Records Processing 

Use

You can create, change, delete, or post planned records on the Records Processing tab page. You can also reset posted actual records, if necessary.

The reserve for bad debt value adjustments for the relevant RBD portfolio are then calculated or changed as a result.

Depending on the valuation method you enter when you create or change the RBD account, you can create value adjustments in line with the German Commercial Code or US GAAP. The valuation method you select determines whether you can also use a Fair Value Sheet to calculate the proposed value adjustments according to US GAAP, in addition to the functions described above.

If you select the valuation method 02 according to US GAAP when you create or change a RBD account, the system displays the Fair Value indicator. You can use this function to calculate the fair value as described below.

Prerequisites

As the RBD account has already been created and updated, default values (planned records) for the portfolio have already been generated automatically.

Procedure

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       1.      If you want to update the current planned records, choose the Update RBD Account pushbutton again.

       2.      When you update the planned records, you have to specify whether they are to be regenerated for a specific key date (the system deletes the existing planned records and recreates them using the current data basis) or whether the planned records are to be created that only reflect the changes since the last creation run.

       3.      The system updates the assigned source system contracts/accounts and the planned records. You can view key information, such as the general ledger accounts for the postings, by choosing the Details pushbutton in the planned record.

       4.      You can trigger the calculation of reserves for bad debt (value adjustments) according to US GAAP by choosing Fair Value.

The Fair Value button is only displayed if you have selected the Valuation Method 02 for the RBD account.

You need to enter a key date for the calculation (Key Date for Calculation Period) and the reference from the source system in each case (Contract Number, for example). The Fair Value Sheet screen appears (calculation schema for net present value according to US GAAP). You need to make the following entries here.

¡        Percentage Rate for Yield Curve

¡        Expected Receivables

¡        Expected Collateral

¡        Hedge

You can exit the transaction for the calculation schema in the following ways:

¡        Choose Enter. The system transfers the data entered in the sheet and generates a new planned record in the RBD account.

¡        Choose theCalculation pushbutton. The system calculates the current net present value within the Fair Value Sheet and displays it here.

When you exit the calculation schema, the processing screen for the RBD account appears. You can now process, delete, or post the new planned record.

You can change the planned record for capital value adjustments by entering an amount in the Amount to Be Posted field. This amount, however, must not be higher than the original default value.

       5.      You can change the planned record for capital value adjustments by entering an amount in the Amount to Be Posted field or by choosing Goto – Amount to Be Posted from the menu. This amount, however, must not be higher than the original default value.

       6.      You can create manual planned records that do not have an automatic reference to a source system. (This is only possible, however, if you set the source system to manual when you create the RBD account.) This allows you to work with non-SAP systems or non-standard business transactions in the RBD component.
You can also create manual planned records for any RBD account.
Choose the Generate Planned Records pushbutton and enter the required data in the screen displayed.
A validation check verifies that the reference number (partner/finance project number) or contract/account number is assigned to the RBD account. The planned record amount is adjusted to the total of the assigned individual documents.

You can only create manual planned records with the RBD flow types defined in Customizing.

If you use the reference number (partner/finance project number) when creating a manual planned record within an RBD account and you have an active link to regulatory reporting from the RBD component, it cannot be guaranteed that the amounts will be processed correctly in regulatory reporting.

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       1.      Enter posting texts for the planned records. You can do this by double-clicking the Posting Text field. You can also overwrite the posting text generated by the system.

       2.      To delete a planned record, select it and choose the Delete Planned Records pushbutton.

       3.      The individual documents that were assigned to the deleted planned records are then used for new planned records during the next generation run.

       4.      You simulate the planned record posting by selecting the relevant record and choosing the Simulate Posting pushbutton.

The result of this simulation is shown in the posting log (menu: Information System ® Posting Log).

       5.      You can display the individual documents for the planned records by double-clicking on the value adjustment proposal or by choosing Goto – Planned Individual Documents from the menu.

       6.      You post the planned records by selecting the records and choosing the Post Planned Records pushbutton.

In the dialog box displayed, specify whether the record is to be posted with the posting date (that is, the creation date of the planned record) or with a special period.

The planned record is then posted and becomes an actual record.

The first time a value adjustment is posted in the risk portfolio, the risk class of all the assigned contracts in the SAP Loans Management (FS CML) subsidiary ledger is set to Impaired 2. If a default is posted, the risk class is set to Foreclosed. When the last value adjustment of a portfolio is cancelled, the risk class is set to Impaired 1 for all the assigned contracts.

The risk classes defined in the system reflect US GAAP and express the following:

on watch: In these cases the payments for the loan have been temporarily interrupted, indicating that the financial circumstances of the borrower are not entirely satisfactory and that the collateral accepted will not provide lasting cover for the loan. This constitutes an increased risk although there is no clear risk of the borrower defaulting on the loan.

impaired 1: Loans that have not received payments for a long period of time (non-performing loans) but where there is no clear risk of default due to the credit standing of the borrower and/or the moderate expiry period of the loan.

impaired 2: Loans that have not received payments for a long period of time (non-performing loans) and where there is an acute risk of default because the borrower has financial difficulties and significant sections of the loan are not secured.

foreclosed (internally written-off debt): Even after all the collateral has been realized, the loans are totally or partially irrecoverable for financial and/or legal reasons. The receivable has not, however, been officially waived with the borrower.

 

       7.      You can display the individual documents for the actual records by double-clicking on the value adjustment proposal or by choosing Goto – Actual Individual Documents from the menu.

       8.      You can display the posting documents for the actual records by double-clicking on the value adjustment proposal or by choosing Goto – Posting Documents from the menu.

       9.      To reset an actual record, select it and choose the Reset Actual Records pushbutton. If you do not enter a posting date in the next menu, the record is reset to the original date.

If you want the record to be reset at a different date, you have to enter one explicitly.

You can only reset the current actual record. This means that you might have to reset several actual records before you can reset a specific older one.

You can only reset actual records in the current fiscal year.