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

AC820 Securities Management

AC820
Securities Management
SAP AG 1999 SAP AG

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

Copyright

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.

SAP AG 2002

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Treasury
Level 2 Level 3
AC815 5 days Loans Management for Financial Services AC816 3 days Loans Management for Corporates AC820 4 days

AC030

3 days

Treasury Overview

AC810 3 days Basic Functions in Treasury Management

Securities Management AC825 3 days Money Market, Foreign Exchange and Derivatives AC830 AC805 AC010 5 days 3 days 3 days

Market Risk Management Cash Management AC215 Cash Budget Management 1 day

Financial Accounting and Reporting

SAP AG 1999

Class Master Data: Create Convertible Bond

ID number 118900 Basic data Convertible bond 99/03

Issue Issuer Nominal value ... 100

Conversion Reference security Premium Amount Currency UNI Conversion period From To Conversion ratio Numer. Denom. 2 1

SAP AG 1999

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. The amount to be paid for each stock in the case of a -

- Conversion premium: conversion.

Exercise: Settle Transaction

SAP AG 1999

Example: Trader; Possible Entries

Per company code: 1) Define trader

Customizing

2)

a) Assign trader name to the user

default for transaction entry

b) Rename the possible entries M and T for the user, if required

Customizing

3) Authorize trader for transactions

Application

SAP AG 1999

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.

Assign Transaction Flow Types to Securities Flow Types

Transaction flow type 0100 0200 0301 0302 0305 0306 0308 0311 0312 0870 0870

Direction Outflow Inflow Outflow Outflow Outflow Outflow Outflow Outflow Outflow Inflow Outflow

SEC flow type 1000 2000 3001 3002 3005 3006 3008 3011 3012 8701 8702

SAP AG 1999

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

Derived Flows: Customizing

Define Derivation Procedure Proc. Description

ZAST Tax 1/Tax 2 Define Derivation Rules

Eff. from

Inc. flw

D + -

Deriv. flow 0306 0308 0308

D -

Percent 30 7.5 5.5

01/01/YY 0200 01/01/YY 0306 01/01/YY+1 0308

SAP AG 1999

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 %

Automatic Posting II: Nominal Interest - Example

Nominal interest (flow type 5000) 5000: Receivables to revenue

12,000 12,000 P

1) Automatic posting a) 5000: Receivables to revenue

12,000 12,000

I P

b) 6000: Bank clearing to receivables (Flow type 6000: Nominal interest from incoming payments)

2) Bank statement Bank to bank clearing

12,000

3) Incoming payment 6000: Bank clearing to receivables

P 12,000

SAP AG 1999

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

Capital Increase: Subscription Rights - Overview

Subscription right Basic data Pos. indicator New stock Basic data (Conditions)

Post Purchase SubR Sell SubR

Subscription rights in position

New stock Pos. indicator

Exercise SubR

SAP AG 1999

New stocks in position

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.

Capital Increase: Exercise Subscription Rights

Subscription rights posted SubR purchases SubR sales: 50 units

Exercise subscription rights

: 150 units at 35.72 UNI at a subscription price of 100 UNI per new stock

Posting log 222 222: 194200 to 133000 5,357.15

333 333: 133020 to to 194200 113105

8,357.15 5,357.15 3,000.--

SAP AG 1999

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.

Capital Increase: Transfer New Stock

New stock
A

Post
B xx xx

Old stock
ID no.

ID no.

333 333

111 111

Posting log PK 111 111 40 50 40 50 Account Amount 133020 194200 194200 133020 8,357.15 UNI D 8,357.15 UNI C 8,357.15 UNI D 8,357.15 UNI C

333 333

SAP AG 1999

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).