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Procedure documentation Processing Collateral Agreements Locate the document in its SAP Library structure

Prerequisites

So that collateral agreements are included in the determination of attributable amounts, you need to have defined the following settings in Customizing:

You need to have already defined a netting group, to which the collateral ID can be assigned. You create netting groups in Customizing under SAP Banking ® SEM Banking ® Default Risk and Limit System ® Basic Settings ® Definitions ® Define Netting Group, or under Financial Supply Chain Management ® Treasury and Risk Management ® Credit Risk Analyzer ® Basic Settings ® Definitions ® Define Netting Group.

In addition, you need to have entered a collateral ID in the default risk data in the financial object.

Procedure for Creating Collateral Agreements

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       1.      In the SAP Easy Access screen, choose Accounting ® Bank Applications ® SEM Banking ® Data Pool ® Bank Transactions ® Collateral Provision ® Create or Accounting ® Financial Supply Chain Management ® Treasury and Risk Management ® Credit Risk Analyzer ® Tools ® Collateral Provision ® Create.

The system displays the screen Create Collateral Provision: Initial Screen.

       2.      Enter an External  Collateral ID, choose the classification Collateral Agreement as Collateral. Then choose This graphic is explained in the accompanying text Continue.

The system displays the screen Create Collateral Provision: Overview.

       3.      Enter a long name and a short name for the collateral.

·         In the tab page Contract enter the netting group in which the transactions of the collateral agreement are to be netted. Also enter the threshold amount and the minimum transfer amount. The system determines the currency of these amounts from the netting group.

·         On the Administration tab page, you need to set the Record active indicator. This ensures that the collateral is considered when attributable amounts are calculated. This indicator is set by default. By deselecting this indicator you are then able to delete the collateral provision.

·         On the tab page Accumulated payments you can enter the valid from date, amount and currency of the accumulated payments.

       4.      Choose This graphic is explained in the accompanying text Save.

Result

If a net determination procedure is used, collateral agreements are offset against the attributable amount, reducing the attributable amounts of all the transactions assigned to a collateral group, and thus reducing the amount of the limit that is utilized.

 

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