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    SAP Money Market Manual

    Uploaded by

    Harvinder Kaur
    The document describes carrying out an issue currency changeover for a corporate bond from INR to USD, effective January 31, 2012. This involves converting all past and future cash flows to USD using the exchange rate on the effective date. It then discusses rectifying a minor difference in the nominal amount between the system and depository bank records using a nominal adjustment transaction.

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    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd

    SAP Money Market Manual

    Uploaded by

    Harvinder Kaur
    1K views29 pages
    The document describes carrying out an issue currency changeover for a corporate bond from INR to USD, effective January 31, 2012. This involves converting all past and future cash flows to USD using the exchange rate on the effective date. It then discusses rectifying a minor difference in the nominal amount between the system and depository bank records using a nominal adjustment transaction.

    Original Description:

    SAP money market manual for Issue_Currency_Changeover

    Original Title

    SAP Money Market manual

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    © Attribution Non-Commercial (BY-NC)

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    The document describes carrying out an issue currency changeover for a corporate bond from INR to USD, effective January 31, 2012. This involves converting all past and future cash flows to USD using the exchange rate on the effective date. It then discusses rectifying a minor difference in the nominal amount between the system and depository bank records using a nominal adjustment transaction.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    1K views29 pages

    SAP Money Market Manual

    Uploaded by

    Harvinder Kaur
    The document describes carrying out an issue currency changeover for a corporate bond from INR to USD, effective January 31, 2012. This involves converting all past and future cash flows to USD using the exchange rate on the effective date. It then discusses rectifying a minor difference in the nominal amount between the system and depository bank records using a nominal adjustment transaction.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    You are on page 1of 29

    Corporate Action Issue Currency Changeover Basic Data Security Class: 74 Product Type: 04I Fixed Interest Bond

    nd Nominal value: INR 1, 00,000 Acquisition Value: 1, 03,000 Issue Currency: INR Create Class for the Bond (FWZZ)

    Click

    Update and click

    Click

    Update with above data and click

    Click

    Purchase of Bond FTR_CREATE

    Click Update and click

    Click on

    Click on

    Click on

    Accrued interest of 27.28

    Click on

    Click

    Settle the Transaction FTR_EDIT

    Click on

    Click on

    Click on

    Click Click

    Post the Transaction (TBB1) Update with following data. Do test run first, then uncheck test run box and do production run.

    Click

    Click on

    Click on

    Click on

    Back to SAP Easy Access menu The Issue currency INR has been changed to USD by the issuer of the bond. The changeover is taking place effective on 31.01.2012 and the exchange rate of INR to USD on that date id 1 USD = 46.69 INR.The Issue currency changeover will convert all the flows including those flows before the key date to USD.After the changeover, flows will exist as if these were always had been in USD.In our example, the purchase value will be 1, 03,000 / 46.69 = USD 2206.04 and the nominal value will be 1, 00,000 / 46.69 = USD 2141.79 Create Corporate Action for Issue Currency Changeover. (FWK0)

    Click

    Update

    Click

    Activate

    Back Post the Corporate Action (FWKB) In the main screen do not enter your company code. If we enter our co. code, the following message will appear

    First do test run, then production run.

    Click on

    Click on

    Back to

    Click on

    Back The Corporate Action does not pass the accounting entries for writing off the amounts in the old currency in the general ledger and post them in the new currency. The transfer of Book values are scheduled which needs to be fixed using Transaction code TPM18. TPM 18 Update

    Do test run, then production run.

    Click Valuation Area 001 screen

    Click on

    Double Click on

    Double Click on

    Back When you receive the statement from the Depository bank, you realize that the nominal amount is USD 2,140 where as in the system the nominal amount is shown as USD 2,141.79 (1, 00,000 / 46.69) .This could have been caused by rounding differences. This now, needs to be rectified so that the nominal as per the system and the Depository Bank matches. The Nominal Adjustment is carried out by using system transaction TPM 22. Before that we shall see the position list.

    IMG Setting before executing TPM22 IMG FSCM TRM TM Securities Position Management Security Account Management Update Types Assign Update Types in the Functions of Security Account Management.

    Double click on Click Update

    Click Now come to TPM 12 Update

    Execute

    Double click on 1st line

    Back Now go for TPM 22

    Double click TPM22

    Click Enter Security Account Double click on Position value date and update with following data.

    Click

    to validate the entry,

    Click

    Click Back

    Display the Position List after Issue Currency Changeover and Nominal Adjustment. Execute TPM 12 Update

    Execute

    End

    Prepared by rajkm10

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