Position Management in the Operative Valuation Area 

Within a position-management unit, the positions of any one class are considered as one position, even if they are held in different securities accounts. This means that when you purchase a class in one position-management unit, the system generates adjustment flows as planned records for the acquisition/book value, and thus calculates an average acquisition/book price for all securities positions of the class in the position-management unit. When you make a sale, the realized price gains and losses are calculated and generated as planned records. When you perform period-end closing, you close a period for position changes in the position-management unit, and transform the planned records into actual records.

Position-management units usually correspond to the valuation groups. In other words, you valuate your positions for the position-management units.

The following section describes the position-management and valuation methods available and shows you how they are represented in the system:

1. Position management for all securities accounts

To manage your positions for all securities accounts, you form a position-management unit by grouping together all the positions of one class, within a company code, that are held in different securities accounts. There are two methods of forming these position-management units that handle all securities accounts.

You can use either method within a company code, but not both at the same time.

1. Position management at securities account group level

With this type of position management, the positions of a class in different securities accounts are grouped to form securities account groups (= position-management units). You can form individual securities account groups for each class.

The positions form a position-management unit in which the company code, the class and the securities account group are the same.

Example: Securities Account Groups



To manage your positions at securities account group level, you select a valuation class with valuation category 20.

You determine which securities account group a position is assigned to using the securities account position indicator. When you purchase a class for a securities account for the first time, you must assign this position to a securities account group in the Position indicator.

2. Position management at portfolio level
   
   A portfolio is an organizational unit in the company code which enables you to group together transactions and positions, perform aggregated position evaluations, and execute valuations on the basis of the portfolios.
   
   When you manage positions at portfolio level, you group together several securities accounts to form one portfolio. The positions of a class within one portfolio are regarded as one position-management unit. That is, all positions for which the company code, class and portfolio are the same are treated as one position-management unit.
   
   Example: Portfolios
   


To manage your positions in the company code at portfolio level, you select a valuation class with valuation category 20 at company code level and/or at product type level, and flag the portfolio indicator in Customizing for Securities by choosing Assign Company Code.

You define portfolios in Customizing for General Settings by choosing Define Portfolio. You assign securities accounts to a portfolio when you create the securities account master data.



Portfolio valuation must not be activated if the following conditions apply:

- the system is a productive system in operation and

- valuation classes exist with valuation category ‘20’ or ‘22’ and

- these valuation classes have been used in at least one position indicator and

- posted flows already exist for this class, or flows (planned records) have yet to be posted.

2. Position management for a specific securities account

To manage your positions for specific securities accounts, you group together all positions of a class in one securities account to form a position-management unit.

Example: Position management for a specific securities account



To manage your positions for a specific securities account, select a valuation class with valuation category 21.

If you also flag the portfolio indicator, you can only use these portfolios for evaluation purposes. You still manage your positions for specific securities accounts.

3. Single position management

With single position management, the position-management unit is defined by a position inflow (purchase, inflow from a securities account transfer). The position includes all flows that are assigned to the inflow.

You conduct single position management using a valuation class with valuation category 10.

In the money market, foreign exchange and derivatives areas, valuation category 10 is the only permitted valuation category.

In the securities area, you can only use valuation category 10 for zero bonds.

4. Special case: Valuation category 22

Valuation