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Clarification for Valuation postings through TPM1 for FOREX transactions Product type 60A

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401

Hi,

For USD/INR forward contract booked on 10.05.2013 with value date on 06.11.2013 @ forward rate 56.2911 and spot rate as 54.5411 . Swap rate maintained in table AT15 is 1.5 with 32 days.

The transactions details are shown as below:

We perform valuation postings on every month end  (Mid year valuation with reset) , but we are not able to figure out the entries posted to GL  accounts.

Exchange rate maintained for USD/INR as on 31.05.2013 is 45.06.

Kindly explain how entry posted for amount 1972457.63 INR.

Thanks.

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Answers (1)

Answers (1)

former_member251898
Active Contributor
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Hi

it all would depend on how you configure the valuation procedure within the Position management procedure assigned to product type 60A.

You could check that by FTR_EDIT > environment. You will then see whether it is based on MRA (NPV) or spot to forward or forward to forward or spot to spot. In the case of forward to forward, the system requires a swap rate, as far as I know.

hope that this helps

taro

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Hi Taro,

I checked in enviornment in FTR_EDIT.

In config we are using Conf Procd. 4001-Forward Exchange Transactions: Spot/Spot and Swap Accrual.

How system is calculating amount 1972457.63 INR. for Swap Accrual?

In system Swap rate in table AT15 is updated as 1.50.

Screen shot of procedure as below

Thanks