Basic Data - DerivativesBasic Data - Derivatives
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:
Entry Data:
Company code
When you enter the company code, you determine which division within your corporate 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 as part of system configuration.
Examples of product types:
Product type |
Product category |
Name |
61B |
610 |
Floor |
62A |
620 |
Interest Rate Swap |
76B |
760 |
Swaption |
etc. |
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
The transaction type defines which specialization of the transaction category, purchase, sale or exchange, is involved in the current transaction. You define permitted transaction types during system configuration.
Business partner
You specify the counterparty of a transaction by entering the name of the business partner concerned (see
Business partner).Transaction
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.
Basic Data:
Exercise type
1) European option (at a certain time)
2) American option (within a certain period)
Amount
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:
m |
for millions |
t |
for thousands |
Business Calendar
(only for an FRA)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 calendar IDs for derivative financial instruments during system configuration.
Term
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.
+2 means that the Start of the term is today + two days.
Strike - limit
(only for a CAP)You enter the agreed maximum or minimum interest rate in this field.
Settlement
When the transaction is concluded, the cash flow only consists of the premium. Within the system,you can represent both European and American options. Possible settlemets include:
1 Physical exercise
2 Cash settlement
* Not yet fixed
Underlying
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.