Hierarchy
EA-FINSERV (Software Component) SAP Enterprise Extension Financial Services⤷
FIN-FSCM-TRM-MR (Application Component) Market Risk Analyzer⤷
FTB (Package) Applic. development R/3 Treasury risk simulation analysis
Basic Data
| Data Element | TV_WPVART |
| Short Description | Calculate Theoretical NPV |
Data Type
| Category of Dictionary Type | D | Domain |
| Type of Object Referenced | No Information | |
| Domain / Name of Reference Type | XFELD | |
| Data Type | CHAR | Character String |
| Length | 1 | |
| Decimal Places | 0 | |
| Output Length | 1 | |
| Value Table |
Further Characteristics
| Search Help: Name | ||
| Search Help: Parameters | ||
| Parameter ID | ||
| Default Component name | ||
| Change document | ||
| No Input History | ||
| Basic direction is set to LTR | ||
| No BIDI Filtering |
Field Label
| Length | Field Label | |
| Short | 10 | Theor.Pr. |
| Medium | 20 | Theoretical Price |
| Long | 40 | Calculate Theoretical Price |
| Heading | 55 | Calculate Theoretical Price |
Documentation
Definition
Controls whether a theoretical net present value is calculated.
Use
Securities and complex classes
The default setting for the algorithms used to calculate NPVs uses security prices (data feed or table of historical prices). If the system cannot find a price, then it calculates a theoretical NPV. The theoretical price is calculated if the horizon is after the evaluation date, or if the price has exceeded a predefined age.
You use this indicator to override the algorithms for calculating NPV. If you set this indicator, the system calculates a theoretical NPV even if the relevant price is available.
Theoretical NPVs are calculated by discounting cash flows along the yield curve. Complex classes are broken down into their elementary categories.
Foreign exchange transactions
Foreign exchange transactions are translated using the direct exchange rate. If you set the indicator, this algorithm is replaced by the translation of the transactions into the display currency by means of cross rates.
Dependencies
Up to Release EA-FinServ 2.00, the theoretical price was calculated in VaR calculation. This means that the yield curve was always used to price bonds, even though the price could be used to value them. This is because there is a close relationship between bond prices and interest rates.
From Release ERP 1.0 FinServ 5.00, in VaR calculation, the program reads this field, so that bonds can be priced using the prices quoted.
Example
History
| Last changed by/on | SAP | 20030716 |
| SAP Release Created in |
