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04I bond status

Dec 21, 2016 at 02:26 PM

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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

Gustavo Vazquez Dec 21, 2016 at 03:39 PM
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Have you tried TPM18 ?

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prasad raju Dec 22, 2016 at 07:02 AM
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Dear Gustavo,

Thanks for your response.

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

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TPM27

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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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Gustavo Vazquez Dec 22, 2016 at 11:13 AM
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S_ALN_01001154 is simulated valuation. It could help you analyzing the DBT.

Kind regards

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prasad raju Dec 23, 2016 at 09:16 AM
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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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Gustavo Vazquez Dec 23, 2016 at 10:30 AM
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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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