product Type (if you do not want to use one of the standard product types delivered with the system, you can define your own product types). You create financial transactions and manage positions on the basis of product types. An example of a product type in the money market area is a cash flow transaction.

·        Define the Transaction Type. Transaction types determine the type of transactions that can be concluded with a particular product type. They also control the transaction and position management process. Example: Investment or Borrowing for cash flow transactions.

·        Define the condition type. This setting controls which structural characteristics are displayed when you create transactions. Example: Nominal interest

·        Define the Flow Type. These describe the various changes to the cash flows. Example: Increase in the nominal amount

For more information, see the relevant section in the Implementation Guide.

You can then define Money Market transactions in the SAP R/3 System.

Features

For more detailed information, see Processing Cash Flow Transactions, Creating Cash Flow Transactions and Cash Flow.