Realized currency differences

Realized currency differences are final currency differences calculated over paid invoices.

Realized currency differences can originate from these sessions:

  • Bank Transactions (tfcmg2500m000)
  • Reconciliation of Payments (tfcmg2103s000) and Reconciliation of Receipts/Payments (tfcmg2104s000)
  • Assign Unallocated/Advance Receipts to Invoices (tfcmg2105s000) and Assign Unallocated/Advance Payments to Invoices (tfcmg2106s000)
  • Assign Invoices/Schedules to Credit Notes (tfacp2121s000) or Assign Credit Notes to Invoices (tfacr2121m000). Realized currency differences originate from these sessions when another currency/rate is concerned.
  • Write Off Payment Differences (tfacp2230m000) or Write Off Payment Differences (tfacr2240m000)
Example

The purchase invoice amount is EUR 10,000

The invoice currency is EUR.

The home currency is USD.

The invoice date is 2017-01-01.

Exchange rates :
Start dateRate EUR to USDInvoice amount in USD
2017-01-011.362USD 13,6210
2017-02-011.264USD 12,6423
2017-02-151.269USD 12,6904

 

The rate factor is 1.

On 2017-02-10, the unrealized currency differences have been calculated as described in Unrealized currency differences. There was a currency profit of USD 978.

On 2017-02-15, the invoice is paid as follows:

In invoice currency:EUR 10,0000
In home currency:USD 12,6904

 

The realized currency difference is 10,000 * (1.362 - 1.269) = USD 930

For sales invoices, this difference would be a realized currency loss. Because this invoice is a purchase invoice, this difference is a realized currency profit.

When the realized currency difference is posted, the unrealized currency differences are reversed.

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