Transfer Category

Definition

In a position transfer (for example, a valuation class transfer or securities account transfer), the transfer category controls how the position components are filled when the target position components do not match the source position components. This can be the case if the source and target positions have different position management procedures.

Example Example

Example:

When a bond position is being transferred, it may be the case that the 'old' position management procedure calls for amortization whereas the 'new' position management procedure does not.

End of the example.

Structure

The position components are filled by the derived business transactions for the position transfer. When the system generates the derived business transactions for the operative business transaction (valuation class transfer or securities account transfer), it reads the transfer category of the target position and generates corresponding flows.

We distinguish between the following transfer categories:

  • 01 Post to same components

    The system transfers all position components unchanged. This applies even if one of the components is not used in the target position, for example.

  • 02 Post only to used components

    The system only makes a transfer posting to those components that are planned in the target position also. The following rules apply:

    • Amortization occurs in the source position but is not determined for the target position. However, the security valuation is executed in both cases. The system posts the amount in the amortization component (source position) to the security valuation component (target position).

    • Security valuations occur in the source position but are not determined for the target position. However, there is amortization in both cases. The system posts the amount in the security valuation component of the source position to the amortization component of the target position.

    • Index valuations occur in the source position but are not determined in the target position. However, security valuation takes place in both cases. The system posts the amount in the index valuation component of the source position to the security valuation component of the target position.

    • There are index valuations in the source position. Neither index valuations nor security valuations are determined for the target position, but both the target and source positions are amortized. The system posts the amount in the index valuation component of the source position to the amortization component of the target position.

    • Foreign currency valuations were executed in the source position but are not determined for the target position. However, security valuations take place in both cases The system posts the amount in the foreign currency valuation component of the source position to the security valuation component of the target position.

    • There are foreign currency valuations in the source position. Neither foreign currency valuations nor security valuations are determined for the target position, but amortization occurs in both the target and source positions. The system posts the amount in the foreign currency valuation component of the source position to the amortization component of the target position.

    • Gain/loss handling for the source position is set to Do Not Realize Gains/Losses (security/foreign currency/index). For the target position, however, the system posts security, foreign currency, or index valuations to P/L, or executes amortization. The valuation components that do not affect profit and loss are cleared from the source position. The system posts the amounts from the valuation components not affecting the P&L to the appropriate P&L accounts. You define the update types for these flows on the Transfer Postings tab page in the Clearing to Profit/Loss area.

    • Since the gross procedure is defined for amortization, there are premium/discount flows in the source position. Amortization is not determined for the target position, however, because the net procedure is defined. (Transfer postings between gross and net methods are possible for valuation class transfers The system checks whether this prerequisite is fulfilled.)

    • When you make a transfer posting, the system replaces the flow Post Discount (accrued/deferred items) (D038) with the flow Post Premium (D036). This means that a flow from the position with the gross procedure defined for amortization is replaced by a flow from the position with the net procedure defined for amortization. The system replaces the flow Post Premium (accrued/deferred items) (D040) with the flow Post Discount D034). In this way, the discount or premium is cleared from the target position.

  • 03 Reverse Security and FX Valuations

    The system does not generate transfer flows for:

    Equity accounts that do not affect P/L

    Adjustment flows

  • 04 Reverse security valuations, transfer FX valuations

    So account extensions can be avoided for equity accounts, the system generates adjustment flows for the valuation of the foreign exchange. However, it does not generate posting flows or adjustment flows for the security valuation components.

  • 05 Transfer security valuations, reverse FX valuations

    So account extensions can be avoided for equity accounts, the system generates adjustment flows for the valuation of the security. However, it does not generate posting flows or adjustment flows for the foreign currency valuation components.

  • 06 Transfer unrealized valuations (otherwise same as 02)