Integrated Single Transaction Check 

Use

You can use this function when you create trading or credit transactions to check them against the relevant limits. You can define that the integrated single transaction check generates a workflow if limits are exceeded, and that a message is sent automatically to the treasury manager, for example. This enables you to monitor risks as they occur.

In the integrated default risk limit check, the system calculates the relevant attributable amounts for the data entered and for all risk categories. It checks the maximum risk commitment period that was defined, and the internal and external limits, or the critical limit utilization. You can also define limits for each product type and transaction type, and check whether they are exceeded.

For more information, see the documentation for the general single transaction check (for example, the section about updating limit utilizations).

Prerequisites

·        Default risk limit check has been activated

In the Customizing for Credit Risk Analyzer, you have activated the integrated single transaction check. You do this under Basic Settings ® Activate Integrated Default Risk Limit Check.

·        Optional: Limit check for each product type and transaction type has been activated

You have activated the integrated single transaction check in the Customizing for Credit Risk Analyzer under Attributable Amount Determination ® Edit Settings for Determination Procedures.

·        Automatic financial object integration has been activated

You have activated the automatic financial object integration for the relevant product types and company codes. You do this in the Customizing for Credit Risk Analyzer under Basic Settings ® Automatic Integration of Financial Objects in Transaction Master Data for the product types in question.

The tab page Default Risk Limitation is available in Transaction Manager only if you have activated automatic financial object integration. You use this tab page to store the relevant information for counterparty/issuer risk.

·        The update category has been defined

You have stored the update category Update when limit utilizations are generated and online in the Customizing for Credit Risk Analyzer under Limit Management ® Define Limit Types. The update category specifies for which limit type an update of the limit utilization is to be carried out in the course of the day. The system uses this information to calculate the current utilization of the individual limits.

·        Limits have been defined

The integrated default risk and limit check gives correct results only if the utilization of the limits is defined, or limits are defined for each product type and transaction type:

¡        You have run end-of-day processing for the previous day in order to calculate the utilization of the limits affected by the limit characteristics of existing transactions.

¡        You have created limits for each product type and transaction type. To do so, in the SAP Easy Access screen choose Credit Risk Analyzer ® Master Data ® Limits ® Edit Limits for Each Product Type and Transaction Type.

·        Optional: Workflow has been switched on

You have activated the connection to the workflow function in the Customizing for Credit Risk Analyzer under Basic Settings ® Global Settings. To define the recipient of the workflow, you have either defined an HR organigram in the Customizing for SAP NetWeaver under SAP Web Application Server ® Business Management ® SAP Business Workflow ® Edit Organizational Plan; or you have assigned the sender and recipient directly in the Customizing for Credit Risk Analyzer under Basic Settings ® Assignments ® Assignment of Senders to Recipients ® Assign Senders of Workflows to Recipients.

Features

When entering or editing transactions, you can trigger the integrated default risk limit check in the following ways:

·        By using the Check pushbutton

The system only checks the transaction against the relevant limits. It does not update the limits.

·        When saving the transaction

The system checks the transaction against the relevant limits, and updates them. If you activated the workflow function, and the limits were exceeded, the system also generates a workflow.

In the integrated default risk limit check, the system does the following:

...

       1.      It checks for compliance with the limits

When the system checks the limits for each product type and transaction type, it compares the limits defined for the respective product type and transaction type.

When the system checks the credit lines, it does the following:

                            a.      It determines which limits are relevant for the integrated default risk limit check.

                            b.      It calculates the attributable amounts of the transaction.

                            c.      It calculates the current limit utilizations of the limits relevant for the check.

       2.      It reports the results of the check to the user processing the transaction.

       3.      It generates a log containing the results of the check for documentation purposes in Limit Management.

       4.      It updates the limit utilizations (see Updating of Limit Utilizations) when the transaction is saved.

       5.      If limits were exceeded, and the workflow function is active, it generates a workflow.

Activities

...

       1.      Enter a financial transaction in Transaction Manager.

       2.      Choose the Default Risk Limitation tab page, and enter the information about counterparty/issuer risk for the financial object of the transaction.

To be able to use the integrated default risk limit check, in the financial object you have set the Counterparty/Issuer Risk indicator to active, and store a default risk rule. You still have to do this if you have created limits for limit product groups. You can enter this data manually when you create or change the transaction. If you have defined that the control parameters are to be derived for the product type in question, the system stores the information automatically.

       3.      Choose  Check.

The system checks whether the transactions exceed the limits, and it displays the result of the check in a dialog box.

       4.      Choose Limit utilization details in order to see which attributable amount the system calculated for the transaction and to which limit type this amount was assigned. Once you have saved the transaction, you can branch from here to the logs of the single transaction check.

       5.      Choose Save.

The system updates the transaction in Limit Management. If you activated the workflow function, and the limits were exceeded, the system also generates a workflow.

Result

You have checked whether a new or a changed transaction is within the limit or exceeds the limit, and by saving you have triggered the updating of the transaction. If the limits were exceeded, you have generated a workflow. The system reports the limit usage by displaying a warning light under Transaction check.

Note that limit types that have a determination procedure that takes netting into account are not subject to the integrated default risk limit check, and are not displayed in the detail log.

If you created a transaction in Transaction Manager, and want to edit it using the single transaction check, before you created the transaction, you need to have defined a default STC product for the product type in question in the Customizing for Credit Risk Analyzer under Basic Settings ® Definitions ® Define Single Transaction Check Product.