Forex Clearing account

[Former Member]

I created a forex spot transaction - Buy 5,000,000 GBP and Sell 8,225,000.00 USD. Spot rate 1.645 USD per GBP.

When I run TBB1 the following accounting entry is generated

Company code currency is GBP

For USD sold

USD GBP(Local Currency)

Debit Forex Clearing 8,225,000.00 4,942,908.65

Credit Bank clearing 8,225,000.00 4,942,908.65

For GBP Purchase

Debit Bank Clearing 5,000,000.00

Credit Forex Clearing 5,000,000.00

When I run TPM18 it posts the exchange rate gain/loss as follows

Debit Realized Gain 57,091.35

Credit Forex Clearing 57,091.35

But the TPM18 posting does not clear all the three postings in the Forex clearing account even though they total to zero in the Local currency.

I go to F-03 and try to clear all the three documents shown above and I am still not able to clear them. I get a message:

The difference is too large for clearing

Message no. F5263

What am I doing wrong? Why I am not able to clear them even though they total to zero in the local currency?

Please advise

Kalyan

[ChrisJBE]

Hi,

Reading this thread, I was wondering what makes the system react the way you described?

I mean that it is also possible to have the system post in TBB1 this way:

For USD sold

USD GBP(Local Currency)

Debit Forex Clearing 8,225,000.00 5,000,000.00

Credit Bank clearing 8,225,000.00 5,000,000.00

For GBP Purchase

Debit Bank Clearing 5,000,000.00

Credit Forex Clearing 5,000,000.00

In this case, TPM18 does not generated any derived posting and the realized gain or loss is generated when the Bank clearing account is cleared against the bank statement posting.

Could you please let me know what makes the system react in one way or the other? I tried playing with the derived business transactions configuration but I couldn't influence the way the system works.

Thanks.

Christophe.