Forward exchange

1. In the Modules Tasks pane, select the Forward Exchange option in the Management folder of the FX module.

The modification page of the default filter for this function, is displayed.

This page enables you to define filtering criteria restricting or enlarging the selection of transactions to display in the transactions page. If no filter is defined here, all the existing transactions are displayed on the page. If the number of transactions is too large, restricting the selection improves the legibility.

2. Set up the filter, then click OK.

The management page for Forward Exchange Transactions is displayed with the list of the created transactions in a table.

This table presents the list of the forward exchange transactions with, to name a few, the type, number and amount of the transaction, the countervalue, the transaction and delivery dates, the company, the counterparty and the forward exchange rate.

For more information on:

• reorganizing the lines in the table, click here
• how to search text in the table, click here
• creating and duplicating transactions, see the topic below,
• modifying transactions, click here,
• deleting transactions, click here,
• commercial forecasts links, see topic Commercial Forecasts Link,
• back office validation of transactions, see topic Back-office Processing,
• settlement, carry forward or early exercise, see topic FX Transactions Follow-up,
• editing transaction-related documents, see topic Transaction-related Documents,
• displaying the cash flows linked to a transaction in the Cash Ledger, see topic Cash Ledger.

You can change the layout of the table: selecting columns, filtering displayed information, grouping lines according to data, etc. For more information on this feature, see topic Table Reorganization.

1. In the setup page for Forward Exchange Transactions, click the Create button.

The creation page is displayed.

The header presents the basic information of the transaction.

2. Complete the fields of the header.

In the following table, the green ticks in the M column indicate that the fields are mandatory.

The red crosses in the E column indicate the fields that cannot be modified once the transaction is saved.

View Header Description

Field	Description	M	E
Buy/Sell	Define the direction of your transaction by enabling the Buy or Sell options. Note: The transaction direction is the same as the direction of the currency displayed next to the Amount field. If you enable the Buy option and that you select the USD code next to the Amount field and the GBP code next to the Countervalue field, the created transaction is a buy in US dollars against a sell of GB pounds sterling.
Transaction	This field enables you to select a type of transaction according to the defined transaction direction. Click the button to view the list of the existing transaction types then, in the contextual window, double-click a line to select it. The code and description of the selected transaction type, are displayed in the Transaction field.
No.	This non-editable field displays the transaction identifier. You cannot enter any information in this field. It is blank during the creation and then, automatically completed when the transaction is saved.
Link No.	This optional field enables the grouping of commercial transactions and FX transactions together, under a common link number. This number shows the assigned category (activity type, geographical area, project, etc.). It can then be used as a criterion of accounting or filtering processes, depending on your hedging strategy (micro-hedging or macro-hedging). For more information on link numbers, see Setup documentation. To select a link number, use the button as explained previously.
Type	This non-editable field displays the transaction type: initial, swap, etc. For manual creations, the type is always the "Initial" type. For more information on the FX transaction types, see topic FX Transaction Types.

The Characteristics tab enables you to define the main information on the transaction to create.

3. Complete the fields of the tab.

In the following table, the green ticks in the M column indicate that the fields are mandatory.

The red crosses in the E column indicate the fields that cannot be modified once the transaction is saved.

