Hello Treasury Gurus,
we have following treasury implementation situation and wondering if anyone one has come across same scenario and if you could provide your expert opinion.
we have requirement to implement MM and FX Derivatives for Hedge Accounting. The company has been setup with company currency lets SGD but Treasury department considers USD as functional/valuation currency and performs MTM and FX NPVs against USD. Treasury also has all FX contracts against USD not SGD.
We are prototyping following solution.
1- Additional valuation area 002 with valuation currency USD and currency category as group currency.
Can you share your thoughts if you have used same approach. any limitation of this solution, pros and cons.
For prototype, I made above setting by switching off the error message number 219. but during FI posting( TBB1/TPM1/TPM18) with additional valuation area, system is throwing following error message.
Currency cat. 30 not permitted for second or third local currency
Message no. TPM_TRAC1303
Please share your thoughts if this requires any OSS note or something.
Thanks in Advance
Chander