CCYEXP - Trading/Booked Currency Exposure
What is
For an Entity that uses different currencies and applies FOREX cover for their exposure, CCYEXP will provide a useful tool for monitoring the overall position. Non matured exposure is analysed and combined with selected booked currency positions. If the Entity is operating strict back to back FX cover, the report would show a square position. There is a tick box feature that will allow you to view the contents of the summary with drilldowns and printing of the detail.
CCYEXP can report a page per currency with a row for each maturity month and various columns indicating the source of the non-matured exposure or can show a grid with all currencies in series with the same analysis :-
a) Current accounting balances i.e. Debtors, Creditors and specific GL accounts (NOM accounts which have been marked as 'Bank account' or ticked for Inc in CCYEXP). Note that DOCENT may report client balances that have not yet been posted into the ledgers; CCYEXP will exclude them. There is a selection option that enables exclusion of Bank Account balances.
b) FX, all TRS deals that have a maturity date >= today. If TRS double entry being operated (very rare in Trade House), deals recognised as the broker/bank side are excluded.
c) Loans, set up in TRS
d) Non invoiced TRADE Purchases and Sales, split by priced and un-priced tonnage. The value reported for un-priced tonnage is by default the Premium/Discount amount, there is a selection option to show full value. The priced column is the value fixed to-date.
The impact of a TRADE x Settlement currency is that Un-Priced tonnage will remain as P/D in P/D currency units and the priced trade tonnage will show in the Settlement Currency section, when there is a settlement Exchange Rate on the TRADE.
There is a selection to Exclude TRADE values where they are marked as 100% Sales Invoiced, this is applicable where a Operating Company does not mark their Purchase trades as Invoiced.
e) Costs from TRADE records that are not marked as fully actualised. The alternative style will report the non-actualised values.
f) F&O analysis, the default is to show the Variation Margin with the selection enabled to show full F&O traded value. Only available if the company is operating F&O hedge operations; all CLI accounts that are setup as ‘H’ouse will be included. A different presentation is shown WHEN the Entity is using the TERMCODES/Trade Codes to specify Arbitrage trades; the VM is split in 2 columns 'Arbitrage designated' and 'Nn-Arb'.
The ladder of periods assists in determining back-to-back cover requirements, if the expected maturity dates maintained are meaningful. TRADE has the feature, on the Pricing tab, to maintain the estimated Maturity period which should take into consideration the contracts shipment terms, payment terms etc.
When the department selection is used; the analysis of ‘bank accounts’ will review the actual postings to the relevant accounts and not the application of the cash to the different departments. The impact of this is when the posting to the bank account is not the same as the ‘other’ sides’ department. This occurs when payment is made to various departments and depending on how the cash document was entered.
Note: There are specialist variations of CCYEXP that can be configured by Hivedome e.g. analyse the booked position using WIP accounts (marked with a Dept code) and NOM account balances (marked with Dept code) and this style will segregate the open FX into assigned to TRADE and not TRADE assigned. This style (RM:1) will combine the P+S TRADE and will report the not written-off un-invoiced value.
See CASHUG for a similar content report, which will show how cash should flow in and out of the company.