Questions about Exchange rate Losses/Gains

yunseng

I have 2 questions about Exchange rate Losses/Gains .

In G/L Entry , there are 2 kind of Account which come from Exchange rate Losses/Gains .

The G/L Account No. are 71600000 and 75600000 .

When post a foreign currency payment , the Nav generate such Accounts automatically .

My questions :

1.How can I disable It . ( because some user don't need such Account ).

and for another task ,

2.How can I change such Account to be Receivables ( 11430000 ) or Payables ( 21430000 ) .

Any ideas ?

Thank You

bbrown

Why would you want to change this? Realized gains & losses are a fact of life when dealing with multiple currencies. You cannot report the accounting properly without them. Gains and losses resulting from currency fluctuations are treated as income/expenses in the period in which they are realized. You cannot treat them as assets/liabilities.

yunseng

Thanks for response .

bbrown

You're welcome.

Now to answer your direct question: The gains & losses are posted to whatever account is specified in the currency setup. However, even though you can technically specify any GL account, these should not be posted to AR or AP. There are international accounting standards that define how currency exchanges are handled. You should engage the services of an accountant that is familiar with them and also any local implications.