Derived Business Transactions (SAP Library - Functions in the Parallel Valuation Areas)

Derived Business Transactions

Definition

Derived business transactions supplement operative business transactions. They are generated on the basis of the operative business transactions and are dependent on the valuation area. This means that the derived business transactions can differ according to valuation area even if they stem from the same operative business transactions.

Use

Derived business transactions are generated in the following cases (examples):

When you enter a security purchase or loan disbursement involving a discount or premium and manage the position using the gross procedure. The derived business transaction is used to generate the discount or premium flow.

When you enter position outflows [sale, repayment, exercise, stock swap with payment and any other position outflows that are not transfer postings], the price gains and losses are generated as derived business transactions.

If amortization is required by the position management procedure for the position, and the operative business transaction changes the amortized acquisition value of the position (= purchase value + capitalized costs + amortizations), the system generates amortization flows for the total position. See also: Amortization According to LAC and SAC

If you make internal transfer postings [securities account transfers, valuation class transfers, corporate actions, exercising rights, exercising OTC options], the system generates derived business transactions that transfer the positions per position component.

When you enter position outflows that are not transfer postings, the system generates translations that update the position components (proportionate reduction). Translations are not usually relevant for posting.

When you change the local currency, issue currency or contract currency over to the euro, the system generates reconciliation flows. These flows ensure that the positions are consistent for a certain date.

Examples:

If, after the changeover, the position currency is the same as the valuation currency, then the corresponding position values should also match.
If the position is a zero position, the value of all the position components should also be zero.

When you change over the issue currency or the contract currency, currency swap flows are generated to clear the old currency amounts in the general ledger and post the corresponding amounts in the new currency.

Structure

Derived business transactions can have either plan or fixed status.

If a flow has planned status, it has not yet been posted. If a flow has fixed status, it has already been posted (if it was relevant for posting).

In the Customizing activity Control of Processing of Derived Business Transactions you define the status the derived business transactions have when they are generated:

Same status: The derived business transactions always have the same status as the corresponding operative business transaction.

Note In the case of OTC transactions, this means that you must fix the derived transactions using the function Fix Derived Business Transactions [transaction TPM18], since the original business transactions are never fixed.

Planned status: The derived business transaction are always generated with planned status. To fix the derived business transactions, you use the Fix Derived Business Transactions function [transaction TPM18].

Derived business transactions can be generated online or offline. If you choose the online option, the system automatically generates or updates the derived business transactions for the respective valuation areas immediately after the operative business transaction is processed (created, changed, or posted). If the system finds existing derived business transactions that have already been fixed, it checks whether they are still up-to-date, and if not, reverses them and generates the current derived flows. Reversals are documented in a reversal log. (Derived business transactions are generated for financial transactions as from transaction status contract/execution).

If you have a large amount of data, generating the derived business transactions online can impair performance (especially if they are fixed immediately). In such cases you can process the derived business transactions offline.

If you choose offline processing, the derived business transactions are not generated directly when you create, change or post an operative business transaction. Instead, you generate them using the Update Derived Business Transactions function.

Integration

Customizing

To make the settings for derived business transactions in Customizing, choose Transaction Manager ® General Settings ® Accounting ® Parallel Valuation Areas ® Derived Business Transactions. This section contains the following activities:

Update Types

Define Update Types

Assign Update Types to Usages

Assign Update Types for Derived Business Transactions

For each position management procedure you define the update types to be used for generating the derived business transactions. This enables you to set up account determination for the derived business transactions differently for each position management procedure.

Alternative Assignment of Update Types for Position Outflows

Control of Processing of Derived Business Transactions
See also:

See the documentation on the IMG activities.

Application

The application menus for the various areas contain the following functions, which you access by choosing Accounting ® Parallel Valuation Areas ® Derived Business Transactions:

Update Derived Business Transactions [transaction TPM27]

You only need to use this function if you have specified that the derived business transactions should be generated offline in the IMG activity Control of Processing of Derived Business Transactions. In this case, the system does not generate the derived business transactions for the valuation areas automatically when you create, change or post an operative business transaction.

Note

If you have chosen offline processing, the position components (such as the book values) are not always up-to-date.

If you have a large amount of data, it can be useful to opt for offline processing and schedule the update run for derived business transactions [RTPM_TRL_DERIVE_TRANSACTIONS] as a batch job, for example every evening.

If you have chosen to have the derived business transactions generated online in the IMG activity Control of Processing of Derived Business Transactions, the system recalculates the derived business transactions every time you process an operative business transaction, which means that they are always up-to-date.

Fix Derived Business Transactions [transaction TPM18]

This function changes the status of derived business transaction flows from planned to fixed. At the same time, the system posts the flows that are relevant for posting (= the flows relating to update types that have account determination settings).

Examples

Example: Discount With Securities Purchase (Gross Procedure)

Example: Valuation and Transfer (Not Affecting Income)

Example: Exercise of a Put Warrant With Delivery