R12/XTR: FOREIGN CURRENCY TRANSACTIONS: FX SPOT FORWARD REVALUATION AND CONVERSION RATES Q/A (Doc ID 1068400.1)

Last updated on FEBRUARY 10, 2017

Applies to:

Oracle Treasury - Version 11.5.10.2 to 12.2.6 [Release 11.5 to 12.2]
Information in this document applies to any platform.

Goal

Question 1:
If you have to settle a FWD contract with a SPOT rate that is keyed in XTR_SPOT_RATES and calculate the Realized gain/loss as the difference between the contract rate and the spot rate..what should you do.
Is Treasury currently discounting the Spot rate for some reason?

Question 2:
Scenario:
* If we enter into a FX contract on 03-Jan-2010 to buy 1 Million XXX at 1.00
* On 15-Jan-2010(value date 17-Jan-2010) I enter a swap to settle this at 1.10

1. Why Unrealized gain/loss always matches upto the realized gain/loss over the period of FX ? Say, user expects 100K gain/loss but Revaluation gives 100k of unrealized gain/loss along with the realized gain loss.
2. Is 100K are not double counting and charging it to P&L twice?

Question 3:

What are the basic currency setups to be insured for this: Treasury Report Currency:, Current System Rate etc.?

Question 4:

What are the pricing model for the FX Forward deal?

Solution

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