Exc rate adj for foreign Bank accounts in navision system

Tinkle

dear all,

Every month, when we revalue our bank accounts, the exchange differences calculated by the system will posts to the G/L account specified in the Realized Gains Acc. field or the Realized Losses Acc.field in the Currency window.

My question is the exchange differences resulted from the revaluation should be treated as unrealized gains or lossess and therefore post to Unrealized Gains Acc. or Losses Acc.

Is the above concept correct????

Tinkle #-o

jemmy

Hi Tickle,

In my previous ERP software, it is correct.
I don't know in Navision, but I suggest is yes, I see account Unrealized FX Gains and Unrealized FX Losses in G/L Account.

Let me know if you are also interested with G/L Entry in multicurrency.


Jemmy

idiot

Sorry to dig up this old thread but I'm facing the exact same issue...
There seems to be inconsistency between revaluation of cust,vend ledger (unrealized) & bank bal (realized)...

How to overcome this?

Also the users are accustomed to auto reversal of revaluation unrealized effect in the next month rather than the effect being permanent until realized...Any advise on how that can be done?

ssingla

Realized Gain and losses are posted when exchange fluctuation has taken place i.e. it has been realized. In the case of Customer/Vendor the gain/loss is not realized untill and unless they are paid but in the case of bank the depreciation/appreciation in the value due to fluctuation has taken place and realized to that extent therefore all fluctuation is entered as realized.

idiot

My users think otherwise.
As long as theforeign currency not converted into LCY physically, they cannot be considered as realized.
The theory is same as stocks/bonds where it is only recognized as "paper gains/losses" until transactions actually takes place.

The Finance Manager has actually tried to contact M$ but the outcome is currently unknown. ](*,)