TREASURY AND RISK

MANAGEMENT
USER MANUAL
LONG TERM LOANS PROCESS
 SAP TRM – Long Term Loans Process
Long term Loan is a form of Debt that is paid off over an extended time frame that
exceeds one year in duration. Obtaining a long term loan provides a business with working
capital that it can use to purchase assets, inventory or equipment which can then be used to
create additional income for the business.

Before you can use the Interest Rate Instrument, you have to maintain master data.

You have to create your Business Partners , assign the corresponding roles to these partners
and maintain the transaction authorizations.

You have to set up the Standing Instructions (correspondence, payment details) and release
the business partner.

To manage interest rate instruments, you can use the standard functions and processes for
entering, editing and processing transactions, managing their status, and transferring data to
Financial Accounting in SAP

To Simplify the Process, check the below diagram. These are the common steps for the above
mentioned processes.

Create Settle Posting

CREATION

POSTING
SETTLEMENT

Contract Contract Contract

to FI
TM_51 TM_54 TBB1
Long Term Loan Process having following steps:
1. Create Facility
2. Change and Settle Facility
3. Create Interest Rate Instrument
4. Change Interest Rate Instrument and assign Facility
5. Settle Interest Rate Instrument
6. Posting of Long Term Loans to FI
7. Accrual / Deferral of Expenses and Revenues
8. Payment of Interest accounting and payment with penal Interest
9. Reversal of transaction
10. Repayment of Loan

1. Create Facility

Path

SAP Menu Accounting => Financial Supply Chain Management=> Treasury

Path and Risk Management=> Transaction Manager=> Money
Market=> Trading=> Create Financial Transaction
SAP T-code FTR_CREATE

1.Enter T code TM_61 in Transaction box

2.Click on Enter
 Click here to get
company code

Click F4 or Drop down button at company code to get and select company code Like
this enter all details as mentioned in the below screen shot

Click on Enter
2.Click on
Profiles

1.Enter start of
term and end of terms
Click on Create
Button
Credit line amount and
Valid from
Which are in grey mode in previous screen will be opened
Enter amount and Valid from as mentioned in the screen shot
Click on Rules
Tab
Click on Dropdown button
and select Company Code
 2.Click on
Administration Tab

1.We will get Company

Code details here
Click on Dropdown button
and select Valuation class
 Click on Save button

Above message box will appear.

Click on Enter
2. Edit Facility

Path

SAP Menu Accounting => Financial Supply Chain Management=> Treasury and
Path Risk Management=> Transaction Manager=> Money
Market=> Trading=> Edit Facility
SAP T-code TM_62
 1.Enter T code
2.Click on TM_62 in
Enter Transaction box

Press Enter
Transaction will be opened. If any changes are there we can do and save the
transaction.
 Click on Facility at menu and select
‘Settle’.

Transaction will be settled.

3. Create Long Term Loan Transaction

Path

SAP Menu Accounting => Financial Supply Chain Management=> Treasury and
Path Risk Management=> Transaction Manager=> Money Market=>
Trading=> Create Financial Transaction
SAP T-code TM_51

SAP SAP Easy Access

1.Enter T code
TM_51 in
2.Click on Transaction box
Enter

TM_51 – Create Long Term Transaction

 1.Enter details like
Company code – 1000 Product type – 55A Transadtion Type - 20

2. Click on Enter
 4.Click on Administration data

1.Enter 2. Term Start date

Amount End date

3.Percentage Rate
Int.Calc.Method Frequency
Every – 3 months
This will be automatically picked based on the Product type and Transaction type
 Click on Payment Details

OTHER FLOWS LIKE PROCESSING FEE, STAMP FEE ETC CAN BE GIVEN IN THE ABOVE SNAP SHOT

1.Select ‘+’ in 1st colomn and ‘_’ in second line item

Click here to select

line item and click on details button
 1. Enter here
House Bank and
Account ID

2. To go to next line item click

3.Click on overview button on the arrow and enter House
after completion of house bank bank details
details for all line items
3.Click on Cash Flow
 This is the Cash Flow.
Save the transaction

2and3.Change and Settle Long Term Loan Transaction Path

SAP Menu Accounting => Financial Supply Chain Management=> Treasury and
Path Risk Management=> Transaction Manager=> Money Market=>
Trading=> Edit Financial Transaction
SAP T-code TM_52
 1.Enter Tcode –
2.Click on tick TM_52
mark to enter

2.Click on tick
mark to enter
1.Enter details
Company code Transaction
Click on Administration
Tab
 Click on Create button
to create Facility

Click on the dropdown button and select transaction

Click on Choose button
5. Settle Interest Rate Instrument

Click on Interest Rate Instrument

Select “Settle” option

If we open the Facility Screen T Code – TM_62 and observe

Press Enter
Click on Profiles
 Project – JBVNL
Long Term Loans
Process
End User Manual – Treasury and Risk Management
 Project – JBVNL
Long Term Loans
Process
End User Manual – Treasury and Risk Management

Save the
Transaction
 Project – JBVNL
Long Term Loans
Process
End User Manual – Treasury and Risk Management

Click on Facility and select

‘Settle’.

