Reporting in the Securities Area: Special Features 

Key Date References

The key date reference determines the leading date field for an internal “evaluation date” when the system processes flows (and also when it determines positions). This evaluation date is used to select the flows for a given period and serves as a criterion for aggregating the flows for position determination. Some key date references that are not filled for all flows (for example, the final date is only filled for transactions/orders). If one of these date fields is blank, the system enters the "position value date" as the evaluation date. The system needs the default entry in order to determine the positions for other key date references.

However, this may cause the internal chronology of the flows to change, which means that the relevant flows are not included when a position is determined, making the position inconsistent. The key date reference Posting date is particularly vulnerable, since you fill this field manually. If you have chosen the Posting date as the key date reference, the system only reads actual records internally, irrespective of the value for the Posting status characteristic.

Price Type

This field controls the price type used to store security prices in the rate/price table.

·        If the Price type field is blank, the system takes the price type defined as the Price type for evaluation in Customizing (IMG path: Corporate Finance Management ® Transaction Manager ® General Settings ® Organization ® Define Company Code Additional Data).

·        If the field is filled, it overrides the general settings in Customizing.

Exact Price Date

If this indicator is set, the system only uses the prices from the security price table that have this exact date. If no such price is available, the system sets the rate to zero and informs you of the missing entry.

Exact Price Type

If this indicator is set, the system only uses prices from the securities price table that have this exact price type. If no such price is available, the system sets the price to zero and informs you of the missing entry.

 Constraints

The control parameters Exact price type and Exact price date have no effect on the prices selected for simulated valuation key figures (for example, write-down requirements).

Currency Translation

Two separate functions are available in drilldown reporting to control currency translation:

·        The exchange rate calculation indicator controls the currency translation within the Transaction Manager. This affects translations between two currencies of the following currency types:

¡        Local currency

¡        Position currency/Issue currency

¡        Quotation currency

¡        Payment currency

If this field is blank (initial), the system uses the Rate calculation indicator in Customizing (IMG path: Corporate Finance Management ® Transaction Manager ® General Settings ® Organization ® Define Company Code Additional Data).

If you fill this field, your entry overrides the Customizing settings.

·        The currency translation type controls how a currency is translated into the display currency of a drilldown report. You define the currency translation types in Customizing (IMG path: Transaction Manager ® Information System ® Drilldown Reporting ® Currency Translation Types).

DC(XX) is added to the corresponding key figures, where XX stands for the original currency (for example, PC for the position currency/issue currency, LC for the local currency, or PyC for the payment currency).

Exact Exchange Rate Date

If this indicator is set, the system only uses the rates from the exchange rate table that have this exact date. If no such rate is available, the system sets the rate to zero and informs you of the missing entry. Exception: Fixed currencies (for example, translation between the euro and one of the denomination currencies, such as DEM).

Impact of the New Transaction Management Functions (as of Release 4.6A)

When the security order was integrated with the general transaction management functions in Release 4.6A, the flow types for transaction management had to be duplicated for position management. To ensure consistent reporting data despite this change, the reports do not use the transaction flow data.

When you enter a new transaction, the activity for posting the order data is separate from the transaction creation activity (which is the same as for the money market and foreign exchange areas). When the orders are transferred to the posting report program, the system flags the data records as "actual records" for position management. The actual posting data, such as the posting date, is written to the position management flow tables when you run the posting program. For various reasons, the position management functions can still only support planned records and actual records. As a result, there may be records with "actual" status that have not yet been posted. This increases the danger of calculating a seemingly inconsistent position with the key date reference Posting date.

Inconsistent Positions

If the data retrieval function finds an inconsistent position, the system displays an error message and suppresses the position in the course of further processing, particularly in the display.

Special Features: Reporting for a Specific Period

"Transaction Activity" Characteristic

The "transaction activity" characteristic is generated in the reporting environment, and does not have an equivalent field in the operative Treasury area. A transaction activity (or several conjugated transaction activities) group the flows generated by an operative function into a logical business unit. You can use transaction activities to assign related flow types that arise in different business transactions or operative functions (such as commissions or taxes) to the generating transaction.

They enable you to structure your flows in functional terms, without having to use the flow type settings in Customizing.

Transaction activities have a three-digit numeric code that is assigned as follows:

100 – 199	Position inflows
200 – 299	Position outflows
300 – 399	Payments / Revenues
400 – 499	Valuation
500 – 599	Accruals/deferrals
600 – 699	Pure FI transactions
800	Adjustment flows

The transaction activities are delineated in such a way that if a transaction changes the existing position, the outgoing side is assigned to a different transaction activity than the incoming side of the position that was processed. This would be the case for a transfer, corporate action, or exercised right.

