Class (SAP Library - Securities)

Class

Definition

A security is a class in the system. Class data includes all the structure characteristics of a security. This includes Search terms (short and long names, secondary indexes, rating, and classification), Basic data (entries for the issue and the structure), Conditions, Notice data, Exchanges, User data and Regulatory reporting (custody type, securities account statistics, and tax treatment).

Since you create transactions and manage your positions in Treasury on the basis of product types, you assign each class to a product type. You define product types in Customizing for the securities area by choosing Define Product Types, and assign each of these to product categories that are predefined in the system. You can create several product types for one product category.

The various product types are indicated by specific characteristics. When you enter master data, the system provides you with entry screens for specific product types. This makes it easier for you to enter product type data and avoid inconsistencies.

In Customizing for securities, choose Define Product Types and, for each product type, use the field selection function to define the specific entry fields you want to mark as optional, required or display fields, and the fields you want to suppress.

Use

You can represent the following security types using the Product Categories delivered with the system:

A) Bonds:

They are differentiated according to the interest calculation type:

Fixed-interest bonds

Variable-rate bonds

Non-interest bearing bonds ( Zero Bonds)

They are differentiated according to the currency:

Local currency bonds
Foreign currency bonds
Dual currency bonds

Special bonds:

Convertible Bonds

Warrant Bonds (cum, ex)

B) Warrants

Equity warrants

Bond warrants

Index warrants

Currency warrants

C) Stocks

Fully- and partially-paid stocks
Common stocks and preference stocks

D) Subscription Rights

E) Investment certificates
F) Shareholdings

G) Participation Certificates

Constraints:

You can only represent bonds with a single fixed maturity date or perpetual annuity.

Integration

To process security transactions, you must first enter certain master data. This includes, for example:

Business partner data (issuer, counterparty)
Class data
Securities account data
Position indicators

When you create an order, the system takes the data that has already been entered. You simply have to add the specific transaction data (such as the amount or price of a stock you have purchased).

The system uses the class data (in particular the entries for the conditions of the class) and the specific transaction entries (such as the nominal value, price) to generate the Cash Flow.

Class data can also be used for evaluation purposes, for example, when you create lists or when you determine an account assignment reference automatically.

You can branch to the Issuer data of each business partner from the class data. To do this, choose Environment ® Display issuer.

A class can have one of three statuses: active, inactive and obsolete.
When you enter the master data for a class in the system, you first have the option of leaving it in the inactive status until you have finished entering all the data. Inactive classes cannot be purchased.
You choose the obsolete status for classes that have expired and should no longer be selected in evaluation reports.