PURPOSE
To show illustration of foreign exchange rollover.
OVERVIEW
In a FX rollover, CS Lucas automatically create a new FX Transaction that cancel off with the original FX trade and a new FX Transaction for the forward settlement. The settlement is cleared through a “clearing account”.
SUMMARY OF JOURNALS
| ID | Description |
|---|---|
| Case 1 | Historical Rate Rollover (Full) |
| Case 2 | Historical Rate Rollover (Partial) |
| Case 3 | Current Rate Rollover (Full) |
| Case 4 | Historical Rate Roll Back (Full) |
| Case 5 | Current Rate Roll Back (Full) |
The accounting is deal with as illustrated below.
JOURNAL DETAILS
Case 1 Historical Rate Rollover (Full)
Original FX
Clearing Cash Account
| VDate | TradeID | Ccy | Buy/(Sell) Amount | Ccy | Buy/(Sell) Amount | Rate | USD | SGD |
|||
| 15-Feb-02 | FRX101 | USD | 1,000.00 | SGD | -1,700.00 | 1.700000 | 1,000.00 | -1,700.00 |
Rollover as historical rate to 20-Feb-02
| VDate | TradeID | Ccy | Buy/(Sell) Amount | Ccy | Buy/(Sell) Amount | Rate | USD | SGD |
|
| 15-Feb-02 | FRX105 | USD | -1,000.00 | SGD | 1,700.00 | 1.700000 | -1,000.00 | 1,700.00 |
|
| 20-Feb-02 | FRX106 | USD | 1,000.00 | SGD | -1,700.00 | 1.710000 | |||
| Net | 0.00 | 0.00 |
Note: FRX105 and FRX106 are automatically booked by the system.
The accounting entry for FRX105 will be as follows:
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX105 | 15-Feb-02 | B | Cash at Bank (Clearing A/C) | USD | -1,000.00 | 1.712300 | SGD | -1,712.30 |
| FRX105 | 15-Feb-02 | B | FX Cash Clearing Account | USD | 1,000.00 | 1.712300 | SGD | 1,712.30 |
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX105 | 15-Feb-02 | B | Cash at Bank (Clearing A/C) | SGD | 1,700.00 | 1.000000 | SGD | 1,700.00 |
| FRX105 | 15-Feb-02 | B | FX Cash Clearing Account | SGD | -1,700.00 | 1.000000 | SGD | -1,700.00 |
The accounting entry for FRX106 will be as follows:
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX106 | 20-Feb-02 | B | Cash at Bank | USD | 1,000.00 | 1.721000 | SGD | 1,721.00 |
| FRX106 | 20-Feb-02 | B | FX Cash Clearing Account | USD | -1,000.00 | 1.721000 | SGD | -1,721.00 |
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX106 | 20-Feb-02 | B | Cash at Bank | SGD | -1,710.00 | 1.000000 | SGD | -1,710.00 |
| FRX106 | 20-Feb-02 | B | FX Cash Clearing Account | SGD | 1,710.00 | 1.000000 | SGD | 1,710.00 |
+ Exchange rates used on the journals above are spot exchange rates on value dates. See Exchange Rates below.
Case 2 Historical Rate Rollover (Partial)
Original FX
Clearing Cash Account
| VDate | TradeID | Ccy | Buy/(Sell) Amount | Ccy | Buy/(Sell) Amount | Rate | USD | SGD |
|
| 15-Feb-02 | FRX101 | USD | 1,000.00 | SGD | -1,700.00 | 1.700000 | 1,000.00 | -1,700.00 |
Rollover as historical rate to 20-Feb-02
| VDate | TradeID | Ccy | Buy/(Sell) Amount | Ccy | Buy/(Sell) Amount | Rate | USD | SGD |
|
| 15-Feb-02 | FRX105 | USD | -700.00 | SGD | 1,190.00 | 1.700000 | -700.00 | 1,190.00 |
|
| 20-Feb-02 | FRX106 | USD | 700.00 | SGD | -1,197.00 | 1.710000 |
Residual Settlement on 15-Feb-02
| VDate | TradeID | Ccy | USD | SGD |
|||||
| 15-Feb-02 | CDL201 | USD | Inflow USD 300. | -300.00 | |||||
| 15-Feb-02 | CDL202 | SGD | Outflow SGD 510. | 510.00 |
|||||
Net | 0.00 | 0.00 |
Note: FRX105, FRX106, CDL201 and CDL202 are automatically booked by the system.
