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04I bond status

Dear Experts,

After selling the (Fixed Interest bond 04I-T Type 200) bond transaction, How can we determine bond Profit & Loss value and how to post bond P&L entries and If we sale the bond before maturity does Nominal Interest and Accrued Interest still we need to consider?

Please share the detailed process steps.

Thanks, Prasad

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5 Answers

  • Dec 21, 2016 at 03:39 PM

    Have you tried TPM18 ?

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  • Dec 22, 2016 at 07:02 AM

    Dear Gustavo,

    Thanks for your response.

    We dont run TPM18, I tried TPM27 directly since are maintaining DBT in below status.

    8.jpg

    TPM27

    9.jpg

    After running TPM27, If I run TPM1 does system give the bond status (Security gain or Loss) and in which report i can see the detailed analysis. Please advice.

    Thanks,

    Prasad

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  • Dec 22, 2016 at 11:13 AM

    S_ALN_01001154 is simulated valuation. It could help you analyzing the DBT.

    Kind regards

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  • Dec 23, 2016 at 09:16 AM

    Dear Gustavo,

    When we run tpm27 after sales transaction, these update types run by system automatically, but want to know how system calculate the amount of these update types.Because when we compared to manual calculation, we could see the difference.

    Please can you explain in detailed.

    DBT_C006= Positive Amortization (Gross)(for Inflow/Outflow)

    DBT_E001= Translation of Purchase Value

    DBT_E017= Translation amortization (positive)

    DBT_E019= Translation discount

    DBT_B001= Security Price Gain

    capture.jpg

    Thanks,

    Prasad

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  • Dec 23, 2016 at 10:30 AM

    Hi Prasad,

    This depends on the Position Management Procedure (PMP).

    IMG: Financial Supply Chain Management -> Treasury and Risk Management -> Transaction Manager -> General Settings -> Accounting -> Settings for Position Management -> Define Position Management Procedure

    In "Key Valuation" you have the config for the procedures for each step, Amortization, Price Valuation, Security & Exchange Rate

    In TPM57A you can see the PMP for the Security in the Deposit Account.

    IMG: Financial Supply Chain Management -> Treasury and Risk Management -> Transaction Manager -> General Settings -> Accounting -> Derived Business -> Transactions Update Types -> Assign Update Types for Derived Business Transactions

    You have the Update types for each procedure .

    The most difficult to explain is the amortization. Considering the cashflow you showed, the amortization method is Gross.

    • In the gross procedure, the premium/discount is posted as an accrued/deferred asset or liability and written off, affecting net income, over the term of the amortization,

    Also you must consider if you use SAC or Linear Calculation, results are pretty different with each one of them.

    Kind Regards

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