Ansicht
Dokumentation

Amortization on a Key Date ( RELNTRTM_46A_SE_AMORT )

CPI1466 during Backup   SUBST_MERGE_LIST - merge external lists to one complete list with #if... logic for R3up  
This documentation is copyright by SAP AG.

Short text

Amortization on a Key Date

Scope of Functions

The function for amortizing your positions on a key date enables you to distribute the difference between the purchase value and repayment value of an interest-bearing security over its term. You can do this according to a linear procedure (LAC) or a financial mathematical procedure (SAC).

Go to the amortization function in the application menu for the Securities area by choosing Accounting → Closing operations → Key date valuation → Execute amortization.

When you amortize your positions on a key date, the system compares the acquisition value of the security, including the capitalized costs and previous amortizations, with the theoretical value of the security on the key date. It generates an amortization flow for the difference.

The key date amortization function and the rate/price valuation function, which compares the book value of a security with the market price, are independent of each other. You can perform amortization on a key date followed by price/rate valuation for the same security.

Which method you use to calculate the theoretical value of a security (LAC, SAC, ...) depends on the position management procedure you choose. You can define this per company code, product type and valuation class. See also Position Management Procedure (Price Gains / Amortization).

You have the option of performing a test run when you amortize your positions on a key date. This allows you to simulate, for example, the cash flows of the amortized positions. It is possible to start the test run even if the requirements for key date amortization (such as period-end closings) have not been fulfilled.

There is a special reversal function for amortization on a key date. You find this in the application menu for the Securities area by choosing Accounting → Closing operations → Key date valuation →Reverse amortization.

Effects on Existing Data

Up to now, you could set the 'PosM.AC' indicator in the valuation class to determine that the key date valuation function for the relevant positions did not compare the book value with the market value, but with the LAC/SAC value on the key date. This indicator is no longer available. You now assign specific position management procedures to the relevant valuation classes.

You can convert the data using a subreport program from the conversion program for securities transactions.

See also:

• The documentation for the conversion program in the SAP Library by choosing AC Financials → Treasury →Treasury Management → Securities → Conversion Program: Securities Transaction Rel. 4.6A.

• Release note on Integration of the Securities Order Function to Transaction Management.

Effects on Customizing

See also: Position Management Procedure (Price Gains / Amortization).

Further Information

Release note on Zero Bonds.

CPI1466 during Backup   BAL_S_LOG - Application Log: Log header data  
This documentation is copyright by SAP AG.

Length: 3712 Date: 20240523 Time: 080652     sap01-206 ( 72 ms )