Use the Counterparty Profiles window to set up the internal and external counterparties that your company does business with. You cannot generate journal entries for counterparties.
An internal counterparty is any subsidiary that is part of a company group that you do not want to generate journal entries for. For example, a parent company, Vision Corporation, can set up internal counterparties for each of its subsidiaries: Vision North America, Vision Asia Pacific, and Vision Europe.
To designate a counterparty as an internal counterparty you must cross-reference the counterparty to its parent company. This cross-reference creates an intercompany group. A parent company can have several internal counterparties assigned to its intercompany group. Once a counterparty is assigned to an intercompany group, it can enter into intercompany funding and inter-account transfer deals with the parent company. The bank accounts for the internal counterparty can also be collected into a notional cash pool.
An external counterparty is any other party that a company enters into deals with, for example, banks, brokers, or clients.
If there is a relationship between two or more external counterparties, you can indicate the relationship by cross-referencing the counterparties to one another and creating a counterparty group. For example, if a bank owns a brokerage firm and you do business with both parties, then you can indicate the relationship by cross referencing the brokerage firm to the bank. Once you define a counterparty group, you can set limits for the group.
To create a counterparty profile, see the following topics.
Use the Counterparty Profiles window to set up your counterparties.
Set up users. See: User Access Levels.
In the Party Code field of the Counterparty Profiles window, enter a unique party code for the counterparty.
If you want to define this counterparty as a bank branch that holds your internal bank accounts, choose Bank Branch option.
In the Full Name field, enter the full legal name of the counterparty. If you have chosen a Bank Branch option earlier, choose a bank branch defined in Cash Management. This will link the counterparty in Treasury to a bank branch in Cash Management and allow you to create internal bank accounts for use in Treasury.
Note: If you link the counterparty to a bank branch, additional information such as Country and Address will default in based on the bank branch setup in Cash Management and will not be updateable in the Couterparty Profile window in Treasury.
In the Short Name field, enter a short name for the counterparty.
If you want to authorize the counterparty for use, enable the Authorized check box.
In the Country field, select the name of the country where the counterparty operates.
In the Account Manager field, select an account manager for the counterparty. The account manager is the person responsible for the general oversight of the business relations between the counterparty and a company.
If this counterparty has an economic relationship with a company (for example, if it is a subsidiary) or with another counterparty, in the Cross Reference field choose the company or counterparty that the counterparty has a relationship with. If you cross reference the counterparty to a company, it becomes an internal counterparty and part of the parent company's intercompany group. If you cross reference the counterparty to another counterparty, it becomes part of a counterparty group. For more information on counterparty groups see: Setting Up Counterparty Groups.
If the counterparty belongs to a party group, such as a vocational or industry group, in the Party Group field, select the party group from the list of values. Party groups are defined in the Party Group window. For more information, see: Party Groups.
Define the role of the counterparty by choosing one or more of the check boxes described below. The check boxes you choose determine the type of deals a counterparty can enter into (foreign exchange, money market, or both) and the role a counterparty plays (banks, clients, or brokers) in those deals. For example, to define a bank that holds both domestic and foreign currency bank accounts, you must select both of the financial transaction options (FX and MM).
Choose one or more of the following options to determine the function of the counterparty:
FX: The counterparty can enter into Foreign Exchange deals. For example, the counterparty could be a bank holding a foreign currency account, or could be a foreign exchange option broker.
MM: The counterparty can enter into Money Market deals. For example the counterparty could be a fixed income security broker or could be a bank that holds a domestic currency account.
Equity Market: The counterparty can enter into Equity deals. Use this option, for example, to define a stock broker.
Client: The counterparty is a brokerage client of a company.
Risk Party: The counterparty is a direct liability to a company, but does not enter into financial deals with the company. Use this option to define a stock issuer or bond issuer.
Advisor: The counterparty is a legal or accounting advisor.
Valuer: The counterparty is responsible for valuing or appraising assets offered as loan securities.
