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Function documentationCommodity Master Data Locate this document in the navigation structure

 

You use the function Edit Commodity Master Data (transaction FCZZ) to manage the master data of your commodities.

Commodities are goods that always have the same properties and are always of the same quality, regardless of the provider. They can therefore be traded internationally in bulk on commodity exchanges at a fixed quality.

Examples: cereals, metals, oil.

Integration

The Transaction Manager enables you to map the following commodity paper transactions:

Commodity futures and options on commodity futures are created in the system as Classes (transaction FWZZ).

A commodity forward is created as a financial transaction and also refers to a commodity.

Prerequisites

To create commodities, you first need to make the following settings in Customizing for Treasury and Risk Management:

  • Create the required commodity types for the commodity categories provided by the system. To do this, choose   Transaction Manager   Listed Derivatives   Master Data   Commodities   Define Commodity Types  .

  • You can specify additional criteria to differentiate the commodities further. To do this, choose   Transaction Manager   Listed Derivatives   Master Data   Commodities   Define Commodity Group 1  .

  • You can specify additional criteria to differentiate the commodities further. To do this, choose   Transaction Manager   Listed Derivatives   Master Data   Commodities   Define Commodity Group 2  .

For more information, see the documentation of the IMG activities.

Features

  • You can create commodities.

  • You can change existing commodities.

  • You can display existing commodities.

  • If a commodity is not used and there are no dependencies with other lower-level commodities, you can also delete a commodity.

  • The commodity master data is stored in the following tab pages:

    • Basic Data

      • Commodity ID

        The ID uniquely identifies a commodity.

      • Commodity Name

        Assign a long name for the commodity.

      • Commodity Classification

        • The commodity kind differentiates between the abstract commodity (the actual commodity capturing the details of the commodity irrespective of how it is traded) and the commodity (a commodity with the location where the price of the commodity is established).

        • Commodity Type

        • Commodity Category (derived from the selected commodity type)

        • Group 1 (Customizing)

        • Group 2 (Customizing)

      • Commodity Business Data

        • Unit of Measure

        • Standard Currency

        • Currency Unit

        • Location

          The location where the price of the commodity is established. The location is only available for commodities with the commodity kind Commodity.

        • Active Indicator

          It is only possible to assign financial instruments to commodities for which the active indicator has been set.

    • Futures Contract Basic Data

      Here you enter the units in which the futures for the commodity are traded at the different commodity exchanges.

      For each exchange that you select, you need to make the following entries:

      • Quantity as per Contract

        Quantity units that represent a sales unit.

        For example:

        If a quantity of 1000 is entered in the financial transaction and the quantity valid in the contract is 100, then 100,000 quantity units (1000*100=100,000) are purchased or sold using this transaction.

      • Unit of Measure

        Unit in which the commodity is measured.

      • Tick as Amount

        Minimum price change in the underlying transaction for each unit.

      • Tick Value

        Tick value = tick amount * quantity as per contract

        Note:

        The correctness of the tick amount and tick value entries is checked when they are saved.

      • Quotation currency

      • Issuer

    • Spot Quotation Data

      • Define the quotation names from the market data that correspond to this commodity.

      • Define the quotation sources.

      • You can specify one quotation source as a standard entry.

      The data that you have entered is saved and checked to see if it is correct.

    • OTC Forward Prices Data

      Here you store the structure of the commodity curves provided by the different market data providers.

      You enter the currency and the number of months, quarters, and years for which the forward prices for a curve were provided. On the basis of the settings made here, you can then enter market data manually in the system or import the market data from your market data provider using datafeed or the file interface.

      Example Example

      You enter EUR, 4 months (short text display), 3 quarters (short text display), and 2 years. In the entry dialog for February 27 2011, the following input lines appear:

      • Feb

      • Mar

      • Apr

      • May

      • Q2

      • Q3

      • Q4

      • 2012

      • 2013

      You can now enter your EUR quotation values directly.

      End of the example.

    • User Data

      • The user data shows when and by whom the commodity master data was entered.

      • You can display the change documents.