View Fields Description

Field	Description	M	E
Analysis area
Folder	To select a file number, use the button as explained previously. When you select a file number in this field, the fields of the company, counterparty and countervalue currency are automatically completed on the basis of the selected file. For more information on setting up Folders, refer to the Setup module documentation.
Portfolio	To select a portfolio number, use the button as explained previously. For more information on portfolios, see Setup documentation.
Participants area
Company	This field enables you to select the applicant company. To select a company, use the  button as described previously.
Counterparty	This field enables the selection of the counterparty with which the transaction is concluded (bank, company or other counterparty). To select a counterparty, use the button . The selected counterparty must be a bank or must hold a bank account set up for the transaction currency. For more information on setting up Counterparties, refer to the Setup module documentation.
Contact	Enter the name of the contact for the counterparty. If you defined a name when setting up counterparties, this field is automatically completed. However, you can change the name which will be used in the confirmation letter.
General area
CTRV Modes	Select an option in the dropdown list, so you can define which value to enter and which value to be automatically calculated: the transaction amount in the main currency, the countervalue and the exchange rates. Depending on the selected option, the Amount, Countervalue Amount, and Spot Rate fields are either enabled for entry, or disabled and automatically completed. Enter Rate: this option enables you to enter the transaction amount in the main currency and the currency rate. The countervalue is automatically calculated. Enter Exchange Value: this option enables you to enter the transaction amount in the main currency and its countervalue. The currency rate is automatically calculated. Enter Rate and Exchange Value: this option enables you to enter the currency rate and the countervalue. The transaction amount is automatically calculated.
Amount	These fields display the main currency and the transaction amount in the main currency. Select the main currency using the button . The currency code is displayed in the first field. In the adjacent entry field, enter the transaction amount expressed in the main currency or calculate this amount using the calculator. For more information on how to use the calculator, click here.
Countervalue	These fields show the countervalue currency and the transaction amount expressed in the countervalue currency. The countervalue currency is automatically completed by the selected applicant company. If these fields are enabled, select the countervalue currency using the button. The currency code is displayed in the first field. In the adjacent field, enter the countervalue amount expressed in the main currency or calculate this amount using the calculator. For more information on how to use the calculator, click here. Important: You will be able to change the countervalue amount later on, whereas modification will not be possible for the countervalue currency.		(currency)
TRX Date	This field displays the transaction date of the transaction. The default value for this field is today's date. To change this date, enter a date in the field or use the calendar. For more information on how to use the calendar, click here. As the flows do not take place during the creation of the forward exchange transaction, but during its settlement, the transaction date entered in FX is not used in Cash anymore. Cash uses as bank transaction date of the cash flow, the maturity date of the transaction specified in FX.
Spot Value Date	This field displays the value date of the transaction calculated according to the transaction date and the setup of the broker calendar. It can be replaced by the transaction date or by a date falling after the transaction date. To change this value, enter a date in the field or use the calendar.
Maturity Date	This field shows the maturity date of the forward exchange transaction, i.e. the last possible date for the settlement of the carry forward of the transaction. It corresponds to the transaction date of the flow posted in the Treasury module. This field cannot be edited. This date is calculated based on the delivery date and falls two worked days before it (or more if two worked days ago, the market of one of the currencies was closed).
Delivery Date	This field displays the date on which the currencies are actually delivered. This corresponds to the value date of the flow posted in the Treasury. This default date is the spot value date plus two worked days depending on the broker calendar linked to the currencies. For more information on broker calendars setup, see Market Data documentation. This date can be replaced by an identical date or a date falling after the transaction date, for example, when you use an overnight transaction. To change this value, enter a date in the field or use the calendar. You cannot select a date falling before the spot value date plus two days.
Rate area This area shows the spot exchange rate, the swap points and the forward exchange rate.
Spot Rate	This field displays the spot exchange rate for the currencies of the transaction.
Swap Points	This field displays the difference in points between the forward exchange rate and the spot exchange rate.
Forward Rate	This field displays the forward exchange rate for the currencies of the transaction.

In the Rate area, the values can be manually entered or automatically completed, depending on the entry option selected in the CTRV Modes list:

• If you selected Enter Rate or Enter Rate and Exchange Value, the swap points and the forward exchange rate are completed on the basis of the rates set up in the Market Data module. For more information on the currencies setup, see Market Data documentation.

You may modify one of the entered values if needed. The other values would then be automatically recalculated: if you modify the swap points, the forward exchange rate is recalculated; if you modify the spot exchange rate or the forward exchange rate, the swap points are recalculated.

• If you selected the Enter Exchange Value option, the values are calculated on the basis of the amount in the main currency and of the amount in the countervalue currency.

Click the button to change the direction of the rate expression for the values of the Rate area (spot exchange rate, swap points, forward exchange rate). The displayed values correspond to the direction of countervalue currency against main currency, but the direction of the transaction does not change.

Click again the button to redisplay the values with the direction of the transaction.

4. Click on the Cross Rate tab.

This tab enables you to define the different cross forward rates, when none of the currencies of the FX transaction corresponds to the local currency of the company. It includes the rates for two currencies according to the local currency of the company and to the transaction date.

These rates against the local currency are used to calculate amounts in the local currency, for instance. These calculations are required for the positions or the results: average rate, revaluation, breakeven point, results, etc.

These rates are calculated on the basis of three elements:

• the exchange rates from the Characteristics tab,
• the exchange rates set up in Market Data.
• the interest rates set up in Market Data.

The calculation methods for the cross rates are the same as the ones for the spot exchange.

The following table describes the fields of this tab. The two areas of the tab (Cross 1 and Cross 2) enable you to enter information on the FX rate of one currency of the transaction compared with the local currency of the company. The fields of this tab are identical in both areas.

View Fields Description

Field	Description
Spot Rate	The fields display the pair's currencies and the spot exchange rate of the currency pair in the specified direction.
Swap Points	This field displays the difference in points between the forward exchange rate and the spot exchange rate.
Forward Rate	This field displays the spot exchange rate of the currency pair in the specified direction.