If the counterparty is going to make deposits to a company bank account, in the Deposit Reference field enter a deposit reference. The deposit reference is a common number assigned to the book of deposit slips that are used by a counterparty to deposit funds into a bank account held by a company.
Enter the phone number, fax number, and email address of the counterparty contact in the appropriate fields.
If the counterparty must send confirmations for the deals it enters into, in the Confirmation Group field choose a deal confirmation group for the counterparty. For example, a company might require the counterparty to send confirmations for every deal it enters into or only for a specific type of foreign exchange deal. Deal confirmation groups are defined in the Deal Confirmation Group window. For more information, see: Confirmation Groups.
If the counterparty has a SWIFT ID, enter it in the SWIFT ID field.
In the Contact Name field, enter the name of the person who is the principal contact for the counterparty.
If the counterparty uses a service provider to match the records of foreign exchange transactions between two businesses, enter in the FX Match ID field the ID that was assigned to the counterparty by their service provider.
Enter any comments as needed.
Save your work.
Use the Counterparty Profiles window to set up counterparty groups. A counterparty group enables you to group several counterparties that are economically linked (for example, one counterparty could be a subsidiary of another). Once you establish a counterparty group, you can define a limit for the group.
Note: Counterparty groups differ from party groups. A counterparty group links counterparties that have an economic relationship with one another. Party groups link any parties who serve similar functions, but do not necessarily have an economic relationship (such as grouping all counterparties that are lawyers or accountants).
To set up a counterparty group you create parent-child relationships between counterparties by cross-referencing one or more child counterparties with a single parent counterparty. For example, you could cross-reference bank branches (the child counterparties) with a main bank branch (the parent counterparty).
Set up counterparties. See: Counterparty Profiles.
In the Counterparty Profiles window, query a counterparty.
To associate a child counterparty with its parent counterparty, select the parent counterparty in the Cross Reference field.
Save your work.
Use the Settle Account Detail window to record the bank accounts that a company uses to settle deals with the counterparty.
Set up the banks that hold the bank accounts of internal counterparties as counterparties linked to bank branches in Cash Management. However, you do not have to set up the banks that hold the accounts of external counterparties. See: Counterparty Profiles.
In the Counterparty Profiles window, choose the Settle Account Detail button. The Settlement Account Detail window appears.
Enter the identifier account number in account number field and IBAN account number in the IBAN Field.
In the Currency field, enter the currency for the settlement account.
If this account is the default account for settlements in the currency, enable the Default Account check box. Your default settlement account can be a different account than the one you set as the default account in the Bank Accounts region. However, there can be only one default settlement account per currency.
If you want to authorize this account for use, enable the Authorized check box.
In the Account Name field, enter a name for the settlement account.
Note: You will see the Account Name value in the Counterparty Account field when you create a deal with this counterparty.
In the Legal Account Name field, optionally enter the full legal name of the counterparty's settlement bank account.
If the bank account belongs to an internal counterparty, you must enter a bank code. The bank code distinguishes the bank branch at which your account resides.
Enter the name of the bank and the address.
In the Location field, enter a name for the location of the bank branch where your account resides. For example, if the mailing address for your bank is 1 Main St., but your account resides at a branch on University Avenue, enter University Avenue Branch in the Location field.
If your company has debit authority in this account, select the Direct Debit Authorized check box.
If this settlement account is a subaccount, enter the subaccount details and the subaccount number in the Subacct Details and Subacct Number fields.
A subaccount is an account to which a correspondent bank directs foreign currency settlement payments. Typically a correspondent bank is a bank that operates in a foreign country (relative to your bank). Correspondent banks handle all settlements in the currency of that foreign country for your bank. For example, you may have your USD settlement account with Citibank in New York, but you might handle your GBP settlements using a subaccount with the Bank of Scotland.
If this bank account belongs to an internal counterparty, in the Day Count Basis field, choose the day count basis that you want to use to calculate interest on the account.
In the [] field, complete the flexfield information as required.
