Foreign Exchange Postings

[Former Member]

Hello Experts,

Please advise. What is the procedure with regards to the following situation. If I have foreign exchange forward and spot transactions with my house bank, how does the clearing happen with regards to the postings. So far I can see the open items in my bank subaccount but in the forex position account they are marked as cleared items. How can I clear the bank subaccount.

I have attached the postings to the bank account and the forex position account

Regards

[Former Member · Accepted solution]

Hi,

If your bank reconciliation is up, then the bank sub-accounts are cleared once you upload the bank statement for each account (BUY & SELL), so in this case, the posting is transfered to your main Cash In Bank accounts.  In your BUY transaction, your GL for bank is debited since there's a cash inflow while it is credited in your SELL transaction since you've sold ZAR currency in order to purchase USD.

I noticed that your Forex clearing account has a difference 'coz the exchange rate used for Buy and Sell are different, thus, this account is not fully cleared. To clear, a realized gain/loss should be recorded. Try to post the difference via TPM18.

Regards,

Chaikaru

[Former Member · Accepted solution]

Thank you very much