SAP : Hedge Management

SAP Hedge Management is the central point of access to the functions for the management and processing of hedging relationships in SAP Bank Analyzer. It monitors all hedges in IAS Accounting, and reconciles this data with the data stored in the Financial Database. This gives you an overview of the risks hedged under IAS, and of fully or partially hedged transactions, so you can respond immediately to changes in the market.
SAP Hedge Management provides you with simple yet comprehensive functions for managing hedging relationships:
  • You can designate hedging relationships in accordance with IAS 39.
  • Hedge Management also contains a prospective effectiveness test that simulates the future effectiveness of hedges by using the market data shift method.
  • The component responds automatically to transactions in financial position management and, if appropriate, triggers the dissolution of a hedge.
  • In the function for the management of hedging relationships in the IAS hedge category fair value hedge, you can create n:m relationships in order to map complete hedges or partial hedges (micro hedges).
  • Hedge Management also contains functions for managing macro cash flow hedging relationships, using either the classical or the hypothetical derivative approach, and portfolio fair value hedges. 
Below are the relevant links on SAP Hedge Management:

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