<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tf/onlinemanual/000012" xml:lang="en">
   <Header>
      <Title>Unrealized currency differences</Title>
      <Keyword type="header" order="d1e1658552">
         <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, LN calculates the currency difference over the remaining open invoice amount,
		using the following formula:</Paragraph>
      <Formula space-and-orientation="indented-estimated">
         <Paragraph>unrealized curr. difference = open invoice amount * (invoice rate/rate factor - new rate/rate	factor) </Paragraph>
      </Formula>
      <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
		  2007-01-01.</Paragraph>
         <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
            <TBODY noTR="5">
               <TR no="1" isLast="false">
                  <TH colspan="2" width="240" rowspan="1">Exchange rates :</TH>
                  <TH align="right" width="122" rowspan="1" colspan="1"> </TH>
               </TR>
               <TR no="2" isLast="false">
                  <TH rowspan="1" colspan="1">Start date</TH>
                  <TH align="left" width="162" rowspan="1" colspan="1">Rate EUR to USD</TH>
                  <TH align="left" width="122" rowspan="1" colspan="1">Invoice amount in USD</TH>
               </TR>
               <TR no="3" isLast="false">
                  <TD rowspan="1" colspan="1">2007-01-01</TD>
                  <TD align="right" width="162" rowspan="1" colspan="1">1.362</TD>
                  <TD align="right" width="122" rowspan="1" colspan="1">USD 13,6210</TD>
               </TR>
               <TR no="4" isLast="false">
                  <TD rowspan="1" colspan="1">2007-02-01</TD>
                  <TD align="right" width="162" rowspan="1" colspan="1">1.264</TD>
                  <TD align="right" width="122" rowspan="1" colspan="1">USD 12,6423</TD>
               </TR>
               <TR no="5" isLast="true">
                  <TD rowspan="1" colspan="1">2007-02-15</TD>
                  <TD align="right" width="162" rowspan="1" colspan="1">1.269</TD>
                  <TD align="right" width="122" rowspan="1" colspan="1">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 2007-02-10.</Paragraph>
         <Paragraph>On 2007-02-10, the
		  calculated unrealized currency difference is:</Paragraph>
         <Paragraph>10,000 * (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>