Hi Vasanth
I trust you mean TPM60!
TPM60 does calculate the NPV for each transaction with the Market Risk Analyzer. The system calculates on the base of the interest rates of the two currency pairs the discount/premium for a specific date in the future. The discount/premium is then added to the fx spot rate e.g. spot rate is 1.2000 and the discount is .0035 this leads to an outright price for the specific date of 1.1965. The fx deal is valued with the outright price. TPM60 writes the values to the table *VTVBAR* and when you run TPM1 for the posting this value in VTVBAR is picked up and posted.
If you only use TPM1, meaning you have not activated MRA and assigned the product type to the valuation with MRA, the system calculates the outright price on the base of the uploaded fx and fwd rates.
Kind regards
Juerg Heiz