configguide em mfa treasury

8/10/2019 ConfigGuide EM MFA Treasury

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Proof of Concept

Proof of Concept

Execution Guide

Corporate Finance Management

August 2005


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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.........................................................

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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...........................................................

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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$

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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


Transaction CodeTM0


Money Market

Back Office Fixed-Term Deposit Settle

Field Name (alues

Co$pany Co"e TS

Transaction (

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Proof of Concept

1.1.+. Fixed-Term e!osit: %ccountin"

#se

?se Accounting functions to post entries to t-e ;enera, )e"ger.

$rocedure


Transaction CodeTBB1


Money Market Accounting Posting Execute

Field Name (alues

App,ication Money Market

Co$pany Co"e TS

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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


Transaction CodeTM*1


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

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1.).). Mana"ement e!orts: Cas0 Flos

#seT-e Cas- f,o report contains t-e Flowsin c-rono,ogica, or"er.

$rocedure


Transaction CodeT+12


#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

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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


Transaction CodeT01


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'

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Pay$ent A$ount 70

Currency N*

Pay$ent %ate 0 To"ay3

Sa6e. ore! transaction 10 sa6e" in co$pany co"e TS.

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Proof of Concept

1.+.1.). Forard Transaction: &xecute *rder

#seT-e Para$eters for e!ecuting an or"er are "efine" -ere.

$rocedure


Transaction CodeT@


Foreign Exc'ange

Trading

Order

Execute

Field Name (alues

Co$pany Co"e TS

Transaction 10

Sa6e.

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Proof of Concept

1.+.1.+. Forard Transaction: Back *ffice

#se?se Back &ffice functions to sett,e t-e orar" Transaction.

$rocedure


Transaction CodeT#5


Foreign Exc'ange

Back Office Spot(For%ard Transactions

Settle

Field Name (alues

Co$pany Co"e TS

Transaction 10

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Proof of Concept

1.+.1.,. Forard Transaction: %ccountin"

#se

?se Accounting functions to post entries to t-e ;enera, )e"ger.

$rocedure




Foreign Exc'ange"ccounting Posting Execute

Field Name (alues

App,ication oreign !c-ange

Co$pany Co"e TS

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1.+.).). *TC Currency *!tion: Back *ffice

#se?se Back &ffice functions to sett,e t-e &ption Transaction.

$rocedure


Transaction CodeT@5


Foreign Exc'ange

Back Office

Standard Option

Settle

Field Name (alues

Co$pany Co"e TS

Transaction 11

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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




Foreign Exc'ange"ccounting Posting Execute

Field Name (alues

App,ication oreign !c-ange

Co$pany Co"e TS

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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


Transaction CodeT&01


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

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1.,.). Forard ate %"reement: &xecute *rder

#seT-e Para$eters for e!ecuting an or"er are "efine" -ere.

$rocedure


Transaction CodeT@


Deriaties

Trading

)isted Transaction

Execute

Field Name (alues

Co$pany Co"e TS

Transaction 1'

Sa6e.

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Proof of Concept

1.,.+. Forard ate %"reement: Back *ffice

#se?se Back &ffice functions to sett,e t-e *A Transaction.

$rocedure


Transaction CodeT&0(


Deriaties

Back Office

OTC #nterest $ate #nstrument

Settle

Field Name (alues

Co$pany Co"e TS

Transaction 1'

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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


Transaction CodeT+0@


Deriaties

#nformation System

Transaction

DeadlineMonitoring Deriaties+ #nterest $ate "d,ustment Sc'edule

Field Name (alues

Co$pany Co"e TS

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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


Transaction CodeT318


Deriaties Back Office !ariale #nterest Calculation

#nterest $ate "d,ustment Create

Field Name (alues

Co$pany Co"e TS

Transaction 1'

nterest *ate .0

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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




Deriaties "ccounting Posting Execute

Field Name (alues

App,ication %eri6ati6es

Co$pany Co"e TS

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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





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$


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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$


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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


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Proof of Concept

1.7.). 3nterest ate Sa!: Back *ffice

#se?se Back &ffice functions to sett,e t-e *S Transaction.

$rocedure


Transaction CodeT&0(


Deriaties

Back Office

OTC #nterest $ate #nstrument

Settle

Field Name (alues

Co$pany Co"e TS

Transaction 15

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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


Transaction CodeT+0@


Deriaties

#nformation System

Transaction

DeadlineMonitoring Deriaties+ #nterest $ate "d,ustment Sc'edule

Field Name (alues

Co$pany Co"e TS

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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


Transaction CodeT318


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

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Proof of Concept

1.7.7. 3nterest ate Sa!: %ccountin"

#se?se Accounting functions to post entries to t-e ;enera, )e"ger.

$rocedure




Deriaties

"ccounting

Posting

Execute

Field Name (alues

App,ication %eri6ati6es

Co$pany Co"e TS

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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





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$


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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$ .

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Proof of Concept

Field Name (alues

Account Assign$ent *eference %CCS?S%

Portfo,io %*

Sa6e. inancia, transaction sa6e" un"er nu$>er 1.

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Proof of Concept

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