It has been agreed that an invoice for 1000 USD, which equals 1800 DEM in local currency, is to be paid in CHF. The amount agreed upon is 1480 CHF.

At the time of payment, 1 CHF equals 1.2 DEM.

Let us assume that exchange rate differences are posted by the payment program, and the specified account is not tax-relevant.

The local currency amount for the bank subaccount is determined by translating the 1480 CHF. This results in an amount of 1776 DEM.

At the time of payment, the equivalent of 1000 USD would be 1500 CHF. This results in a profit of 20 CHF or 24 DEM, for which, in the simplest scenario, the following posting is made:

1800 DEM must be posted to the vendor account instead of 1776 DEM so that the original payable can be cleared.