The Trading area contains the important functions for entering and changing transaction data. You must firstly make the following basic entries for the efficient portrayal of transactions:

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

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

You define product types as part of system configuration.

Examples of product types:

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

The transaction type defines which specialization of the transaction category, investment or borrowing, is involved in the current transaction. You define permitted transaction types during system configuration.

If you have specified external number assignment, you should enter the key which uniquely identifies a financial transaction within a company code in the Transaction field under the heading, External number assignment.

Otherwise, the SAP R/3 System will automatically assign a number.

In this field, you enter the start of the period to be saved. In other words, the agreed interest rate comparison (settlement) takes place on this date minus 2 days (= payment date).

There are two types of exercise:

The exercise date is the expiration date of the option.

This is where you enter the amount of the transaction. It is used as the basis for calculating 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:

You can enter up to two calendar IDs in this field. The calendar ID defines the various forms of calendar which are used to determine the interest rate fixing date. You define the calendar IDs as part of system configuration.

Enter the Start of term and the End of term of the transaction in this field. The SAP R/3 System automatically shows the CPU date as a default. You can use the ‘+’ symbol to enter the days and ‘++’ to enter the number of months.

Enter the agreed premium here, either as a percentage or as a fixed amount (amount, currency, due date of premium).

When the transaction is concluded, the transaction consists only of the premium. Both European and American options can be represented in the SAP R/3 System. Examples of possible types of settlements:

You enter the agreed maximum or minimum interest rate in this field.

Corresponding underlyings are included in the definition of product types. A spot exchange transaction is, for example, defined as an underlying in currency options.

You can enter alternative payment methods for the option due to the separation into two transactions.