AC820 Securities Management AC820

Release 46D 09/25/2005

AC820 Securities Management.....................................................................................................................................0-1

Copyright ..................................................................................................................................................................0-2

Treasury ................................................................................................................................................................0-3

Class Master Data: Create Convertible Bond........................................................................................................0-4

Exercise: Settle Transaction..................................................................................................................................0-5

Example: Trader; Possible Entries ........................................................................................................................0-6

Assign Transaction Flow Types to Securities Flow Types ...................................................................................0-7

Derived Flows: Customizing.................................................................................................................................0-8

Automatic Posting II: Nominal Interest - Example...............................................................................................0-9

Capital Increase: Subscription Rights - Overview ..............................................................................................0-10

Capital Increase: Exercise Subscription Rights...................................................................................................0-11

Capital Increase: Transfer New Stock.................................................................................................................0-12

© SAP AG 1999

AC820 Securities Management

AC820AC820

Securities ManagementSecurities Management© SAP AG

R/3 System Release 4.6B May, 2000 Material number: 5003 6317

© SAP AG 2002

Copyright 2002 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

All rights reserved.

Copyright

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© SAP AG 1999

Treasury

Treasury Overview

AC030 3 days

Level 2 Level 3

Financial Accounting and Reporting

AC010 5 days

Cash Budget Management

AC215 1 day

Basic Functions inTreasury Management

AC810 3 days

Cash Management

AC805 3 days

Money Market, Foreign Exchange and Derivatives

AC825 3 days

Loans Management for Financial Services

AC815 5 days

Loans Management forCorporates

AC816 3 days

Securities Management

AC820 4 days

Market Risk Management

AC830 3 days

© SAP AG 1999

Class Master Data: Create Convertible Bond

ID number Convertible bond 99/03118900

Basic data

IssueIssuer

Nominal value

...

Conversion

Reference security

100

Premium

Amount

Currency UNI

Conversion period

From

To

Conversion ratio

Numer.

Denom.

2

1

Class master data for convertible bonds consists of basic data, conditions, and additional entries. Selected fields in the basic data screen for convertible bonds are explained below: - Reference security: The security that can be used as a reference for the

conversion. - Conversion period from/to: Period in which conversion is possible. - Conversion ratio numerator / Conversion ratio denominator:

The “Conversion ratio - numerator” tells you how many units of nominal value of the bond are required to convert it into the given number of stocks in “Conversion ratio - denominator”. Example: A nominal value of (2 x 100) 200 UNI is converted into 1 stock.

- Conversion premium: The amount to be paid for each stock in the case of a conversion.

© SAP AG 1999

Exercise: Settle Transaction

© SAP AG 1999

Example: Trader; Possible Entries

Per company code:

1) Define traderCustomizing

2) a) Assign trader name to the userdefault for transaction entry

b) Rename the possible entries “M” and “T” forthe user, if required

Customizing

3) Authorize trader for transactionsApplication

You can use the above procedure to define trader data as default values in the entry screens (for individual activity categories) depending on the settings for the particular user. If you want to set up your system so that the entry from the trader-user assignment can no longer be changed, set the "Trader" field to "Display" in the field selection control.

© SAP AG 1999

Transaction flow type Direction SEC flow type0100 Outflow 10000200 Inflow 20000301 Outflow 30010302 Outflow 30020305 Outflow 30050306 Outflow 30060308 Outflow 30080311 Outflow 30110312 Outflow 30120870 Inflow 87010870 Outflow 8702

Assign Transaction Flow Types to Securities Flow Types

You assign the transaction flow types to the securities flow types.

© SAP AG 1999

Define Derivation Procedure

Proc. Description

ZAST Tax 1/Tax 2

Define Derivation Rules

Eff. from Inc. flw D Deriv. flow D Percent

01/01/YY 0200 + 0306 - 3001/01/YY 0306 - 0308 - 7.501/01/YY+1 0308 - 0308 - 5.5

Derived Flows: Customizing

In Customizing you first define a derivation procedure by assigning a name to it.

