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FX Forward Valuation + Valuation with net amounts

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Hi,

 

I have the following business case that I have to configure correctly in TRM and get the transactions correctly values and the postings in the right GL accounts. All using standard configuration if possible. I am struggling in the valuation part due to the NPV calculations and the Valuation-specific configuration, namely, valuation rules and valuation steps in the Position Management Procedure.

 

Example (2 Forwards):

 

Forward 1 (to expire on 30 Sept):       Forward 2 (to expire on 30 Sept):

Buy USD1000                                  Buy EUR 1000

Sell DKK6000                                  Sell DKK 9000

 

FX rates on key date 30 June:

USD/DKK = 7

EUR/DKK = 8,5

 

How Valuation is supposed to go:

value of USDDKK contract: 1000 USD x 7 = 7000 SEK, 7000-6000 = +1000 DKK

value of EURDKK contract: 1000 EUR x 8,5 = 8500 SEK, 8500-9000 = -500 DKK

Net amount: +500 DKK

 

Posting by TPM1 on key date 30 June:

1000 DKK posted to GL account X

-500 DKK posted to GL account Y

+500 posted to GL account Z


To get the first two amounts correctly I was thinking of using a one-step PMP:

Step 1: Rate valuation for forward exchange transactions



 

The NPV calculation (used in TPM60) method cannot be the usual one, that uses the yield curves, but rather one closer to what is discussed here: SAP Treasury - TPM60 functionality, that is, use forward points instead. However, if possible, I would like to avoid using the swap rates in AT15, but having the system simply calculating those values. Let me know if the only way is really using values in that table.


Finally, how do I get the third amount +50DKK? Should I have to net the two transactions first?

Can TPM1 do this kind of net amount calculation out of two different transactions? Not to my best knowledge but if you guys know a way, let me know. In here, Link between transaction TPM60 and TPM1 there are very valuables inputs that could help, but it includes some enhancements and is applicable only to one forward.


For simplicity sake, assume all account determination and valuation customizing is well configured.


If you need more inputs let me know.

 

Thanks!


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