Project – JBVNL

Long Term Loans Process

End User Manual – Treasury and Risk Management

Jharkhand Bijli Vitran Nigam Limited.

TREASURY AND RISK

MANAGEMENT
USER MANUAL
LONG TERM LOANS PROCESS
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

SAP TRM – Long Term Loans Process

Long term Loan is a form of Debt that is paid off over an extended time frame
that exceeds one year in duration. Obtaining a long term loan provides a business with
working capital that it can use to purchase assets, inventory or equipment which can
then be used to create additional income for the business.

Before you can use the Interest Rate Instrument, you have to maintain master data.

You have to create your Business Partners , assign the corresponding roles to these
partners and maintain the transaction authorizations.

You have to set up the Standing Instructions (correspondence, payment details) and
release the business partner.

To manage interest rate instruments, you can use the standard functions and processes
for entering, editing and processing transactions, managing their status, and transferring
data to Financial Accounting in SAP

To Simplify the Process, check the below diagram. These are the common steps for
the above mentioned processes.
POSTING
SETTLEMENT
CREATION

Create Settle Posting

Contract Contract Contract
to FI
TM_51 TM_54 TBB1
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Long Term Loan Process having following steps:

1. Create Facility
2. Change and Settle Facility
3. Create Interest Rate Instrument
4. Change Interest Rate Instrument and assign Facility
5. Settle Interest Rate Instrument
6. Posting of Long Term Loans to FI
7. Accrual / Deferral of Expenses and Revenues
8. Payment of Interest accounting and payment with penal Interest
9. Reversal of transaction
10. Repayment of Loan

1.Create Facility
Path

SAP Menu Accounting => Financial Supply Chain Management=> Treasury

Path and Risk Management=> Transaction Manager=> Money
Market=> Trading=> Create Financial Transaction
SAP T-code TM_61

1.Enter T code
TM_61 in
2.Click on
Transaction box
Enter
1.
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Click here to get

company code

Click F4 or Drop down button at company code to get and select company code
Like this enter all details as mentioned in the below screen shot

Click on Enter
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

2.Click on
Profiles

1.Enter start of
term and end of
terms
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Click on Create
Button
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Credit line amount and

Valid from
Which are in grey mode in previous screen will be opened
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Enter amount and Valid from as mentioned in the screen shot

 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Click on Rules
Tab
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Click on Dropdown button

and select Company Code
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

2.Click on
Administration Tab

1.We will get Company

Code details here
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Click on Dropdown button

and select Valuation class
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Click on Save button

Above message box will appear.

Click on Enter
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

2.Edit Facility
Path

SAP Menu Accounting => Financial Supply Chain Management=> Treasury

Path and Risk Management=> Transaction Manager=> Money
Market=> Trading=> Edit Facility
SAP T-code TM_62
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

1.Enter T code
2.Click on TM_62 in
Enter Transaction box

Press Enter
Transaction will be opened. If any changes are there we can do and save the
transaction.
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Click on Facility at
menu and select
‘Settle’.

Transaction will be settled.

3.Create Long Term Loan Transaction

Path

SAP Menu Accounting => Financial Supply Chain Management=> Treasury

Path and Risk Management=> Transaction Manager=> Money
Market=> Trading=> Create Financial Transaction
SAP T-code TM_51

2.1SAP SAP Easy Access

1.Enter T code
TM_51 in
2.Click on Transaction box
Enter

2.2TM_51 – Create Long Term Transaction

 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

1.Enter details like

Company code – 1000
Product type – 55A
Transadtion Type - 200
Partner - 100011
2. Click on Enter
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

4.Click on Administration data

1.Enter 2. Term Start date

Amount End date

3.Percentage Rate
Int.Calc.Method
Frequency
Every – 3 months
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

This will be automatically

picked based on the Product
type and Transaction type
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Click on Payment Details

OTHER FLOWS LIKE PROCESSING FEE, STAMP FEE ETC CAN BE GIVEN IN THE ABOVE SNAP SHOT

1.Select ‘+’ in 1st

colomn and ‘_’
in second line
Click here to select item
line item and click
on details button
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

1.Enter here
House Bank and
Account ID

2.To go to next line item click

3.Click on overview button on the arrow and enter House
after completion of house bank bank details
details for all line items
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

3.Click on Cash Flow

 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

This is the Cash Flow.

