Single Value Analysis – Using NPV Analysis 

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      1.      In the SAP Easy Access screen, choose Accounting ® Bank Applications ® SEM Banking ® Market Risk Analysis or ALM ® Information System ® Single Value Analyses ® NPV Analysis.

      2.      Specify the Evaluation Currency, the Evaluation Type, the Evaluation Date and the Horizon.

      3.      On the General Selections tab page specify the financial objects you want to analyze. Note the following special considerations when selecting transactions. You can also use the buttons Only Actual, Only Simulated, Insert Actual and All as input help. The fields Position Number and Number of Simulation Run are then filled in accordance with your selection.

      4.      You can further limit the transactions by entering characteristic values on the tab page Characteristics.

      5.      On the tab page Report Structure define the structure of the columns in the report.

¡      If required; enter one or more scenarios by choosing the button Scenarios.

¡      Enter one or more market data shifts by choosing the button Market Data Shifts.

¡      If you choose the button Key Figures you can define whether you want to calculate the net present value and the clean price.

¡      If you set the indicator Include Differences, the system shows how the net present values of the scenarios and market data shifts have changed in comparison with the net present value calculated using current market data.

      6.      On the tab page Control Data you define whether a detailed log is to be created or if navigation through the portfolio hierarchy is to be possible.

      7.      Choose  Execute.

Result

The net present values for single financial objects (single transactions, single positions) are calculated. The system can display a maximum of 11 columns. This comprises either 10 scenarios with no differences or 5 scenarios with differences. If you choose more scenarios, the system first ignores the differences, and then it ignores any scenarios chosen after the tenth one.

The detailed log contains the following information:

·       Terms of the cash flows

·       Division into variable/fixed cash flows

·       Market data with the Customizing settings used in the evaluation

·       Conditions of the valued transactions

·       Details about how the forward interest rates were calculated

·       The discounting factors used to discount the cash flows, and the NPVs resulting for the individual flows

·       Total NPVs in both the transaction and the display currency (the exchange rate used in the translation process), possibly further divided into fixed and variable NPVs

·       Any errors or warnings that occurred during the NPV calculation