Foreign Currency Valuation

twhite

Does anyone have a solution to the problem created when an invoice is posted in month 1 and paid off in month 2, but after being paid off, a re-valuation is run for month 1. Currently Financials will re-value the invoice but not create the general ledger entry because the invoice is closed. This causes the subledger and the general ledger to not tie.

mfabian

General ledger and Vendor/Customer ledger will never tie if foreign currency is involved as GL is always in local currency while subledgers are in local currency.

Let's take an example: You are American, I am Swiss. You owe me US$ 1000 which is equal to sFr (Swiss Francs) 1600 right now.

One month later (on march 7th) you pay exactly US$ 1000 and your account is closed (you don't owe me anything anymore). However, due to the changed exchange rate, my bank will only credit sFr 1570.- to my account, leaving on the Vendor account in GL a difference of sFr 30.- (= open Vendors)

A new revaluation for march will now eliminate this difference of sFr 30.- and book it to "loss in foreign currencies".

The trick is that the same exchange rate (1.57 per march 7th) is recorded as US$ exchange rate in Navision; the same rate the bank uses!


Marcus

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Marcus Fabian
m.fabian@thenet.ch
+41 79 439 78 72