 Example

Exercising Subscription Rights

Transaction activity 245 (Exercise subscription right) includes all the outgoing flows of the subscription right position, whereas all the incoming flows for the new stocks are assigned to the transaction activity 145.

These pairs of business transactions, which originate from one transaction, are called conjugated business transactions.

Treatment of Records for Price Gains and Losses

In position management, the flow records for price gains and price losses that result from sales or redemption payments are generated twice: In order to map all the valuation procedures offered, the system needs a more differentiated view than that required to post the income-related records to the general ledger. In the general ledger, only the totals for the price gains or price losses are posted.

In order to prevent the relevant flows and the related information from being duplicated, the system fills the fields as follows:

Since the flows that are not relevant for posting have a higher granularity level, all the information is projected into these flows. They are assigned both the position change values and the profit/loss values. If the corresponding flow totals records that are relevant for posting have been posted to the general ledger, this posting date is transferred to the posting date field of the correlated flow records that are not relevant for posting (according to the functional/database definition, the posting date of the latter is originally initial).

By contrast, the totals flow records for the price gains/losses that are posted to the general ledger are set to zero in all the basic key figures.

Special Features When Entering the Key Figures "Payment Amount" and "Profit/Loss Amount" Depending on the Type of Incoming Payment

Two different functions are available for processing incoming payments: a one-step and a two-step  procedure. This setting affects how fields are filled for transaction activities that are relevant for profit/loss, such as interest payments.

·        When you use the one-step incoming payment procedure for flows that affect the profit/loss, both the key figures payment amount and profit/loss amount are assigned the same value.

·        When you use the two-step incoming payment procedure, the key figures are updated according to the “status” of the incoming payment. This is illustrated in the example below.

 Example

Behavior of the interest payment in a security cash flow over time using the two-step incoming payment procedure:

·        Flow types as in the sample Customizing settings

·        Interest payment amount: 100 EUR

Date 1: Future interest payment with "Planned" status.

Status	Flow type	Due date	Posting date	Payment amount	Profit/loss amount
P	5000	07/31/01	Initial	100	100

Date 2: Debit position generated for the interest payment, incoming payment generated as a flow.

Status	Flow type	Due date	Posting date	Payment amount	Profit/loss amount
A	5000	07/31/01	07/31/01	0	100
P	6000	07/31/01	Initial	100	0

On Date 1, the flow with flow type 5000 contains the information relating to the effect on the cash flow. When you use the two-step incoming payment procedure, the payment amount is displayed under the primary interest flows (here, the flow with the flow type 5000) as long as it still has "planned" status and no debit position has been created. When the debit position is generated, the system also generates the corresponding incoming payment flow. At this point, the information is transferred to the incoming payment flow.

Date 3: Incoming interest payment is received

Status	Flow type	Due date	Posting date	Payment amount	Profit/loss amount
A	5000	07/31/01	07/31/01	0	100
A	6000	07/31/01	08/01/01	100	0

Period-Based Position Key Figures

In addition to the pure flow key figures used to report over a given period, the system offers a variety of key figures that describe a position at the start and end of a reporting period. You can recognize these key figures by their name.

 Example

·         Number of units: Start

·         Number of units: End

There is also a key figure called "Number of units". For this key figure, the system calculates and displays the position for each calendar day in the reporting period. This key figure is aggregated differently than the two corresponding position key figures.

The system needs considerable storage space to calculate these key figures and manage them internally, especially for longer periods.

Special Features: Reporting for a Specific Date

"Order Number" Characteristic

In the operative valuation area for securities you can manage zero bonds as single positions. In other words, a new item is created for each position inflow. To map this, the characteristic "order number" has been added for position reporting. For zero bonds, the order number of the initiating purchase is displayed for the position. This characteristic is initial for all other products.

Special Balance Sheet Key Figures

·        Write-down in PC, LC, DC

Short text: Dep. PC, LC, DC

Total of all the write-downs to date: acquisition value - book value (if the difference is greater than zero)

·        Redemption gain in PC, DC(PC)

Short text: RedmpGn BW, DC

This key figure has only been defined for bonds. It expresses the gain that results from keeping a security that was posted below par until maturity.

In other words, if the book value < the nominal value, then the redemption gain = nominal value - book value.

