Purpose

The purpose of this document is to define the conversion approach to create conversion for Object 1184 – Security Class for Treasury related transactions 
in S/4 HANA.

The security class is a grouping of similar securities. It defines the general characteristics of a group of similar securities. It is a standardised way of maintaining, managing and processing securities with shared properties. E.g. Bonds which may include corporate bonds, Government Bonds etc. Some of the common characteristics could be instrument type, currency, interest method, Nominal value type, interest calculation method, payment frequency, settlement type, interest method, product category etc.

The security class controls on how transactions for these types of instruments are valuated, settled, reported and accounted. The security class has close integration with market risk analyser, accounting, portfolio analyser and market data.

Key tables and fields: 

There are three tables involved in S4 with respect to the maintenance of the Security Class Data and these are:

• TWX2 – This table stores the security index class data. It has the security class, Index class and secondary index number information.
• VWPANLA – This table stores the asset master data related to securities. Some of the key information stored are Security class ID number, Product category, status, Product Type, Security type etc.
• VWPANLE – This table stores data related to interest bearing securities. It contains information on Security ID number, Product category, classification, Nominal value of the security, Issue start and end date etc.
• VZZKOKO – This table stores “Table condition header data”. It contains fields that hold specific information or linking keys about table condition header data such as company code, product category, key part and date condition effective from.
• VZZKOPO - This table stores “Table condition items”. The table is essential for managing and organising data related to table condition items.
• VWPBONO - This table stores data related to securities listing.

Table: TWX2 is the central table for defining security class in SAP S/4HANA Treasury and Risk Management (TRM). It holds information on security class, index class and secondary index number. The key fields of TWX2 table are:  

• RANL – The security class ID number is used for the unique identification of a security class. It can, for example, correspond to an official security ID number.  The Class ID number can be assigned by user which can be ISIN or other identifier. It acts as the link with table VWPANLA
• VVRANLWX – Secondary indexes can be maintained for securities in addition to the ID number. It helps to identify the security in external data source. Field RANL (ID Number) is used as a link between 2 tables VWPANLA and TWX2
• VVRANLWI – It is a 2 digit numeric value which identifies the Secondary Index. 

Table: VWPANLA is the table in SAP S/4HANA TRM that stores the asset master data for securities. Some of the key information stored are Security class ID number, Product category, status, Product Type, Security type etc.

The key fields of VWPANLA are: 

• RANL – The security class ID number is used for the unique identification of a security class. It can, for example, correspond to an official security ID number.  The Class ID number can be assigned by user which can be ISIN or other identifier.
• SANLF - The product category is an internal key that controls processing of the objects defined by the product type. When defining the product types in Customizing, you assign a specific product category to each product type. The available product categories are predefined in the system.
• GSART - The product type allows you to subdivide a product category. For example, stocks can be grouped into domestic stocks and foreign stocks; bonds can be divided into fixed-interest bonds, variable-interest bonds, and zero bonds.
• XALKZ - The short text for the master record.
• XALLB - The long text for the master record.
• SROLEXT - Indicator to classify the security class. The values can be adapted by the user and classify all securities for evaluation purposes independently of system settings, such as product type or product category. Below is the list of Classification:
• 01        Money market fund
• 02        Bond
• 03        Stock
• 04        Shareholdings
• 05        Subscription rights       
• 06        Asset-Backed Securities  
• REPKE -   Name or number of the issuer Business Partner. BP must exist in BP Role Issuer TR0150  
• REWHR - The currency in which the security was issued.
• PEMKURS - It is value at which the security was issued. It must in %
• SNOTI - The indicator specifies whether the security is unit-quoted or percentage-quoted.
• Percentage Quoted
• Unit Quoted
• SWERTTYP - Indicator for the security type according to the form of transfer (e.g. bearer security).
• Bear Security
• Reg Non-Traded Security
• Registered Security
• SBOERNOT- Indicates whether or not the price of a security is determined at an exchange (listing).

Table: VWPANLE – This table stores data related to interest bearing securities. It contains information on Security ID number, Product category, classification, Nominal value of the security, Issue start and end date etc.

