TPM1 uses different exchange rate

[SAPSupport]

Dear Support,

In the market data table TCURR we have the exchange rate of 328,32 EUR/HUF.
However, during the TPM1 transaction, the system uses different FX rate: 334,83 instead of 328,32.
Assigned position management procedure has two valuation steps:
1. Amortization
2. FX valuation

Best regards

------------------------------------------------------------------------------------------------------------------------------------------------
Learn more about the SAP Support user and program here.

[SAPSupport · Accepted solution]

Hello,

valuation with TPM1 executes steps in order as set up, based on "current" position data. For each step, only the value which is "valuated" is compared.

For example, the step for title/price valuation will only calculate the effect of the new security price. Amortization will compare changes from previous amortization based on cash flows in position currency. Index valuation will only consider changes in index prices. Foreign Currency Valuation step is the one that calculates effects of new exchange rates.

According to your valuation log, position and valuation amounts before valuation are 573 725 EUR and 192 100 342 HUF respectively. Therefore the exchange rate of your position before valuation would be 192 100 342 / 573 725 = 334,83.

If, as in your case, you have two valuation steps, where
- the first step is amortization and
- the second step is FX valuation,
then
the first step will use the above position exchange rate of 334,83 and
only the next step (FX valuation) will calculate effects of the new exchange rate 328,32.

If you want to calculate amortization with the new exchange rate, you should use a position management procedure where FX valuation step is set up in order before the amortization step.