TRM, E-HA, Eliminate Intraperiod Ineffectiveness

You use this function to eliminate any intraperiod ineffectiveness of your hedging relationship. This ineffectiveness results when a hedged item and its hedging instrument are discounted on different dates. In Customizing for Treasury and Risk Management, you use for this purpose the Discounting Method in the activity Define Hedge Strategies. If you opt for the setting Discount Exposure on Date of Derivative, the system discounts the hedging instrument as well as the hedged item for the same date so that intraperiod ineffectiveness is avoided.

Technical Details

Technical Name of the Product Feature	TRM_EHA_4
The product feature is	New
Country Dependency	Valid for all countries
Software Component Version	EA-FINSERV 605
Application Component	FIN-FSCM-TRM-TM
Availability	SAP enhancement package 5 (SP15) for SAP ERP 6.0 SAP enhancement package 6 (SP15) for SAP ERP 6.0 SAP enhancement package 6 for SAP ERP 6.0, version for SAP HANA, Support Package 09 SAP enhancement package 7 (SP08) for SAP ERP 6.0

Effects on Existing Data

In Customizing for Treasury and Risk Management under Start of the navigation path Transaction Manager Next navigation step General Settings Hedge Accounting for Exposures Effectiveness Test Define Hedge Strategies End of the navigation path , you can use the new Discounting Method. Before you can use the new function, you need to select the discounting method Discount Exposure on Date of Derivative in your hedge strategy.