The creation of financial transactions and management of positions in the Transaction Manager is based on product types.

To create product types in Customizing, choose  OTC Derivatives Transaction Management Product Types .

Double-click Commodity Forwards and choose New Entries. Enter a key for the product type (such as 80C) and a short description. As the product category, select Commodity Forward as well as the settlement type (Cash Settlement by default).

In Customizing under  Transaction Types Number Range Define Transaction Number Ranges , enter a number range for the transactions for each company code. The system uses this number range to assign a transaction number when you create a transaction.

Choose  Transaction Types Define Transaction Types to create at least one transaction type for transaction category 100 Purchase and one for transaction category 200 Sale.

In addition to assigning the transactions and a number range, you can also assign a processing category here. You can use the processing categories 00101 Contract - Settlement and 00102 Contract Without Settlement.

Create the transaction flow types for transaction management in the Customizing activity Define Flow Types for Transaction.

Examples:

1004 Purchase: Commodity Forward for flow category: 50 Purchase

2004 Sale: Commodity Forward for flow category: 51 Sale

1900 Charges for flow category: 90 Other Flow/Condition

1310 Cash Settlement for flow category: 31 Cash Settlement

Assign the required flow types to each transaction type in the Customizing activity Assign Flow Types to Transaction Type. You must include all the flow types needed to process a transaction.

Make the settings for internal and external confirmation letters in the Correspondence section. You define the possible correspondence types in the Customizing activity Define Correspondence Types. Under Define Correspondence Activities, specify the documents that you want to generate for each transaction type and activity category.

In the Update Types section, define the relevant update types and assign them to the corresponding transaction types:

You define account determination for the update types in Customizing for the Transaction Manager. To do this, choose  General Settings Accounting Link to Other Accounting Components Define Account Determination .

You need to have created general valuation classes in Customizing for the Transaction Manager under  General Settings Accounting Settings for Position Management Define and Assign Valuation Classes .

A general valuation class must be assigned to each transaction. You can define default values for the general valuation class assignment in Customizing by choosing  OTC Derivatives Transaction Management Assign General Valuation Class .

Specify the steps to be taken and the order in which they are performed for the key date valuation and during the determination of derived business transactions by choosing  Settings for Position Management Define Position Management Procedure and Assign Position Management Procedure. You can then create a position management procedure for the position management category OTC Derivatives.

Assign the update types required for valuation based on the position management procedure by choosing  Settings for Position Management Key Date Valuation Update Types Assign Update Types for Valuation .

Assign the update types required for the derived business transactions, taking into account the position management procedure. To do this, choose  Settings for Position Management Derived Business Transactions Update Types Assign Update Types for Derived Business Transactions .

To make the settings required for posting the relevant update types to Accounting, choose  General Settings Accounting Link to Other Accounting Components .

Make the settings for the commodity master data by choosing  Transaction Manager Listed Derivatives Master Data Commodities . See also: Commodity Master Data

Enter the business partner data. In the Derivatives area, the business partner must be in the Counterparty role.