The accounting entry for FRX105 will be as follows:
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX105 | 15-Feb-02 | B | Cash at Bank (Clearing A/C) | USD | -700.00 | 1.712300 | SGD | -1,198.61 |
| FRX105 | 15-Feb-02 | B | FX Cash Clearing Account | USD | 700.00 | 1.712300 | SGD | 1,198.61 |
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX105 | 15-Feb-02 | B | Cash at Bank (Clearing A/C) | SGD | 1,190.00 | 1.000000 | SGD | 1,190.00 |
| FRX105 | 15-Feb-02 | B | FX Cash Clearing Account | SGD | -1,190.00 | 1.000000 | SGD | -1,190.00 |
The accounting entry for FRX106 will be as follows:
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX106 | 20-Feb-02 | B | Cash at Bank | USD | 700.00 | 1.721000 | SGD | 1,204.70 |
| FRX106 | 20-Feb-02 | B | FX Cash Clearing Account | USD | -700.00 | 1.721000 | SGD | -1,204.70 |
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX106 | 20-Feb-02 | B | Cash at Bank | SGD | -1,197.00 | 1.000000 | SGD | -1,197.00 |
| FRX106 | 20-Feb-02 | B | FX Cash Clearing Account | SGD | 1,197.00 | 1.000000 | SGD | 1,197.00 |
The accounting entry for CDL201 will be as follows:
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| CDL201 | 15-Feb-02 | B | Cash at Bank | USD | 300.00 | 1.712300 | SGD | 513.69 |
| CDL201 | 15-Feb-02 | B | Cash at Bank (Clearing A/C) | USD | -300.00 | 1.712300 | SGD | -513.69 |
The accounting entry for CDL202 will be as follows:
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| CDL202 | 15-Feb-02 | B | Cash at Bank (Clearing A/C) | SGD | 510.00 | 1.000000 | SGD | 510.00 |
| CDL202 | 15-Feb-02 | B | Cash at Bank | SGD | -510.00 | 1.000000 | SGD | -510.00 |
+ Exchange rates used on the journals above are spot exchange rates on value dates. See Exchange Rates below.
Case 3 Current Rate Rollover (Full)
Original FX
Clearing Cash Account
| VDate | TradeID | Ccy | Buy/(Sell) Amount | Ccy | Buy/(Sell) Amount | Rate | USD | SGD |
|
| 15-Feb-02 | FRX101 | USD | 1,000.00 | SGD | -1,700.00 | 1.700000 | 1,000.00 | -1,700.00 |
Rollover as current rate to 20-Feb-02
| VDate | TradeID | Ccy | Buy/(Sell) Amount | Ccy | Buy/(Sell) Amount | Rate | USD | SGD |
|
| 15-Feb-02 | FRX105 | USD | -1,000.00 | SGD | 1,705.00 | 1.705000 | -1,000.00 | 1,705.00 |
|
| 20-Feb-02 | FRX106 | USD | 1,000.00 | SGD | -1,710.00 | 1.710000 |
Net Settlement on 15-Feb-02
| VDate | TradeID | Ccy | USD | SGD |
|||||
| 15-Feb-02 | CDL201 | SGD | Inflow SGD 5.00 | -5.00 |
|||||
Net | 0.00 | 0.00 |
Note: FRX105, FRX106 and CDL201 are automatically booked by the system.
