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Procedure documentationEditing Non-Deliverable Forwards

Procedure

After you have created a non-deliverable forward (NDF), you can edit it using the functions available under Start of the navigation path Transaction Manager Next navigation step Foreign Exchange Next navigation step Trading Next navigation step Edit Financial Transaction End of the navigation path (transaction FTR_EDIT).

  1. Enter the company code.

  2. Enter the transaction number.

  3. Choose the relevant function for edit the NDF further:

Function

Entries

Comment

Display

  1. Choose Display.

  2. The display screen for the basic data appears.

  • The entry fields are not active.

  • You can use the tab pages to navigate between the various screens and display the other data relating to the transaction.

  • By choosing Display Partner, you can display the master data for the business partner.

Change

  1. Choose Change.

  2. The screen for changing basic data appears. Make your changes and save your entries.

  • You can now overwrite the active entry fields or enter data in the empty fields.

  • If you make any changes to the values that you entered manually in the Rate, Spot, or Swap fields, the system notes these as fixed values. If you make any later changes, the values determined by the system are changed, but not the values that you entered manually.

  • You can use this function to change an activity, provided that it is not relevant for posting.

Execute Order

  1. Choose Execute Order.

  2. Check the order data for correctness and completeness and save your entries.

  3. When you save, the activity category of the transaction is changed to Contract.

  • With this function, any NDFs that were created as orders are converted to the activity category Contract.

  • If processing category 120 has been defined for the product type, saving the transaction as a contract causes the flows of the transaction to be flagged for posting. (With the processing category 121, the posting flag is not set until the contract is settled.)

Settle

  1. Choose Settle.

  2. The Contract Settlement screen appears. Make your changes and save your entries.

  3. When you save a settlement activity, the system changes the activity category of the transaction in order to record how it is monitored and processed in the back office area. The contract can only be posted after it has been settled.

  • You can use this function with the processing category 121 for settling contracts and for settling fixing. In this way, you can document in a transaction that the transaction has been processed in back office.

  • At this stage, the system checks the financial transaction data and adds any missing data. Furthermore, when you save the transaction, the system fixes the transaction (actual records) and marks the transaction flows relevant for this activity as Flagged for Posting.

Fixing

  1. When the agreed fixing date is reached, you perform fixing by choosing Fixing.

  2. Enter the fixing rate.

    The system automatically determines in the settlement currency the settlement amount that the fixing rate would produce. This amount is compared against the amount agreed upon in the transaction in the settlement currency. The difference is the amount for the cash settlement.

  3. When all entries are correct, save your entries.

  • During fixing, the cash settlement amount is calculated and the corresponding flow is updated.

  • The system creates a derived business transaction for the amount of the cash settlement and this business transaction posts the rate loss/gain to the profit and loss statement.

  • See also: Example: Non-Deliverable Forward

History

  1. Choose History.

  2. The system lists the activities that have been activated, reversed, or replaced by a follow-up activity. From this list, you can display the individual activities. You also see their status and the user who processed them.

The history displays the sequence of previous activities related to a selected transaction.

Note Note

To edit NDFs, you have a choice between using the function described here, Edit Financial Transaction (transaction FTR_EDIT), using the general function Collective Processing for financial transactions (transaction FTR_00), or using the function Forex: Collective Processing (transaction TX06). You can also perform fixing with the manual function Execute Fixing Transaction (transaction TXV5).

End of the note.