3.4.3 Interest Revision

The system selects the option Auto if a revaluation record is created automatically during EOD batch. Create the revaluation record manually and select the option as Manual.

Note:

Typically, the manual revaluation record is created on the booking date, as by then the EOD batch would not have run.

Net Fair Value

Indicate the net fair value of the contract as of the revaluation date. The entered value includes the effect of the in the leg and out leg of the contract.

When the currencies of both the in and out leg of the contract are the same you have to calculate the net fair value of the contract by deducting the out leg amount from the in leg amount.

The Fair Value in the In Leg field amounts to USD 1,000,000.00.

The Fair Value in the Out Leg field amounts to USD 500,000.000

Since both the values are in the same currency, USD 500,000.000 deducted from USD 1,000,000.00 amounts to USD 500,000.000. Thus enter USD 500,000.000 as the Net Fair Value.

Suppose, the currencies of both the legs of the contract are different then the Base Currency specified at the time of Contract Input is accepted as the default currency for the Net Fair Value. Compute the Net Fair value using the existing exchange rates.

After indicating the respective values, indicate the confirmation. Only confirmed records will be picked up and processed for revaluation by the End of Day batch process.