Create a Currency Commodity Hedging Allocation

You can allocate invoice instalments in despatch order snapshots to hedge positions for currency commodities.

For revenue snapshots, only instalments in snapshots that are specific to an invoice type can be hedged. (The default snapshot's invoice preview does not display.)

For cost snapshots, each instalment for each cost line from the default snapshot's invoice preview can be hedged.

The allocation can be to locked or unlocked hedge positions.

Security Note: You need the Allow the user to maintain hedge actions security right in the Accounting user group security rights group for this activity.

Activity Steps

1. Open the Hedging Explorer.
2. Select the Hedge Actions tab.
3. Find the FX hedge position. See Find Hedge Positions.
4. Select the FX hedge position in the Hedge Actions table.
5. Right-click in the Hedging Allocations table and select Add from the menu.

   The Despatch Orders Search (FX Hedging) screen displays.

6. Enter the following search criteria as required.
   • Start Date—Date from which to search for invoice instalments that have a due date within the search date range. Default: The first day of the month of the quotation period (QP) of the hedge position.
   • End Date—Default: The last day of the month of the QP of the hedge position.
   • Customers—Select from the organisations defined on the Organisations panel of the Solution Explorer.
   • Companies—Select from the companies defined on the Organisations panel of the Solution Explorer.
   • Currency—This currency is the source currency of the commodity of the hedge position and the currency for which to show the Unhedged Quantity when searching for invoice instalments. This field is read-only.
   • Products—Select from the products and brands defined on the Material panel of the Solution Explorer.
   • Contract Type—Contract type to match when searching for despatch orders or quotas. Select from Sales Contract and Purchase Contract. Default: (blank)—All contract types.
   • Unallocated Quantity Method—Select from Not Fully Hedged, Overhedged and All.
7. To include a text string in the search criteria:
   1. Select the method to Search By from Despatch Order, Quota and Contract.
   2. Enter the Search Text. Text searches are case-sensitive with SQL databases with a case-sensitive collation and with all Oracle databases.
8. Click Search.

   Invoice instalments display in the Despatch Orders table:

   • For revenue snapshots, only snapshots that are specific to an invoice type display. (The default snapshot's invoice preview does not display.)
   • For cost snapshots, each instalment for each cost line from the default snapshot's invoice preview displays.
9. Check Selected next to the invoice instalments that are to be allocated to the hedge position.
10. Click Add.
11. Update the Allocated Quantity for each invoice instalment if required. Default: The unhedged quantity of the invoice instalment, or the remaining quantity in the hedge position, whichever is the lower.

    By default, the sign of the Allocated Quantity matches the sign of the Quantity of the hedge position. That is:

    • Positive for hedge positions with a Transaction Type of Buy
    • Negative for hedge positions with a Transaction Type of Sell

    Only positive quantities can be entered: MineMarket converts the quantity to a negative value as required.

    MineMarket updates the Remaining Quantity for the invoice instalment. An invoice instalment may already be partially allocated to other hedge positions. The remaining quantity is the amount not already allocated to any hedge positions. An invoice instalment can be overhedged; that is, Remaining Quantity can be a negative amount.

    MineMarket updates the Total Allocated Quantity and Difference for the hedge position.

12. To invert the sign on the Allocated Quantity, check Invert Allocation. Default: Unchecked.

    MineMarket updates the Remaining Quantity, Total Allocated Quantity and Difference.

13. Click Save.