Securities Account 

Definition

Any financial trading instrument such as bonds, shares, securities with fixed interest and investment and mortgage certificates.

 

Use

A securities account is held in a depository bank (any credit institution) to maintain and manage the securities positions belonging to one or more business partners. The securities positions assume different values as a result of trading (purchase and sale).

 

You can use the securities account to:

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       1.      Maintain information on the value, collateral and class master details of securities positions.

       2.      Create charges by assigning securities accounts to collateral agreements.

       3.      Implement the process control framework to control the quality of data entered in the securities accounts.

       4.      Initiate outgoing correspondence for business partners.

       5.      Maintain manual tasks to monitor the data of the securities accounts.

 

The securities account has the following important features:

·        The details of the securities positions can be imported from a class master data system that specializes in the maintenance of securities positions. You can use the relevant Business Add-In provided in the standard system, to connect to the external class master data system.

 

·        Before creating securities accounts, you must define the following by choosing Accounting ® Bank Applications ® Collateral Management ® Securities.

¡        Maintain the depository banks where securities accounts can be maintained.

¡        Maintain the class master data for securities positions

¡        Maintain the price for the class master data

 

·        Securities positions are identified by International Securities Identification Number(ISIN). The system uses the ISIN number as a reference to import the details of the securities positions from the class master data system.

 

·        You cannot enter or change the value of a securities account. You must however, enter a currency for the securities account. If the currencies of the securities positions do not match that of the securities account, the system performs an internal currency translation to convert to the currency maintained for the securities account.

 

·        The consolidated market value of all the securities positions in a securities account is shown as the value of the securities account.

 

·        The market value of the securities position is calculated internally. There can be two possibilities :

¡        You enter the nominal value for the securities position. The system calculates the market value by applying the price percentage maintained for the ISIN of the securities position on the nominal value.

¡        You enter the number of units for the securities position. The system calculates the market value by multiplying the unit price maintained for the ISIN of the securities position with the number of units.

 

Structure

The master data of a securities account is structured as follows:

 

Position / Value details

The identification, value, bank and class data for the securities account.

 

The following possibilities exist for calculation of the value of the securities positions and the securities account:

·        You choose to enter the nominal value (as amount) for the securities position. The system calculates the market value by applying the price percentage (maintained for the ISIN in the price master data) on the nominal value, to calculate the market value.

·        Alternatively, you specify the number of units in the securities positions. The system multiplies the number of units with the unit price maintained in the price master data, to calculate the market value of the securities position.

To calculate the value of the securities positions, you must select a row of the securities position and then click on the Valuate button. The market value of the securities account and the nominal value and market value of the securities positions are updated simultaneously.

 

Position details

Determine the scope of the securities positions as collateral by using the asset specific details such as safety discounts, liquidation values, lending rates and revaluation.

 

Class master data

These details can be imported from an external class master data system. You cannot maintain the class master data in OM-Securities Account. The class data details include the classification, stock exchange details and the flexibility of the position to be traded.

 

The securities classification types determine the type of business for a securities position. You can define the classification types in the IMG Customizing for Collateral Management by choosing Collateral Management ® Objects Management ® Collateral Objects ® Securities ® Basic Functions ® Define Securities Classification Types. In this IMG activity, you specify a corresponding sub-asset type that must be used internally for a classification type.

 

Business Partner / Documents

It is possible to assign business partners and documents in the appropriate partner functions and document types, respectively.

The business partners must first be created in the corresponding external applications, before being assigned to securities accounts. You can however create documents from Object Management (OM)-Securities. You must also define the relevant partner functions and document types in the IMG by choosing Collateral Management ® Basic Settings.

 

The standard system provides default implementations with SAP Financial Services Business Partner (FSBP) and Document Management System (DMS). You can choose to implement any other external business partner and document systems.

 

Status

The system and user statuses for the securities account are shown on this tab page.

 

Charges

Charges can be defined by assigning the securities accounts to collateral agreements in the relevant collateral agreements. By these assignments, you determine that the value of the securities account can be used in the collateralization of receivables.

If you want to create charges on securities accounts, then you must set the flag CHG Allwd on Sub-assets (charge allowed on sub-assets) on the asset type for the securities account, in the IMG activity Define Asset Types. This flag determines that the charges can be created only on the securities positions and not on the whole securities account.

 

Overview

The relationships for the securities account with other entity objects (such as collateral agreements, receivables, business partners and documents) are shown in a selection tree structure. You can navigate to the relevant entity object by double clicking on the relevant node for the entity object.

Navigation from the Overview tab page is possible only if the user is authorized for the default business activity maintained for the entity objects.

 

Calculations

The relationships determined in the Overview tab page form the basis for the calculations for securities accounts. If no relationships exist, then the calculations determine only the lending value, lending limit and lending ranges. The lending value calculations are performed for the individual securities positions and then added up and shown as the total lending value of the securities account.

 

The master data for the securities accounts can be maintained in several sub-screens (tab pages). The structure and the possible screens are determined by the Customizing settings that you define using the Business Data Toolset (BDT) and configuration in the Implementation Guide. Therefore, you must note that the screens and sub-screens can be changed.

 

Financing

If the securities account is a financed object, you can enter the identification of the corresponding receivable and the credit system.

 

Integration

You can create charges for securities accounts in the collateral agreements of type Pledge of Securities Account. In the collateral agreements, you must choose the object type Securities account. Along with the standard details of the charges, you can enter the account number (if you want to create the charges on the securities account as a whole) or ISIN (if you want to create charges for the securities positions).

 

Define the asset specific details, possible partner functions and document types in the Implementation Guide (IMG) by choosing Collateral Management ® Object Management ® Collateral Objects ® Securities ®Basic Functions ® Maintain Securities Account Details. These details will be applicable for all the securities accounts.

 

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In the IMG under Collateral Management ® Securities ® Basic Functions ® Define Securities Classification Types, you must assign classification types to relevant sub-assets. This assignment determines the sub-assets for the positions of securities accounts.

 

The standard system provides Business Add-In (BAdI) implementations CMS_SEC_VAL_ONLN, CMS_SEC_BANK_ID and CMS_SEC_GET_ADD, to connect to external valuation and class master data systems. You can implement these Business Add-Ins to import master data for the securities account positions.