Currency Swap Posting: Loan Position (SAP Library - European Monetary Union: Euro (CA-EUR))

Currency Swap Posting: Loan Position

Prerequisite

For currency swap postings (for loan positions, open items and discounts/premiums) you must be able to make postings to the clearing account for the currency swap (and other relevant accounts, such as the balance sheet account) in both euros and the original currency.

Procedure

The system performs a currency swap posting for the proportional loan balance in the balance sheet account in FI.

The system determines the remaining capital in the original currency via the cash flow and posts this amount from the balance sheet account to a clearing account for currency swap postings.

The system determines the remaining capital in euros on the basis of the euro cash flow, and posts this value back to the balance sheet account.

Example of a currency swap posting for a loan position

Remaining capital:

Example of differences for capital amounts:
The system makes the following calculations:
The capital amounts are calculated on the basis of the cash flow in the original currency:
Remaining capital (from flows): 50,000 DEM
The capital amounts in the original currency are translated into euros using the fixed rate (direct currency translation).
Remaining capital (direct translation): 25,564.59 EUR
The cash flow is translated from the original currency into euros record by record.
The capital amounts are calculated on the basis of the cash flow in euros:
Remaining capital (from flows): 25,564.60 EUR
Calculation of the rounding difference: 0.01 EUR

Relevant capital amount: Remaining capital translated into euros (directly): 25,564.59 EUR

Posting records in FI in transaction currency:

Outflow:

Debit currency swap clearing account

50,000 DEM

Credit balance sheet account

50,000 DEM

Inflow:

‚ Debit balance sheet account

25,564.60 EUR

Credit currency swap clearing account

25,564.60 EUR

The local currency amount is identical for both postings.

Post adjustment flow for remaining capital

Posting record:

ƒ Debit clearing account for capital amounts

0.01 EUR

Credit balance sheet account

0.01 EUR

Note:
Since you cannot post a local currency amount of zero in FI, the adjustment comprises two postings for technical reasons. In the first posting, the balance sheet position is posted to a clearing account. In the second posting, the local currency amount is taken off the clearing account, since only the contract currency is to be adjusted.

Example:

Aim: Post 0.01 EUR = 0.00 DEM (LC)

Postings:

0.01 EUR = 0.02 DEM (clearing account to balance sheet account)
0.00 EUR = 0.02 DEM (balance sheet account to clearing account)

T-account example:

€ Basis: Position in DEM

Currency swap outflow

‚ Currency swap inflow (balance on local currency side after posting = 0)

ƒ Adjustment posting for remaining capital

„ Position in EUR after the contract currency changeover