Interest rate swap - fscm
Hi Friends,
we got the below error on posting the market value of interest rate swap.
error message: update type for categoty xxx / xxx not defined for position management procedure xxxx not defined.
Please suggest me fix this issue
Regards
Prasad
could you please guide me, where to check in IMG , path or t.codes would be useful.
since we are new to FSCM , need help on this
thanks in advance
regards
prasad
Similar Messages
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Product type 62A - Interest Rate SWAP
In Standard SAP for Product type 62A Interest rate SWAP, I see 4 transaction types delivered by SAP - 300-Payer, 301-Receiver, 302-Basis, 303 - SWAP for Swaption.
Can anyone explain these different types?
Thanks
KalyanHi Kalyan,
There are 4 transaction types as you mentioned for product category 620.
Receiver - You receive fixed rate. i.e. Incoming leg is fixed and outgoing leg is Variable.
Payer - You pay fixed. i.e. Outgoing leg is variable and Incoming leg is fixed.
Basis - Both the legs are variable
Swaption - An option on the Swap. Similar to any other option, you have the right to exercise the Swap if you want or also hold back if you will incur a loss by exercising. For this right, you pay a premuim to enter the contract.
Hope this helps!
Best regards!
Sandip -
Accrual for Interest rate SWAP
i want to know how acrual for Interest rate SWAP works from account assignment point of view
i would really apprecaite if any1 can give me information or docuents for setting interest rate swap accrulHi,
In the case of interest rate swap, we have to post the accrual/deferral in TBB4. Here from account assignment point of view, we have to assign the condition type to the product type and the transaction type. For this condition type we have to assign the flow types.
As far as the account assignment goes, just like normal accrual, we have to post Cr Interest payable account and Cr Interest paid account. In the case of int rate swap, unlike currency swap, only the interest amounts would be posted and the nominal amount will not be posted to FI.
If you have further doubts please ask me.
Regards
Ravi -
Example of hedge accounting for interest rate risk
Hello
Can anyoe give an example of hedge accounting for interest rate risk with values using a variable interest rate bond and a interest rate swap where a prospective and retrospective effectiveness test would be positive?
Thanks,
Arjannot precisely - the respective flow is still in status 'S' @ TPM13, so in this sense it looks consistent. what is though strange that if you look into the tab 'Cash flow' in the Posting view, you can see a status 'Interest rate not adjusted for flow', though there is interest adjustment executed as per the screenshot attached.
/Renatas -
Loan Management or Interest Rate Instrument
Hi all,
My company will implement SAP FSCM to manage our loan management, borrowing and lending.
Which one better and has more values between Loan management with product type 33A and 33B, or interest rate instrument with product type 55A and 55B.
Beside that, we also want to use TRM Facility.
Can anyone give me advice?
Thanks before..
Regards,
_fitaHi,
Functionality wise Loans management gives better control and functionality generating interest based cash flows from SAP CML but you can not assign a loan contract to any TRM facility transaction and genrate Facility utilization.
In case of TRM Product Category 550 functionality Loan borrowing and lending is possible with assignment of Facility and interest conditions are limited to single against a transaction for a calculation period which is not in case of SAP CML products.
Regards
Prasad AV -
Automatic Interest Rate Fixing - TJ05
Hi,
I have table T056P populated with a rate and an 'effective-from date' for a reference interest rate. Therefore, when I run TJ05 to fix the reference interest rates, it is not taking the 'effective-from date' into consideration. It will only do the fixing if a rate exists for the exact date.
e.g.
T056P is popualated with the following:
Reference: 1DUKBAS
Effective-from date: 01.07.2009
Rate: 0.5
If I run TJ05 for a deal which needs a interest fixing on the 02.07.2009 - it gives the error: "02.07.2009 1DUKBAS: No interest rate exists (TRIA014)."
I thought it would fix with the rate from the 01.07.2009 as this rate is 'effective from' the 01.07.2009 - but it is not.
Any ideas would be much appreciated.
Regards,
PHi,
Take the case of OTC derivatives. You fix your reference interest rate based on your interest frequency. In the case of swap, suppose your interest frequency is 3 months then you generally go for Libor 3m though it is not a necessity. You can go for Libor 1m and have interest frequency as 3 months, but in practise, we go for the reference rate based on the interest frequency.
And based on the frequency, we go for fixing and adjusting the interest rate. If it is 3 months, then we go for interest rate adjustment every 3 months. Then we fix the rate for the reference interest rate on that date (the calender rule applies here) and go for automatic interest rate adjustment. It will adjust all the transactions having this reference interest rate and due on that day.
Another way is to go for manual interest rate adjustment, if you want to fix only for a single transaction. Then you specify the interest rate which is specific for that transaction alone.
Regards,
Ravi -
Interest Rate Adjustment - how to change interest fixing date
Hi,
I have this activity that for every interest rate resetting, I will encode the new interest rate in TI10.