The accounting entry for FRX105 will be as follows:
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX105 | 15-Feb-02 | B | Cash at Bank (Clearing A/C) | USD | -1,000.00 | 1.712300 | SGD | -1,712.30 |
| FRX105 | 15-Feb-02 | B | FX Cash Clearing Account | USD | 1,000.00 | 1.712300 | SGD | 1,712.30 |
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX105 | 15-Feb-02 | B | Cash at Bank (Clearing A/C) | SGD | 1,705.00 | 1.000000 | SGD | 1,705.00 |
| FRX105 | 15-Feb-02 | B | FX Cash Clearing Account | SGD | -1,705.00 | 1.000000 | SGD | -1,705.00 |
The accounting entry for FRX106 will be as follows:
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX106 | 20-Feb-02 | B | Cash at Bank | USD | 1,000.00 | 1.721000 | SGD | 1,721.00 |
| FRX106 | 20-Feb-02 | B | FX Cash Clearing Account | USD | -1,000.00 | 1.721000 | SGD | -1,721.00 |
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX106 | 20-Feb-02 | B | Cash at Bank | SGD | -1,710.00 | 1.000000 | SGD | -1,710.00 |
| FRX106 | 20-Feb-02 | B | FX Cash Clearing Account | SGD | 1,710.00 | 1.000000 | SGD | 1,710.00 |
The accounting entry for CDL201 will be as follows:
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| CDL201 | 15-Feb-02 | B | Cash at Bank | SGD | 5.00 | 1.000000 | SGD | 5.00 |
| CDL201 | 15-Feb-02 | B | Cash at Bank (Clearing A/C) | SGD | -5.00 | 1.000000 | SGD | -5.00 |
+ Exchange rates used on the journals above are spot exchange rates on value dates. See Exchange Rates below.
Case 4 Hisotrical Rate Roll Back (Full)
Original FX
Clearing Cash Account
| VDate | TradeID | Ccy | Buy/(Sell) Amount | Ccy | Buy/(Sell) Amount | Rate | USD | SGD |
|||
| 15-Feb-02 | FRX101 | USD | 1,000.00 | SGD | -1,700.00 | 1.700000 | 1,000.00 | -1,700.00 |
Rollback as historical rate to 12-Feb-02
| VDate | TradeID | Ccy | Buy/(Sell) Amount | Ccy | Buy/(Sell) Amount | Rate | USD | SGD |
|
| 15-Feb-02 | FRX105 | USD | -1,000.00 | SGD | 1,700.00 | 1.700000 | -1,000.00 | 1,700.00 |
|
| 12-Feb-02 | FRX106 | USD | 1,000.00 | SGD | -1,710.00 | 1.710000 | |||
| Net | 0.00 | 0.00 |
Note: FRX105 and FRX106 are automatically booked by the system.
The accounting entry for FRX105 will be as follows:
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX105 | 15-Feb-02 | B | Cash at Bank (Clearing A/C) | USD | -1,000.00 | 1.712300 | SGD | -1,712.30 |
| FRX105 | 15-Feb-02 | B | FX Cash Clearing Account | USD | 1,000.00 | 1.712300 | SGD | 1,712.30 |
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX105 | 15-Feb-02 | B | Cash at Bank (Clearing A/C) | SGD | 1,700.00 | 1.000000 | SGD | 1,700.00 |
| FRX105 | 15-Feb-02 | B | FX Cash Clearing Account | SGD | -1,700.00 | 1.000000 | SGD | -1,700.00 |
The accounting entry for FRX106 will be as follows:
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX106 | 12-Feb-02 | B | Cash at Bank | USD | 1,000.00 | 1.712200 | SGD | 1,712.20 |
| FRX106 | 12-Feb-02 | B | FX Cash Clearing Account | USD | -1,000.00 | 1.712200 | SGD | -1,712.20 |
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX106 | 12-Feb-02 | B | Cash at Bank | SGD | -1,710.00 | 1.000000 | SGD | -1,710.00 |
| FRX106 | 12-Feb-02 | B | FX Cash Clearing Account | SGD | 1,710.00 | 1.000000 | SGD | 1,710.00 |
+ Exchange rates used on the journals above are spot exchange rates on value dates. See Exchange Rates below.
