Gain/Loss for Additional Reporting Currency

bstnalm

Hi All,

How to account the gain/loss of the Additional Reporting Currency amount in the standard NAV?

E.g.:
Local Currency = USD
Additional Reporting Currency = AUD

Purchase-invoice is posted(invoiced in USD) when the exchange rate for 1 USD = 1.0059 AUD
The payment for the above invoice(also paid using USD) is posted when the exchange rate for 1 USD = 1.0085 AUD

There is no issue in LCY as the Invoice amount = Payment amount. But the Invoice amount in Additional Reporting Currency <> Payment amount in Additional Reporting Currency. Is there a way to post the differences into another account, or what would be the best practice for this?

Thanks.

jglathe

Hi bstnalm,

you can adjust the exchange rate of the reporting currency with the "Adjust Exchange Rate" batch job. What gets adjusted depends on th settings for the respective G/L account. The gain/loss accounts will be set up in the currency record of the reporting currency (named "G/L gains account" and "G/L losses account"). I'd suggest that you try this out in a test database first.

with best regards

Jens

bstnalm

Thanks Jens for the input.

I reckon that I have tried to run the Adjust Exchange Rate batch job and assigned the gain/losses accounts accordingly. However I've only find it working when the gain/losses are at LCY. Does it mean that the Additional Reporting Currency columns are not meant to be as 'balanced' as the LCY in book-keeping?

jglathe

Hi bstnalm,

the needed option in the "Adjust exchange rates" batch is "Adjust G/L Accounts for Add.-Reporting Currency". What it does, still depends by G/L account (!) on the option "Exchange Rate Adjustment" set at the G/L account: no adjustment, adjust amount (meaning the LCY amounts are adjusted), and adjust add.-reporting currency amount.
The additional reporting currency has a balance check which is as strict as for LCY. However, this check enforces only the G/L balance by transaction, not the same exchange rate of the ACY for all transactions. For this (if desired) there is the "Adjust exchange rates" batch (sort of).

with best regards

Jens

bstnalm

Yes, I am indeed trying to balance the ACY by transaction. I'll test this out again in the morning.

Thanks Jens!
Bes