Enter Currency Forward Contracts

Explanation

This activity is used to enter the transaction details of currency forward contracts.  In a currency forward contract, two parties agree to transfer a given amount of a currency at an agreed rate on a given date. This activity involves entering details such as the Amount , the Counterpart (the other party to the contract), whether the currency which is traded flows in or out and the Swap Rate. This automatically updates the resulting cash flows Once the cash flows resulting from a currency forward contract is entered, they can be removed only by deleting the transaction details entered when carrying out this activity. 

Prerequisites

This activity requires that the Cash Flow Type FX FORWARD exists.

System Effects

A currency forward contract entered generates two cash flows on the same date. One "In" flow in Contract Base Currency if the contract is "In" and one "Out" in Contract Price Currency if the contract is "In". The Manual Cash Flow window is automatically updated when a new contract is saved.

Window

Currency Forward Contracts

Related Window Descriptions

Currency Forward Contracts

Procedure

To enter a currency forward contract:

1. Select Currency Forward Contracts window. Click New. Fill in the fields Cash Flow Date, Amount, In/Out, Contract Base Currency, Contract Price Currency, Spot Rate, Swap. The Outright Rate is automatically displayed.. Enter an optional text in the Text field and a Counterpart. Enter type of counterpart, internal or external in the Int/Ext field. Click Save