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Former Member
Jul 01, 2009 at 05:30 AM

Treasury - Forex Forward Contract Roll over Gain / Loss

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In CFM - ECC 5.0,

When we do roll-over of forex forward contract (original),

1. The original contract is cancelled @ cancellation rate as on date today which different from forward rate of original contract.

(For this IMG config is done for capturing cancellation rate ) (cancellation contract)

( By Default - Offsetting in sap occurs @ original rate which the client doesn't want.)

2. The new or roll-over contract @ current forward rates. (new contract)

For the point no. 1 :

The gain /loss between original contract & cancellation contract on rate to rate basis needs to be captured for passing accounting entry.

a) Can be done throgh flow-types. But how to assign the rolled-over gain/losses to flow type ?

b) Additionally, while passing accounting entry for rolled over gains/losses, the client has the requirement that :

i) The forex contracts both buy & sell for which goods are despatched or recieved to passed on to the Profit & Loss

ii) The forex contracts both buy & sell for which goods are NOT despatched or NOT recieved to passed on to the Balance Sheet account.

Can anybody suggest the IMG guidelines for this specific requirement?

Thanks & Regards

M N Gurram