What is 'effectiveness test variant' in SAP FS-BA-PM-HP - Hedge Processes?

effectiveness test variant - Overview

• Component: FS-BA-PM-HP

• Component Name: Hedge Processes

• Description: Customizing entity used for calling the fair value effectiveness test from within Hedge Management.

effectiveness test variant - Details

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  Key Concepts: 
  An effectiveness test variant is a tool used in the SAP FS-BA-PM-HP Hedge Processes component to assess the effectiveness of a hedge relationship. It is used to compare the expected results of a hedge relationship with the actual results. The effectiveness test variant is used to determine whether the hedge relationship is meeting its objectives and if any adjustments need to be made. 
  
  How to use it: 
  To use an effectiveness test variant, first create a hedge relationship in the SAP FS-BA-PM-HP Hedge Processes component. Then, create an effectiveness test variant for that hedge relationship. This will allow you to compare the expected results of the hedge relationship with the actual results. You can then use this information to determine if any adjustments need to be made to the hedge relationship. 
  
  Tips & Tricks: 
  When creating an effectiveness test variant, it is important to ensure that all relevant data is included in the comparison. This includes both expected and actual results, as well as any other relevant information such as market conditions or currency exchange rates. Additionally, it is important to regularly review and update your effectiveness test variants in order to ensure that your hedge relationships are meeting their objectives. 
  
  Related Information: 
  For more information on using effectiveness test variants in SAP FS-BA-PM-HP Hedge Processes, please refer to the SAP Help Portal