| # Unrealized currency differences Unrealized currency differences are currency differences that are calculated for invoices that are not yet paid. Currency differences become realized (actual) at the moment: The invoice is paid. The unallocated payments/receipts or advance payments/receipts are assigned to an invoice. The payment differences are written off. Note Whether unrealized currency differences are calculated, depends on several parameter settings. These settings are explained in Currency differences. Unrealized currency differences can occur when: Open invoices are present. Currency differences are written off, and the exchange rate of a currency has changed. If part of the invoice has been paid, ERP Enterprise calculates the currency difference over the remaining open invoice amount, using the following formula:
    unrealized curr. difference = open invoice amount * (invoice rate/rate factor - new rate/rate	factor)
The unrealized currency profits or losses are posted to the ledger accounts specified for the financial business partner group. Example The purchase invoice amount is EUR 10,000 The invoice currency is EUR. The home currency is USD. The invoice date is 2007-01-01.
Exchange rates : |
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Start date | Rate EUR to USD | Invoice amount in USD
2007-01-01 | 1.362 | USD 13,6210
2007-02-01 | 1.264 | USD 12,6423
2007-02-15 | 1.269 | USD 12,6904
The rate factor is 1. The Write Off Currency Differences (tfacp2240m000) session is run on 2007-02-10. On 2007-02-10, the calculated unrealized currency difference is: 10,000 * (1.362 - 1.264) = USD 978.00 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. Related topics Currency differences Realized currency differences Financial business partner group ledger accounts |