·        Acquisition price for percentage-quoted securities

Key figure: 0ANKURSPWP

Short text: Acquisition price / %

Used for bonds quoted in percent: The price is calculated on the basis of the acquisition value and nominal value in display currency. The exchange rate cancels itself out, leaving the price in position currency. This applies across all company codes and can be displayed in a column in drilldown reporting.

100 * Acq.value (DC) / Nom. (AW)

Formula: ( ( 1 - CNT ( ASTUECK ) ) * 100 * BKAUFWR_AW ) / BNOMINA_AW

·        Acquisition price for unit-quoted securities in DC

Key figure: 0ANKSSWPAW

Short text: Acq.prceDC

For unit-quoted securities in display currency

Acq.val. (DC) / no. of units, if ASTUECK is filled.

Formula: ( CNT ( ASTUECK ) * BKAUFWR_AW ) / ASTUECK

Price Key Figures

For technical reasons, we distinguish between key figures for unit-quoted securities that correspond to a price, and price key figures that represent a relative price or percentage rate.

·        Pending gains in PC, LC, DC

Short text: PendGain PC, LC, DC

This key figure describes unrealized gains. It is calculated by comparing the market price with the acquisition price (market price - acquisition price).

Formula: MX0 ( BKURSWE_AW - BKAUFWR_AW )

·        Pending losses in PC, LC, DC

Short text: PendLoss PC, LC, DC

This key figure describes unrealized losses (analogous to unrealized gains).

Formula: MX0 ( BKAUFWR_AW - BKURSWE_AW )

·        Undisclosed reserves in PC, LC, DC

Short text: Un.res. DC

Market price - book value, if this difference is greater than zero.

Key Figures with Integrated Business Transaction Simulations

The primary reporting task is to depict the current situation according to the database. This only involves reading the data in an operative system. In addition to the pure ex-post view of the fixed business transactions on the database, users of the reporting tools need to run other evaluations. The main requirements include:

·        The exact accumulated revenues for a given key date

·        Revenues for the appropriate accounting period

·        Function to perform a valuation run and determine the depreciation requirement, without posting to the general ledger (we therefore refer to this function as simulated valuation).

In the first two cases, the system performs an accrual/deferral run as part of the key figure calculation. In the third case, you run the valuation online.

Reinstated Original Value / Write-Ups Not Performed (Germany)

The key figure "reinstated original value" is required for the notes to German financial statements prepared according the German Commercial Code (HGB). There are two key figures, since the HGB rules are open to interpretation.

·        The cumulated reinstated original value is based on the balance sheet guidelines published by Beck (Beck'sche Bilanzkommentar).

·        The revenue-oriented reinstated original value is based on the interpretation by Adler, Düring & Schmalz.

The key figures for the reinstated original value are NOT calculated for zero bonds.

·        Cumulated reinstated original value

The cumulated reinstated original value W is calculated as follows, where T is the current value, B is the book value, and A is the acquisition value for the key date.

T < B :     W = 0

B < T < A :     W = T - B

A < T :     W = A - B

·        Revenue-oriented reinstated original value

If you select this key figure in a report, you have to define two dates t1 and t2 when you run the report.

The key figure is calculated in the following steps:

...

                            a.      F1 is the fictitious book value at time t1. This value is calculated by valuing the position according to modified valuation parameters. "Modified" here means that the parameters for the strict lowest value principle that have been defined for the position indicator are changed to a lowest value principle at runtime, thereby permitting write-ups to the acquisition value.

                            b.      B1 is the real book value at time t1, F1 is the fictitious book value determined as above (valued against the market value C1 at time t1). 

                            c.      The system now looks at all the business transactions between t1 and t2 and determines their effect on the fictitious book value. This results in a new fictitious book value at time t2, called F2.

                            d.      At time t2, the position has the market value T2. A second simulated valuation run determines the write-up or write-down when compared with the fictitious book value F2. The new fictitious book value at time t2 is F3, and the new real book value B3. Note: The difference between F3 and B3 is not equivalent to the difference between T1 and T2. This is because sales can result in price gains or losses that are dependent on the book price.

                            e.      To calculate the revenue-oriented reinstated original value W, the system looks at T2, T3, and the acquisition value A2 at time t2, and distinguishes between the following four cases:

T2 < B3: W = 0 (in this case, T2 = B3 = F3)

B3 < T2 < F2:       W = 0 (in this case, T2 = F3 <> B3)

F2 < T2 < A2:       W = T2 - F2

A2 < T2: W = A2 - F2