Adjust Exchange Rates - loss posted into Loss and Gain acc.

victoria

We have a problem with the Adjust Exchange Rates batch job, which posted a loss (EUR vendor) into two accounts: Unrealized Gains and Undrealized Losses.

Vendor balance: € 29743.50
EUR exchange rate at 31/12/2010 - 7.548
EUR exchange rate at 31/01/2011 - 7.8539
The diffence is 0.3059.

We run the Adjust Exchange rate batch jobs every month. The now we run it at 31/01/2011, and we get the loss of 9098.53 (in local currency; 9098.53 = 0.3059*29743.50). Everything seems alright, but : when I look at the Register (picture attached), I can see that the system split this loss into two G/L accounts - Unrealized Losses and Unrealized Gains.

How could this be? I would expect 9098.53 (positive amount) to be posted only into Loss Account (G/L acc. 851001; see picture). Where could be the cause of the problem?

Many thanks.

jannestig

I believe this has to do with the what your last results were time you ran he exchange rate batch job.

IF these relate to a vendor/customer check the detail ledger entries and the entry type field. what will happen is that if last you had a loss of say -5000 and now have a gain of 6000 it would post a balancing entry of 2 types +5000 as a loss type entry to bring total loss to 0 then 1000 as a gain to show you have only actually gained 1000 over your previous loss
of 5000.

This is what has most likely occured here.