What's the difference between conversion rate gain or loss distributions and realized gain or loss distributions?

Conversion rate gain or loss distributions record the rate variances for inventory or expense items that accrue at receipt. The invoice validation process calculates the variance between the invoice and either the purchase order or receipt, depending on how the invoice was matched.

Realized gain or loss distributions record the rate variances between invoice entry and payment time. The gain or loss calculation is based on the Account for Payment option on the Manage Payment Options page, as well as at prepayment application. You can account at payment issue, clearing, or at both issue and clearing. If you account at payment issue, bills payable documents are accounted at maturity.

Realized gain or loss is always calculated at foreign currency prepayment application time, regardless of the Account for Payment setting.