This function enables you to set up your preferences concerning the management of FX Transactions and Commercial Transactions.
For Commercial Forecasts, two types are available depending on your needs regarding the management of risks and transactions (macro-hedge policy or micro-hedge policy at a single level).
- The Global, Decrementation Mode and the Global, Budget Decrementation Mode enable the mass management of the exchange rate (macro-hedge) with a decrementation based on the FIFO principle (First In, First Out). It particularly suits the management of a lot of transactions with small unit amounts.
- When fewer transactions with bigger unit amounts must be managed or when a unit management is required, the Detailed, Reconciliation Mode enables the individual management of the foreign exchange risk (micro-hedge), amount by amount.
The schema below summarizes the management types for Commercial Transactions available in FX.
Setting up Management Preferences
- To access this function, in the Modules Tasks pane, select the Configure FX option in the Setup folder of the FX module.
The setup page for the management preferences of FX Transactions and Commercial Transactions is displayed.
The General tab enables you to set up your preferences for the entry of FX Transactions. The Commercial Transactions tab enables you to set up your preferences for the entry of Commercial Forecasts.
- In the General tab, enable the Lock B.O. Change option if you want to restrict the modification options for the B.O-validated FX transactions.
For more information on:
- The editable fields linked to this option, see topic Back-office Locking,
- Back-office validation and locking, see topic Back-office Processing.
- Enable the option Settlements Accounts Mandatory if you want the entry of the settlement accounts to be compulsory at the moment of an FX transaction creation.
If this option is disabled, the entry of the settlements accounts is compulsory only at the moment of the settlement.
Info
This option concerns Swap and Forward Exchange Transactions only. As Spot Exchange Transactions are immediately settled, the entry of the settlement accounts is always compulsory.
- Click on the Commercial Transactions tab.
- In the Update Mode area, select one of the options described below.
| Option | Description |
|---|---|
| Global - Decrementation Mode | When this option is enabled, forecasts are globally managed and there is a decrementation on a FIFO basis (First In First Out). This management mode uses three reconciliation criteria for commercial transactions decrementation: the flow type, the company, the transaction currency and the month. |
| Global - Budget Decrementation Mode | This management mode is similar to the Global, Decrementation Mode, with the budget as the additional and mandatory decrementation criterion. This management mode uses four reconciliation criteria for commercial transactions decrementation: the flow type, the company, the transaction currency, the month and the budget code assigned to each forecast. |
| Detailed - Reconciliation Mode |
When this option is enabled, forecasts are managed amount by amount and the corresponding flows are generated with the "Confirmed Forecast" status. If you enable this option, all the open transactions are settled. |
For more information on the impact of the different management modes for Commercial Transactions, see topic Management Modes for Commercial Transactions.
- Click OK to validate the setup or Cancel to delete it.
