To document the fact that certain transactions or objects belong together, you can define links in the administrative data of a transaction. To do this, you use fields in which you assign reference terms or numbers freely and you can then use them for later evaluations. Relationships between transactions resulting from processing activities such as rollovers or netting transactions or the parts of a transaction such as the spot and forward transaction of a currency swap are automatically linked by the SAP R/3 System.

In the transaction data screen, you can display the links for this transaction via Environment ® Object Links. You get an overview with Reference number, Reference name, Reference status and Business partner.

• Via the Rollover and/or Premature settlement functions, the SAP R/3 System generates two individual transactions linked via a reference/swap unit. One transaction offsets the forward exchange transaction initially entered (if desired, with identical, opposite conditions to avoid rate gains/losses). The other, a new transaction, allows the term to be adjusted by using the amount data as default values. The two new transactions are linked to the initial transaction.
• The assignment of a swap to the initial forward rate is automatically documented via the assignment of the individual transactions to a common financial project using an identical project number. This project number is in the administrative data. In this way, you can display this referencing between transactions that belong together in the transaction data. As soon as part of a swap is to be changed, the SAP R/3 System displays a warning message in order to show the connection with the second swap component.
• With the outlined change in the transaction data, it is possible to split up a forward exchange transaction in to subsequent transactions via premature settlement and/or rollover. In this way, you can prematurely settle a part of the transaction and roll over the other part of the amount with two following transactions that have different value dates. Via the liquidity effect, financing revenues and expenses for rollovers can be generated on the basis of the old rate and be included in the rollover transaction. The pairing of the swap components also takes place here via a reference.

• The option spread allows you to enter two currency options (including currency barrier options) at the same time. You can then copy the structure characteristics of the first option to the second option as a default value. This second option can have a different product and transaction type to the first option.
• With the option spread, two options are linked via a reference (unit) of the category, OPT( Reference option for derivatives).
• You can also use the option spread function to create combinations of puts and calls (straddle or strangle; option spread) with identical or differing strikes in parallel.
• If transactions are carried out in the local currency, you only need to enter data under Underlying as the Currency pair field is automatically filled with the local currency in this case.

1. Choose Rollover / Premature settlement
2. The screen you used for the fast entry of swaps appears, but you can only enter data on the left-hand side of the screen (1st transaction).
3. The following fields are pre-defined in this area: Currency key, Amounts, Forward rate of the transaction to be rolled over (to be prematurely settled). This transaction is the spot basis for the rollover (premature settlement) and for the value date to be changed.
4. The second side (2nd transaction) shows you the details of the forward transaction to be rolled over, but with offsetting payment flows in the opposite direction.
5. To make the new entry, you only need to enter the swap rate and the changed value date.
6. You can enter the liquidity costs of a rollover resulting from the changed spot rate separately in the Liquidity field and use it for your own evaluation reports at transaction level.

1. Choose Option spread
2. Enter the data for the first transaction under Option 1.
3. Data is copied in Option 2 via the option spread at the top of the screen.
4. The transaction type and strike must be adjusted.
5. You can use the Copy function for similar options.