Securities 

Purpose

You use the Securities component to manage your security transactions and positions.

Integration

The securities module is a subcomponent of the Transaction Manager and is closely integrated with other SAP components. The Transaction Manager is closely linked with the Market Risk Analyzer, the Credit Risk Analyzer, and Treasury Cash Management  

It also interfaces closely with SAP Financial Accounting – all the securities data that is relevant for posting is always transferred to the financial accounting system.

You can maintain current market data (exchange rates, securities prices, reference interest rates, indexes...) in various ways:

·        Manually

·        Using a Market data file interface: You maintain the relevant data in an external application (such as Microsoft Excel), either manually or via a data provider, and then import the data into the system in format that is compatible with R/3.

·        By transferring the market data to the system from a spreadsheet

·        Datafeed: You can use the datafeed connection to make real-time market data available in the system.

To access the market data management functions in the application menu, choose Corporate Finance Management -> Basic Functions -> Market Data Management. Alternatively, you can access them in the Securities area under Environment -> Market Data.

You access the Securities component by choosing Accounting ® Corporate Finance Management ® Transaction Manager ® Securities.

Features

Securities Management: Overview

 

 

Transaction and Position Management

The functions for managing security transactions and positions are split into three areas: trading, back office and accounting.

Trading

The trading area groups together the functions for entering security transactions. In this area, you can also make changes to existing transactions or display transaction information. Collective processing functions are available to help you manage your transactions efficiently.

In addition, the trading area contains the functions for exercising security rights.

Other utilities, such as the cash flow for a class in a securities account and the date check are available to support traders.

Back Office

Once you have entered financial transactions in the trading area, you settle them in the back office. The back office area also contains functions for checking and changing the transactions. Transaction postprocessing primarily involves:

·        Adding any missing transaction data that is needed to process the transaction further

·        Preparing for posting and payment (for example, by checking the accounts used)

·        Generating correspondence in the form of internal or external confirmations.

The collective processing functions are also available in the back office. This area also includes functions for netting transactions and for entering and editing references.

Securities account managementalso falls under the back office. This includes the functions for securities account transfers, planned record updates, external securities account statements, and restraints on disposal, as well as for creating manual and automatic debit positions, manual postings, European Monetary Union (EMU), and deadline monitoring.

You can also map changes to the capital using the corporate actionfunction.

Accounting

Once you have entered the transactions in the Trading area and checked them and added any missing details in the Back Office, you then need to process them for accounting purposes. On the one hand, the accounting area includes functions for transferring the data to Financial Accounting, such as posting programs, or postings as part of position management. On the other hand, it contains the functions for closing operations in both the operative and parallel valuation areas.

As from Release CFM 1.0, the functions for Securities Account Management, Corporate Actions and Security Rights work with update types: Update types were introduced when the functions for parallel position management were developed; they correspond to the flow types in the operative valuation area. In the long term, the update types will replace the flow types entirely.

In addition, other functions in the securities area have been revised (for example, the restraints on disposal).

Reports are available to assist you when you convert to CFM 1.0 (IMG path: Transaction Manager ® General Settings ®Tools ®Conversion Programs for Release CFM1.0). These reports also convert the application data.

For more information, see the documentation for the conversion programs.

Master Data Management

Financial transaction processing in the Transaction Manager is based on master data. In the Securities area, you have to enter class data, securities account master data, and position indicators for the operative valuation area. You also have to maintain security prices.

See also:

Process Flow for Entering Master Data

Information System

The information system provides a range of reports for analyzing your security positions and position trends. The Securities Information System is part of the Transaction Manager Information System, which offers analyses and evaluations across the whole of the Corporate Finance Management dataset.

The link to the SAP drilldown reporting tool and SAP Query also allows you to define your own reports in addition to those provided by SAP.

See also:

Information System