To match with a matching transaction
If a matching transaction is generated for the difference amount, the amounts in the home currencies are calculated from the difference amount in the transaction currency by using the internal exchange rate type.
The following situations can occur:
- The remaining amount in each of the home currencies is zero or within the currency tolerance.
The remaining amount in at least one home currency is not zero. This can be caused by currency rate changes between the transaction dates of the transactions to be matched. Two possibilities exist:
- The differences in the home currencies stay on the account.
-
To balance the account in the home currencies, a second transaction is generated for the difference amounts in the home currencies. The transaction is directly based on the difference amount, no currency rates are involved.
Note: Whether or not additional matching transactions are generated for the home currencies, is determined by the corresponding settings in the Account Matching Properties (tfgld1657m000) session.
One side of the matching transactions balances the transactions on the GL account. The other side of the matching transactions is posted to a matching account.
Example 1: Home currencies balance
After generating the matching transaction, no difference amount remains in the various home currencies.
| Transaction amount | Transaction currency | D/C | Local currency EUR | Reporting currency 1 USD | Reporting currency 2 CAD | |
|---|---|---|---|---|---|---|
| Transaction 1 | 100 | GBP | D | 90 | 101 | 50 |
| Transaction 2 | 50 | GBP | C | 45.4 | 49.80 | 24.4 |
| Transaction 3 | 51 | GBP | C | 45.5 | 51.10 | 25.1 |
| Matching transaction | 1 | GBP | D | 0.9 | 0.10 | 0.5 |
| Result | 0 | 0 | 0 | 0 |
The other side of the matching transaction is posted to the Matching Account. In this case, the entry on the Matching Account consists of: GBP 1; EUR 0.9; USD 0.1; CAD 0.5.
Example 2: Incomplete matching
A currency difference amount remains in some of the home currencies. This can happen both if a matching transaction is needed and if a matching transaction is not needed as shown in this example.
| Transaction amount | Transaction currency | D/C | Local currency EUR | Reporting currency 1 USD | Reporting currency 2 CAD | |
|---|---|---|---|---|---|---|
| Transaction 1 | 100 | GBP | D | 90.1 | 101.02 | 50.5 |
| Transaction 2 | 100 | GBP | C | 90.9 | 101.1 | 50.5 |
| Result | 0 | 0.8 | 0.08 | 0 |
Example 3: Matching based on a difference
After generating the matching transaction a currency difference amount remains in the home currencies. A second matching transaction is generated based on the difference amounts.
This transaction is comparable to a currency difference transaction. The transaction amounts in the home currencies are not related to each other through a currency rate.
| Transaction amount | Transaction currency | D/C | Local currency EUR | Reporting currency 1 USD | Reporting currency 2 CAD | |
|---|---|---|---|---|---|---|
| Transaction 1 | 100 | GBP | D | 90.1 | 101.2 | 50.1 |
| Transaction 2 | 100 | GBP | C | 90.9 | 101.1 | 50.5 |
| Result | 0 | 0.8 | 0.08 | 0 | ||
| Transaction based on difference in local currency | 0.8 | |||||
| Transaction based on difference in reporting currency | 0.08 | |||||
| Result | 0 | 0 | 0 | 0 |
The other side of the matching transaction is posted to the matching account.
In this case, the entries on the Matching Account consist of:
- First entry: GBP 1; EUR 0.9; USD 0.1; CAD 0.5.
- Second entry: GBP 0; EUR 0.8; USD 0; CAD 0.
- Third entry: GBP 0; EUR 0; USD 0.08; CAD 0.