The proportionate premium/discount on the FI account is translated from the original currency into euros by means of a currency swap posting.
The system determines the remaining premium/discount on the basis of the cash flow in the original currency and posts this amount from the accrual/deferral account to a currency swap account (outflow).
At the same time, it calculates the remaining premium/discount on the basis of the cash flow in euros and posts this amount from the currency swap account back to the accrual/deferral account (inflow).
The system only makes currency swap postings for flow types with Flow category "TA" and Calculation category "TA" automatically when you run the contract currency conversion. These flows must be flagged as relevant for accrual/deferral. Flow types with the accrual/deferral method "0" (None or manual) are not taken into consideration.
Currency Swap Posting: Premium/Discount 