Overview: Reversals in Securities (SAP Library)

Overview: Reversals in Securities

Use

The reversal functions enable you to reset flows that have been posted incorrectly.

Which procedure you use to reverse a transaction depends on the flow you are reversing. The following functions are available in the securities area:

Reversal function	Flows to be reversed
Reversal of transaction management	Purchases and sales Other flows entered in a transaction (brokerage, commission, other charges, taxes) Accrued interest Price gains/losses/adjustment flows that result from a transaction Interest capitalization flows for zero bonds that result from a sale
Reversing a Posting	Flows generated by the conditions of a security (interest, dividends, final repayment) Securities account transfers Flows generated by rights that have been exercised (exercise subscription rights, exercise warrants, detach warrants, exercise convertible bonds) Price gains, price losses, adjustment flows resulting from a final repayment Interest capitalization flows for zero bonds that result from a final repayment or a securities account transfer
Reversing Accruals/Deferrals	Accrual/deferral flows Flows for resetting accruals/deferrals
Reversing the Rate/Price Valuation	Securities write-ups Securities write-downs Foreign currency write-ups Foreign currency write-downs Costs write-downs Foreign exchange costs write-downs
Reversing the Amortization	Interest capitalization flows from executing the amortization function
Reversing a Corporate Action	Flows that result from a corporate action
Reversing the Exercise of Security Rights	Reverse the flows that are generated by the exercise of security rights
Reversing a Balance Sheet Transfer	Flows for the balance sheet transfer

Prerequisites

If closed flows exist for the transaction you want to reverse which have a position value date that is later than the value date of the activity, you first have to reverse these flows in order, starting with the most recent.

A closed flow is a flow for which a period-end closing was performed where the key date was later or the same as the position value date of the flow.

The closed flows you want to reverse are those flows that affect the positions and securities accounts in a business transaction. They are:

Positions of the classes involved in the securities accounts that are part of the business transaction
Positions of the classes involved in the securities accounts that are valued together with the securities accounts involved in the business transaction

When you go to the details display for the flows from the securities account cash flow, you can see whether a flow has been closed on the Technical data tab page.

This is true for all reversal functions with the exception of accruals/deferrals reversals.

If no completed flows exist, the individual reversal functions determine whether you can reverse a flow or not. If you cannot reverse a business transaction because of a subsequent flow, you first have to reverse that flow.

Features

If you reverse postings that were generated on the basis of conditions, the actual records are converted back into planned records. All the other actual records that were reversed no longer appear in the cash flow.

You can display reversed flows in the posting journal. That also displays the Treasury-specific reversal reason.

The document header of the FI reversal document displays the original document to which the reversal goes back.

You have the option of performing the reversal only for Treasury.

We recommend that you only use this function if you are required to post a transaction in the securities subledger separately from the posting in the general ledger in Financial Accounting, for example, because the document in FI has already been reversed.

We do not recommend that you use this function if you only want to perform the reversal in Treasury, and you do not want to reverse the related flows in Financial Accounting, since if you repeat the posting in the subledger after you have performed the reversal, the reference to the related FI document is missing in the TR document.