Corporate Action Issue Currency Changeover Basic Data Security Class: 74 Product Type: 04I Fixed Interest Bond

nd Nominal value: INR 1, 00,000 Acquisition Value: 1, 03,000 Issue Currency: INR Create Class for the Bond (FWZZ)

Click

Update and click

Click

Update with above data and click

Click

Purchase of Bond FTR_CREATE

Click Update and click

Click on

Click on

Click on

Accrued interest of 27.28

Click on

Click

Settle the Transaction FTR_EDIT

Click on

Click on

Click on

Click Click

Post the Transaction (TBB1) Update with following data. Do test run first, then uncheck test run box and do production run.

Click

Click on

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Click on

Back to SAP Easy Access menu The Issue currency INR has been changed to USD by the issuer of the bond. The changeover is taking place effective on 31.01.2012 and the exchange rate of INR to USD on that date id 1 USD = 46.69 INR.The Issue currency changeover will convert all the flows including those flows before the key date to USD.After the changeover, flows will exist as if these were always had been in USD.In our example, the purchase value will be 1, 03,000 / 46.69 = USD 2206.04 and the nominal value will be 1, 00,000 / 46.69 = USD 2141.79 Create Corporate Action for Issue Currency Changeover. (FWK0)

Click

Update

Click

Activate

Back Post the Corporate Action (FWKB) In the main screen do not enter your company code. If we enter our co. code, the following message will appear

First do test run, then production run.

Click on

Click on

Back to

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Back The Corporate Action does not pass the accounting entries for writing off the amounts in the old currency in the general ledger and post them in the new currency. The transfer of Book values are scheduled which needs to be fixed using Transaction code TPM18. TPM 18 Update

Do test run, then production run.

Click Valuation Area 001 screen

Click on

Double Click on

Double Click on

Back When you receive the statement from the Depository bank, you realize that the nominal amount is USD 2,140 where as in the system the nominal amount is shown as USD 2,141.79 (1, 00,000 / 46.69) .This could have been caused by rounding differences. This now, needs to be rectified so that the nominal as per the system and the Depository Bank matches. The Nominal Adjustment is carried out by using system transaction TPM 22. Before that we shall see the position list.

IMG Setting before executing TPM22 IMG FSCM TRM TM Securities Position Management Security Account Management Update Types Assign Update Types in the Functions of Security Account Management.

Double click on Click Update

Click Now come to TPM 12 Update

Execute

Double click on 1st line

Back Now go for TPM 22

Double click TPM22

Click Enter Security Account Double click on Position value date and update with following data.

Click

to validate the entry,

Click

Click Back

Display the Position List after Issue Currency Changeover and Nominal Adjustment. Execute TPM 12 Update

Execute

End

Prepared by rajkm10