Function documentationManage Hedging Relationships

 

This is the central function within P-HA where the hedging relationships are created and managed.

In the area Hedging Relationship you will see the Number and the Name of the hedging relationship. By clicking on the pushbutton, you can display the flows of the hedging relationship and also call and perform the business transactions (designate, dedesignate, reverse, undo, reactivate) for the hedging relationship.

You will also see the current status of the hedging relationship and the status of the effectiveness test.

You can also use the following tabs:

  • Hedging Relationship Details

    Here you define the following basic information on the hedging relationship:

    • Risk Currency

    • Hedging Profile

    • Category (taken from information in the hedging profile)

    • Type of hedged risk (information taken from the hedging profile)

    • Effective from date

    • Planned designation date

    • Planned dedesignation date

    • Grouping information

  • Underlying transaction

    On this tab you assign the items to be hedged to the hedging relationship.

  • Hedging Instrument

    On this tab you assign the hedging instrument to be used to the hedging relationship.

  • Effectiveness test

    On this tab you get an overview of all the effectiveness tests performed until now and can also perform an effectiveness test for the hedging relationship from here.

    It is split into a tab for the Test Plan and one for the Test Execution.

    The structure of the test plan is taken from the settings defined in Customizing and the data in the hedging relationship.

  • Documentation

    The documentation on the hedging relationship is of the utmost importance in a hedging relationship. It is not possible to designate a hedging relationship without released documentation.

    On this tab you get an overview of the status of the documentation for the hedging relationship and also create the documentation on the hedging relationship here either manually or automatically in accordance with the settings defined in the hedging profile in Customizing.

Prerequisites

Customizing for Hedge Accounting for Positions must be defined. For more information on Customizing, see Hedge Accounting for Positions (P-HA).

Activities

  1. Call the function from the application menu of Transaction Manager under Start of the navigation path Hedge Accounting for Positions Next navigation step Master Data Next navigation step Manage Hedging Relationship End of the navigation path.

  2. Now you select the hedging relationships you want to edit. To do this, first define the work area you want via Company Code, Valuation Area, and Fiscal Year. You can then restrict the number of hedging relationships to be chosen by the specifications you enter for thehedging relationship details and/or the status you choose. Choose Start.

    If you want to create a new hedging relationship, choose Create.

  3. A list of the selected hedging relationships appears and you can go to the respective hedging relationship to be processed by double-clicking.

    When you have chosen Create, the Create Hedging Relationship screen immediately appears.

  4. Process the hedging relationship.