Save the transaction

2and3.Change and Settle Long Term Loan Transaction

Path

SAP Menu Accounting => Financial Supply Chain Management=> Treasury

Path and Risk Management=> Transaction Manager=> Money
Market=> Trading=> Edit Financial Transaction
SAP T-code TM_52
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

1.Enter Tcode –
2.Click on tick TM_52
mark to enter

2.Click on tick
mark to enter
1.Enter details
Company code
Transaction
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Click on Administration
Tab
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Click on Create button

to create Facility

Click on the dropdown

button and select
transaction
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Click on Choose button

2.Save the transaction

1.Facility is linked to
the transaction
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

5.Settle Interest Rate Instrument

Click on Interest Rate

Instrument
Select “Settle” option

If we open the Facility Screen T Code – TM_62 and observe

Press Enter
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Click on Profiles
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Save the
Transaction
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Click on Facility
and select
‘Settle’.

6.Posting of Long Term Loans to FI

Path

SAP Menu Accounting => Financial Supply Chain Management=> Treasury

Path and Risk Management=> Transaction Manager=> Money
Market=> Accounting=> Posting=> Post Flows
SAP T-code TBB1

2.Click to 1.Enter T Code

Enter
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

4.Click on
Execute 1.Select only Money Market
button and deselect all others

2.Enter Inputs of
Company Code
Transaction

3.Keep test
run check box

Accounting Entry
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Click on Back

2.Click on Execute
Button

1.Deselect Test Run

Check box

Accounting Entry
with FI Document
Number
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

7.Accrual / Deferral of Expenses and Revenues

Path

SAP Menu Accounting => Financial Supply Chain Management=> Treasury

Path and Risk Management=> Transaction Manager=> Money
Market=> Accounting=> Accrual / Deferral=> Execute
SAP T-code TBB4

2. Click on 1.Enter T
Enter code
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

3.click on
Execute button

1.Enter details like

Company Code
Transaction

2. Enter date and

Select Month-end
check box
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

2.Click on Logs and

Messages

1.Interest Calculation f

We will get Accounting Entry

Accounting
Entries for
Interest Accrual /
Click on Back
Defferal and
Deselect Test Run Button
Reversal on Next
Click on Execute button Date
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

2.Click on Logs and

Messages

1.Interest Calculation

Accounting Entries of
Accrued interest and
Reversal with FI documents
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

8.Payment of Interest accounting and payment with penal Interest

Payment of Interest is due on 11.02.2018 and we can do Transaction with T Code
TBB!
Mention payment due date as 11.02.2018
Run with Test Run check box
We will get accounting entry
Come back
Remove Test run check box
Execute
We will get accounting entry with FI document.

For late payment of Interest with Penal Interest Actual due date 11.02.2018 and we are paying
on 17.02.2018.

Go to TM_52
Enter

Enter
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Click on other Flows

 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Provide details as mentioned in the above screen shot and payment amount put Rs.1/-
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Select line item

Click on Details button
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Here we have to provide the details

1.Enter details like

Calculation from and To
Base amount
Percentage Rate

2.Click on Copy
2.Click on Pro Rata
Temporis
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

2.Click on Cash
Flow Tab

1.Click on Pro Rata

Temporis
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

1.Penal Interest
reflected in Cash
Flow

Click on Save Button

Click on Inerest Rate

Instrument and select
‘Settle’
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Go to TBB1
Execute

3.click on
Execute button

1.Enter details like

Company Code
Transaction

2. Enter date
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Accounting Entries
Back
Remove Test Run Check Box
Execute

Accounting Entries for Nominal interest and Penal interest Payment Accounting Entries of
Interest Payment with FI
documents
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

9.Final Repayment with Interest Payment – TBB1

Execute

Execute
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Click on Posting Log

 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Back
Remove Test Run Check Box
Execute
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Transactions posting with FI documents

10.Reversal of Transaction

TM_52

Click on Interest Rate

Instrument and select
‘Reverse’
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Run T code - TPM10

Execute
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Back
Remove Test Run Check Box
Execute

Click on ‘Choose those to Reverse’

Execute
 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management

Click on ‘Logs and Messages

END OF LONG TERM LOANS PROCESSING

 Project – JBVNL
Long Term Loans Process
End User Manual – Treasury and Risk Management