The key fields of VWPANLE are: 

• RANL – The security class ID number is used for the unique identification of a security class. It can, for example, correspond to an official security ID number.  The Class ID number can be assigned by user which can be ISIN or other identifier. It acts as the link with table VWPANLA.
• SWPKLASS - Indicates the type of bond. These values allow you to classify bonds for evaluation purposes. Below are the bond Classification:
• 901        Supranational bonds       
• 902        Sovereign bonds       
• 903        non-sovereign government bonds       
• 904        Quasi-government (agency) bonds       
• 905        Financial company bonds       
• 906        non-financial company bonds       
• 907        Other bonds       
• 911        Senior Secured       
• 912        Senior Unsecured
• 913        Junior Subordinated       
• 915        Mortgage-backed Securities       
• 916        Collateralized Debt Obligation       
• 917        Non-Mortgage ABS

Use the field RANL (ID Number) as a link between 2 tables VWPANLA and WPANLE

• BNOMS – The Original Nominal Amount field refers to the nominal amount on the bond certificate and not to the nominal amount of the entire issue (the global certificate). It is the smallest trading unit for the bond at the market.
• DEBEG – Issue date of the Security.
• CALC_BEGIN – Defines the start date of a calculation period in date format.
• DELFZ - Final Due Date of the security for maturity purpose.

Table: VZZKOKO – This table stores “Table condition header data”. It contains fields that hold specific information or linking keys about table condition header data such as company code, product category, key part and date condition effective from. The key fields of VZZKOKO table are:  

• SINCL – If you set this indicator, the final maturity date is included in the interest calculation. It will be a checkbox. Value will be X for inclusive and no value for not inclusive
• RKEY1 – It acts as the linkage to table VWPANLA where VWPANLA-RANL=VZZKOKO-RKEY1
• STILGART - Indicates which repayment type is used.
• 1 Maturity
• 2 Instalment Repayment
• 3 annuity Repayment
• 4 Perpetual Bond
• SZBMETH – This field specifies the procedure for counting the days for the interest calculation.
• SEFFMETH - Single-digit, numeric value that uniquely defines a method of calculating the effective interest rate in the system.

Table: VZZKOPO - This table stores “Table condition items”. The table is essential for managing and organising data related to table condition items.. The key fields of VZZKOPO table are:  

• RKEY1 – It acts as the linkage to table VWPANLA where VWPANLA-RANL=VZZKOPO-RKEY1
• DGUEL_KP - Determines the effective period of a condition item in conjunction with the Effective to date.
• SKOART - Condition Type determines if the conditions belong to maturity payment, interest, interest rate adjustment etc.
• JEXPOZINS - Specifies the type of interest calculation within an interest period. Interest periods are subdivided into calculation periods by split events. The type of interest calculation specifies how interest amounts are calculated within the calculation periods. It also determines how the calculation base amount is adjusted between the calculation periods. The following options are available for interest calculation:
• Linear interest calculation
• Exponential interest calculation.

It will update as X in table if selected Exponential Interest, else blank

• SZBMETH - Specifies the procedure for counting the days for the interest calculation.
• PKOND - Percentage rate of the condition item.
• SWHRKOND - Currency in which a payment is made or received, according to the condition type.
• SKALID - Specifies the ID of the factory calendar used for the working day shift.
• SKALID2 - Specifies the ID of the factory calendar used for the working day shift. If more than 1 calendar is used for working date shift calculation then maintain here
• SKALID3 - Specifies the ID of the factory calendar used for the working day shift. If more than 2 calendar is used for working date shift calculation then maintain here
• AMMRHY - The frequency specifies after how many months or calendar days a certain deadline is to be repeated. Quarterly, for example, is understood to be a frequency of 3 months.
• ATTRHY - The frequency specifies after how many months or calendar days a certain deadline is to be repeated. Quarterly, for example, is understood to be a frequency of 3 months.
• DVALUT - Date that represents the end of a calculation period for interest calculation.
• SVULT - You can use the month-end indicator to control the results of updates made on a regular basis.
• SINCL - If this field is flagged, the calculation date belongs to the calculation period.
• SVWERK - Specifies how to handle the calculation date if it falls on a day that is not a working day according to the settings in the Customizing activity Maintain Calendar.
  • 0 - No Shift
  • 1 - Next Working Day
  • 2 - Next Working Day Modified
• AFGSTAGEVZ - Adds or deducts the number of working days
• AVGSTAGE - Specifies how to handle the calculation date if it falls on a day that is not a working day according to the settings in the Customizing activity Maintain Calendar.
• DFAELL - Date within a period on which a payment is due.
• SFULT - You can use the month-end indicator to control the results of updates made on a regular basis.
• SFWERK - Specifies how to handle the due date if it falls on a day that is not a working day according to the settings in the Customizing activity Maintain Calendar.
  • 0 - No Shift
  • 1 - Next Working Day
  • 2 - Next Working Day Modified
• AFGSTAGEVZ - Adds or deducts the number of working days
• AFGSTAGE - Specifies how to handle the due date if it falls on a day that is not a working day according to the settings in the Customizing activity Maintain Calendar.

