Project – JBVNL

Short Term Loans Process

End User Manual – Treasury and Risk Management

Jharkhand Bijli Vitran Nigam Limited.

TREASURY AND RISK

MANAGEMENT

USER MANUAL
SHORT TERM LOANS PROCESS
 Project – JBVNL
Short Term Loans Process
End User Manual – Treasury and Risk Management

SAP TRM – Short Term Loans Process

A loan that is set to be paid back in a short period of time—typically within a year,
though in some cases, short-term loans can have longer terms.

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
Short Term Loans Process
End User Manual – Treasury and Risk Management

Short 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 Short 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
Procedure is same like Long Term Loans

1.Create Short 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

1.0 SAP SAP Easy Access

1.Enter T code
TM_51 in
2.Click on Transaction box
Enter
 Project – JBVNL
Short Term Loans Process
End User Manual – Treasury and Risk Management

1.1 TM_51 – Create Short Term Loan Transaction

1.Enter Inputs like

Company code – 1000
Product type – 55B
Transadtion Type - 200
Partner - 100010
2. Click on Enter
 Project – JBVNL
Short Term Loans Process
End User Manual – Treasury and Risk Management

4.Click on Additional data

2. Term Start date

1.Amount
End date

3.Percentage Rate
Int.Calc.Method
Frequency
Every – 1 month

2.Click on Administration data

1.Provide details like

Position Id
Scheme Numer
Application No.
Gaurantee Number
Volume Discount
 Project – JBVNL
Short 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
Short 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
 Project – JBVNL
Short Term Loans Process
End User Manual – Treasury and Risk Management

Click here to select 1.Enter details

line item and click like
on details button Direction
Currency
Valid from and
Flow type

3.Click on Cash Flow

1.Enter here
House Bank and
Account ID

2.To go to next line item click

on the arrow and enter House
bank details
 Project – JBVNL
Short Term Loans Process
End User Manual – Treasury and Risk Management

This is the Cash Flow

Save the transaction

2and3.Change and Settle Short Term Loan Transaction

Path

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

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

Click on Interest Rate

Instrument
Select “Settle”

Click on Yes
 Project – JBVNL
Short Term Loans Process
End User Manual – Treasury and Risk Management

Again click on Interest rate

Instrument and select Settle
button

4.Posting of Short 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
Short 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

Result with Test Run

Accounting Entry

Click on Back
Deselect Test Run Button
 Project – JBVNL
Short Term Loans Process
End User Manual – Treasury and Risk Management

Click on Execute button

Accounting Entry of Short

GO TO FB03 Term Loan Borrowing with FI
EXECUTE documents

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

5.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
Short 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

2.Click on Logs and

Messages

1.Interest Calculation
for one month
 Project – JBVNL
Short Term Loans Process
End User Manual – Treasury and Risk Management

CLICK ON

Accounting
Entries for
Interest Accrual

Click on Back
Deselect Test Run Button
Click on Execute button

2.Click on Logs
and Messages

1.Interest Calculation
for one month
 Project – JBVNL
Short Term Loans Process
End User Manual – Treasury and Risk Management

Accounting Entries of
Accrued interest with FI
documents

END OF SHORT TERM LOANS