ERPstuff - Oracle EBS Community

Hi
Can anyone please explain me in simple words what does Bonds and Swaps means?

and how does we implement it in Oracle ERP?

ta
Arvin

Dear Arvin,

Bonds are nothing but an investment having fixed interest payments. This can be issued by companies or any other bodies.
Swaps is a financial instrument between two parties where they exchange the benefits derived out of it.

The above definitions are very general and short, whereas the world of derivatives is a very vast.

To sum up, Bonds and Swaps are Investments. Oracle Treasury modules provides us with the standard functionality to take care of such transactions. If one does not implement oracle treasury, then one should settle for an workaround or a custom module or customization.

Regards,
Karthikeyan

HI Karthikeyan,

Can you plz explain the workaround in an environment where Oracle treasury module is not implemented ?

Regards,

Dear Amankhan,

Investments of a company is an outflow for a organisation, which is a payment made, therefore one can create a supplier named as investment and make payment to that supplier. Upon maturity one can capture the refund along with interest from AR, by having a customer as investment.
To get the details of investments, enable DFF at the Invoice workbench in AP and Transaction workbench in AR, to capture details of type of investments, face value, interest rates, maturity date etc ....
The customized solution would be to have a custom form built where one can enter the details of the investments, which will create an invoice in AP through interface, and at the time of receipt from the custom form an invoice will be created in AR. And interest calculations are carried out in the custom form itself .....
It purely depends on the level of requirement of the client in most of the cases, i am sure client will settle for workarounds than paying license fee for Treasury module ....

Regards,
Karthikeyan

Thanks Karthikeyan,

This is gr8 & simple solution.
I need some details with reference to Swaps as well.
How can we handle Swaps in Application ? Can we use netting function for this purpose ? What will be the possible workaround ?

Regards,