Hi All,
I just wanted to understand few things under TPM1. - Option Valuation
On Key date we run TPM60. The valuated postings are updated in VTVBAR table.
Then TPM1 posts the valuations.
Valuations are posted against interim OCI account and then distributed against OCI or P/L accounts
The values that are being distributed are: changes in intrinsic value and Time Value.
While performing this exercise the system tries to calculate the NPV value.
It reads the VTVBAR table for this purpose. If there is difference in valuation currency and position currency it recalculates the NPV accordingly.
Then it creates flow e.g. V206 for posting.
However it also seems that for distribution.. it considers the Intrinsic value and Time Value from VTVBAR table only. But I am not sure, Can you please confirm if there is any further calculation involved, if it considers any other parameters for the intrinsic value being posted?
or does it strictly go by the VTVBAR table?
Thanks for your help!