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TRM, HM, HACC (FX Risk), Enhancements to the Reclassification Process

This feature includes enhancements to the reclassification process of hedging relationships.

There are different reclassification types that distinguish how the hedging reserve and cost of hedging reserve amounts are reclassified. These amounts were classified for the hedging relationship up to and equal the balance sheet recognition date. These reclassification types are determined by the Balance Sheet Crossover setting made in the hedging area.

The following reclassification types exist:
  • None

  • Immediate Reclassification at Balance Sheet Recognition Date

  • Reclassification at the End Date of the Exposure Subitem

    The classification result between the start date of the FX transaction and up to the balance sheet recognition date is frozen until the end date of the exposure subitem.

In case a period-end close of a FX transaction designated into a hedging relationship takes place after the balance sheet recognition date, the classification result of the hedging relationship can be posted to different G/L accounts than the reclassification result.

Technical Details

Product Feature is

Changed

Country Dependency

Available in all countries/regions

Application Component

FIN-FSCM-TRM

Availability

SAP S/4HANA 1709 FPS01

Additional Details

The balance sheet recognition date is determined by the Balance Sheet Recognition setting made in the hedging area on the Hedge Accounting I tab. The entries made in the Designation Splitting area determine the relevant date (balance sheet recognition date) for the creation of the reclassification flow. It is the difference between the end date of the FX transaction and the payment term in days.

Effects on Existing Data

To enable the reclassification of hedging reserve and cost of hedging reserve amounts at the balance sheet recognition date, the new technical business transaction category Reclassification was introduced.

In addition, update types were reused for the FX transaction and the exposure subitem: THX009 and THX010.

The functions Release Hedging Business Transactions (transaction TPM120) and Reverse Release of Hedging Business Transactions (transaction TPM121) were enhanced to enable end-of-day processing activities.

See Also

For more information, see http://help.sap.com/s4hana_op_1709_001 under Start of the navigation pathProduct Assistance Next navigation step Enterprise Business Applications Next navigation step Finance Next navigation step Treasury and Finanical Risk Management End of the navigation path. Search for Hedge Management and Accounting of Net Open Exposures (FX Risk).