Formula Editor 

Use

In this function, you use existing key figures as the basis for defining formula-based key figures, which you can then display in the Analyzer Information System (AIS).

This is useful in particular when you transfer book values from operational components, and combine them with key figures from Risk Management to create formula-based key figures. Examples of formula-based key figures are excess fair value and excess book value.

Integration

The system calculates formula-based key figures at runtime only. This takes place when the Analyzer Information System is called. In the Analyzer Information System, the system displays the formula-based key figures, and the key figures that you stored in the initial layout for the Analyzer Information System.

 Unlike the other key figures, the formula-based key figures are not stored in the database. When the Analyzer Information System is called, the system checks all the formulas of the initial layout.

 If errors occur, the system does not display the formulas in question. However, it does display an error log.

·        This occurs if, for example, you used key figures to define formulas, and these key figures were deleted from the initial layout.

Prerequisites

·        You have defined all the key figures you need for the formula-based key figures.

·        If you want to use book values for formula-based key figures, you have entered the settings required to import them into the system.

For more information, see Using Book Values.

·        Before you can call the Analyzer Information System, you need to have carried out the single records procedure or the final results procedure for all the key figures you require.

Activities

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       1.      In the Customizing for SAP Banking, choose SEM Banking ® Market Risk Analysis ® Results Database ® Define Formulas for Analyzer Information System, or in the Customizing for Financial Supply Chain Management choose Treasury and Risk Management ® Market Risk Analyzer or Portfolio Analyzer ® Results Database ® Define Formulas for Analyzer Information System.

The system displays the initial layouts that have already been defined.

       2.      Select the initial layout, and choose the area for which you want to define formula-based key figures.

In this area, the system displays the formula-based key figures that exist.

       3.      If required, create a new formula-based key figure.

       4.      To store a formula for the formula-based key figure, select a key figure and choose  with the quick info Formula editor.

The system opens the formula editor.

       5.      Define the formula as required, and save your entries.

The formula editor contains the basic mathematical functions and an if function for defining formula-based key figures.

To display the documentation about the formula editor, choose  with the quick info Information.

Examples

·        Excess Fair Value

For single transactions, the excess fair value is the difference between the NPV and the book value. If this difference is negative, the excess fair value is zero.

Excess fair value for portfolios is the total excess fair value of the single transactions they contain.

·        Excess Book Value

For single transactions, the excess book value is the difference between the book value and the NPV:

Excess book value for portfolios is the total excess book value of the single transactions they contain.

·        Risk-Adjusted Excess Fair Value

For single transactions, the excess fair value is the difference between the NPV and the book value. In this case, the value at risk is deducted form the book value in order to reflect potential losses:

Since the value-at-risk key figures cannot be totaled, the risk-adjusted excess fair value has to be calculated separately for each node in the portfolio hierarchy.

Note that the functions shown in the examples are not available in the formula editor. You therefore have to use an if-function to define the key figures; for example “= IF( NPV > book value, NPV-book value,0 )”.