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Former Member
Oct 27, 2012 at 06:42 AM

Error message at Currency Option maturity

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Hi experts!

I am implementing hedge management with currency options and i am unable to run tx. TBB1 at option maturity. I have created in configuration a Position Mgmt Procedure for hedge accounting with reset method and i have created all update types related to this PMP. The process I have followed is:

- FTR_CREATE: Create European Option with cash settlement. Contract date is 24.09.2012 and exercise period ends at 31.12.2012.

- When creating the currency option the hedging relationship is created automatically.

- When creating the option, its value at inception is automatically populated in NPV table at inception date.

- Transaction is settle and premium is posted using TBB1.

- Each month option value is calculated using TPM60. Valuation is posted through tx. TPM1. I have run TPM1 at 30.09, 31.10 and 30.11. In each date postings are correct. Valuations are posted against interim OCI account and then distributed against OCI or P/L accounts (all of this using HAC update types. The values that are being distributed are: changes in intrinsic value, time value and free portion).

- When reaching exercise date, we exercise and settled the transaction. We are ending this option at the money.

- When running TBB1 at maturity I have 3 messages in log:

1) Recording position management: Error during distribution PE01 3695 (Message no. FTR_TRD012)

2) Distribution of Profit/Loss: No detail

3) Message no. THM_CENTRAL109: Transaction 3690 (company code PE01) not found at 30.12.2012 - Notice that exercise date is 31.12.2012

Please can anyone advise me if there is something missing? Hedge accountings distributions seem to be ok every month end but the problem comes when posting the exercise. When looking transaction Position indicator through tx. TPM13, I can see DBT update types are also created ready to be posted.

Thanks very much.