Basic Data - Trade Finance

The trading area contains the key functions for entering and changing transaction data. To map transactions in the system efficiently, you first have to enter the basic data.

Initial Data

  • Company Code

    When you enter the company code, you determine which division within your group is acting as the contracting party for the transaction.

  • Product Type

    The product type indicates which specialization of the product category is involved in the current transaction.

    You define product types when you configure the system.

    Example of product types:

    Product Type

    Product Category

    Name

    85A

    850

    Letter of Credit

    86A

    860

    Bank Guarantee

    Depending on which product type you enter, the SAP R/3 System calls up a different entry screen. The entry screens are described below.

  • Transaction Type

    Transaction types define which specialization of the transaction category, issuing or receiving letters of credit or bank guarantees, is involved in the current transaction. You define the permitted transaction types when you configure the system.

  • Partner

    You specify a bank that issues the letter of credit at your request or advises you of a letter of credit issued with you as the beneficiary when you enter a partner (see Business Partner ).

  • Transaction

    If you have specified external number assignment, you enter the key that uniquely identifies a financial transaction within a company code in the Transaction field in the External Number Assignment area.

    Otherwise, the system assigns a number automatically.

Basic Data

  • General Basic Data for Trade Finance Transactions

    • Amount

      This is where you enter the amount of the transaction. The nominal amount is used as a basis for calculating the interest. In Customizing, you can define your own special characters or other alphabetic values as an abbreviation for thousands or millions. You can use the following input help:

      Special Character

      Meaning

      m

      millions

      t

      thousands

    • Term

      Here you enter the Start and the End of the transaction term. The SAP R/3 System automatically shows the CPU date as a default. You can enter the ' +' for the number of days and '++' for the number of months.

      Example Example

      +2 means that the Start of term is today + two days.

      End of the example.

    • Flow Type

      Specify a flow type for the transaction. The type of flow within a financial transaction specifies how the flow concerned is to be interpreted in terms of financial mathematics and financial accounting. A flow type can only be used in connection with a financial transaction if the flow type has been assigned to the corresponding product type in Customizing.

    • Beneficiary/Applicant

      Specifies the counterparty of the transaction.

  • Basic Data for Letter of Credit Transactions

    • Place of Expiry

      Specifies the place where the beneficiary presents documents against the L/C.

  • Basic Data for Bank Guarantee Transactions

    • Form of Guarantee

      Specifies the form of the bank guarantee. A direct bank guarantee is issued by the applicant's bank (issuing bank) directly to the guarantee beneficiary without involving a correspondent (advising) bank; an indirect bank guarantee is issued by a correspondent bank (usually the guarantee beneficiary's bank) upon the counter-guarantee of the guarantee applicant's bank.

    • Bank Guarantee Type

      Specifies a bank guarantee type that you have defined.

    • Underlying Transaction Type

      Specifies whether the transaction related to this bank guarantee is a sales order or a purchase order, and then link the bank guarantee to the corresponding sales order or purchase order. Or, you can choose to manually enter a contract number and other related information.