Post on 02-Jun-2018
8/10/2019 ConfigGuide EM MFA Treasury
1/43
Proof of Concept
Proof of Concept
Execution Guide
Corporate Finance Management
August 2005
8/10/2019 ConfigGuide EM MFA Treasury
2/43
Proof of Concept
Table of Contents
1. Business Scenarios.................................................................................
1.1. Scenario No: 1 Money Market Transaction...............................................
1.1.1. i!e"#Ter$ %eposit: Tra"ing.....................................................................
1.1.2. i!e"#Ter$ %eposit: Back &ffice...............................................................
1.1.'. i!e"#Ter$ %eposit: Accounting................................................................
1.1.(. Money Market: Position )ist......................................................................
1.2. Scenario No: 2 Manage$ent *eports....................................................
1.2.1. Manage$ent *eports: +ourna, of inancia, Transactions.............................
1.2.2. Manage$ent *eports: Cas- ,os...........................................................
1.2.'. Manage$ent *eports: Pay$ent Sc-e"u,e.................................................
1.'. Scenario No: ' /e"ging oreign Currency nf,o....................................
1.'.1. orar" Transaction..............................................................................
1.'.1.1. orar" Transaction: Tra"ing..................................................................
1.'.1.2. orar" Transaction: !ecute &r"er........................................................
1.'.1.'. orar" Transaction: Back &ffice............................................................
1.'.1.(. orar" Transaction: Accounting.............................................................
1.'.2. &TC Currency &ption.............................................................................
1.'.2.1. &TC Currency &ption: Tra"ing................................................................
1.'.2.2. &TC Currency &ption: Back &ffice...........................................................
1.'.2.'. &TC Currency &ption: Accounting...........................................................
1.(. Scenario No: ( orar" *ate Agree$ent *A3......................................
1.(.1. orar" *ate Agree$ent: Tra"ing...........................................................
1.(.2. orar" *ate Agree$ent: !ecute &r"er.................................................
1.(.'. orar" *ate Agree$ent: Back &ffice......................................................
1.(.(. nterest *ate A"4ust$ent Sc-e"u,e.........................................................
1.(.5. Manua, nterest *ate A"4ust$ent............................................................
1.(.. orar" *ate Agree$ent: Accounting......................................................
1.5. Scenario No: 5 nterest *ate Sap *S3..............................................
1.5.1. nterest *ate Sap: Tra"ing...................................................................
1.5.2. nterest *ate Sap: Back &ffice..............................................................
1.5.'. nterest *ate A"4ust$ent Sc-e"u,e.........................................................
Page 2 of ('
8/10/2019 ConfigGuide EM MFA Treasury
3/43
Proof of Concept
1.5.(. Manua, nterest *ate A"4ust$ent............................................................
1.5.5. nterest *ate Sap: Accounting..............................................................
1.. Scenario No: Cross#Currency Sap CCS3..........................................
1..1. Cross#Currency Sap: Tra"ing................................................................
1..2. Cross#Currency Sap: Back &ffice..........................................................
1..'. Cross#Currency Sap: Accounting...........................................................
Page ' of ('
8/10/2019 ConfigGuide EM MFA Treasury
4/43
Proof of Concept
1. Business Scenarios
1.1. Scenario No: 1 Money Market Transaction
ABC puts up *s. 10 Cr. it- /%C Bank in i!e"#Ter$ %eposit for 2 $ont-s.
