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SAP C_S4FTR_2023 Exam - Topic 5 Question 6 Discussion

You are implementing the SAP Hedge Management application for foreign exchange (FX) and hedge accounting functionality. You define a hedging profile that is used for the definition of the hedging area.What parameters are driven by the hedging profile?Note: There are 2 correct answers to this question.
A) Designation types and C) Effectiveness test method
B) Product types for exposure subitems
D) Hedging relationship scenario

SAP C_S4FTR_2023 Exam - Topic 5 Question 6 Discussion

Actual exam question for SAP's C_S4FTR_2023 exam
Question #: 6
Topic #: 5
[All C_S4FTR_2023 Questions]

You are implementing the SAP Hedge Management application for foreign exchange (FX) and hedge accounting functionality. You define a hedging profile that is used for the definition of the hedging area.What parameters are driven by the hedging profile?Note: There are 2 correct answers to this question.

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Suggested Answer: A, C

The parameters that are driven by the hedging profile when defining a hedging area for SAP Hedge Management application for foreign exchange (FX) and hedge accounting functionality are designation types and effectiveness test method. A hedging profile is a parameter that defines the characteristics and settings for hedge accounting in a hedging area. A hedging area is an organizational unit that groups together financial transactions that are hedged against specific risks. The parameters that are driven by the hedging profile are designation types, which define how hedged items and hedging instruments are designated for hedge accounting; and effectiveness test method, which defines how the effectiveness of hedge relationships is measured and documented. Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/f22248cc13f74872af15bd2eca741110.html


by Sabra at Jun 29, 2024, 04:04 PM

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Colette
6 months ago
I thought designation types were irrelevant here.
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Darci
6 months ago
I agree with B, but A seems a bit off for me.
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Cherry
7 months ago
Wait, is C really a parameter? That seems off.
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Georgeanna
7 months ago
I think it's A and D, not sure about C.
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Billy
7 months ago
Definitely B and C! Those are key parameters.
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Charlesetta
7 months ago
I’m leaning towards the hedging relationship scenario being a parameter, but I’m not confident about the other option.
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Valentine
7 months ago
I practiced a similar question last week, and I feel like product types for exposure subitems might be relevant here too.
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Roxanne
8 months ago
I think the effectiveness test method is definitely one of the parameters, but I can't recall if there were two correct answers or just one.
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Tina
8 months ago
I remember something about designation types being part of the hedging profile, but I'm not entirely sure if that's one of the correct answers.
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Nina
8 months ago
This is a tricky one. I'm not super familiar with the SAP Hedge Management application, so I'm not 100% sure which parameters are driven by the hedging profile. I'll take my best guess, but I may need to come back to this question if I'm unsure.
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Scarlet
8 months ago
Hmm, I'm a bit unsure about this one. The question is asking about the parameters driven by the hedging profile, but I'm not entirely clear on what all those parameters are. I'll need to do a quick refresh on the key concepts in this area.
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Gracia
8 months ago
This looks like a pretty straightforward question on the parameters driven by the hedging profile in the SAP Hedge Management application. I'll need to carefully review the options and think through which ones are correct.
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Cruz
8 months ago
Okay, I think I've got this. The hedging profile defines the hedging area, so the parameters it would drive are the designation types and the product types for exposure subitems. The effectiveness test method and hedging relationship scenario are likely defined elsewhere. I'll select those two options.
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Alease
8 months ago
Hmm, I'm a bit unsure about this one. Is it really just about confidentiality, or could it also be about integrity since the reports are being outsourced? I'll have to think this through carefully.
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Santos
2 years ago
Ugh, I hate these SAP questions. They're always so convoluted. But I think the answer is C and D. Effectiveness test method and hedging relationship scenario. Fingers crossed!
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Gilberto
2 years ago
Haha, I bet the exam writers are just trying to trip us up with this one. Let me see, I'll go with C and D. Effectiveness test method and hedging relationship scenario. Gotta love these SAP exams!
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Han
2 years ago
I'm going with B and D. Product types for exposure subitems and the hedging relationship scenario. Who needs SAP when you have common sense, right?
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Barbra
2 years ago
This is easy! The hedging profile determines the designation types and the hedging relationship scenario. Come on, guys, it's not rocket science.
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Serina
2 years ago
Hmm, I think the answer is C and D. The hedging profile definitely drives the effectiveness test method and the hedging relationship scenario. Product types for exposure subitems also sounds right, but I'm not too sure about that one.
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Marylyn
2 years ago
I'm not sure about the product types for exposure subitems, but I know for sure that the effectiveness test method and hedging relationship scenario are driven by the hedging profile.
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Alise
2 years ago
I agree, those are the correct parameters driven by the hedging profile.
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Yesenia
2 years ago
I think you're right, the hedging profile does drive the effectiveness test method and the hedging relationship scenario.
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Lucille
2 years ago
This is easy, the right answers are A and C. The hedging profile determines the designation types and the effectiveness test method. Pretty straightforward if you ask me.
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Jean
2 years ago
I agree, A and C are the parameters driven by the hedging profile.
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Jean
2 years ago
That makes sense, the hedging profile drives the designation types and effectiveness test method.
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Jean
2 years ago
I think you're right, A and C are the correct answers.
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Diego
2 years ago
Ha! Trick question, the correct answers are C and D. Everyone knows the hedging profile controls the effectiveness test method and the hedging relationship scenario.
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Louann
2 years ago
I think B and D are the correct answers. The hedging profile needs to define the product types for the exposure subitems and the hedging relationship scenario.
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Richelle
2 years ago
Yes, the hedging profile drives the product types for exposure subitems and the hedging relationship scenario.
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Richelle
2 years ago
I agree, B and D are the correct answers.
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Annmarie
2 years ago
Yes, the hedging profile drives the product types for exposure subitems and the hedging relationship scenario.
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Annmarie
2 years ago
I agree, B and D are the correct answers.
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Cherilyn
2 years ago
I think the correct answers are Designation types and Hedging relationship scenario.
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Maricela
2 years ago
I believe the Effectiveness test method is also driven by the hedging profile.
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Desire
2 years ago
I agree with Hollis. The hedging profile also determines the Hedging relationship scenario.
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Hollis
2 years ago
I think the parameters driven by the hedging profile are Designation types and Product types for exposure subitems.
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Marylou
2 years ago
A and C, definitely. The hedging profile should specify the effectiveness test method, and the designation types are also important parameters.
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Carlee
2 years ago
Yes, the effectiveness test method and designation types are crucial for the hedging profile.
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Francine
2 years ago
I agree, A and C are the correct parameters driven by the hedging profile.
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