<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tf/onlinemanual/000012" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Unrealized currency differences</Title>
		<Keyword><Level1>Currency</Level1>
			<Level2>unrealized differences</Level2>
		</Keyword>
	</Header>
	<GeneralSection><List><ListIntro>Unrealized <Link href="/baanerp/tf/glossary/glossary#CurrenDiffer.tf" role="glossary">currency differences</Link> are currency differences that are calculated for invoices that are not yet paid. Currency differences become realized (actual) at the moment:</ListIntro>
			<ListItem>The invoice is paid.</ListItem>
			<ListItem>The <Link href="/baanerp/tf/glossary/glossary#000054" role="glossary">unallocated payments/receipts</Link> or <Link href="/baanerp/tf/glossary/glossary#000050" role="glossary">advance payments/receipts</Link> are assigned to an invoice.</ListItem>
			<ListItem>The payment differences are written off.</ListItem>
		</List>
		<Note><SectionTitle>Note</SectionTitle>
			<Paragraph>Whether unrealized currency differences are calculated, depends on several parameter settings. These settings are explained in <Link href="/baanerp/tf/onlinemanual/000107" role="manual">Currency differences</Link>.</Paragraph>
		</Note>
		<List><ListIntro>Unrealized currency differences can occur when:</ListIntro>
			<ListItem><Link href="/baanerp/tf/glossary/glossary#OpenInvoic.tf" role="glossary">Open invoices</Link> are present.</ListItem>
			<ListItem>Currency differences are written off, and the <Link href="/baanerp/tc/glossary/glossary#ExchanRate.tc" role="glossary">exchange rate</Link> of a currency has changed.</ListItem>
		</List>
		<Paragraph>If part of the invoice has been paid, SSA ERP calculates the currency difference over the remaining open invoice amount.</Paragraph>
		<Paragraph>The formula for calculating the unrealized currency difference is:</Paragraph>
		<Paragraph>Unrealized Currency Difference = Open Invoice Amount x (Invoice Rate/Rate Factor - New Rate/Rate Factor)</Paragraph>
		<Paragraph>The unrealized currency profits or losses are posted to the ledger accounts specified for the financial business partner group.</Paragraph>
		<ExampleSection><SectionTitle>Example</SectionTitle>
			<Paragraph>The purchase invoice amount is EUR 10,000</Paragraph>
			<Paragraph>The invoice currency is EUR.</Paragraph>
			<Paragraph>The home currency is USD.</Paragraph>
			<Paragraph>The invoice date is 01-01-2005.</Paragraph>
			<TABLE border="1"><TBODY><TR><TH colspan="2" width="240">Exchange rates :</TH>
						<TH align="right" width="122"></TH>
					</TR>
					<TR><TH>Start date</TH>
						<TH align="left" width="162">Rate EUR to USD</TH>
						<TH align="left" width="122">Invoice amount in USD</TH>
					</TR>
					<TR><TD>01-01-2005</TD>
						<TD align="right" width="162">1.362</TD>
						<TD align="right" width="122">USD 13,6210</TD>
					</TR>
					<TR><TD>01-02-2005</TD>
						<TD align="right" width="162">1.264</TD>
						<TD align="right" width="122">USD 12,6423</TD>
					</TR>
					<TR><TD>15-02-2005</TD>
						<TD align="right" width="162">1.269</TD>
						<TD align="right" width="122">USD 12,6904</TD>
					</TR>
				</TBODY>
			</TABLE>
			<Paragraph>The rate factor is 1.</Paragraph>
			<Paragraph>The <GUIRef href="/baanerp/tf/acp/tfacp2240m000" role="session">Write Off Currency Differences (tfacp2240m000)</GUIRef> session is run on 10-02-2005.</Paragraph>
			<Paragraph>On 10-02-2005, the calculated unrealized currency difference is:</Paragraph>
			<Paragraph>10,000 x (1.362 - 1.264) = USD 978.00</Paragraph>
			<Paragraph>For sales invoices, this currency difference would be an unrealized currency loss. Because this invoice is a purchase invoice, this difference is an unrealized currency profit.</Paragraph>
		</ExampleSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/tf/onlinemanual/000107" role="manual">Currency differences</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tf/onlinemanual/000013" role="manual">Realized currency differences</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tf/onlinemanual/000027" role="manual">Financial business partner group ledger accounts</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