For swap transaction, the resetting I have is 01/14/2011 when it was originally contracted. However, given the governmentu2019s new thrusts on tourism, holidays were changed/moved in order to have long weekend. So the bank decided that the new interest rate resetting will be on 01/18/2011. Take note that there are already previous adjustments made in the past. When I reset the interest rate, I created a new interest rate, and I used the date 1/18/2011 in the actual fixing date. However, the accrual in SAP still uses the 1/14/2011 and not the 1/18/2011. So how do we solve this?
Thanks.HI Lorenz,
Yes I used the adjusted rule and it now reflects the correct calculation date on the accrual/deferral which starts at Jan 18 already. The system I'm working on is still on 4.6C so they are using TBB4.
I have another question though: Since the change I made, I now have a separate calculation for the period 01/14/2011 to 01/17/2011. But this should not be the case because it was already paid on January 17,2011 so there should be no more accrual on that period. Just to give the background again, the original accrual period ends at January 14, but due to some holidays the due date was moved and the due was paid on January 17 so the new interest calcuation should start on Jan 18.
So now that the start of calculation starts on January 18, but has another separate calculation for period 01/14/2011 to 01/17/2011. Can this also be adjusted so that the calculation period really ends at January 17?
Thanks you.
Regards,
Marie -
Error while creating interest rate instrument-Tcode-FTR_CREATE.
Error while creating interest rate instrument-Tcode-FTR_CREATE.
Thanks
VikasHi Tushar
Please maintain the detail in TPM 32
Product category
Product type
General valuation class
Account assignment reference
Regards -
F150 dunning prog. and Gregorian calendar-wrong interest rates calculation
Hello everyone,
I have a problem with F150 - dunnning program and the Gregorian Calendar. I defined a interest rate indicator and I choose Gregorian calendar - 365 days in the year but SAP calculate 360 days and the interest rates are wrong u2013 to high. I have found the OSS note 82995 - Dunning program interest calc. on 360 not 365 days u2013 but as a matter of fact there is no solution which is appropriate for me because I want to print interest along with dunning letter. Maybe you had had the same problem and maybe you found solution.
Thank for you help
TomFSKB G/L Account Posting
this transaction is not working -
Dear All ,
I want to calculate the interest with dunning. But i do no understand the interest rate logic with dunning .
I need a calculation as below example . Is it possible ?
for example , Invoice = 1000 EUR Net due date =12.03.2007
Interest Rate Scale
Interval
From To Rate
11.10.2006 12.12.2006 10
13.12.2006 13.03.2007 10,3
14.03.2007 12.06.2007 10,5
13.06.2007 08.07.2008 11
09.07.2008 22.10.2008 11,25
Calculation method = (Invoice amount*interest in the period *days)/365
Thanks
DashHi,
Please use Product Type - 55A with Product Category - 550 in Money Market where you can accommodate the Borrowing with Ref Int Rate. Can you clarify what mean "to see flows and posting entries seperately" Posting entry will be generated with the help of a flow. there are different report available for seeing flows and posting entries:
TPM13 - Flows
TPM20 - Posted entries
Regards
Prasad AV -
Unable to edit cash flow in Interest Rate Instrument
Hi Experts,
I am facing a strange issue while trying to change Cash Flow in Int. rate instrument.
Scenario:
I am trying to edit a flow in FTR_Edit and system is allowing me to change most of the flow. Please see below:
But if try to change the very next flow on the same date i.e. 960.93 USD Edit Flow option is NOT coming at all.Please see below
These flow has NOT been posted to accounting still.
Any one has any ides/suggestion why system is behaving like this.
Cheers !
AdiHi,
basically changes in the cashflow are exceptional and for circumstances, where you have postings after the flow(s) you want to adjust and you cannot reverse these postings because of closed periods etc. This changes in the cashflow do not change the interest condition(s) itself.
If you have more than 1 interest period and the interest rate of the future periods are not known yet, you should use a Reference Interest Rate (e.g. LIBOR) instead a fix one in the interest condition. Then you are able to use the fixing-functionality (TI10 or TJ05) to get the interest rates into the deal.
Of course you can use fixed interest rate, too - in this case you need 1 interest-condition per period and have then to adjust the interest rate (which initially cannot be 0).
Regards,
Lorenz -
Interest Rate Instruments in Treasury
Hello SAP Gurus
We are using SAP Treasury Product (55A u2013 Interest Rate Instrument) to meet one of our business requirements. We are creating Investment deal/contract with a variable interest. We are also maintaining the Interest Rate Values in transaction code JBIRM on daily basis.
The business requirement is here that they want to calculate the interest value on daily as per rate maintained in transaction code JBIRM and pay on Monthly Basis.
If I am selecting the frequency monthly in Interest Structure Tab and executing transaction code TJ05 to update the interest rate in the deal/Contract. It is not updating correctly. It is taking only one interest rate not alls.
