Fiduciary Deposit 
The fiduciary deposit is a cash flow based instrument used in the insurance (pension) business. There are two main entities in the deal:
Depositor
Fiduciary
In order to match the premiums received from the investors, the Depositor has to show assets in their balance sheet. For this purpose they negotiate with the Fiduciary Entity and the Fiduciary agrees to pay a fixed cash flow to the Depositor every month. This cash consists of two parts:
Repayment
Interest flows
Usually the span of the Fiduciary Deposits is 30 years or more. The lifecycle of the Fiduciary Deposit is as follows:
Prerequisites
To enter Fiduciary Deposits, you first need to make the required settings in Customizing for the Transaction Manager:
Define product types. The creation of financial transactions and management of positions in the Transaction Manager is based on Product Types.
The system provides the product category Fiduciary Deposit. You need to create the required product types for this product category in Customizing by choosing
Financial Supply Chain Management 
Treasury and Risk Management Transaction Manager Money Market Transaction
Management Product Types Define Product Types 
.Select New Entries.
Assign the product type a key (for example, 57A)
Assign the product type a long text up to 30 characters and a short text no longer than 10 characters.
Product Category = 570 Fiduciary Deposit
Save your entries.
Define settings for transaction management.
Choose
Money Market Transaction Management Transaction Types Define Transaction Types
to create at least one transaction type for transaction category 100 FD Purchase.Define flow types by choosing
Money Market Transaction Management Flow Type Define Flow Type .The following flow types are required for Fiduciary Deposits:
1300 Outflow for flow category Outflow (Fiduciary)
1310 Inflow for flow category Inflow (Fiduciary)
Assign the required flow types to each transaction type:
Money Market Transaction Management Flow Type Assign Flow Type to Transaction Type .
Assign all the flow types needed to process a transaction to Transaction Type100 FD Purchase.Define the relevant update types and assign them to the corresponding transaction types in the Update Types section. For example:
Flow type 1300 Outflow assigned to update type MM1300 Inflow (Fiduciary Deposit)
Flow type 1310 Inflow assigned to update type MM1310 Outflow (Fiduciary Deposit)
Flow type 1320 Withdrawal assigned to update type MM1320 Withdrawal (Fiduciary Deposit)
Flow type 1330 Extension assigned to update type MM1330 Extension (Fiduciary Deposit)
You must also define settings in Customizing for managing positions for Fiduciary Deposits:
Check that the Effects of the Update Types on the Position Components are already in place:
Transaction Manager General Settings Accounting Settings for Position
Management Set the Effects of the Update Types on the Position Components To integrate Fiduciary Deposits in position management, you need to define position management procedures. To do this, choose
Transaction Manager General Settings Accounting
Settings for Position Management Define Position Management Procedure .You can use the following Position Management procedures or define your own procedures with reference to:
5200 – Valuation for Fiduciary Deposit
Assign the position management procedure to a position using
Transaction Manager General Settings Accounting Settings for Position Management Assign
Position Management Procedure .Assign the update types required for valuation based on the position management procedure:
Transaction Manager General Settings Accounting Valuation Class Transfer
Update Types Assign Update Types for Valuation Class Transfer
Activities
Entering a Fiduciary Deposit
In the SAP area menu, open
Accounting Financial Supply Chain Management Treasury and Risk Management Transaction Manager Money Market
Trading Create Financial Transaction (FTR_CREATE).Choose the Company Code.
Choose the Product Type, for example, 57A Fiduciary Deposit.
Choose the Transaction Type, for example 100.
Choose the business Partner.
Choose the ID Number.
Choose the Financial Transaction. For Fiduciary Deposit, select 20 Fiduciary Deposit.
Click Enter and the Create Fiduciary Deposit: Structure screen is displayed.
You can enter the contract details:
By clicking on the Upload Cash Flows button and selecting your Excel file to upload.
NoteThe flows need to be saved in the correct format in Excel. The format is:
Flow Type, <Blank Cell>, Payment Amount, Payment Date.
End of the note.
Example1310
1000
27.12.2007
1300
85
27.01.2008
1300
85
27.02.2008
1300
85
27.03.2008
1300
85
27.04.2008
1300
85
27.05.2008
1300
85
27.06.2008
1300
85
27.07.2008
1300
85
27.08.2008
1300
85
27.09.2008
1300
85
27.10.2008
1300
85
27.11.2008
1300
85
27.12.2008
End of the example.By completing the following fields:
Flow Type
Payment Amount
Payment Date
Click on the Collateral tab and enter collateral bonds if required.
Complete the remaining tab pages as required.
Additional Functions
Function |
Entries |
Remarks |
Change |
|
|
Settle |
|
|
Reverse |
|
See also: Reversal |
History |
|
You can view all the actions performed on the Fiduciary Deposit. |
Adjustment |
||
Correction |
|