Process Financial Transaction
Application component: Transaction Management
App type: SAP GUI
Description:  You can use this function to process a financial transaction. It is a central entry point for processing your financial transactions. However, you can call each processing function for a financial transaction from the initial screen.  
Key features:    Open the Process Financial Transactions app on SAP Fiori launchpad, or choose in the area menu in the back-end system Accounting  Financial Supply Chain Management  Treasury and Risk Management  Transaction Manager  Trading / Back Office  Process Financial Transaction.    Enter the company code.    Select the transaction. You can make this selection using the search help. On the different tabs in the search help, you can use a broad range of criteria to search for your financial transactions.   The following trading and back office functions are available for your financial transactions:  Note You can use the dropdown list in the Preselection for Group of Financial Instruments box to preselect the relevant activities available for further processing of a financial transaction.    Function    Entries    Comment       Change    Choose Change.  Make your changes and save your entries.    You can change the data on the tabs.      Display    Choose Display.    You can also display the master data for the business partner.      Settle   Choose Settle. The Contract Settlement screen appears.  Choose the area for which you want to enter or change settlement data.  Save your entries.    Use the Settle Financial Transactions function to indicate a transaction that was processed in the back-office area. When you save your entries, the system changes the activity category of the transaction.  Use the Settlement Check function to check and, if required, add data for the financial transaction. When you save a transaction, you fix it and mark the transaction flows for posting.  You can clear the account after settlement.  See also: Settlement      Reverse    See also Reversal.        Give Notice    Choose Give Notice.  Make your changes and save your entries.    When you give notice on a financial transaction, the transaction remains active and changes to the Termination activity category. When you value this transaction again, any unrealized gains and losses that have already been posted are disregarded.  By giving notice, you are settling the OTC option.  Outstanding (fixed or variable) interest payments of swaps and cap/floors are carried out up to the notice date.  Interest rate adjustment dates that fall before the notice date but after the contract conclusion date do not change. The final payment due upon maturity is not made. You have to return the nominal amounts manually.  You can only give notice on FRAs before the interest rate adjustment date. In this case, giving notice terminates the contract within the lead period (unscheduled termination), and results in a settlement payment.  You can enter a settlement payment on the Other Flows tab when you give notice.      Roll Over    Choose Roll Over.  If the rollover is linked to a change in the amount invested or borrowed, enter the amount and the flow type. This indicates whether an increased or decreased amount is involved.  You use the For Rollover field to specify the type of interest flows that are due on the rollover date. The interest can be paid, capitalized, or deferred on the rollover date.    You can also roll over a financial transaction with changed conditions and use the same transaction number.  You can display the current business transaction along with its history and detailed information.  With the memo book function, you can enter additional information for each activity.  By choosing Extras  Amount Overview, you view a list of all transaction-related capital and interest flows sorted according to amounts that are due prior to/on the respective key date.  When you roll over the transaction, you add a new activity to the transaction. The activity is processed in accordance with the determined transaction and position management process.  You can change the end of term in the fast-processing function.  You can change the end of term of a financial transaction until repayment. You have to make sure, however, that interest flows that have already been released, posted, or manually changed are not affected by shortening the term.  You can make no further changes to the lent number of units or the nominal amount.      History    Choose History. The system lists the activities that are active, reversed, or have been replaced by a follow-up activity. Information on the transaction status and processor is also displayed.    The history function lists all previous activities for the selected transaction.      Expiration    Choose Expiration.    A security option is deleted if it has no value. You use this function to settle the expiration at a later stage in the back-office area.      Exercise    Choose Exercise. When you save the option, it is stored under the relevant activity category.    You can only exercise an OTC option when it has reached the Knock-In or Knock-Out activity category.  In the case of a knock-in option, the transaction must first run through the knock-in process.  In the case of cash settlement, the system uses the clearing amount when the option is exercised. This is based on the difference between the strike and market price.  When the option is exercised physically, the system generates the spot transaction from the underlying transaction (option).  To transfer unrealized gains and losses that have already been posted, you have to restart the Determine Realized Gains/Losses program.      Choose Execute.    Choose Execute.  Choose Save.    The function for executing a financial transaction changes a security transaction from the Order activity category into the Contract activity category.  You can add to and change the order data to reflect the actual transaction data.  If you have assigned processing category 00001 to the transaction type, you can no longer change the data once you have saved the transaction. The transaction is assigned the status Flagged for Posting.      Knock-In    Choose Knock-In.  Enter the company code and the barrier transaction number.  Save your entries. The transaction has the Knock-In activity category.    If a barrier option has reached the agreed limit, you have to set the Knocked-In status (see Barrier Option).  Using the knock-in activity, you can activate the option for Exercise or Expiration.  Depending on the processing category, settlement can be a prerequisite for knock-in.  You can check the instrikes and outstrikes of currency barrier options using the Expiration/Barrier Check function (see Collective Processing: Financial Transaction). After comparing the transaction data with the relevant prices, the system proposes a transaction (knock-in, knock-out, or expiration) for further processing.      Knock-Out    Choose Knock-Out.  Enter the company code and the barrier transaction number.  Save your entries. The transaction has the Knock-Out activity category.    If a barrier option has reached the agreed limit, you have to set the Knocked-Out status. After the knock-out activity has been performed, the option is activated for Expiration.      Premature Settlement      When you use the Premature Settlement function, the system generates two single transactions that are linked by a reference (swap unit): One transaction offsets the forward exchange transaction initially entered (possibly with identical, opposite conditions to avoid rate gains/losses). You can adjust the term with the other transaction, using existing amount data as default values. The new transactions are linked to the original transaction.  You can break down a forward exchange transaction into subsequent transactions using premature settlement and/or rollover. As a result, you can prematurely settle one part of the transaction and roll over the other part of the amount using two subsequent transactions with different value dates. Using the liquidity effect, you can generate revenues and expenses for rollovers on the basis of the old rate and include them as a markup in the rollover transaction. The swap components are also grouped into pairs here by means of a reference.     
Business roles: Commodity Risk Manager - Hedge Accounting| Treasury Specialist - Back Office| Treasury Specialist - Front Office
Treasury Specialist - Front Office : 
Concludes and manages financial transactions to hedge foreign exchange and interest rate risks.

Commodity Risk Manager : 
Monitors and analyses the commodity risk situation, ensures compliance to the risk policy.

Cash Management Specialist : 
Executes cash transactions and centrally manages bank accounts with a wide range of attributes, including overdraft limit and signatories, utilizing approval process for opening or closing bank accounts, and the regular inventory/auditing process.

Commodity Risk Manager - Hedge Accounting : 
Manages the overall commodity hedge accounting process. Receives commodity planning data, initiates transformation of planning data to commodity plan exposures, decides on designation and de-designation of commodity derivative trades.

Cash Manager : 
Is responsible for overall liquidity status of group corporate, executes cash transactions and centrally manages bank accounts with rich attributes, including overdraft limit and signatories, approves for opening or closing bank accounts, etc.

Treasury Specialist - Back Office : 
Processes financial transactions, sends confirmation to counterparties, imports market data and runs the valuation.