Hello, Krishna, Hello, Jain.
You confuse the two absolutely different concepts:
1. Derived Business Transactions: IMG -> Financial Supply Chain Management -> Treasury and Risk Management -> Transaction Manager -> General Settings -> Accounting -> Derived Business Transactions -> Update Types -> Assign Update Types for Derived Business Transactions (
2. Derived Flows: IMG -> Financial Supply Chain Management -> Treasury and Risk Management -> Transaction Manager -> Securities -> Transaction Management -> Flow Types (Transaction) -> Derived Flows
Derived flows are not used for discount/premiums.
For example of discount follow this thread: SAP Treasury - Security Amortization and Interest