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IDCFMHU_OFF_BALANCE_ISW - Off-Balance Posting - Interest Rate Swap (Hungary)

TXBHW - Original Tax Base Amount in Local Currency   ABAP Short Reference  
This documentation is copyright by SAP AG.

Purpose

In accordance with the Hungarian legal requirements, interest rate swap (IRS) transactions must be posted off-balance on the contract date. In a typical example of an IRS transaction, the partners swap a cash flow with floating rate for a cash flow with fixed rate. Usually the floating rate is a reference rate + premium or discount (for example, LIBOR + X%), therefore, on the fixing date, you have to enter the current explicit value of the reference rate in the system. As the floating part changes the elements of the cash flow on each fixing date, you have to revaluate and modify the amounts posted off-balance and to the balance sheet accounts. That is, on each due date, when the interest is paid, you recalculate the interest for the floating part, post it to the accounts in the balance sheet and withdraw the transaction from the off-balance accounts.

When the IRS transaction expires, you have to withdraw the whole amount from the off-balance accounts.

The standard SAP Treasury and Risk Management (FIN-FSCM-TRM) functions generate the postings relevant for the cash flow, but they cannot handle off-balance postings. This report can perform these off-balance postings.

You use this report as follows:

1. On the contract date, when the transaction has been settled, you make an off-balance posting for the IRS transaction by executing this report with the posting option enabled. For the fixed rate part, you post the value relevant for the whole contract period.
2. For the floating rate part, at the first interest payment, you use the standard Treasury: Post Flows (transaction TBB1) program to post the transaction to the balance sheet accounts.
3. You use the current report to withdraw the transaction from the off-balance accounts by making opposite off-balance postings.
4. You recalculate the interest for the rest of the contract period using the standard interest rate adjustment reports ( Create Next Interest/Price Adjustment (TI10 transaction) or Automatic Interest Rate or Commodity/Security Price Adjustment (TJ05 transaction)).
5. You use the current report to post the transaction with the recalculated amounts to the off-balance accounts.
6. On each due date when interest is paid, you repeat steps 2-5.
7. When the IRS transaction expires, you use this report to withdraw the whole transaction from the off-balance accounts by making opposite off-balance postings.

The report can also reverse items in case the relevant transaction is reversed after it has been posted off-balance.

You can run this report periodically (daily, weekly, or monthly) as required, both online or in background processing.

Integration

Prerequisites

You have made the settings in Customizing for Financial Supply Chain Management, under Treasury and Risk Management -> Transaction Manager -> Country-Specific Functions -> Hungary -> Off-Balance Postings, in the following activities:

• Define Parameters for Off-Balance Postings

• Assign G/L Accounts for Off-Balance Postings

Features

Selection

On the selection screen, you must enter the company code, the base date, and the due date for the next interest payment or contract expiry.

You can further restrict your selections based on valuation area or transactions.

If you do not specify any transactions, the system modifies the base date during execution and its new value will be the date of the current execution.

Optionally, you can select one or more specific transactions. In this case, the program does not update the base date during execution. This is to avoid that in the next run, the program selects only these transactions with the new base date and it might ignore some relevant transactions.

If you enter a posting date, the report performs all off-balance postings with this date. If this field is empty, the program retrieves the posting date from SAP Treasury and Risk Management.

On the selection screen, you can also specify whether you want to execute the report in test run or with real postings. In case of test run, the system does not generate any posting document.

Standard Variants

Output

The output of the report is displayed either in a standard format with a header or in an ALV grid, depending on your selection.

The output shows the details of each transaction and if the report has performed any posting, the posting document number is displayed in the Document Number field. If the report cannot perform posting for a given item, the padlock in the Document Status field is in closed position.

The output also shows reversed items, but the report does not generate a document for these items. The report only generates a document if the transaction was reversed after it had been posted off-balance. In this case, the relevant reversal document number is shown in the Reversal field.

Activities

When you execute the report with the posting option enabled, it performs the following tasks:

1. Based on your selections, it reads the following:

• New or changed transactions since the base date

• Previous items with errors

• All open items

1. It maps G/L accounts to the processed items based on your Customizing settings.
2. It performs posting and generates a posting document in case the following conditions are fulfilled:

• The transaction is active.

• The transaction is settled (off-balance) or posted (withdrawal).

• The posting date is not in the future (the value date of the posting document is not later than the system date).

• G/L accounts are available.

• The amount to be posted is bigger than zero.

1. It reads and pairs previous data with the current data.
2. It reverses the previous document in case the following conditions are fulfilled:

• The previous document exists.

• Any key fields have been changed (amount, transaction currency, G/L account, transaction date).

• It is not allowed to post the item.

• The item has a reversal error.

1. It flags reversed and posted items.
2. It displays data in the output according to the selection parameters.

PERFORM Short Reference   Addresses (Business Address Services)  
This documentation is copyright by SAP AG.

Length: 7905 Date: 20240520 Time: 081853     sap01-206 ( 118 ms )