Security Transaction (SAP Library

Security Transaction

Use

A security transaction represents the purchase or sale of securities (classes) in the position.

A security transaction usually passes through the following steps: an enquiry is made, the transaction is concluded and then posted. These steps are represented in the system by the various activity categories and processing categories a transaction can have.

Activity categories

Activity category: Order (inquiring about a transaction)

Activity category: Order expiration (if the transaction is not concluded)

Activity category: Contract (if the transaction is concluded)

Activity category: Settlement (this activity category can only be reached for process category 00002)

Processing categories

Use processing categories to determine which activity categories a transaction passes through. You assign the processing categories at transaction type level in Customizing by choosing Define Transaction Types. You can choose from the following processing categories:

Processing category Order - Contract (00001)
Processing category Order - Contract - Settlement (00002)

Overview: Possible activity chains per activity category

When the last activity category of the activity chain has been saved, the planned records for a transaction are transferred to actual records and assigned the Flagged for posting status. Choose Transaction ® Post in the accounting area to trigger the update to the general ledger (after the transaction has been released, if required). After you have run the posting report program, the transaction flows are assigned the Posted posting status.

Posting status

Blocked for posting	The transaction flows take this status if The transaction is in an activity that is not relevant for posting. The Relevant for posting activity is the last activity in the activity chain. When you use processing category 00001, the activity relevant for posting is the Contract, and with processing category 00002, it is the Settlement. The transaction has reached the posting-relevant activity, but the activity has not yet been saved. Instead, it has been noted (Security transaction ® Note). The transaction flows still have planned records status, and the transaction can still be changed.
Flagged for posting	If the transaction has reached the posting-relevant activity and has been saved, it is assigned the posting status Flagged for posting. This fixes the transaction flows and gives them actual records status. The transaction can no longer be changed.
Posting carried out	If the flows were updated to the general ledger using the posting report program, they are assigned the Posting carried out status.
Posting flagged for reversal	If a transaction that has posted flows has been reversed by the Transaction ® Reverse function, the flows are assigned the Posting flagged for reversal status.
Posting reversed	If the flows that were reversed have been updated to the general ledger using the Accounting ® Transaction ® Reverse documents function, the flows are assigned the Posting reversed status.

Integration

The functions for transaction management are in the trading and back office areas. The functions were split between the areas to segregate organizational functions and ensure that traders and back office staff work in separate menu options.

In the trading area, you can create, change, display and execute security transactions.
In the back office area, you can change, display and settle security transactions.

The settings you make for transactions in Customizing determine the effect they have on Cash Management.

Integration: Securities Management and Cash Management

Prerequisites

You must make the following settings in Customizing before you can enter transactions:

Enter a number range (01) for the transactions for each company code in the securities area by choosing Define Transaction Number Ranges. The system uses this number range to assign a transaction number when you create a transaction.

Define Transaction Types

Specify the transaction types required for purchases and sales for each product type.

Flow types (transaction)

You must have created the transaction flow types for the Treasury transaction management functions by choosing Define Flow Types for Transaction in Customizing.
By choosing Assign Flow Types to Transaction Type, you must assign the required flow types to each transaction type. In other words, you assign all the flow types that you need to process a transaction.

Transaction type for purchase of a fixed-interest bond:

Purchase flow type
Flow type for accrued interest
Tax flow types that you may want to generate using a derivation procedure
Flow types for charges that may be entered additionally

By choosing Define Derivation Procedures and Rules, you can define rules for automatically generating tax flows from the transaction flows, for example.
By choosing Assign Transaction Flow Types to Securities Flow Types, you are making unique assignments between the transaction flow types and the securities flow types (that means, for each flow type you require in transaction management, you must have defined a corresponding securities flow type that is indicated as Not relevant for posting in the Customizing activity for defining flow types for securities). This is necessary since position management in the securities area affects the securities flow types.

In the section under Correspondence, you make the settings for internal and external confirmation letters by defining the possible correspondence types in Customizing activity Define Correspondence Types and specifying which documents to want to generate per transaction type and activity category in Define Correspondence Activities.

You must have defined the account determination for the transaction flow types by choosing Account Determination for Transaction Flow Types.

Other IMG activities are also available:

By choosing Define Field Selection in Customizing for the basic functions area, you can set up the entry screens for transactions in different ways.

Define Order Limit Checks

Define Reservation Reasons

Features

Other flows

When you enter a transaction, you have the option of entering other flows that are related to the transaction.

Typical examples of other flows are:

Charges
Commission
Taxes

Flows that are automatically generated for a transaction also appear amongst the other flows. These include accrued interest flows for a bond purchased and/or tax flows generated automatically. You can change or delete these flows, if required.

Cash flow display

Once a transaction has reached the activity category "contract", the transaction cash flow displays the flows that result from the transaction.

Correspondence

A correspondence function is available. It enables you to generate letters of confirmation. Depending on the settings you make in Customizing, you can generate correspondence when you conclude a contract and/or settlement it.

See also: Correspondence

Release

You can set up the system so that transactions can only be posted after one or several employees have checked them.

Input help for transaction entry

Activities

For more information on editing security transactions, see Editing a Security Transaction.