Deposits at Notice 

Use

In trading with deposits at notice, investment and borrowing takes place without defined due dates. The deposit at notice function therefore not only includes the functions available in the fixed-term deposit area, but also a function for giving notice; in other words, in addition to entering the amounts and conditions, you enter the notice period and the interest payment date and frequency.

Prerequisites

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

·        Create your business partners, assign the corresponding roles to this partner and maintain the transaction authorizations.

·        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. A Deposit at notice is an example of a product type in the Money Market area.

·        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 deposits at notice.

·        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 further details, see Processing Deposits at Notice and Creating Deposits at Notice.