Example for TPM15M CPLTD (current portion

of a long term debt)

In the following notes, functionality of CPLTD (current portion of a long term debt) has been introduced:

1515125 reclassification money market: current portion long term

1776554 release of CPLTD reclassification functionality

There is detailed explanation regarding the functionality as below:

A money market deal is classified as long term (debt or asset). A part of the deal is scheduled to be repaid in
the near future (for example installment repayments within the next year). This part is called the current portion.
The current portion of a long term debt (CPLTD) has to be handled separately from the long term position:

• the book value of the CPLTD is assigned to separate balance sheet accounts

• valuation and accrual/deferral is determinded for both positions (long term and current portion of long
term) separately (and posted to different accounts)

• income and expense (for example interest payments) are calculated and posted separately for both
positions

Here is an example regarding the whole process.

Customizing path for “Define and Assign Valuation Classes”:

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Example for TPM15M CPLTD (current portion of a long term debt)

In screen for “General Valuation Class”, define the field “Current Portion Handling (Screen Field
TRGC_COM_VALCL-FLG_CPLTD)”. There are 3 options:

Not Considered as Current Portion

X Current Portion: Nominal-Based Interest Assignment
This approach will determine the nominal balance for all (current portion and long-term) positions. The interest
payment is then split according to the distribution of the nominal amount. The income generated by the current
portion is assigned to the current portion, whereas the income generated by the long-term position is assigned
to the long-term position.

D Current Portion: Date-Based Interest Assignment

This approach assigns the interest flows based on the horizon date (see below). All interest flows between
the key date of the valuation class tranfer and before/on the horizon date are assigned to the position of the

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Example for TPM15M CPLTD (current portion of a long term debt)

current portion valuation class. The interest payments after the horizon date are assigned to the position of the
long-term valuation class. All interest income generated within the current portion time frame is assigned to the
current portion (even if the interest payment is generated by a long-term nominal amount).

Please refer to the F1 help of the field for more information.

Remark (see note 1776554 and 1549279):

TRL positions, which use an amortization step or hedge accounting, are not supported.
we recommend always the date approach instead of the nominal approach .

In our example, Set “D Current Portion: Date-Based Interest Assignment” in our example for
general valuation class 1 (Short-term investment), and set the Source Val Class as 3 (Long-term investments):

“Asst of General Valn Class”:

For valuation area 001, GVC 1 is assigned to special valuation class 1;                                       

                                      GVC 3 is assigned to special valuation class 1:

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Example for TPM15M CPLTD (current portion of a long term debt)

Transaction 649 created with Start of term 2014.01.30 and

end of term 2016.01.30, with installment repayment (for better understanding):

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Example for TPM15M CPLTD (current portion of a long term debt)

General valuation class is defined as 3 (Long-term investments):

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Example for TPM15M CPLTD (current portion of a long term debt)

Cash flow:

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Example for TPM15M CPLTD (current portion of a long term debt)

Position indicator:

TPM13, Subledger Cash Flow:

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Example for TPM15M CPLTD (current portion of a long term debt)

Execute TPM15M (valuation class transfer).

Specify the General valuation class 3 in “Specific Selections for Outgoing Position”.
Set parameters in “Transfer Posting Parameters”:
Target Valuation Class: 1
Key date: 2015.02.28
Horizon for Current Portion: 2015.08.01

This means that the position from period 2015.02.28 to 2015.08.01 will be transferred to valuation class 1
(Short-term investment), the remains are still in valuation class 3 (Long-term investment).

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Example for TPM15M CPLTD (current portion of a long term debt)

In next screen, system will provide the Nominal Amount of the period to be transferred (calculated internally),
in our example, it is the amount for flow 1130 installment repayment with payment date 2015.01.30. Original
nominal amount would be the nominal amount till key date 2015.02.28.

Generated by Jive on 2016-09-14Z

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Example for TPM15M CPLTD (current portion of a long term debt)

Posting log: related derived business transactions generated.

TPM13 Subledger cash flow after valuation class transfer.

You may see that with TRL Date 2015.02.28, flows VT_002 “Post units/nominal” and DBT_D002
“Post Purchase value” have been fixed for valuation area 001, and valuation class 1, and the
flows within the period 2015.02.28 ~ 2015.08.01 have been transferred as well: 2015.07.30
MM1130+,  MM1200+.

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Example for TPM15M CPLTD (current portion of a long term debt)

Related notes:
2133697 TPM15M: transfer between short term position and long term
2121958 TPM15M: nominal amount to be transferred does not consider Horizon Date
1916232 TPM15M: CPLTD for nominal interests due at deal end term
1859011 TPM15M: CPLTD transfer disabled
1697597 TPM15M: capitalized interests enabled
1621138 CPLTD: error message 'not Possible to split a flow'
1549279 CPLTD: New additional Method for Assignment of Interest 2
1548918 CPLTD: New additional Method for Assignment of Interest
1515125 reclassification money market: current portion long term

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