1.1.1. Fixed-Term e!osit: Tradin"
#se
T-e Para$eters for creation of i!e"#Ter$ %eposit are "efine" -ere.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeTM01
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Money Market Trading Fixed-Term Deposit Create
Field Name (alues
Co$pany Co"e TS
Pro"uct Type 51A i!e"#Ter$ %eposit3
Transaction Type 100 i!e"#ter$ "eposit#n6est$ent3
Partner /%C
A$ount 100000000
Start %ate 0.07.2005
n" %ate 882
Percentage *ate .0
nt. Ca,c. Met-o" '09'0
reuency At en" of ter$
Page ( of ('
8/10/2019 ConfigGuide EM MFA Treasury
5/43
Proof of Concept
;o to
8/10/2019 ConfigGuide EM MFA Treasury
6/43
Proof of Concept
1.1.). Fixed-Term e!osit: Back *ffice
#se?se Back &ffice functions to sett,e t-e i!e"#Ter$ %eposit.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeTM0
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Money Market
Back Office Fixed-Term Deposit Settle
Field Name (alues
Co$pany Co"e TS
Transaction (
Page of ('
8/10/2019 ConfigGuide EM MFA Treasury
7/43
Proof of Concept
1.1.+. Fixed-Term e!osit: %ccountin"
#se
?se Accounting functions to post entries to t-e ;enera, )e"ger.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeTBB1
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Money Market Accounting Posting Execute
Field Name (alues
App,ication Money Market
Co$pany Co"e TS
Page @ of ('
8/10/2019 ConfigGuide EM MFA Treasury
8/43
Proof of Concept
1.1.,. Money Market: $osition ist
#se
T-e position ,ist pro6i"es a unifie" 6ie of t-e position of a group of financia,
transactions on a particu,ar key "ate.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeTM*1
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Money Market Information SystemPosition
Operatie !aluation "rea Position
Or
Corporate Finance Management Transaction Manager
#nformation System Reports Position Operatie
!aluation "rea Money Market
Field Name (alues
Co$pany Co"e TS
Page of ('
8/10/2019 ConfigGuide EM MFA Treasury
9/43
Proof of Concept
Page 7 of ('
8/10/2019 ConfigGuide EM MFA Treasury
10/43
8/10/2019 ConfigGuide EM MFA Treasury
11/43
Proof of Concept
Page 11 of ('
8/10/2019 ConfigGuide EM MFA Treasury
12/43
Proof of Concept
1.).). Mana"ement e!orts: Cas0 Flos
#seT-e Cas- f,o report contains t-e Flowsin c-rono,ogica, or"er.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeT+12
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
#nformation System $eports Transaction Flo%s
CFM Cas' Flo%s
Field Name (alues
Co$pany Co"e TS
App,ication Foreign Exc'ange(Money Market(
Deriaties( Securities
Page 12 of ('
8/10/2019 ConfigGuide EM MFA Treasury
13/43
8/10/2019 ConfigGuide EM MFA Treasury
14/43
Proof of Concept
1.+. Scenario No: + 2ed"in" Forei"n Currency 3nflo
&n account of an e!port ABC e!pects 1000 ?S% inf,o t-ree $ont-s -ence. To
-e"ge against e!c-ange rate risks it can ,ock into a specific ?S%#N* e!c-ange rate
>y
1. ntering into a forar" contract to se,, 1000 ?S%2. Buying a put option
1.+.1. Forard Transaction
1.+.1.1. Forard Transaction: Tradin"
#se
T-e Para$eters for creation of orar" Transaction are "efine" -ere.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeT01
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Foreign Exc'ange Trading Spot(For%ard Transactions
Create
Field Name (alues
Co$pany Co"e TS
Pro"uct Type 0A oreign e!c-ange3
Transaction Type 102 orar" Transaction3
Partner /SBC
Acti6ity &r"er
Purc-ase Currency N*
Sa,e Currency ?S%
Sa,e A$ount 1000
*ate (5
Da,ue %ate 88'
Page 1( of ('
8/10/2019 ConfigGuide EM MFA Treasury
15/43
8/10/2019 ConfigGuide EM MFA Treasury
16/43
Proof of Concept
Pay$ent A$ount 70
Currency N*
Pay$ent %ate 0 To"ay3
Sa6e. ore! transaction 10 sa6e" in co$pany co"e TS.
Page 1 of ('
8/10/2019 ConfigGuide EM MFA Treasury
17/43
Proof of Concept
1.+.1.). Forard Transaction: &xecute *rder
#seT-e Para$eters for e!ecuting an or"er are "efine" -ere.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeT@
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Foreign Exc'ange
Trading
Order
Execute
Field Name (alues
Co$pany Co"e TS
Transaction 10
Sa6e.
Page 1@ of ('
8/10/2019 ConfigGuide EM MFA Treasury
18/43
Proof of Concept
1.+.1.+. Forard Transaction: Back *ffice
#se?se Back &ffice functions to sett,e t-e orar" Transaction.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeT#5
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Foreign Exc'ange
Back Office Spot(For%ard Transactions
Settle
Field Name (alues
Co$pany Co"e TS
Transaction 10
Page 1 of ('
8/10/2019 ConfigGuide EM MFA Treasury
19/43
Proof of Concept
1.+.1.,. Forard Transaction: %ccountin"
#se
?se Accounting functions to post entries to t-e ;enera, )e"ger.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeTBB1
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Foreign Exc'ange"ccounting Posting Execute
Field Name (alues
App,ication oreign !c-ange
Co$pany Co"e TS
Page 17 of ('
8/10/2019 ConfigGuide EM MFA Treasury
20/43
8/10/2019 ConfigGuide EM MFA Treasury
21/43
Proof of Concept
;o to
8/10/2019 ConfigGuide EM MFA Treasury
22/43
Proof of Concept
1.+.).). *TC Currency *!tion: Back *ffice
#se?se Back &ffice functions to sett,e t-e &ption Transaction.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeT@5
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Foreign Exc'ange
Back Office
Standard Option
Settle
Field Name (alues
Co$pany Co"e TS
Transaction 11
Page 22 of ('
8/10/2019 ConfigGuide EM MFA Treasury
23/43
Proof of Concept
1.+.).+. *TC Currency *!tion: %ccountin"
#se
?se Accounting functions to post entries to t-e ;enera, )e"ger. &n,y t-e f,ogenerate" as a resu,t of t-e option pre$iu$ is poste".