5. To modify the values in this tab, enter values where needed, or calculate them using the calculator. For more information on how to use the calculator, click here.
6. Place your cursor in another field. The other values are automatically updated:

• if you modify the swap points, the forward exchange rate is recalculated,
• if you modify the spot exchange rate or the forward exchange rate, the swap points are recalculated.

7. Click the button if you want to change the direction of the quotation, as described previously.

8. Click on the Settlement tab.

This tab enables you to specify information on the payment instructions: bank details required for the funds transfers and delivery dates.

You do not need to enter the bank details when creating the transaction. This is something that you can define in the module setup. For more information, refer to topic FX Configuration. This element becomes crucial only when the transaction is settled.

This tab is identical to the Settlement tab of the creation page for Spot Exchange Transactions, apart from the presence of an additional field (described below) dedicated to the transaction status.

• The Main Currency area enables the selection of the accounts for the main currency that will be credited for a buy or debited for a sell.
• The Ctrv Currency area enables the selection of the accounts for the countervalue currency that will be credited for a sell or debited for a buy.

In the following table, the green ticks in the M column indicate that the fields are mandatory.

View Fields Description

Field	Description	M
Company account	Using the button , select the company bank account that will be debited or credited, depending on the case. This settlement account can be held in a third currency, different from the main or secondary currency.
Value Date	This editable field displays the date on which the currencies will be actually available on the account. This corresponds to the delivery date of the transaction, for Forward Exchange Transactions.
Counterparty Account	These fields present the details of the bank account of the counterparty, they are automatically completed on the basis of the counterparty account set up for the selected company and the transaction currency. The counterparty account is optional if the counterparty is a bank. If it is another counterparty or a company, the bank account must be set up for the counterparty and the transaction currency. Actually, the spot transactions are automatically settled by FX at the very moment of their validations, which explains the necessity of this element during the transaction creation. The counterparty accounts are set up via Setup. For more information, see the module documentation.
From/By	This field displays the default contact for the selected bank account. If you did not set up a default contact or if the contact for this transaction is not the default contact, you can enter or modify his/her name in this field.
Conversion	This function enables you to view the details of the conversion, if the currency of the credited account is different from the transaction main currency, or if the currency of the debited account is different from the transaction secondary currency. For more information on this function, see topic Amounts Conversion.
Reference	In this field, enter an external reference for the transaction, if any. It may be the reference of the internal filing system of your company: it will appear in mails related to the transaction. It is also a search and selection criterion.
Status	This non-editable field displays the transaction status: open or closed (settled).

After its creation, the contract remains open until its settlement. Once it is settled, you cannot modify it anymore, but you can view it. It also disappears from the financial position to be integrated into the stock, then into the balance.

9. Click on the Back Office tab.

This tab displays the information reserved for administration use and transaction security, required for the international treasury management. It also lists the transaction events: creation, last modification, back-office validation, generated reports.

From this tab, you can process the back-office validation of a transaction.

This tab is the same as the Back Office tab of the creation page for Spot Exchange Transactions.

In the following table, the green ticks in the E column indicate that the fields are editable.

View Fields Description

Field	Description	E
Creation area This area presents information on the transaction creation.
Dates	Creation date of the transaction
At	Creation time of the transaction
By	Username and full name of the user who created the transaction
Last Change area This area presents information on the last change of the transaction.
Dates	Date of the last change
At	Time of the last change
By	Username and full name of the user who last modified the transaction
Validation area This area presents information on the back-office validation of the transaction.
B.O. Validation	This option is enabled if the transaction was back-office validated. Canceling the back-office validation of this transaction on this page is not possible. For more information on canceling back office validation, see topic Cancellation of the back-office validation. If you want the transaction to be back-office validated from this page, enable this option. The transaction is then validated and the dealing ticket, the confirmation letter and the payment order are generated. A back-office validated transaction cannot be deleted.
Dates	Date of the back-office validation for the transaction
At	Time of the back-office validation for the transaction
By	Username and full name of the user who launched the back-office validation of the transaction
Reports area This area presents information on the documents generated from the transaction.
Dealing Ticket	This option is enabled if a dealing ticket has already been generated.
Confirmation Letter	This option is enabled if a confirmation letter has already been generated.
Payment Order	This option is enabled if a confirmation letter has already been generated.
G/L Allocation area This area enables you to enter the G/L information on the transaction, they will be exported into an external accounting system. See the documentation of the Setup module for more information on the setup of G/L categories, types and periods.
Category	This field enables you to assign a G/L category to the transaction. Use the button as described previously.
Type	This field enables you to assign a G/L type to the transaction using the button .
Period	This field enables you to assign a G/L period to the transaction using the button .

