OCI calculation and fair value calculation

[Former Member]

Hi

I am learning treasury and want to know how to deal with fair value calculation/ OCI calculation and it's impact on PnL in SAP ?

Any lead or link will be apprreciated .

Thanks

Sn

[Former Member · Accepted solution]

There are three types of Hedges:

Fair Value

Cash flow

Net Investment

In case of fair value hedge, all the unrealized gain/loss will be posted to P/L

In case of cash flow hedge, the effective portion (based on the Effectiveness test conducted at the end of each quarter or Month end) will be posted to OCI (whichis part of your Capital stock) and the ineffective portion is posted to P/L. So the OCI posting does not impact your P/L.

Net Investment hedge is also treated as cash flow hedge.

SAP Support all the three types of hedges in Hedge Management.

Kalyan

[Former Member · Accepted solution]

Hi Treasury Guru

I want to learn treasury module can one help me for getting documents on same.

Thanks

Laxmi

[Former Member · Accepted solution]

There is a training by quantum integrators in dice. check that out

Kalyan