Write Off Currency Differences (tfacr2250m000)

Use this session to write off currency differences for outstanding invoices expressed in another currency.

The currency difference transaction is posted to the ledger account defined in the Ledger Accounts by Business Partner Group (tfacr0111m000) session for these types of transaction:

Unrealized Cur. Profit
Unrealized Cur. Loss

Note:

For invoices with receipt schedules and currency differences that are already posted at the invoice level, the unrealized currency differences are reversed and new unrealized currency difference amounts are calculated and posted based on the open amount for each schedule line.

The realized currency difference that results from the invoice amount being expressed in a currency other than that of the payment, is processed in the Bank Transactions (tfcmg2500m000) session. The currency difference produced by interim exchange rate fluctuations is posted in the Write Off Currency Differences (tfacr2250m000) session.

A currency profit is only posted if the Write Off Currency Profits check box is selected. Otherwise, only the currency losses are posted.

Currency losses are always posted as follows:

Debit: Unrealized Cur. Loss
Credit: Accounts Receivable

Note If the Write Off Currency Differences for Anticipated Receipts check box in the ACR Parameters (tfacr0100s000) session is selected, invoices with anticipated receipts are considered for writing off currency differences.

Unrealized currency differences are reversed as soon as the invoice is actually paid.

Note: If the Calculate Currency Difference if Non-Finalized Transactions exist check box is cleared in the Finance Company Parameters (tfgld0503m000) session, to write off currency differences, all non-finalized transactions within the selected period must be finalized. If this checkbox is selected, LN can write off the currency differences (including non-finalized transactions) for the selected period.

Field Information

Selection Range

Select Specific Invoices

To select individual documents, select this check box and then click Specific Invoices.

If you want to write off payment differences for a number of documents that are not in sequence, you can click Specific Invoices to start the Specific Invoices for Write-Offs (tfacr2520m001) session.

Selection

The type of document used as the basis for calculation of currency differences.

Allowed values

Both
Invoices
Advance/Unallocated Payments
Advance/Unallocated Receipts

Invoice-to Business Partner

The From and To fields define a range of: the business partner.

Transaction Type

The From and To fields define a range of: the Transaction Type.

Document

The From and To fields define a range of: the document number, part of the invoice identification.

Invoice Period

The fiscal year to which the financial transactions are linked.

Period Separator

The character used to separate the segments of the financial period.

Currency

The From and To fields define a range of: code of the currency.

Settings

Rate Date

The date on which the currency exchange rate is based.

Note: This date is defaulted with the last date of the Invoice Period (To).

Manual

If this check box is selected, the exchange rate can be specified manually.

Note:

If only one currency is specified in the Currency field (this currency must be different from the Home Currency), you can select Manual checkbox, the Rate Type and the Rate fields enabled. You can change the rate type and the exchange rate as required.
If a range of currencies specified in the Currency field and select Manual checkbox, the Rate Type enabled but the Home Currency field remains disabled.
If the Currency is set to PLN (Polish Zloty) for example, only the rate field opens, when country Poland is enabled inImplemented Software Components (tccom0500m000)session and Currency from - to in combination of Rate Type exists.

This field is enabled only if one of the Currency is specified. This currency must be different from the value specified in the Home Currency field.

Rate Type

The code of the exchange-rate type.

Note:

This field is enabled only if the Manual checkbox is selected.

Home Currency

The code of the home currency in which the amount to be written off is expressed.

Dates and Periods

Post Currency Differences

If this check box is selected, LN posts the calculated currency difference amount to the General Ledger .

If this check box is cleared, LN prints the calculated difference amount without posting the transaction.

Batch

A batch is compiled from a group of transactions, all of which occur within the same period.

Document

The transaction type that LN uses to post the currency differences selected during this run. The transaction type is part of the identification of the currency difference transaction.

This transaction type was defined in the Transaction Type for Currency Differences field of the ACR Parameters (tfacr0100s000) session.

Document

The document number for which the currency differences (and the corresponding tax amounts) are written off. The same document number is used for all differences in the same run.

After each finalization run, LN automatically increases the number by one.

Fully paid only

To select only invoices that have been fully paid, select this check box.

Print Details

If this check box is selected, LN prints a report with details of the currency differences that are written off.

Print Unselected Documents

If this check box is selected, LN prints a report that shows the reason why a document was not selected.

Dates and Periods

Document Date

The date on which you create the transaction to post the currency differences.

Allowed values

This date must be within the financial period you selected in the Fiscal Period field.

Fiscal Period

The year of the financial period in which the currency difference transaction is posted.

Fiscal Period

The financial period in which currency difference transactions are posted.

Reporting Period

The reporting year in which the currency difference transactions are posted.

Reporting Period

The reporting period in which the currency difference transactions are posted.

Tax Period

The year of the tax period in which the currency difference entries concerning tax amounts are made.

Tax Period

The tax period in which the entries concerning tax amounts over currency differences are made.

Tolerance Limits

User: The logon code and name of the user as defined in the User Data (ttaad2500m000) session.
User: The name of the user who enters transactions.
User: The code of the user.
: The name of the user.
Kind of User: The type of the user.
Maximum Amount to be Written Off: The maximum amount for each invoice to be written off as currency differences. If the open amount of an invoice is smaller than this amount, LN writes it off as currency difference.

Note: The open invoice amount must also meet the condition displayed in the Maximum Percentage to be Written Off field. Otherwise, LN will not write off anything.
Local Currency: local currency
Reporting Currency: The code of the reporting currency in which the amount to be written off is expressed.
Maximum Percentage to be Written Off: The maximum percentage over the total invoice amount which exceeds the open balance to be written off as currency difference.

Note: The open invoice amount must also meet the condition displayed in the Maximum Percentage to be Written Off field. Otherwise, LN will not write off the amount as payment difference.
Maximum Amount to be Written Off: The maximum amount for each invoice to be written off as currency differences. If the open amount of an invoice is smaller than this amount, LN writes it off as currency difference.
: The code of the reporting currency in which the amount to be written off is expressed.
Maximum Amount to be Written Off: The maximum amount for each invoice to be written off as currency differences. If the open amount of an invoice is smaller than this amount, LN writes it off as currency difference.
: The code of the reporting currency in which the amount to be written off is expressed.