Use

You can use this function to define the net present values of derivative financial instruments on the inception date.

If you use the market data in the system to calculate the value at the inception date, this value will differ slightly from the value an external business receives. Forward exchange transactions and interest rate swaps should have a value of ‘0’ and currency options should be valued “at the money”.

The program selects all the derivative transactions for a derivative category and enters the value on the inception date in the NPV table. However, if a value has already been entered and saved in the NPV table, it is not overwritten. In the case of currency options, the system calculates a premium for the transactions and saves this only as a current market value. If this does not meet your requirements, you will have to alter the value later or exclude it from the beginning.

All values are saved in company code currency using the rate type that you entered in the selection screen.

Activities