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Postings for forward exchange rate gains/losses

Hello Experts,

I am configuring postings for forward exchange rate gains/losses. If I purchase USD1000 on 1 June 2013 at a rate of 9.00 to ZAR for 3 months, and on 1 September the rate is 9.40. I have the following postings after carrying out TBB1 and TPM18.

Debit FX Clearing 9000

Credit Bank 9000

Debit Bank 9400

Credit FX Clearing 9400

Debit FX Clearing 400

Credit Exchange Profit & Loss 400

My question is on the balance remaining on the bank ZAR400 , how and when will that be cleared. Please assist

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    author's profile photo Former Member
    Former Member
    Posted on May 24, 2013 at 11:05 AM

    Hi,

    System will generate entry in TBB1 would be Dr Bank 1000 (USD)

    Cr FX clearing 1000 (USD)

    The above entry will get converted into local currency as per the latest exchange rate i.e 9400 in your case and the difference amount 400 will be realized gain.

    Here no question of clearing ZAR400 which was posted into Bank.

    Thanks,

    VNTR

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