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 date | Rate EUR to USD | Invoice amount in USD |
| 2017-01-01 | 1.362 | USD 13,6210 |
| 2017-02-01 | 1.264 | USD 12,6423 |
| 2017-02-15 | 1.269 | USD 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.