6. Posting of Long Term Loans to FI

Path

SAP Menu Accounting => Financial Supply Chain Management=> Treasury and
Path Risk Management=> Transaction Manager=> Money
Market=> Accounting=> Posting=> Post Flows
SAP T-code TBB1

2.Click to 1.Enter T Code

Enter
 Project – JBVNL
Long Term Loans
Process
End User Manual – Treasury and Risk Management

4.Click on
Execute button 1.Select only Money Market
and deselect all others

2.Enter Inputs of
Company Code Transaction

3.Keep test
run check box

Accounting Entry
 Project – JBVNL
Long Term Loans
Process
End User Manual – Treasury and Risk Management

Click on Back
 Project – JBVNL
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End User Manual – Treasury and Risk Management
 Project – JBVNL
Long Term Loans
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End User Manual – Treasury and Risk Management

Accounting Entry with FI Document Number

 Project – JBVNL
Long Term Loans
Process
End User Manual – Treasury and Risk Management
7. Accrual / Deferral of Expenses and Revenues
Path

SAP Menu Accounting => Financial Supply Chain Management=> Treasury and
Path Risk Management=> Transaction Manager=> Money Market=>
Accounting=> Accrual / Deferral=> Execute
SAP T-code TBB4

2. Click on Enter 1.Enter T

code
 Project – JBVNL
Long Term Loans
Process
End User Manual – Treasury and Risk Management

3.click on
Execute button

1.Enter details like

Company Code Transaction

2. Enter date and

Select Month-end check box
 Project – JBVNL
Long Term Loans
Process
End User Manual – Treasury and Risk Management

2.Click on Logs and Messages

1.Interest Calculation f

We will get Accounting Entry

Accounting
Entries for Interest Accru
Click on Back
Deselect Test Run Button
Click on Execute button
 Project – JBVNL
Long Term Loans
Process
End User Manual – Treasury and Risk Management

2.Click on Logs and Messages

1.Interest Calculation

Accounting Entries of Accrued interest and Reversal with FI documents

 Project – JBVNL
Long Term Loans
Process
End User Manual – Treasury and Risk Management

8. Payment of Interest accounting and payment with penal Interest

Payment of Interest is due on 11.02.2018 and we can do Transaction with T Code TBB!
Mention payment due date as 11.02.2018 Run
with Test Run check box
We will get accounting entry
Come back
Remove Test run check box
Execute
We will get accounting entry with FI document.

For late payment of Interest with Penal Interest Actual due date 11.02.2018 and we are paying on
17.02.2018.

Go to TM_52
Enter

Enter
 Project – JBVNL
Long Term Loans
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End User Manual – Treasury and Risk Management

Click on other Flows

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Long Term Loans
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End User Manual – Treasury and Risk Management

Provide details as mentioned in the above screen shot and payment amount put Rs.1/-
 Project – JBVNL
Long Term Loans
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End User Manual – Treasury and Risk Management

Select line item

Click on Details button
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Long Term Loans
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End User Manual – Treasury and Risk Management

Here we have to provide the details

1.Enter details like

Calculation from and To Base amount Percentage Rate

2.Click on Copy
2.Click on Pro Rata
Temporis
 Project – JBVNL
Long Term Loans
Process
End User Manual – Treasury and Risk Management

2.Click on Cash
Flow Tab

1.Click on Pro Rata

Temporis
 Project – JBVNL
Long Term Loans
Process
End User Manual – Treasury and Risk Management

1.Penal Interest
reflected in Cash Flow

Click on Save Button

Click on Inerest Rate Instrument and select ‘Settle’

 Project – JBVNL
Long Term Loans
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End User Manual – Treasury and Risk Management
Go to TBB1
Execute

3.click on
Execute button

1.Enter details like

Company Code Transaction

2. Enter date
 Project – JBVNL
Long Term Loans
Process
End User Manual – Treasury and Risk Management

Accounting Entries
Back
Remove Test Run Check Box
Execute

Accounting Entries for Nominal interest and Penal interest Payment Accounting Entries of
Interest Payment with FI documents
 Project – JBVNL
Long Term Loans
Process
End User Manual – Treasury and Risk Management
9. Final Repayment with Interest Payment – TBB1
Execute

Execute
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Long Term Loans
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End User Manual – Treasury and Risk Management

Click on Posting Log

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End User Manual – Treasury and Risk Management

Back
Remove Test Run Check Box
Execute
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Long Term Loans
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End User Manual – Treasury and Risk Management

Transactions posting with FI documents

10. Reversal of Transaction

TM_52

Click on Interest Rate Instrument and select ‘Reverse’

 Project – JBVNL
Long Term Loans
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End User Manual – Treasury and Risk Management
Run T code - TPM10

Execute
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End User Manual – Treasury and Risk Management

Back
Remove Test Run Check Box
Execute

Click on ‘Choose those to Reverse’

Execute
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Long Term Loans
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End User Manual – Treasury and Risk Management

Click on ‘Logs and Messages

END OF LONG TERM LOANS PROCESSING

 Project – JBVNL
Long Term Loans
Process
End User Manual – Treasury and Risk Management