Define and Activate Groups

You can use groups to enter additional information on hedging relationships in the function Manage Hedging Relationships [transaction TPM100]. You do this on the Hedging Relationship Details tab page in the Grouping Fields screen area.

Number Ranges

Here you first define number ranges for the following objects:

Under Assign Number Ranges, define for each company code and valuation area which of the number ranges defined above is used.

Effectiveness Test

Settings for Linear Regression

Define Critical Term Type

Here, you define the critical term types that are used for the critical term match method.

Effectiveness test method

Here, you define the effectiveness test methods that you want to use.

In the IMG activity Define Hedging Profiles, you assign these effectiveness test methods.

Example:

Alternative setting to delivery scenarios

It is defined in a scenario

The scenarios are system settings. You can only use the scenarios provided by SAP.

Example:

Scenario 110 is adjusted using FVH exchange rate risk. Spot-spot value date (or currency risk) is provided for the following:

In IMG activities Different Setting to Delivery Scenarios: Hedged Item and Different Setting to Delivery Scenarios: Hedging Instrument, you can exclude certain product types (that are based on the permitted product categories) from being used in the hedging relationships.

All entries here are optional. The system runs with the scenarios provided by SAP. Entries are possible if you want to deviate from the standard settings. If both tables are empty, then the system is working without any errors.

Example

Define Hedging Profiles

A hedging profile is assigned to each hedging relationship in function Manage Hedging Relationships [transaction TPM100], tab Hedging Relationship Details, area Risk and Profile.

In a hedging profile you define which scenario should be valid for the hedging relationship, which effectiveness test methods should be used, how often the effectiveness test should be performed and how long (in days) an effectiveness test is valid, as well as whether the documentation should occur automatically and if so, which PDF form should be used for this.

Here, you can make the following settings for the test plan of the hedging relationships:

Example:

Update Types

Define Update Types and Assign Usages

Here you define all the required update types.

Assign the update types for the business transactions (HM) to the product types

Here you assign the update types to be used for each product type for the following business transactions of P-HA to:

Release

If you want to use a release approval procedure in P-HA for the documentation on a hedging relationship and the business transactions designation and dedesignation (such as the dual control principle), you can set up release workflows in the following IMG activities. For these release workflows, the SAP Business Workflow is used for which you must define the necessary settings in Customizing for Basis under  Business Management SAP Business Workflow Maintain Standard Settings .

Release object TRM_HMD is available for the release workflow for documentation.

See the documentation on the IMG activities.

Release object TRM_HM is available for the release workflow for designation/dedesignation.

The release object TRM_HME is available for the release workflow for uploaded retrospective effectiveness assessments.

Settings for Documents for P-HA in Document Management (CA-DMS)

In P-HA, you can store the following documents in a hedging relationship:

These documents are stored in Document Management (CA-DMS).

For this, you need to make some settings in Customizing for DMS. See also: Customizing Settings for Document Management for TRM Documents

Documentation

If you want to use your own PDF forms and not the form defined by SAP for automatic documentation, you can use this BAdI.

Initialization of Hedging Relationships in Parallel Valuation Areas

Additional settings in the Transaction Manager for P-HA

Change message control

In this IMG activity you can configure the appearance (the message category) of system messages in P-HA to suit your requirements.

Message 255 'Sicherungsbeziehung &1 in Acc.kreis &2 und Bew.bereich &3 ist betroffen' is issued when a position outflow affects a hedging relationship.

Define whether the message should be issued as a warning (W) or as an an error (E).

You can control the message category user-dependently in dialog and in a batch run differently.

If you do not make any entries here, the message is issued as an error.

You find the IMG activity under  Transaction Manager General Settings Tools Configurable Messages Change Message Control .

Assigning Update Types for Derived Business Transactions

On the following tabs you define settings for P-HA:

You find the IMG activity under  Transaction Manager General Settings Accounting Derived Business Transactions Assign Update Types for Derived Business Transactions .

Define Account Determination

Enter the posting specifications here for the update types relevant for account determination:

You find the IMG activity under  Transaction Manager General Settings Accounting Link to Other Accounting Components Define Account Determination .

Define Position Management Procedure

In the Hedge Accounting for P-HA area, you specify the evaluation type to be used.

Define Valuation Procedure

In the Risk Category for Hedge Accounting (P-HA) area, you enter the risk category.

Under  Transaction Manager General Settings Accounting Settings for Position Management Key Date Valuation , you make the settings for the valuation procedure.

Alternative Update Types for Position Outflows

Here, you specify which alternative update types are applied for valuating in Hedge Accounting.

Under  Transaction Manager General Settings Accounting Settings for Position Management Derived Business Transactions Alternative Update Types for Position Outflows , you enter the alternative update types for valuation for the Hedge Accounting condition if you want a position to be posted differently to the Hedge Accounting rules.

Settings in the Risk Analyzers

 Treasury and Risk Management Basic Analyzer Settings Automatic Integration of Financial Objects in Transaction Master Data Subledger Positions/Subpositions