Hedge Invoice Instalments from the FX Exposure Report

This activity creates a hedge position for a currency commodity and allocates invoice instalments from the despatch order (DO) snapshot to the hedge position.

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 FX Exposure.
  2. Search for exposure for a company across a date range. See View Foreign Exchange Exposure.
  3. Perform one of the following steps:
    1. To create a futures contract, right-click the exposure for a DO and select Hedge » Hedge Action from the menu.
    2. To create a spread contract or a swaps contract, right-click the exposure for a DO and select Hedge » Related Actions from the menu.

      The menu displays applicable market commodities, each with its associated market.

  4. Select the market commodity for which to create the FX hedge position.

    The New Hedge Action screen displays.

    Note: The Contract Type and Transaction Type are inherited from the default types specified for the market commodity.
    The Owner Organisation and District are inherited from the DO and its contract.
    The Number Of Contracts defaults to a value that is sufficient for the Quantity of the FX hedge position to be greater than the Allocated Quantity from the DO. Keeping this default means that the DO is overhedged.

  5. As applicable for the FX hedge position's contract type, see the following activities for further steps:

    Note: Some steps can only be completed on the Hedge Actions tab of the Hedging Explorer after searching for the hedge position.

    The Despatch Orders Search (FX Hedging) screen displays the invoice instalments in the DO snapshot and the amount due for each in the QP of the new FX hedge position.

  6. Check Selected next to the invoice instalments that are to be allocated to the FX hedge position.
  7. Click Add.
  8. Click Save.

    Note: Additional invoice instalments can be allocated to the FX hedge position if there is sufficient unallocated quantity in the hedge position. The FX hedge position must be locked to affect the exposure displayed in the Foreign Exchange Exposure report. See Lock Hedge Positions.