In some countries, you have to display the total of the valuation differences of all the items cleared in a period. Depending on the +/- sign, these differences are translation gains or losses.

The valuation gains or losses that occurred in previous periods are only taxed after you have cleared the items.

In order to display the translation gains and losses, two additional items are generated during clearing. The items are posted to an account for translation gains and losses and to a clearing account.

In order to display the valuation differences, you must define separate accounts for translation gains and translation losses, and clearing accounts.