Assign Position Management Procedure (SAP Library

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Assign Position Management Procedure

In this step, you assign the

position management procedure you require to the security positions using the following criteria:

Company code

Product category

Product type

Valuation category

Valuation class

Price gains and losses and amortizations are calculated in the application according to the position management procedures you define here for flows that affect the position (such as purchases, capitalized costs from manual postings, sales and securities account transfers). The position management procedure also determines whether amortization flows are generated for a position when you execute the Key date amortization function, and if so, how. (See also: Position Management Procedure)

Important note:

When entering the data in the table, ensure that each position has a suitable entry. We recommend that you make the standard settings and then enter the required exceptions to this rule.

Example of a standard entry:

CoCd	PCat	PTyp	FCat	VCls	PosMgtProc.
	0				Standard

Interpreting the table

To determine the valid position management procedure, the system:

1. First determines all the rows, whose entries match the characteristics for the position. There may be several rows.

2. Chooses the most specific setting from these rows, that is, the one which describes the position in the most detail.

Examples:

System settings

	CoCd	PCat	PTyp	VCls		PosMgtProc.
1		0				Standard
2	0001					Standard
3			04I			Net SAC
4			04I	SECACCOUNT	Gross LAC
5				INDIVIDUAL	Net LAC
...

a) Securities position: Bond (product type 04I) in company code 0001 with valuation class 'INDIVIDUAL'.

The system first determines rows 1, 2, 3 and 5. From these, it then assigns the position management procedure from row 5 to the position. The further right in the table an entry is found, the more specific it is. In this case, the entry for the valuation class is more specific than the product type or the company code entries.

b) Securities position: Bond (product type 04I) in company code 0001 with valuation class 'SECACCOUNT'.

The system first determines rows 1, 2, 3 and 4. From these, it assigns the position management procedure from row 4 to the position. In this case, the entry in row 4 describes the position more precisely than those in rows 1 and 2, and more precisely still than the entry in row 3.

Requirements

Before you make these settings, you must have defined the valuation classes and the required product types.

See also:

Valuation

Define Product Types

Effects of the position management procedures on business transactions that affect the position

The following flows are generated for the various business transactions, which change the position according to the position management procedure you select:

Standard position management procedure

Purchase	./.	./.
Capitalized costs from manual posting
	./.	./.
Sale
	XB	Security price gain/loss (only TR subledger)
	XE	Forex price gain/loss (only TR subledger)
	XH	Take off purchase charges (only TR subledger)
	XHV	Take off selling charges (only TR subledger)
	XY	Total security price gain/loss (only G/L)
	XZ	Total forex gain/loss (only G/L)
	XX1	Acquisition value adjustment
	XX2	Book value adjustment
	XX3	Charges adjustment
	XX4	Charges book value adjustment
	XXF1	Acquisition value FC adjustment
	XXF2	Book value FC adjustment
	XXF3	FC adjustment charges
	XXF4	Charges book value FC adjustment
	XXF5	FC adjustment forex valuation
	XXF6	FC adjustment forex SC
Securities account transfer (within a sec. account group)
	XX1	Acquisition value adjustment
	XX2	Book value adjustment
	XX3	Charges adjustment
	XX4	Charges book value adjustment
	XXF1	Acquisition value FC adjustment
	XXF2	Book value FC adjustment
	XXF3	FC adjustment charges
	XXF4	Charges book value FC adjustment
	XXF5	FC adjustment forex valuation
	XXF6	FC adjustment forex SC
Securities account transfer (between various sec. account groups)
	XX1	Acquisition value adjustment
	XX2	Book value adjustment
	XX3	Charges adjustment
	XX4	Charges book value adjustment
	XXF1	Acquisition value FC adjustment
	XXF2	Book value FC adjustment
	XXF3	FC adjustment charges
	XXF4	Charges book value FC adjustment
	XXF5	FC adjustment forex valuation
	XXF6	FC adjustment forex SC