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeTBB1
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Foreign Exc'ange"ccounting Posting Execute
Field Name (alues
App,ication oreign !c-ange
Co$pany Co"e TS
Page 2' of ('
8/10/2019 ConfigGuide EM MFA Treasury
24/43
Proof of Concept
1.,. Scenario No: , Forard ate %"reement 4F%5
ABC inten"s to >orro *s. &ne Cr. ne!t year for a tenure of one year. t e!pects
interest rates to rise. t ants to fi! t-e >orroing rate on t-e fun"s to >e >orroe"
ne!t year. /ence it enters into orar" *ate Agree$ent *A3.
1.,.1. Forard ate %"reement: Tradin"
#se
T-e Para$eters for creation of *A are "efine" -ere.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeT&01
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Deriaties Trading OTC #nterest $ate #nstrument Create
Field Name (alues
Co$pany Co"e TS
Pro"uct Type 'A *A3
Transaction Type 100 Purc-ase3
Partner /SBC
Acti6ity &r"er
Start of )ea" Ti$e n 2 "ays
Start of /e"ge Perio" 1 year after start of ,ea" ti$e
n" of /e"ge Perio" 2 years after start of ,ea" ti$e
Base A$ount 10000000 N*
nterest *ate 5.5
*eference nterest *ate SB P)*
nterest Ca,cu,ation Met-o" Act9'0
Page 2( of ('
8/10/2019 ConfigGuide EM MFA Treasury
25/43
Proof of Concept
;o to
8/10/2019 ConfigGuide EM MFA Treasury
26/43
Proof of Concept
1.,.). Forard ate %"reement: &xecute *rder
#seT-e Para$eters for e!ecuting an or"er are "efine" -ere.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeT@
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Deriaties
Trading
)isted Transaction
Execute
Field Name (alues
Co$pany Co"e TS
Transaction 1'
Sa6e.
Page 2 of ('
8/10/2019 ConfigGuide EM MFA Treasury
27/43
Proof of Concept
1.,.+. Forard ate %"reement: Back *ffice
#se?se Back &ffice functions to sett,e t-e *A Transaction.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeT&0(
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Deriaties
Back Office
OTC #nterest $ate #nstrument
Settle
Field Name (alues
Co$pany Co"e TS
Transaction 1'
Page 2@ of ('
8/10/2019 ConfigGuide EM MFA Treasury
28/43
Proof of Concept
1.,.,. 3nterest ate %d6ustment Sc0edule
#seT-e Para$eters to 6ie t-e nterest *ate A"4ust$ent Sc-e"u,e are "efine" -ere.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeT+0@
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Deriaties
#nformation System
Transaction
DeadlineMonitoring Deriaties+ #nterest $ate "d,ustment Sc'edule
Field Name (alues
Co$pany Co"e TS
Page 2 of ('
8/10/2019 ConfigGuide EM MFA Treasury
29/43
Proof of Concept
1.,.7. Manual 3nterest ate %d6ustment
#se
T-e Para$eters for Manua, nterest *ate A"4ust$ent are "efine" -ere.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeT318
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Deriaties Back Office !ariale #nterest Calculation
#nterest $ate "d,ustment Create
Field Name (alues
Co$pany Co"e TS
Transaction 1'
nterest *ate .0
Page 27 of ('
8/10/2019 ConfigGuide EM MFA Treasury
30/43
Proof of Concept
1.,.9. Forard ate %"reement: %ccountin"
#se?se Accounting functions to post entries to t-e ;enera, )e"ger. &n,y t-e interestgenerate" as a resu,t of t-e interest rate a"4ust$ent is poste".
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeTBB1
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Deriaties "ccounting Posting Execute
Field Name (alues
App,ication %eri6ati6es
Co$pany Co"e TS
Page '0 of ('
8/10/2019 ConfigGuide EM MFA Treasury
31/43
Proof of Concept
1.7.Scenario No: 7 3nterest ate Sa! 43S5
ABC -as >orroe" *s. &ne Cr. for fi6e years at annua, fi!e" rate of 5.5F t e!pects
interest rates to fa,,. t agrees an nterest *ate Sap *S3 it- a >ank. t recei6es
an annua, fi!e" rate of F an" pays a 6aria>,e rate of SB P)*.