If you want to review the interest rates for the account, choose the Review Interest Rates button. The Bank Account Interest Rates window appears. For more information on bank account interest rates, see: Bank Account Interest Rates.
Save your work.
Use the Deal Contacts window to record the contact information of persons at a counterparty you communicate with regarding specific deals, deal subtypes, and product types.
In the Counterparty Profiles window, choose the Deal Contact button. The Deal Contacts window appears.
Select the combination of deal type, deal subtype, product type and currency that the contact manages.
Enter the contact information for the person who manages the deal, including the person's title, name, email, phone number, fax number, and telex number.
Save your work.
Use the Settlement Contacts window to record the contact information of persons with whom a company can communicate regarding settlements. You identify persons to manage communications for specific types of deals, deal subtypes, currencies, and product types.
In the Counterparty Profiles window, choose the Settlement Contact button. The Settlement Contacts window appears.
Select the currency and the account number that the settlement contact manages.
Enter the contact information for the settlement contact, including title, name, phone number, fax number, telex number, and email address. This information is optional.
In the Address Name and Address fields, enter the full address for the settlement contact as it should appear on correspondence.
Save your work.
This section describes setting up counterparty securities.
In the Counterparty Profiles window, choose the Security Details button. The Securities window appears.
Enter a description of the security.
Enter the legal reference number of the security in the Reference field.
Select the company that either issued or registered the security in the Company field.
In the Issued By field, select either Company or Party to indicate if a company or a counterparty issued the security.
Enter the appraised value of the security in the Valuation field.
Select the counterparty who appraised the value of the security in the Valuer field.
Select the date on which the valuer appraised the security, in the Valued On field.
Enter the registered value of the security, in the Priority Sum field.
In the Review Dates section, select a review date on which your company will review the security details.
Enter any comments you may have in the Comments field.
Use the Address Detail window to record the postal and physical addresses of a party. This window also stores the name of the parties that provide legal and accounting services for the party.
In the Counterparty Profiles window, choose the Address Details button. The Address Detail window appears.
Enter the title of the counterparty contact in the Title field.
In the Address Name field, enter the name and the address of the counterparty contact as you want it to appear on any correspondence.
For example, if your counterparty is a bank with several branches in the same city, you might distinguish between the two locations by entering names such as <Your Bank> - Main Branch or <Your Bank> - University St. Branch in the Address Name field. Replace <Your Bank> with your bank name.
Enter the physical address of the counterparty in the Physical Address fields.
If the counterparty uses a service provider (such as a lawyer or accountant), select the name of the service provider in the Solicitor, Accounting, or Other fields.
Use the Tax Brokerage Details window to set up the default tax, brokerage, and settlement categories you use for a particular counterparty.
Define your tax, brokerage, and settlement categories. See: Tax/ Brokerage Setup.
In the Counterparty Profiles window, choose the Tax Brokerage Detail button.
In the Tax Brokerage Details window, enter the number under which the counterparty files tax in the Tax File Number field.
If the counterparty has a tax exempt code, enter the tax exemption code.
Select a tax, brokerage, and settlement category for your counterparty. See: Tax/ Brokerage Setup.
Use the Limit Details window to limit the total amount of money that you can invest with a single counterparty or counterparty group. When you set up and authorize a counterparty limit, you receive a warning whenever you enter a deal that may cause you to exceed that limit. If you receive a warning you can still enter a deal, but you must acknowledge that you exceeded the limit. For more information about counterparty limits, see: Defining Counterparty Limits.
In the Counterparty Profiles window, choose the Limit Detail button.
In the Limit Details window, select the company that is placing the limit on the counterparty.
Select the limit code for this counterparty limit.
Enter the amount of the limit.
Enter the limit sequence number in the Seq Num field.
Select the date that the counterparty pays the initial fee for the limit in the Initial Fee Date field.
Enter the frequency with which you want to review the limit in the Review Freq field.
Select the expiration date for the limit.
If you want the system to use the limit, select the Authorize check box.
Save your work.