Table VWPBONO - This table stores data related to securities listing. The key fields of VWPBONO table are:  

• RANL - The security class ID number is used for the unique identification of a security class. It can, for example, correspond to an official security ID number.
• RHANDPL - Name or short text for the stock exchange where the security is listed.

 The treasury function in legacy is carried out in the Quantum system and therefore for the conversion of this object, the data/details need to be sourced from Quantum and transformed as applicable for S4HANA in Syniti and load using LTMC  (Migration template - S4_FI_TRM_CLASS)for Security Class in S4HANA

Conversion Scope

The scope of this document covers the approach for converting active Treasury – Security Class Master from Legacy Source Systems (Quantum) into S/4HANA following the Master Data Design Standard - DD-FUN-050 Master Data Standard_1184 – Security Class Master Data

The data from legacy system includes:

1. Active records for Security Class which are still in use/valid and have validity date is > cutover date

The data from legacy system excludes:

1. All Security Class records which have a validity date in the past and are not in use in any exposure

List of source systems and approximate number of records <number of company codes to be confirmed>

Additional Information

Multi-language Requirement

None

Document Management

Not Applicable

Legal Requirement

Not Applicable

Special Requirements

As the conversion involves a source system which is non-SAP, the below area needs special handling:

1. Extraction of Security Class record from source system i.e. Quantum is to be done manually.
2. Cleansing by business team to mark the Security Class records as blocked or completed, where applicable
3. The extracted records to be converted into a DCT and stored in the Syniti for transformation
4. Rating procedure if maintained in legacy should be within the correct validity period i.e. the validity should be “Equal to or Greater” than the cutover date.
5. The End of term date for the security class should be “Greater” than the cutover date.

Target Design

The Target design of the object 1184 - Security Class Master Data based on the MDS - DD-FUN-050 Master Data Standard_1184 - Security Class Master Data is as below

The technical design of the target for this conversion approach. 

Table – TWX2: Security Index Class - Mapping/Logical Fields

Note: Note: The fields marked as conditional are based on the field TWX2-RANL (Security Class ID).

Table - VWPANLA: Asset Master for Securities

Note: The fields marked as conditional are based on the field VWPANLA- VVRANLW (Security Class ID).

Table - VWPANLE: Interest Bearing Securities Data

Note: The fields marked as conditional are based on the field VWPANLE- RANL (Security Class ID).

Table - VZZKOKO: Condition Header Data

Note: The fields marked as conditional are based on the field VZZKOKO-SINCL (Security Class ID).

Table - VZZKOPO: Conditions Item Data

Note: The fields marked as conditional are based on the field VZZKOPO-RKEY1 (Key Part 1).

Table – VWPBONO: Security Index Class – Securities Listing Related Data

Note: Note: The fields marked as conditional are based on the field VWPBONO-RANL (Security Class ID).

Data Cleansing

For the purpose of the Object 1184- Security Class Master Data, the data cleansing should happen in the source systems i.e. Quantum as per below cleansing activity. The business cleansing is expected to be done by the business.