nterest e!pense of 5.5F an" SB P)*
nterest re6enue fro$ Sap of F
ua,s an interest e!pense of SB P)* 0.5F
1.7.1. 3nterest ate Sa!: Tradin"
#se
T-e Para$eters for creation of *S are "efine" -ere.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeT&01
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Deriaties Trading OTC #nterest $ate #nstrument Create
Field Name (alues
Co$pany Co"e TS
Pro"uct Type 2A *S3
Transaction Type '01 *ecipient3
Partner /SBC
Acti6ity Contract
Contract %ate To"ayGs %ate
Start of Ter$ To"ayGs %ate 8 2 "ays
n" of Ter$
8/10/2019 ConfigGuide EM MFA Treasury
32/43
Proof of Concept
ffecti6e ro$ ,e nterest SB P)*
nterest Ca,cu,ation Met-o" Act9'0
nco$ing nterest
No$ina, A$ount 10000000
ffecti6e ro$
8/10/2019 ConfigGuide EM MFA Treasury
33/43
Proof of Concept
Field Name (alues
?p"ate *u,e ?na"4uste"
%ays 89# 1#
%ue %ate: Eorking %ay Ne!t orking "ay $o"ifie"
Ca,en"ar1 N
;o to
8/10/2019 ConfigGuide EM MFA Treasury
34/43
Proof of Concept
1.7.). 3nterest ate Sa!: Back *ffice
#se?se Back &ffice functions to sett,e t-e *S Transaction.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeT&0(
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Deriaties
Back Office
OTC #nterest $ate #nstrument
Settle
Field Name (alues
Co$pany Co"e TS
Transaction 15
Page '( of ('
8/10/2019 ConfigGuide EM MFA Treasury
35/43
Proof of Concept
1.7.+. 3nterest ate %d6ustment Sc0edule
#seT-e Para$eters to 6ie t-e nterest *ate A"4ust$ent Sc-e"u,e are "efine" -ere.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeT+0@
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Deriaties
#nformation System
Transaction
DeadlineMonitoring Deriaties+ #nterest $ate "d,ustment Sc'edule
Field Name (alues
Co$pany Co"e TS
Page '5 of ('
8/10/2019 ConfigGuide EM MFA Treasury
36/43
Proof of Concept
1.7.,. Manual 3nterest ate %d6ustment
#se
T-e Para$eters for Manua, nterest *ate A"4ust$ent are "efine" -ere.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeT318
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Deriaties Back Office !ariale #nterest Calculation
#nterest $ate "d,ustment Create
Field Name (alues
Co$pany Co"e TS
Transaction 15
nterest *ate 5.0
Page ' of ('
8/10/2019 ConfigGuide EM MFA Treasury
37/43
Proof of Concept
1.7.7. 3nterest ate Sa!: %ccountin"
#se?se Accounting functions to post entries to t-e ;enera, )e"ger.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeTBB1
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Deriaties
"ccounting
Posting
Execute
Field Name (alues
App,ication %eri6ati6es
Co$pany Co"e TS
Page '@ of ('
8/10/2019 ConfigGuide EM MFA Treasury
38/43
Proof of Concept
1.9. Scenario No: 9 Cross-Currency Sa! 4CCS5
ABC -as entere" into a ,ong ter$ e!port contract it- &M custo$er. To secure its
future foreign#currency cas- inf,os it is-es to conc,u"e a cross currency sap. &n
account of t-e e!port it i,, recei6e ?S% 1Mn p.a. for ne!t fi6e years. t ants to
sap t-e "o,,ar inf,os to recei6e rupee inf,os at a specific ?S%#N* e!c-ange rate
for t-e ne!t fi6e years.
1.9.1. Cross-Currency Sa!: Tradin"
#se
T-e Para$eters for creation of CCS are "efine" -ere.
$rocedure
Access t-e acti6ity using t-e fo,,oing na6igation options:
Transaction CodeT&01
S%$ &%S' %ccess Corporate Finance Management Transaction Manager
Deriaties Trading OTC #nterest $ate #nstrument Create
Field Name (alues
Co$pany Co"e TS
Pro"uct Type 2B CCS3
Transaction Type '0( i! to i!3
Partner /SBC
Acti6ity Contract
Contract %ate To"ayGs %ate
Start of Ter$ To"ayGs %ate 8 2 "ays
n" of Ter$
8/10/2019 ConfigGuide EM MFA Treasury
39/43
Proof of Concept
1st%ue %ate 8812
re. Mont- 12
i!. *ate 100
nterest Ca,cu,ation Met-o" Not Specifie"
nco$ing nterest
No$ina, A$ount (5000000
ffecti6e ro$ .
Page '7 of ('
8/10/2019 ConfigGuide EM MFA Treasury
40/43
Proof of Concept
Field Name (alues
Account Assign$ent *eference %CCS?S%
Portfo,io %*
Sa6e. inancia, transaction sa6e" un"er nu$>er 1.
Page (0 of ('
8/10/2019 ConfigGuide EM MFA Treasury
41/43
8/10/2019 ConfigGuide EM MFA Treasury
42/43
8/10/2019 ConfigGuide EM MFA Treasury
43/43
Proof of Concept