Customizing for Drawable Bonds 
Two product types are required to map drawable bonds in the Transaction Manager:
· Product type drawable bond (product category bond with redemption schedule)
· Product type installment bond (product category bond with installment repayment)
This product type is an auxiliary product type that is needed for technical reasons to map drawable bonds.
If you also want to manage "normal" installment bonds in the system, you should create a second product type for installment bonds.
See also:
Bonds With Installment Repayment
You also have to make special settings for drawable bonds in Customizing. In the IMG, the settings are under Master Data ® Specific Class Settings ® Settings for Special Security Types ®Drawable Bonds
· Define Classes for Redemption Schedule Sets
· Define Redemption Schedule Sets
Procedure
This procedure applies if you are already using the Securities application and want to manage drawable bonds as an additional product.
...
1.
Create a new
flow type for the redemption payment in Customizing for the securities
area.
Path: Securities
® Accounting for the Operative
Valuation Area
® Flow Types
® Define Flow Types (The
model Customizing settings contain the flow type 1106 Redemption). This
flow type should have the following settings:
...
a. Flow category: TTRA
b. Calculation category: TTRA
c. +/- sign for effective interest: -
d. Eff.int.calc. indicator should be set
e. Posting control: 1
f. Incoming payment: 1
g. Relevant for posting indicator should be set
2.
Create the
corresponding condition type for installment repayment.
IMG Path: Securities
® Master Data
® Product Types
® Condition Types
® Define Condition
Types (The model
Customizing settings contain the condition type 262 Installment
repayment).
Enter a number and a descriptive text for the new condition type. Assign the new flow type for installment repayment (flow type 1106) to the condition type in field FTyp1. Save your entries Maintain the field selection settings for the condition type. Set the fields listed below as optional fields. You can hide the remaining fields.
...
a. Percentage rate
b. Cond. Amnt
c. Base Reference
d. Freq.Months
e. Calc.Date
f. Month-End Calc.
g. Due Date
h. Month-End Due Date
i. Condition Form
j. Prop. to Period
k. Calendar
l. Int. Calc. Method
m. Imm. Settlement
n. Inclusive ID
o. Shift Due Date
p. Calendar Rule
q. Determine Val. Date
r. Calendar Rule
s. Determine Due Date
3.
Create two
new condition groups:
IMG Path: Securities
® Master Data
® Product Types
® Condition Types
® Define Condition
Groups
...
a. Condition group for drawable bonds (the model Customizing settings contain the condition group 44 Drawable Bonds)
b. Condition group for installment bonds (the model Customizing settings contain the condition group 45 Bonds with Installment Repayment)
Assign condition types to these condition
groups:
IMG Path: Securities
® Master Data
® Product Types
® Condition Types
® Assign Condition Types to
Condition Groups
...
a. Assign the condition types Interest (Percentage-Quoted) and Repayment rate to the condition group Drawable Bond.
b. Assign the condition types Interest (Percentage-Quoted), Repayment rate and Installment repayment to the condition group Bond with Installment Repayment.
When you assign the condition
type Installment repayment, you can enter "100" in the Percentage
rate field under Basic Data. This ensures 100% redemption when the
drawn positions are transferred to the class with installment repayment.
If you make this setting, it is advisable to create a separate product type for "normal" installment bonds. [However, it is also possible to change the predefined repayment rate manually when creating the class data.]
4.
Create the
product types Installment bond and Drawable bond.
IMG Path: Securities
® Master Data
® Product Types
® Define Product
Types
...
a. Start with the product type Installment Bond. This product type has the product category 040 Bond. Assign the new condition group Bonds with Installment Repayment to this product type. Make the other product type settings, such as the calculation method, alternative key, and so on.
Assign a number range with
external number assignment. The number range interval should match the
number range interval for drawable bonds.
b. Create the product type Drawable Bond. This product type has the product category 041 Bond with Redemption Schedule. Assign the condition group Drawable Bonds to this product type. Make the other product type settings, such as the calculation method, alternative key, and so on.
Assign a number range with
external number assignment. The number range interval should match the
number range interval for installment bonds.
