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Use of THM80 in Treasury Hedge Management

Hello Treasury Experts,

We are on SAP ECC6.0 with EA-Finserv 2.0.

Can you advise is it possible to use the Treasury FX module for valuing forward exchange transactions in SAP without having to run the THM80 transaction to perform effectiveness testing on the trades? Currently, we think the available THM80 functionality in SAP does not have the ability to perform effectiveness testing on the forward exchange transactions in the same manner as the existin Treasury system. Therefore, we are investigating the possibility of performing the effectivess testing separately outside of SAP. In the real world, these forward exchange transactions will be taken out with the bank to hedge a specific FX exposure. We would want to value the forward exchange transaction on SAP in line with FAS133 requirements.

Can we do this on SAP without including the THM80 effectiveness tests? For example, will TPM1 still be able to determine the effective & ineffective portions of an FX trade to post to OCI/P&L if we have not run THM80 beforehand. If it is possible to do this, is there a specific process or specific things we need to follow to ensure this is accounted correctly?

Thanks for your advice.


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