Creating an Order 

Use

You can use this function to create a new borrower's note loan contract or to enter an order for an existing contract.

You can enter the order in execution status. If you are creating a new contract with the order, you also enter the contract data here. You can calculate and display the cash flow on the basis of the data you have entered. When you save the data, however, the system does not create planned records. As a result, the data is not transferred to Cash Management.
You can also enter the data in settlement status. In this status you can post the order data and therefore settle the order. When you save the data, the system generates planned records, which are transferred to Cash Management.

In addition to purchase and sale orders, you can also enter preemptions in the system. This data is used as the basis for calculating refinancing interest and prices for an order for alternative calculation periods.

Procedure

Creating a new borrower's note loan (purchase/contract)

Since a borrower's note purchase is usually coupled with conclusion of a contract, the system allows you to create the purchase order and the contract in one step.

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       1.      Choose New Business ® Borrower’s Note ® Trading ® Order ® Create. The Create Order: Initial Screen appears. Enter the company code and the product type.

       2.      In the New contract section, choose Purchase/contract.

       3.      If you have defined corresponding status transfers in Customizing, the Select Status - Order dialog box appears. Select the subsequent status and choose Continue.

       4.      In the Create Order: Basic Data screen, enter the basic data for the contract order. For more information, see Creating a Reservation.

From here, you can navigate to Order data, Preemption, Payment Details and the Cash Flow.

                            a.      The Order data contains the flow type required for account determination, the order date, the payment date and the payment amount.

                            b.      If you choose Preemption, the Create Order: Preemption screen appears. In this screen, you can enter preemption conditions by choosing Create preemption and Delete preemption.

                            c.      You can use the Refi.int. and Price functions to enter the refinancing prices and interest rates.

                            d.      Choose Cash Flow to display the individual flows for the borrower’s note loan in acquisition currency.

       5.      You finish creating the contract by using the function Save Order. The data you entered is saved in the system.

Editing an existing contract: Purchase

You use this function to enter an additional purchase order for an existing contract. This contract may have been created using the Contract ® Create function or result from an activated reservation.

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       1.      Choose New Business  ® Borrower’s note ® Trading ® Order ® Create. The Create Order: Initial Screen appears. Enter the company code, the loan number of the existing contract and the Product type.

       2.      In the Existing contract section, choose Purchase.

       3.      Enter the order data as described above under Creating a borrower’s note loan (purchase/contract). You can also branch to the contract data, cash flow and preemption screens.

       4.      You finish creating the contract by using the function Save Order. The data you entered is saved in the system.

Payment request

The payment request function allows you to generate a payment document without using a customer account.

To use the payment request function, you need to define the clearing account for payment requests in Customizing.

The system creates one payment request per transaction for the net payment amount.

If you choose Payment details in the Create Order: Basic Data screen, the Payment Request dialog box appears. If you select the payment request, the dialog box Payment request appears.

·        Set the Payment request field.

·        In the Payee section, choose the partner bank type and the payment method. To do this, you must have defined bank details for your business partner in the master data. If you want the system to insert the account details for the business partner automatically, you must activate the standing instructions in the IMG activity Define Company Code Additional Data in Customizing for Treasury and Risk Management.

If you have maintained the payment details for a contract, these are not included when you create an order. You must either enter the payment details for the order manually or activate them using the standing instructions.

You can then define the payment details for the payment requests for each business partner in the application Treasury and Risk Management under Business Partners ® Special Functions ® Standing Instructions ® Payment Details.

·        Enter the data for the house bank account from which you want to make the payment.

The house bank details cannot be determined automatically.

·        Save your entries for the payment request. The system sets a flag for the payment request.

·        If you then post the order, the system generates the payment request.

·        As a result, the FI program Automatic Payment Transactions for Payment Requests generates a payment medium.

If the order is deleted and the payment program has not been run, the system also deletes the payment request. If the payment program has already been run and the data medium generated, you must monitor the outgoing payment manually.

Editing an existing contract: Sale

You use this function to enter an additional sale order for an existing contract. This contract may have been created using the Contract ® Create function or result from an activated reservation.

·        The procedure is the same as for Editing an existing contract: Purchase.

·        Enter the contract data as described above under Creating a new borrower's note loan (purchase/contract).

·        When you post the sale, the system automatically generates and posts the flows for the price gain or loss and the extraordinary write-back of the premium or discount.