Creating a Fixed-Term Deposit 

Use

The cash manager at IDES AG decides that given the current liquidity situation, the company needs to invest 500,000.00 DEM cash. He decides to invest the amount in the form of a fixed-term deposit. The IDES cash manager calls Deutsche Bank and agrees an interest rate of 4% with a term of six months. This term starts on the next working day following the telephone call.

Procedure

  1. Call up the transaction as follows:
    2.

    Menu Path

    Accounting ® Treasury ® Treasury Management ® Money Market ® Trading ® Fixed-Term Deposit ® Create

    Transaction Code

    TM01

  2. Enter the following data:
    3.

    Field

    Data

    Description

    Company code

    1000

    IDES AG

    Product type

    51A

    Internal fixed-term deposit

    Transaction type

    100

    Asset

    Partner

    1000

    Deutsche Bank

    For the system to accept these entries, business partner Deutsche Bank must be authorized in the standing instructions for fixed-term deposit investments.

  3. Choose .
  4. Enter the following data:
    5.

    Field

    Data

    Description

    Amount

    500t

    The fixed-deposit amount

    Start (term)

    +1

    (Next working day)

    End (term)

    ++6

    Due date (6 months after the start date)

    Percentage rate

    4

    Interest at a rate of 4% per year

  5. Choose , then choose the Cash flow tab page.

    6. The system now executes in chronological order the flows classified when you created the transaction. This consists of a cash outflow, a cash inflow, and the interest payment on the due date. The Flow type determines how the transaction is to be interpreted from an accounting perspective.

  6. Choose ® Select Layout.
  7. Choose the row 1SAP06 (Posting view).

    8. You see more details about the posting of this transaction. As we have not yet executed a settlement, the system does not allow you to execute a posting at this point.

    In the same way, you can call up additional views.

  8. Choose the Payment details tab page.

    9. Here you can see the payment conditions with the codes of your house bank and the bank account between which the money transfers have occurred during processing of the fixed-term deposit investment. The direction of the flow (D) shows the payment details to which the amount is debited (-) or credited (+). You can see both of the payment details. This is due to the settings in the Standing Instructions. These settings define that all fixed-term-deposit investments with the Deutsche Bank are to be processed through a specific account. This means that the corresponding payment details are derived automatically.

  9. Choose the Administration tab page.

    10. This tab page contains various information that simplifies the administration of the transaction. In the Position assignment field, you enter the account assignment reference. This defines the balance sheet account to which the fixed-term deposit is to be posted. This means that you must define this field before the posting takes place. Under Additional fields you can enter comments for internal purposes.

  10. In the Acct assign.ref field, enter DB000001.
  11. Choose the Status tab page.

    12. In the Correspondence field, you see that you must create a confirmation for the business partner upon conclusion of the contract, and that a counter-confirmation is then awaited from the business partner. In the Activity field, you see the status of the transaction and the status of the relevant activity.

  12. Choose .

    13. The system displays the message Fixed-term deposit XXX created in company code 1000.

  13. Note the number of this transaction.
  14. Choose .