Purpose
When exposures are managed outside of the Hedge Management application,transaction THMEX, users would normally need to manually recreate theseexposures in the THMEX application. To aid in the administration,exposures managed outside of the THMEX application can be imported intoa central repository, Risk Object (RO), using the External Data Transfer(EDT) function. This RO repository will be the source for exposureinformation for THMEX application, avoiding manual entry. Thetransaction THMRO will create and maintain the RO exposure data in HedgeManagement.
For a technical overview of the external data transfer procedure, referto the SAP Library in the respective component under "External datatransfer".
The settings for the external data transfer are divided into threeparts:
1. Preparing the data: Select the data from the legacy/operationalsystems based on the SAP system data requirements displayed underDisplay Required/Optional Fields and write them to a sequential file.The number, type and format of the fields are detailed in transfercategory 040. Use a data selection program to carry out data changes.This procedure does not take place in the SAP system and is notsupported by SAP programs. Accounting -> TRM -> Transaction Manager ->Basic Functions -> Tools -> External Data Transfer -> Preparation ->Required/Optional Control
2. Customizing: Define a sender structure by creating a DDIC structurewith fields that will be mapped to the import (receiver) structure. Theminimum fields needed are represented by the structure"THMEXS_RO_TRANSFER".
3. Application: Start external data transfer. See menu path Accounting-> TRM -> Transaction Manager -> Basic Functions -> Tools -> ExternalData Transfer -> Preparation -> Start Transfer. Evaluate transfer logsafter transfer is completed. See menu path Accounting -> TRM -> BasicFunctions ->Tools -> External Data Transfer -> Logs -> Transfer Log.

Prerequisites
In this IMG activity Number Range set all the appropriate numberrange objects for plan and transaction.
,,Create HM-exposures
In the General Selection area:
·,,Enter a company code. This control is a mandatory field.
·,,Enter an External Risk Object Number. This control will focus theselection of data to maximize performance of the report.
In the Hedge Management Data area choose either:
·,,Create. This control creates data in hedge management based onexposure information in the risk object repository. The subsequentselection screen areas are based on the choice of the create control.
In the Risk Object area choose either:
·,,Single Plan/Multiple Exposures. Choosing #single plan# leads to oneunique hedge plan created for each Risk Object. In other words, onehedge plan will be created containing all cash flows for a single RO.
·,,Multiple: Plans/Exposures. Choosing #multiple plan# leads to anadditional option. In this case, one hedge plan can be createdcontaining all cash flows for a single RO, or one hedge plan can becreated containing all cash flows for multiple RO. An additionalfunction will be provided in the menu bar allowing all cash flows for aRO to be added to an existing hedge plan.
In the risk category area the control is fixed to Foreign Exchange Risk.
In the transaction category area choose either:
·,,Forecasted Transaction
·,,Firm Commitment
·,,Asset/Liabilities
In the Display Layout area:
·,,The default layout value will automatically populate the layout fieldor enter other layout values. This control presets the layout of thereport.
Upon executing the External Exposure Upload, a validated output list ofthe plan/exposure(s) from an external source will be displayed. Thisvalidation will ensure that the exposures that are going to be createddon#t already exist in Hedge Management.
The #Plan Descriptive text# and #Transaction Descriptive text# for eachunique Risk Object number can be changed.
The hedge management plan ID and a hedge management transaction/exposureID will be created in the background upon saving. The hedge managementtransaction activity is determined from both, the transaction categoryand the Risk Object cash flow type (sale or purchase).
,,Update HM-exposures
In the General Selection area:
·,,Enter a company code. This control is a mandatory field.
·,,Enter an External Risk Object Number. This control will focus theselection of data to maximize performance of the report.
In the Hedge Management Data area choose either:
·,,Create. This control creates data in hedge management based onexposure information in the risk object repository.
·,,Update. This control updates data in hedge management based onexposure information in the risk object repository. The subsequentselection screen areas are based on the choice of the update control.
In the Plans Valid After area:
·,,Enter a date after which the hedge management plan expires. Thiscontrol will focus the selection of data to maximize the performance ofthe report.
In the Display Layout area:
·,,The default layout value will automatically populate the layout fieldor enter other layout values. This control presets the layout of thereport.
Execute the report and a validated output list of the plan/exposure(s)from an external source will be displayed. This validation will ensurethat these plan/exposures are currently linked to Hedge Management.
Caution, all financial contracts linked to HM-exposures that aresubject postponement, i.e., rollover, must be in rollover status priorto 'Update'.
Upon executing the External Exposure Upload, a validated output list ofthe plan/exposure(s) from an external source will be displayed. Thisvalidation will ensure that the exposures that are going to be updatedalready exist as exposures in hedge management.
All financial contracts linked to HM-exposures that are subject topostponement, i.e., rollover, must be in rollover status prior to doingthe update.
The list display will match the Risk Object exposure amounts and duedates in the Risk Objects with the appropriate hedge managementexposures. Any financial contract with status rollover and linked to thehedge management exposure will be checked before display.
The Risk Object information is used to update Hedge Management.
If there has been a key date valuation for the hedging relationship, thefollowing will guide the processing:
1.,,,,If the new exposure amount is zero, the exposure is assumed to beimprobable and the requirement is that the hedging relationship must bedissolved and all OCI reclassified.
2.,,,,If the new exposure amount falls below the designated hedgeamount, but is greater than zero, the designated amount in the hedgingrelationship will be adjusted to the new lower amount and the differencebetween the old and new designated amounts determines the OCIreclassification. (Caution, this does not address the scenario of aforecasted purchase, which happens earlier than the forecast. Thereclassification of OCI is not always mandated because the purchase maynot immediately affect earnings.)
If there has been no key date valuation for the hedging relationship,the following will guide the processing:
1.,,,,If the new exposure amount is zero, the existing hedgingrelationship is deleted.
2.,,,,If the new exposure amount falls below the designated hedgeamount, but is greater than zero, the designated amount in the hedgingrelationship will be adjusted to the new lower amount.
If simulation is not used and the user chooses to update, a simplemessage will tell them of if reclassification has occurred and thehedging relationships that have been dissolved or deleted. Caution,changes to the transaction valid from/to will not be supported.
The financial contract rollover process will be allowed toautomatically rollover exposures created via RO. Therefore, when afinancial contract is in rollover status, various RTHM_UPDATE_EX_VIA_ROdependent tables will be updated with information about new HM-exposure,hedge and hedging relationship.