In the Drawn Positions section, assign the product type you have already created for installment bonds.
The class for the drawn partial positions is
used to transfer the drawn partial positions with the Exercise Security Rights function. The class is created
automatically when you save the class data for the drawable bond, and assigned
the product type you specify here. When you enter the installment bond, the ID
number of the drawable bond also appears as a default entry for the
installment bond ID number. You therefore only have to add a letter or number.
(Obviously, you cannot use the same ID number for both classes, since the ID
number uniquely defines the class in the system.) You can, of course, choose
an entirely different ID number, or use internal number assignment to have a
number assigned by the system.
You can also enter an Additional text to be used in the description of the class for the partial positions (for example, "drawn"). The system then proposes a default text for the class of the drawn partial positions, consisting of the text for the drawable bond and this additional text.
5.
Assign
Repayment type 2 to the product types.
Path: Securities
® Master Data
® Product Types
® Assign Redemption Types to
Product Types
6.
Define a
corresponding update type for the new flow type, assign the usage
Securities Account Management to this update type, and specify the
update type for securities account management.
IMG Path: Securities
® Position
Management
® Securities Account
Management
® Update Types
When you specify the update
types for securities account management, you can stipulate the +/- sign
for calculating the effective interest rate. This corresponds to the settings
for a flow type. In the sample Customizing settings for the flow types,
the sign is "+" for payment outflows (such as purchase), and "-" for payment
inflows (such as sale or redemption).
However, the update types for securities account management have been
defined differently. The +/- sign for the effective interest calculation
depends on the payment flow generated by the update type. For payment
outflows, the sign is "-", and vice versa. You can also make update type
settings that differ from the sample Customizing settings. However, you must
ensure that your assignments are consistent (in other words, update types with
payment flows in the same direction must have the same +/- sign).
7.
Assign the
update type to the flow type.
IMG path: Securities
® Accounting in Operative
Valuation Area
® Flow Types
® Assign Flow Types to Update
Types
8.
Define
account determination for the new flow type and update type:
IMG path (flow type): Securities
® Accounting in Operative
Valuation Area
®General Ledger Update
® Define Account
Determination
IMG path (update type): General Settings
® Accounting
® Parallel Valuation Areas
® Link to Other Accounting
Components
®Define Account
Determination
9. Make the product type settings for transaction management:
...
a.
Create a
purchase transaction type and a sale transaction type for each new product
type.
IMG path: Securities
® Transaction Management
® Transaction Types
® Define Transaction
Types
b.
Assign the
required flow types to the transaction types.
IMG path: Securities
® Transaction Management
® Flow Types (Transaction)
® Assign Flow Types to
Transaction Type
10.
Make the
company code-dependent settings for the product type.
IMG path: Master Data
® Product Types
® Define Company Code-Dependent
Settings for the Product Type
11.
If you want
to use the cash management update function, you must also assign cash
management planning levels.
IMG path: Transaction Manager
® General Settings
® Assign Planning
Levels
12. You can create classes for redemption schedule sets under Securities ® Master Data ® Specific Class Data ® Settings for Special Types of Securities ® Drawable Bonds ® Define Classes for Redemption Schedule Sets. You can use these classes to describe the redemption schedule sets defined in the IMG activity Define Redemption Schedule Sets.
The following classes could be used to indicate the origin of the data in the redemption schedule sets:
¡ OWN 'Own Data'
¡ EXT 'External Data'
13.
Create the redemption schedule
sets.
IMG path: Securities
® Master
Data
® Specific
Class Data
® Settings for Special
Types of Securities
® Drawable
Bonds
® Define Redemption
Schedule Sets
You can use the name for the redemption schedule set to indicate the origin of the redemption schedules in the redemption schedule sets. Possible examples:
- Data provider (class 'EXT')
- Own estimates (class 'OWN')
Compare your settings with the
sample Customizing settings.
14. Depending on your Customizing settings, you may need to make settings in other IMG activities (for example, determination of account assignment reference, assignment of position management procedure, and so on). In doing so, you must ensure that all the product-type dependent settings you have made are also made for the new product types, making different settings for the new product types where you want them to be handled differently.
