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Commodity forwards

Dear Experts,

We are currently using the Treasury module in SAP R/3 ( ECC 6.0 EHP 4 ). Now we want to configure the Commodity Forwards.

I would like to know the process and the background configuration required for handling the month end price variation between the spot price and the month end price. Currently we are manually handling and posting it.

Also if any one could share me the complete configuration steps for Commodity forwards.

Thank you in advance.

George

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3 Answers

  • Apr 20, 2016 at 03:53 PM

    Hi George,

    The process is a bit different that exposed by Jain Varghese, also if you are slight difference from the Money Market.

    I tried to create a basic process flow in it.

    First, you have to create the commodity Master data:

    Master Data:


    Transaction TPM_CTY_MASTER. There you created the commodity master data


    Transaction Manager:


    FTR_CTY01: Create commodity forward

    Fulfill all relevant data: Commodity ID, Name, Quantity, UOM, Contract price,

    Contango/Backwardation, Payment amount and cash settlement flow etc.

    FTR_CTY04: Settle commodity forward (Check that all data entered are being stored correctly)

    Back Office:


    Post deals using transaction TBB1 and check if the posting is correct.

    Month end (NPV of Commodity Forwards) Within the MRA Market Risk Analyzer:

    JBDO: Create a financial:

    Enter the company code and the transaction number in the field marked 'Derivatives'. Click on the create/change button. On the following screen, check the Analysis(RM) button. On the following screen, check Active Analysis Indicator. Enter the transaction number in the Transaction field of Analysis Characteristics tab, and save the financial object.


    JBRX: Evaluate To evaluate the transaction:


    Enter the evaluation currency, type and date. Enter the horizon date, which should be greater than Evaluation date and less than Commodity

    forward datementioned inCommodity Forward transaction. Go to Characteristics tab, and enter company code and transaction number fields.

    Execute the transaction to get the NPV of Commodity

    forwardtransaction.

    TPM1: Key date Valuation: You have to carry-out the TPM1 For both method, the process without the MRA You can check-out on the thread: http://scn.sap.com/thread/1517782



    Cash Settled:


    FTR_CTY02: Change commodity forward

    Here you perform the Cash Settlement (Final of the Contract

    Back Office:


    Post deals using transaction TBB1 and check if the posting is correct.

    Transaction TPM18: Post the Realized profit and loss is posted

    You will try to create a process and post here, the documents that I have is not in English, so doesn't help at all.

    Best.

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  • Apr 11, 2016 at 01:50 PM

    For month end price variation configuration:

    define position management procedure,

    assign position management procedure,

    Set the Effects of the Update Types on the Position Components,

    Assign Update Types for Valuation,

    Define Account Determination.

    Run TPM1 for valuation


    Regards,

    Rohit Bali

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  • Apr 12, 2016 at 02:58 AM

    Dear George,

    Below is standard process in commodity.

    Process in Commodity

    • Create deal: FTR_create
    • Settle deal: FTR_Edit
    • Posting: TBB1
    • Enter market data for security classes -FW17
    • Posting all initial cash flows -TBB1
    • Post variation margin – PMVM
    • Matching long and short position: TPM91
    • Result: In future account: TPM8 or subledger TPM13

    Regards,

    Jain



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