You then define the Derivation rule for each derivation procedure. Here, you have to enter the following:

- the initiating (incoming) flow (type) - the direction of the initiating flow - the flow (type) to be derived - the direction of the derived flow - the amount of the derived flow in relation to the initiating flow in %

© SAP AG 1999

Nominal interest (flow type 5000) 12,000

5000: Receivables to revenue 12,000

1) Automatic postinga) 5000: Receivables to revenue 12,000

b) 6000: Bank clearing to receivables 12,000(Flow type 6000: Nominal interestfrom incoming payments)

2) Bank statementBank to bank clearing 12,000

3) Incoming payment6000: Bank clearing to receivables 12,000

P

P I

I

P

P

Automatic Posting II: Nominal Interest - Example

Two-step procedure: Example: Nominal interest due Flow type 5000: Nominal interest Flow type 6000: Nominal interest from incoming payments

© SAP AG 1999

Subscription Subscription rights in positionrights in position

Post

Purchase SubR Sell SubR

New stocks in positionNew stocks in position

Exercise SubR

Capital Increase: Subscription Rights - Overview

New stockNew stock

Pos. indicatorPos. indicator

Subscription rightSubscription rightBasic dataBasic data

Pos. indicatorPos. indicatorNew stockNew stock

Basic dataBasic data

(Conditions)(Conditions)

You post subscription rights for all the securities accounts in a company code. Before you can post subscription rights, you have to enter class data and position indicators.

When you trade subscription rights, you purchase additional new subscription rights, if required, or sell existing rights (you enter the data in transaction management). You exercise the resulting subscription right position.

When you exercise subscription rights to obtain new stocks, you first have to enter the class master data and the position indicator for the new stock.

© SAP AG 1999

Posting logPosting log

222 222: 194200 to 133000 5,357.15

333 333: 133020 8,357.15

to 194200 5,357.15to 113105 3,000.--

: 150 units at 35.72 UNI at asubscription price of 100 UNIper new stock

SubR sales: 50 unitsSubR purchases

Subscription rights posted

Exercise subscription rights

Capital Increase: Exercise Subscription Rights

You exercise subscription rights for all the securities accounts in a company code. To follow selective strategies for individual securities accounts, you can first transfer, sell, or purchase additional subscription rights.

When you exercise subscription rights, new stock is added to your position. You post new stocks at the value of the corresponding subscription rights and the subscription price paid.

Example: - Sale of 50 subscription rights. Subscription rights position: 150 units at 35.71 UNI *. - Exercise 150 subscription rights to obtain 30 new stocks (subscription ratio 5:1) with an additional payment of 3,000 UNI (subscription price 100 UNI per new stock). Exercise subscription rights (take subscription rights off books) (ID number 222222) at [150 x 35.71]* = 5,357.15 UNI *. Post the new stocks (ID number 333333) at [5,357.15 + 30 x 100] = 8,357.15 UNI *.

* Rounding difference; the system uses the exact values for calculation.

© SAP AG 1999

Posting logPosting log

111 111 40 133020 8,357.15 UNI D50 194200 8,357.15 UNI C

333 333 40 194200 8,357.15 UNI D50 133020 8,357.15 UNI C

Axx

Bxx

PostNewNewstockstock

ID no.ID no.333 333333 333

OldOldstockstock

ID no.ID no.111 111111 111

PK Account Amount

Capital Increase: Transfer New Stock

As soon as you have brought the new stocks into line with the old stocks, the new stocks lose their status and are assigned to the old stocks position. When you transfer a new stock, it is automatically assigned the ID number of the old stock.

After you select the new stocks at company code level, all the positions of this class are displayed in all the securities accounts of the company code. You then make the transfer posting within the outgoing payments securities account. The transfer is recorded in a posting log.

Example: You transfer 30 new stocks (ID number 333333) at a book value of 8,357.15 UNI to the old stocks position (ID number 111111).