Mark to Market inquiry screen will need inputs from the following screens to function
1- Company preference -->Risk Management preferences --> M2M subsection
2- Basis entry screen
3- Futures/Options settlement prices
4- Derivative Entry screen
5- Contract sequences
The information from the above screens will be plugged in to find contract price & market price and compute m2m unrealized gain or loss
Market Data Tab :
Here data will be populated based on the date which we selected in " Basis Entry as of " .
Enter the basis value in basis entry screen against a contract.
Refer-How Basis Entry works
When the mark to market loads it will populate all the basis value details against the selected basis entry as of date.
Basis Entry as of drop down will populate the dates from the Basis entry screen which is the latest entry .
Future closing As of will show the details from the future options settlement price . which ever the entry is latest those date will be displayed by default.
Market premium tab will show the details from the Basis Entry screen and Future settlement price screen
Basis value which is entered against the item and market in the Basis entry screen will be displayed in the Market differential grid accordingly.
Future settlement price which is entered against the future market and month details will be displayed in the closing price grid .
Mark to Market - Transactions tab
When a contract sequence is created then the type will show the Contract (P) for that sequence . and it will show all the corresponding details such as Quantity, Month , contract futures and contract basis from the contract sequence , Market basis from the basis entry screen and Market Future from the future settlement price and finally it will calculate the Result . P&L , P&L Basis and P&L Futures.
M2M Inquiry - Counte Party Risk
Business Benefits of this tab is
- Helps in keeping a check on counterparty risk.
2. Helps to mark the open positions to market.
Few configurations need to be in place to run the new vendor exposure inquiry
- should set the risk rating and for the rating % of exposure and % is supplier sales to be entered .
- This screen available in Risk Management - Risk Rating Matrix
3. In the vendor (entity) configuration we need to configure the risk rating and the total business volumes ( Vendor Screen is available in the Account payable Module )
“Risk Indicator”. - This will be a drop down and the options will be whatever has been entered in the first column of the above configuration (1,2,3,4,No rating).
Total Business volume – is an entry field ( this will playa role when calculating the exposure against the same vendor)
Vendor Exposure Tab will mainly calculate the % of the company spend , % of the company share with supplier and potential additional
volume . For this calcualtion we need to total committed volume(Fixed and unfixed purchase volumes) and Total committed value(
Fixed purchase value + unfixed purchase value |
) .
| % of total JDE spend (X) | (Total committed value for the vendor/ sum of total committed value for all vendors) X 100 | ||
| % of JDE share with supplier(Y) | (Total committed volumes per vendor/ total volume of business done by the vendor (a number entered in the supplier configuration) X 100 | ||
| Verify the M2M | Sum of result column of the given vendor | ||
| Verify Potential additional volumes | X=( Total committed volumes / % of total JDE spend )* % JDE EXPOsure
Y= (Total committed volumes/% of JDE share with supplier) * JDE % Sup Sales | % JDE EXPOsure from risk Rating Matrix screen | (pick the smaller number of the compared values of X and Y) - Total Committed Volum |
Summary Tab:
It will display the summary of all the physicals, inventory and the futures
Overview
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