1. Identify all in active records for Security Class which are not valid and have validity date in the past
2. Identify all records which may still be having a validity date in the future but are against the counterparties which are nor relevant for migration

Exclude such records from the extraction from the Quantum and populate in the DCT

Conversion Process

The generic high-level process steps for the conversion are as below:

1. Extraction:
1. Extract from the source systems: Apply the selection parameters and data relevancy as mentioned in this specification, from the relevant tables
2. DCT: The DCT to be prepared if the data to be transformed and is part of the load file is not available in the Source system
2. Transform 
1. Transform fields by applying the fields and value mapping in the Syniti 
2. Generate and validate Pre-load files
3. Load
1. Load the validated Pre-load file using SAP's LTMC (S4_FI_TRM_CLASS) or the custom upload program as applicable. 

However, with respect to object 1184- Security Class Master Data - the conversion process will depend upon the DCT (Data Collection Template) which will be provided by the business based on the source data from Quantum system. This DCT will be used for transformation and generation of the pre-load file. 

The load will be done via LTMS using the "Security Class Product" template.

Data Privacy and Sensitivity

Extraction

Extract data from a source into Syniti. There are 2 possibilities:

1. The data exists. Syniti connects to the source and loads the data into Syniti. There are 3 methods:
1. Perform full data extraction from relevant tables in the source system(s).
2. Perform extraction through the application layer.
3. Only if Syniti; cannot connect to the source, data is loaded to the repository from the provided source system extract/report.
2. The data does not exist (or cannot be converted from its current state).  The data is manually collected by the business directly in Syniti. This is to be conducted using DCT (Data Collection Template) in Syniti.

The agreed Relevancy criteria is applied to the extracted records to identify the records that are applicable for the Target loads

Extraction Run Sheet

Selection Screen

Not Applicable

Data Collection Template (DCT)

Target Ready Data Collection Template will be created for1184- Security Class Master Data with exception of some fields which require transformation as mentioned in the transformation rule.

1184 - Security Class Mater Data DCT Rules

Note:

• Only the fields which are marked as Required or Conditional in the MDS for this object have been considered below
• Business Users to provide the values in the DCT.
• DCT checks only the field length and field behaviour (mandatory/optional etc.) checks, therefore Users must provide valid Configuration values where applicable 

Extraction Dependencies

Transformation

The Target fields are mapped to the applicable Legacy field that will be its source, this is a 3-way activity involving the Business, Functional team and Data team. This identifies the transformation activity required to allow Syniti to make the data Target ready:

1. Perform value mapping and data transformation rules.
1. Legacy values are mapped to the to-be values (this could include a default value)
2. Values are transformed according to the rules defined in Syniti
2. Prepare target-ready data in the structure and format that is required for loading via prescribed Load Tool. This step also produces the load data ready for business to perform Pre-load Data Validation

Transformation Run Sheet

Transformation Rules

Transformation Mapping

Below value mapping tables should be constructed in Syniti 

Transformation Dependencies

Pre-Load Validation

Project Team

Completeness

Accuracy

Business

Completeness

Accuracy

Load

The load process includes:

1. Execute the automated data load into target system using load tool or produce the load file if the loading of records to be done using LTMC (S4_FI_TRM_CLASS) cockpit object of Security Class Master (Security Class Products)
2. Once the data is loaded to the target system, it will be extracted and prepared for Post Load Data Validation with side by side check of each fields in scope of the objects with fields to be displayed as XXXX_ECC, XXXX_S4HANA, XXXX_MATCH ( As TRUE or FALSE) with an additional column denoting fields not matching and status of loading in S/4HANA as LOADED_IN_S4HANA ( As TRUE or FALSE) 

Load Run Sheet

Load Phase and Dependencies

The load phase for this object is ideally relevant for pre-cutover Phase 4

Configuration

Below configurations must exist to facilitate the conversion of this object.

Conversion Objects

Error Handling

The table below depicts some possible system errors for this data object during data load.  All data load error is to be logged as defect and managed within the Defect Management

Post-Load Validation

Project Team

The following post load validations will be done by Project Team

Completeness

Accuracy

Business

Completeness

Accuracy

Key Assumptions

• Master Data Standard is up to date as on the date of documenting this conversion approach and data load.
• Object 1184 is in scope based on data design and any exception requested by business.
• Only the relevant Security Class master data will be extracted by business from Quantum and will be provided in the DCT 
• The LTMC template "S4_FI_TRM_CLASS" will be used

See also

Change log