If I set frequency Daily in Interest Structure Tab and executing transaction code TJ05 to update the interest rate in the deal/Contract. It is updating correctly. But the Issue is here that than it is creating interest accounting entry on daily basis. We do not want to create Interest Entry on Daily.
Could you please help me to update the interest rate on daily basis and calculate the Interest Value accordingly and ay on Monthly?
Thanks and Regards,
Amit Kumar JainTo calculate interest based on a daily rate, but only post interest monthly, you have to maintain the interest and interest rate adjustment conditions with different frequencies.
In the deal, click on the conditions button. You should see a condition 1200 - Nominal interest and because you have used a variable interest rate, you should also see a condition 1210 - Interest rate adjustment. To post interest monthly, you need to set the Nominal interest (1200) condition to Regular update with Frequency of 1 Month. To enter daily interest rates, you need to also set the Interest rate adustment (1210) to Regular update, however the frequency should be 1 Calendar day.
In addition, if you will not have interest rates for weekends and banking holidays, you can set the calendar rule to next or previous working day to and enter a factory calendar that has been configured with weekends and banking holidays as non-working days. Whether you select next or previous working day depends on how the bank calculates interest for the weekends/holidays. For example, if the bank uses the rate from Friday to calculate interest for Saturday and Sunday, you would select previous working day. If however, it uses Monday to calculate the interest, then you would select next working day.
I'm not clear on the issue you are experiencing with TJ05. Can you explain furthe rwhat you mean when you say that it is taking only one interest rate, not all?
Regards,
Amit -
TRM: doubts in interest rate instrument and Business partner
Dear all,
While implementing Treasury Risk Management, in order to fulfill my clientsu2019 needs I have three questions regarding, 1. Interest rate instruments, 2.Leasings and 3.Business partners.
1.When creating a contract of an interest rate instrument , associated to a floating interest rate (e.g. EURIBOR 3M), how can I calculate the tax stamp which represents 4% of my interest rate amount, and occurs every time I have to pay interests?
I could define it in the u201Cother flowsu201D label but since the contract is associated to a variable, I never know how much my 4% of tax stamp calculated over the interest amount will represent.
2.When creating leasing contracts, how can I calculate the VAT associated to the periodic payments?
3.Is there any way to make postings to a business partner directly as a Vendor or a costumer?
Thanks in advance,
Regards,
DanielHi,
Please consider following:
1. Generally TDS flows are generated automatically by system based on a revenue/expense flow. By configuring Derived FLows in system you can achieve this. Then alongwith every interest payment flow a TDS flow also will be generated based on the rate defined in system with seperate flow type, you can define account posting in spro.
The path for config- TRM-Trans Mgr- Money Market-Transaction Mgt- Flow Types- Derived FLows
2. Again since VAT is a derived flow for an actual cash flow, so you can achive this through derived flows config.
3. You can make posting to Business Partner account by performing following:
a. In master data, assign role of Customer to the Business Partner
b. Make payment settings in transaction to Customer and select payee/counterparty. While posting with TBB1, entries will be against Customer A/c and further clearing will be reqd at customer level against respective payment bank.
c. To achieve this output, you may require to define account determination accordingly for customers.
I suggest to post seperate thread for each issue rather than posting with single thread for better response.
Regards
Prasad AV -
Transfer Interest Rate instrument
Hi -
changes in underlying contracts require us to transfer certain Interest rate instruments (Prod Category 550) to a new company code. Other than changing the end date on the old transaction and creating a new transaction on the new company code is there a more efficient way of transferring data between company codes? Is there a copy from function to easier create the new transactions (I am currenly evaluating the GetDetail Bapis for Money MarketI Instruments)?
Appreciate the helpHi,
...you're on the right path
With the BAPI_FTR_CREATEFROMDATA you can create new transactions.
In case you want to just mirror transactions to another CompCode, you can use the mirror-functionality (IMG: TM > General Settings > Transaction Management > Distribution of Mirror Transactions)
Regards,
Lorenz -
Variable Interest Rate Instrument scenario
Dear All,
Is it possible to create an Interest Rate Instrument with variable interest rate which is calculated and adjusted monthly but interest amount is paid quarterly.
As per my understanding creating Interest Rate Instrument with Variable Interest Rate and which is adjusted monthly is not a problem. But if we do that the system calculates interest monthly and tries to post it monthly and also creates payment Request for each monthly cash flow.
This is the issue we want the system to calculate the interest monthly and also want that monthly accruals are calculated correctly but we want the interest to be paid quarterly and not monthly.
Request your thoughts on this kind of scenario.
Thank You
Regards
SachinHi,
In your IRI instrument, maintain the interest condition to have a quarterly payout. In the structure tab, click on the conditions and then click on interest rate adjustment condition. In that you can specify the interest rate condition item to adjust to monthly update. Thus you can perform interest rate adjustments on a monthly basis and have the interest payout on a quarterly basis.
Regards,
Ravi
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