Net LAC/Net SAC position management procedures

Purchase	./.	./.
Capitalized costs from manual posting
	./.	./.
Sale
	XB	Security price gain/loss (only TR subledger)
	XE	Price gain/loss in for.curr.(only TR subledger)
	XH	Take off purchase charges (only TR subledger)
	XHV	Take off selling charges (only TR subledger)
	XY	Total security price gain/loss (only G/L)
	XZ	Total forex gain/loss (only G/L)
	XMA2	Amortization for outgoing position
	XX1	Acquisition value adjustment
	XX2	Book value adjustment
	XX3	Charges adjustment
	XX4	Charges book value adjustment
	XXF1	Acquisition value FC adjustment
	XXF2	Book value FC adjustment
	XXF3	FC adjustment charges
	XXF4	Charges book value FC adjustment
	XXF5	FC adjustment forex valuation
	XXF6	FC adjustment forex SC
Securities account transfer (within a sec. account group)
	XMA2	Amortization for source sec. account group
	XMA0	Transfer amortization pro rata
	XX1	Acquisition value FC adjustment
	XX2	Book value adjustment
	XX3	Charges adjustment
	XX4	Charges book value adjustment
	XX7	Capitalization I adjustment
	XX8	Capitalization II adjustment
	XXF1	Acquisition value FC adjustment
	XXF2	Book value FC adjustment
	XXF3	FC adjustment charges
	XXF4	Charges book value FC adjustment
	XXF5	FC adjustment forex valuation
	XXF6	FC adjustment forex SC
	XXF7	FC adjustment capitalization I
	XXF8	FC adjustment capitalization II
Securities account transfer (betw. various sec. acct groups)
	XMA3	Post amortization for outgoing position
	XMA0	Transfer amortization pro rata
	XX1	Acquisition value adjustment
	XX2	Book value adjustment
	XX3	Charges adjustment
	XX4	Charges book value adjustment
	XX7	FC adjustment capitalization I
	XX8	FC adjustment capitalization II
	XXF1	Acquisition value FC adjustment
	XXF2	Book value FC adjustment
	XXF3	FC adjustment charges
	XXF4	Charges book value FC adjustment
	XXF5	FC adjustment forex valuation
	XXF6	FC adjustment forex SC
	XXF7	FC adjustment capitalization I
	XXF8	FC adjustment capitalization II
Gross LAC/Gross SAC position management procedures
Purchase
	XMC4	Post discount/premium (=difference betw. purchase value)
		(incl. capitalized costs and repayment value)
Capitalized costs from manual posting
	XMC4	Take discount/premium off books (cap. costs amount)
Sale
	XB	Security price gain/loss (only TR subledger)
	XE	Price gain/loss in foreign currency
	XH	Take off purchase charges (only TR subledger)
	XHV	Take off selling charges (only TR subledger)
	XY	Total security price gain/loss (only G/L)
	XZ	Total forex gain/loss (only G/L)
	XTC2	Amortization for outgoing position
	XTC6	Reverse discount/premium pro rata
	XX1	Acquisition value adjustment
	XX2	Book value adjustment
	XX3	Charges adjustment
	XX4	Charges book value adjustment
	XXF1	Acquisition value FC adjustment
	XXF2	Book value FC adjustment
	XXF3	FC adjustment charges
	XXF4	Charges book value FC adjustment
	XXF5	FC adjustment forex valuation
	XXF6	FC adjustment forex SC
Securities account transfer (within a sec. account group)
	XTC2	Post amortization for source sec. account group
	XMA0	Transfer amortization
	XX1	Acquisition value adjustment
	XX2	Book value adjustment
	XX3	Book value adjustment
	XX4	Charges book value adjustment
	XX7	Capitalization I adjustment
	XX8	Capitalization II adjustment
	XXF1	Acquisition value FC adjustment
	XXF2	Book value FC adjustment
	XXF3	FC adjustment charges
	XXF4	Charges book value FC adjustment
	XXF5	FC adjustment forex valuation
	XXF6	FC adjustment forex SC
	XXF7	FC adjustment capitalization I
	XXF8	FC adjustment capitalization II
Securities account transfer (between various sec. acct groups)
	XTC3	Post amortization for outgoing position
	XMA0	Transfer amortization
	XMC0	Transfer discount/premium
	XX1	Acquisition value adjustment
	XX2	Book value adjustment
	XX3	Book value adjustment
	XX4	Charges book value adjustment
	XX7	Capitalization I adjustment
	XX8	Capitalization II adjustment
	XXF1	Acquisition value FC adjustment
	XXF2	Book value FC adjustment
	XXF3	FC adjustment charges
	XXF4	Charges book value FC adjustment
	XXF5	FC adjustment forex valuation
	XXF6	FC adjustment forex SC
	XXF7	FC adjustment capitalization I
	XXF8	FC adjustment capitalization II

Net versus gross posting system

The introduction of the position management procedures means that it is now possible to represent borrower's note loans in securities management. Below is a description of the posting transactions that have been set up in the sample Customizing for net or gross procedures.

A) Net procedure

Amortization of the entire securities account position for changes to the position within the fiscal year (securities account transfers within a securities account group).

Debit FType: 7001 Balance to interest received

Credit FType: 7002 Interest expense to balance

Amortization of the outgoing position for changes to the position within the fiscal year (sales, securities account transfers, balance sheet transfers, exercise of rights).

Debit FType: 7003 Balance to interest received

Credit FType: 7004 Interest expense to balance

Write down amortization for position outflows (securities sales, and execise of rights).

Debit FType: 7005 Not relevant for posting

Credit FType: 7006 Not relevant for posting

Transfer amortization (securities account transfer, balance sheet transfer, execute rights, corporate actions).

Debit FType: 7015 Balance to tech. bal. offsetting

Credit FType: 7016 Tech. bal. offsetting to balance

Amortization on a key date

Debit FType: 7019 Balance to interest received

Credit FType: 7020 Interest expense to balance

B) Gross procedure

Post discount/premium (for securities purchase)

Debit FType: 7007 Balance to deferred income

Credit FType: 7008 Accrued income to balance

Writing down the securities account position pro rata for changes to the position within the fiscal year (securities account transfers within a securities account group).

Debit FType: 7009 Deferred income to interest received

Credit FType: 7010 Interest expense to accrued income

Writing down the outgoing position for changes to the position within the fiscal year (securities sales, securities account transfers, balance sheet transfers, execute rights).

Debit FType: 7011 Deferred income to interest received

Credit FType: 7012 Interest expense to accrued income

Writing down the position in proportion to capital (for securities transactions).

Debit FType: 7013 Deferred income to interest received

Credit FType: 7014 Interest expense to accrued income

Transfer amortization (securities account transfer, balance sheet transfer, execute rights, corporate actions).

Debit FType: 7015 Balance to tech. bal. offsetting

Credit FType: 7016 Tech. bal. offsetting to balance

Transfer discount/premium (securities account transfers, balance sheet transfers, execute rights, corporate actions).

Debit FType: 7017 Balance to tech. bal. offsetting

Credit FType: 7018 Tech. bal. offsetting to balance

Amortization on a key date.

Debit FType: 7021 Deferred income to interest received

Credit FType: 7022 Interest expense to accrued income

Euro reconciliation of discount/premium (issue currency changeover, local currency changeover, manual reconciliation report program).

Debit FType: 8343 Not relevant for posting

Credit FType: 8344 Not relevant for posting

Debit FType: 8345 Not relevant for posting

Credit FType: 8346 Not relevant for posting