Re: Cancel Forward Contracts

Hi Rohit,

Thanks for your reply!

But for further clarification...

For example:

I have created one contract say for USD 100000 on 1st Dec 2012, with a forward rate INR 55 and maturity date 31st March 2013.

I want to cancel the contract on 31st December 2012. Hence I make a premature settlement in TX12.

1. For transaction type 105, I enter the cancellation rate for cancellation and the Value date as 31.12.2012. 

2. For Netting transaction type 103, the entries will be the reverse of the original contract. Now I enter the Value date as 31.12.2012.

As per the system, now the newly created transactions are closed. Hence there will be no flows for accounting. The original contract will still have the maturity date as 31st March 2013. Hence, the profit or loss can be posted only on 31st March 2013 in TPM18. Now the requirement is to account for the profit or loss from the cancellation as a reversible entry till the maturity date. Hence, when  I perform TPM1 for the original contract on 31.12.2012, the system still calculates the gain or loss on the original forward rate and the closing rate as on 31.12.2012 and not on the cancellation rate. 

Can you please guide on this?

Thanks,

Vinod P