Skip to Content

Archived discussions are read-only. Learn more about SAP Q&A

Redesignation of a hedge relation after dedesignation

Hi treasury experts


We are using a cashflow hedge for FX-exposures together with the dollar offset method for the effectiveness test. Since sometimes a hedge relation runs erroneously out of effectiveness - especially when market quotes are close to the spot values of the FX-rates of the hedge instrument - the hedge relation is marked as ineffective, so that the fair value changes of the hedge derivative are posted to P&L.

As soon as effectiveness is realized again, we would like, that no such P&L postings occur any more, but all NPV-changes go to OCI again. Unfortunately the postings still go to the P&L, even though the effectiveness test (thm50) tells that the relation is effective (what can be seen by THMST).  Some idea what goes wrong here?


Regards, Sebastian Sachse 

Tags:
Former Member
Former Member replied

Hi Sebastian,

Yes you can maintain Threshold % and transition speed in SPRO> FSCM>TRM>General settings > Hedge Management > Effectiveness Test>Define Calculation Types

Add the threshold and Transition for the  calculation type used in the hedge strategy your HR.

Regards,

Nikhil

0 View this answer in context
Not what you were looking for? View more on this topic or Ask a question