Case 5 Current Rate Roll Back (Full)
Original FX
Clearing Cash Account
| VDate | TradeID | Ccy | Buy/(Sell) Amount | Ccy | Buy/(Sell) Amount | Rate | USD | SGD |
|
| 15-Feb-02 | FRX101 | USD | 1,000.00 | SGD | -1,700.00 | 1.700000 | 1,000.00 | -1,700.00 |
Rollback as current rate to 12-Feb-02
| VDate | TradeID | Ccy | Buy/(Sell) Amount | Ccy | Buy/(Sell) Amount | Rate | USD | SGD |
|
| 15-Feb-02 | FRX105 | USD | -1,000.00 | SGD | 1,705.00 | 1.705000 | -1,000.00 | 1,705.00 |
|
| 12-Feb-02 | FRX106 | USD | 1,000.00 | SGD | -1,710.00 | 1.710000 |
Net Settlement on 15-Feb-02
| VDate | TradeID | Ccy | USD | SGD |
|||||
| 15-Feb-02 | CDL201 | SGD | Inflow SGD 5.00 | -5.00 |
|||||
Net | 0.00 | 0.00 |
Note: FRX105, FRX106 and CDL201 are automatically booked by the system.
The accounting entry for FRX105 will be as follows:
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX105 | 15-Feb-02 | B | Cash at Bank (Clearing A/C) | USD | -1,000.00 | 1.712300 | SGD | -1,712.30 |
| FRX105 | 15-Feb-02 | B | FX Cash Clearing Account | USD | 1,000.00 | 1.712300 | SGD | 1,712.30 |
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX105 | 15-Feb-02 | B | Cash at Bank (Clearing A/C) | SGD | 1,705.00 | 1.000000 | SGD | 1,705.00 |
| FRX105 | 15-Feb-02 | B | FX Cash Clearing Account | SGD | -1,705.00 | 1.000000 | SGD | -1,705.00 |
The accounting entry for FRX106 will be as follows:
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX106 | 12-Feb-02 | B | Cash at Bank | USD | 1,000.00 | 1.712200 | SGD | 1,712.20 |
| FRX106 | 12-Feb-02 | B | FX Cash Clearing Account | USD | -1,000.00 | 1.712200 | SGD | -1,712.20 |
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| FRX106 | 12-Feb-02 | B | Cash at Bank | SGD | -1,710.00 | 1.000000 | SGD | -1,710.00 |
| FRX106 | 12-Feb-02 | B | FX Cash Clearing Account | SGD | 1,710.00 | 1.000000 | SGD | 1,710.00 |
The accounting entry for CDL201 will be as follows:
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate+ | Base | Base Amt D/(CR) |
|---|---|---|---|---|---|---|---|---|
| CDL201 | 15-Feb-02 | B | Cash at Bank | SGD | 5.00 | 1.000000 | SGD | 5.00 |
| CDL201 | 15-Feb-02 | B | Cash at Bank (Clearing A/C) | SGD | -5.00 | 1.000000 | SGD | -5.00 |
+ Exchange rates used on the journals above are spot exchange rates on value dates. See Exchange Rates below.
EXCHANGE RATES
The following rates were used for this illustration.
Spot Rate
| SGD | 1.000000 |
| Date | USD/SGD |
|---|---|
| 12-Feb-02 | 1.712200 |
| 15-Feb-02 | 1.712300 |
| 20-Feb-02 | 1.721000 |
RELATED INFORMATION
FREQUENTLY ASKED QUESTIONS
CHANGE HISTORY
| Date | By | Changes |
|---|---|---|
| 28-Jul-2008 | CS | Creation. |
| 23-Jun-2016 | RJ | Reformatted. |
| 5-May-2020 | LT | Re-formatting. |
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