Differentiation Terms (SAP Library - Functions in the Parallel Valuation Areas)

Differentiation Terms

Definition

A position is the smallest unit within the financial subledger. It forms the basis for valuation and for generating the derived business transactions. Differentiation terms are used to define how positions are created.

The differentiation terms for loans, transactions and listed options and futures are predefined in the system. For securities, some of the differentiation terms are predefined in the system, whilst others can be defined by the user. To define additional differentiation terms for securities positions in the IMG, choose Transaction Manager ® General Settings ® Accounting ® Parallel Valuation Areas ® Settings for Position Management ® Define and Assign Differentiations.

Overview of the differentiation terms for the various product groups:

Loans

Valuation area
Special valuation class
Accounting code
Loan contract

Transactions

Valuation area
Special valuation class
Accounting code
Transaction number

Listed options and futures

Valuation area
Special valuation class
Accounting code
ID number
Futures account

Securities

Valuation area
Special valuation class
Accounting code
ID number

Additional differentiation terms that can be selected to define securities positions:

Securities account
Securities account group
Portfolio
Lot