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]

I found the reason: this behaviour is dicted by flag AT10X-CALHWBTR.

If it may help someone.

[Former Member]

Hi Christophie,

What do you mean when you say 'this behaviour is dicted by flag AT10X-CALHWBTR'? Can you please explain?

Kalyan

[Former Member]

Hi Kalyan,

When you are assigning forex attributes to your transaction type in configuration, there is a check box Transl. to LC. If you have checked this box, then there will be no realized gain or in other words, the case explained above will come into picture i.e. there will be no realized gain or loss. It is assumed that there is no realized profit or loss.

If that is not checked then, the amount in forex currency will be translated to local currency depending on the exchange rate type mentioned and the difference between buying and selling will be realized as gain or loss.

Regards,

Ravi