10. Click on the User Fields tab.

This tab enables you to define additional information on the transaction in a small text.

11. In the first field, enter the notes that you want to include in the ledger.
12. In the second one, enter the notes that you want to include in the dealing ticket.
13. Click OK to validate the creation or Cancel to cancel it.

Two flows are generated in the Treasury: a receipt flow in the main currency and a disbursement flow in the countervalue currency.

The procedure for the duplication of Forward Exchange Transactions is virtually identical to the procedure for the duplication of Spot Exchange Transactions. Click here for more information.

However there is a difference. In the duplication page of the transaction, if you enable the option Initial characteristics with updated dates and rates, four dates are automatically completed.

• The transaction is set to today's date.
• The spot value date and the maturity date are set to today's date plus two worked days depending on the broker calendar.
• The delivery date is set to the maturity date plus two worked days.

To access the creation page for filters from the management page of Forward Exchange Transactions, click the Actions dropdown menu in the filters toolbar, and select the Add option.

The creation page for filters is displayed.

This page enables the definition of unique identification information for the filter.

1. Enter a code and a description for the filter in the Code and Description fields.
2. If you want this filter to be applied by default when you access the management page of Forward Exchange Transactions, enable the Template Default Filter option.
3. If you want this filter to be only accessible by yourself, select the Private option.
4. You may add a comment in the Text area.
5. Click the Configure button to set up the filter settings.

The configuration page for filter settings is displayed.

If you want to copy the settings of an existing filter, click the Copy From button in the action bar. Click here for more information.

The filter settings are all optional: complete the ones for which you want to apply filtering criteria.

The General tab enables you to specify a filtering process on different elements: transaction date, delivery date, company, counterparty, currencies, transaction type, file number, portfolio number, transaction direction, back-office validation.

6. In the Period area, if you want to specify a filtering process on the transaction date, go through the following process.

1. Enable the TRX Date option.

The From and To fields of the area are enabled.

2. In these fields, specify the start and end dates of the period in which must fall the transaction date of the transactions to display, by going through the following process:

• In the entry field, select the value to modify and enter a date with the format dd.mm.yyyy.

- or -

• Click the button to display the calendar.

A contextual window displays the calendar.

View Calendar

Use the arrows and to select the month, year and day.

- or -

To set the start date to today's date, click the button Today.

7. To specify a filtering process on the delivery date, enable the Delivery Date option, then go through the same process as above, to define the start and end dates of the period in which must fall the delivery date for the transactions to display.

8. In the General area, to filter on one of the following elements, use the button as explained previously:

Field	Description
Company	Applicant (Company)
Counterparty	Counterparty with which the transaction is concluded
CCY Main	Main currency of the transaction
CCY CTRV	Countervalue currency of the transaction
Transaction	Transaction Type
Folder	Number of the file in which the transaction is included
Portfolio	Number of the portfolio in which the transaction is included

9. In the Buy/Sell dropdown list, select a filtering criterion on the direction of the transaction:

• Buy to select the buy transactions only,
• Sell to select the sell transactions only,
• Buy & Sell to disable any filtering process on the transaction direction.

10. In the BO Validation dropdown list, select one filtering criterion on the back-office validation of the transactions:

• Non B.O. Validated to select the non back-office validated transactions only,
• B.O. Validated to select the BO-validated transactions only,
• B.O. Validated and Non B.O. Validated to disable any filtering process on the back-office validation.

11. Click on the Advanced tab.

This tab enables you to define the filtering criteria on commercial transaction numbers, reference numbers, link numbers, statuses and the transactions using the opposite currency pair.

12. In the Number field of the Transaction area, enter a range of order numbers for the transaction.

13. In the Reference field, enter the external reference number for the transaction.
14. In the Link No field, enter a range of link numbers for the transactions.
15. In the Nature area, enable the options corresponding to the transaction statuses that you want to view:

• Initial to select only the initial transactions (manual creations),
• Exercising to select the transactions created after the early exercise only,
• Deferring to select the transactions created after a deferment only,
• Swap to select the transactions that are legs of swap transactions only,
• Exercized to select the transactions that were subject to an early end only,
• Deferred to select the transactions that were subject to a deferment only.

16. In the Status area, select the option:

• Opened to select the non-settled transactions only,
• Closed to select the settled transactions only.

17. In the Misc. area, select the Search Opposite Pair option, if you want to select the transactions with the opposite currency pair too.

18. Click the following buttons, as needed:

• OK to validate the setup and go back to the management page for Forward Exchange Transactions,
• Cancel to go back to the management page for Forward Exchange Transactions without saving this setup.

For more information on the application, modification and deletion of filters, see topic Filters.