Forward exchange transaction

This type of transaction belongs to the"special investments". A forward exchange transaction (DTG) is an agreement on a specific foreign exchange transaction in the future. The agreement specifies all the data required to process the future foreign exchange transaction:

• The two currencies involved and which is the inflow and outflow currency (e.g. purchase USD for EUR)
• The exchange rate that will be valid for the subsequent foreign exchange transaction (forward rate)
• The time of the subsequent foreign exchange transaction (forward)
• The inflow and outflow amounts in the relevant currencies linked via the forward rate

With this information, the future foreign exchange transaction can then be booked automatically by the program without further processing.

To enter a forward exchange transaction, first proceed as for entering a "normal" forward exchange transaction:

1. Open the "Enter transactions" worksheet as described above in the section Enter transactions and select the desired holder if necessary.
2. Open the ACCOUNT menu in the "Enter transactions" worksheet.
3. Go to Account transaction types and select the transaction type FORWARD FOREX TRANSACTIONS.
   Use the keyboard to enter forward exchange transactions with the "Enter transactions" worksheet open as follows: Press the key combination <CTRL>+<2> for the account transaction types. Then press the button<F>.
   The "Forward exchange transaction" dialog box appears.
   

   

4. Enter your data in the input fields. Select the accounts for inflow and outflow. The current exchange rate is automatically displayed in the "Forward rate" field. Enter the forward rate here. After completing the entry, you can enter a detailed history for this forward exchange transaction.
   

   The amounts in the accounts are 0 here, as the account balance does not change initially. The foreign exchange transaction then due is not booked until the due date.

   The date in the "Value date" field corresponds to the due date.

5. Optionally, enter a reference number for this forward exchange transaction in the "Reference no." input field. The foreign exchange transaction due on the date is also assigned this reference number.
6. Finally, confirm the entries with the "Enter" button.

As a rule, valuation using the current exchange rate is sufficient for the forward exchange transaction and you do not need to enter any valuation rates specifically for this purpose. If you still want to create a price history for the forward exchange transaction, continue reading in the following section Creating a history for a forward exchange transaction.

If you would like to check the maturity of the forward exchange transactions you have entered, select the command CHECK OPEN FORWARD EXCHANGE TRANSACTIONS on the "Data maintenance" tab. All open forward transactions are listed in the "Open forward transactions" dialog box that appears. Among the due ones, select the ones you want to book as due and then click on the "Book selection due" button. If necessary, read the section Checking open forward transactions.

Forward exchange transactions appear in the list of recorded transactions as combined transactions - forward exchange inflow and forward exchange outflow.