What is debit value adjustment in SAP FIN-FSCM-TRM - Treasury and Risk Management?

SAP Term: debit value adjustment

• Component: FIN-FSCM-TRM

• Component Name: Treasury and Risk Management

• Description: A debit value adjustment DVA is the amount by which the NPV of a financial transaction is adjusted to reflect the probability of a default by your own company.

Smart SAP Assistant

• Key Concepts: 
  Debit value adjustment is a feature of SAP Treasury and Risk Management (FIN-FSCM-TRM) that allows users to adjust the debit value of a transaction. This adjustment is used to correct errors in the original transaction or to adjust the debit value of a transaction to match the current market value. 
  
  How to use it: 
  Debit value adjustment can be used in two ways. First, it can be used to correct errors in the original transaction. This is done by entering the new debit value and selecting “Adjust” from the menu. Second, it can be used to adjust the debit value of a transaction to match the current market value. This is done by entering the new debit value and selecting “Adjust” from the menu. 
  
  Tips & Tricks: 
  When adjusting the debit value of a transaction, it is important to ensure that all other fields are updated accordingly. For example, if the debit value is adjusted, then any associated interest rate or currency exchange rate must also be adjusted. 
  
  Related Information: 
  Debit value adjustment is closely related to other features of SAP Treasury and Risk Management such as currency exchange rate adjustment and interest rate adjustment. It is important to understand how these features interact with each other in order to ensure accurate financial reporting.