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Profit and loss from currency trading

Ahmed_Samir
Participant
0 Kudos

Dears,

I have a concern related to the spot currency exchange, my customer requirements is to know profit and loss from currency trading.

how to map this on SAP, as i made the configuration but i sense that something wrong

i made the Forex attributes for the spot transaction type that it will not translate to local currency (i didn't mark the check box), which made the TPM18 t.code display revenue or loss comparing the rate used in the orders with the average rate, as an accounting point of view is that right?, if not please assist in applying this cycle.

your assistant is highly appreciated.

Regards,

Ahmed Samir

Accepted Solutions (0)

Answers (1)

Answers (1)

Former Member
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Ahmed,

This is how the Forex Product type 60A (Product category 600) works.

Let us take an example. Suppose you are Buying CAD (Canadian Dollars) 10Million and Selling USD.

The  exchange rate contracted with the counter-party is say 1 USD = 1.1 CAD which means you will have to pay 9,090,909.09 USD on settlement day to get 10Million CAD.

On settlement date assume that the M rate in SAP is 1 USD = 1.20 CAD.

Since the USD has become costlier byy 0.10 CAD you will end up paying 757,575.76 more USD than the contracted amount of 9,090,909.09. This 757,575.76 will be treated as your Realized Loss on settlement date.

Hope your point is clarified. Let me know if you have additional questions.

Ramu

Ahmed_Samir
Participant
0 Kudos

Dear Ramu,

Thanks for your reply, really appreciated.

I understand your point, but in my case the settlement day is in the same day, because its a foreign currency exchange company so the settlement has to be done in the same day, also is it applicable to maintain more than one exchange rate record in F-62 ir OB08 in the same day.

Thanks,

Ahmed Samir