Valuation area 001 posting issue

[Former Member]

HI,

I have got this error message. System doesn't post to VA 001 prior to 20.05.2011. How can I resolve this?

Business Transaction Cat: Interest on Position Date: 01.05.2011 is before the initialization key date of valuation area 001

Message no. TPM_TRG461

Diagnosis

The business transaction ' Business Transaction Cat: Interest' with position date Position Date: 01.05.2011 should be changed or created. It occurs before the initialization key date of valuation area 001. The business transaction that posted the position value on the key date may no longer specify the correct value.

System Response

The business transaction is not transferred to valuation area 001 since it occurs before the initialization key date.

Procedure

If the position displays an incorrect book value based on the change made, you may be able to adjust the book value by manual valuation.

[lorenz_sperl]

Hi?

you cannot create flows/postings before the Initialization date.

Normally you have to decide before migration, whether to have

a) the whole cashflow (since deal-inception), or

b) the cashflow starting with the as per migration date current (interest-) condition

Accordingly the migration date has to be choosen.

-> NO cashflow before migration date!

Regards

Lorenz

[Former Member]

Thanks Lorenz,

I'm working on a new implementation and Go-live is in August. We intend to use parallel valuation and the transactions will be created during cutover using their original transaction dates (which may be in earlier fiscal years) however the postings to FI will start only after cutoff date. Now the concern is which date should be taken as the key date for initialization of valuation areas. In sandbox, initialization was executed on 20.05.2011 considering 01.01.2001 as the key date. Now when I post transactions say for a bond purchase, system shows scheduled interest in valuation area 002 for the entire period but scheduled interests are not shown in valuation area 001 prior to 20.05.2011. They are only visible for future.

Thanks and regards,

[lorenz_sperl]

Hi,

normally TPM63 is used for setting start-values (aquisition value, book value, amortization, accruals, etc) for a specific go-live date (which is the date of initialization).

Trade date of deals is the original date, whereas 1st (interest) condition starts at/before go-live date resulting to have the 1st payment after go-live date.

TPM_INITIALIZE has to be run for all VAs (...you are presumably on a rel. > 4.7 x 110).

Regards

Lorenz

[Former Member]

Hi,

Suppose I want to capture all the postings which were made starting from the issue date to Go-live date for a fixed income instrument say bond or fixed deposit then what should be the approach?

What if I keep initialization date as 01.01.2004 for all valuation areas and momentarily make update type not relevant for posting and complete all accrual/amortisation/valuation processes for the past postings and then revert back the changes made to update type. Will it help to capture entire life cycle?

Assumption is all the instruments have issue or purchase date after 01.01.2004.

Thanks

Edited by: Abhinav Sethi on Jun 1, 2011 10:40 AM

Edited by: Abhinav Sethi on Jun 1, 2011 10:41 AM

[lorenz_sperl]

Hi,

in case you want to have the whole cash flows since inception in TR (=> date of initialization to be at/prior to first cashflow date), you normally set the posting status to "F" (w/o creating posting documents) using transaction TBB1_LC.

Regards

Lorenz

[Former Member]

Hi,

Thats what I tried in development sandbox, keeping the initialization date as 01.01.2001 but unfortunately landed up in another problem where system is not showing cash flow in valuation area 001 (operative VA) prior to 20th May, 2011, the day on which I had executed initialization. However it shows interest and other flows correctly as scheduled in other Valuation areas. What could be the reason?

TBB1_LC will be used for some of the postings but since it cannot be used for all postings, e.g. interest postings in case of bonds, I will have to resort to update type method also.

Thanks.

[lorenz_sperl]

Hi,

in case initialization date is set wrong for VA001 - it has to be corrected (reverse of TPM_INITIALIZE, if possible).

Regards,

Lorenz

[Former Member]

Hi Lorenz,

How do you reverse initialization of VA001. I can see only VA 002 and 003 in TPM_INITIALIZE.

Thanks.

Edited by: Abhinav Sethi on Jun 1, 2011 4:24 PM