Realized Gains - currency

trin
trin Member Posts: 110
edited 2006-12-14 in NAV/Navision Classic Client
Hi,

I have a question on how Navision calculates Realized Gains/Losses from currency exchange rate.
Assume item A price $4,000, Eur 3150.
1 EUR = 1.2641 USD
sale Item A on Eur for 3150. With entries:

Dr AR 3981.92 ( 3150*1.2641)
Cr. Sales 3981.92

Collects Account Receivable in USD with $4095. The currency rate for the collection date is 1 EUR = 1.3 USD The posted entries were:

Cr AR 3981.92
Dr. Application Rounding 968.41
Cr. Realized Gains 1081.49

How 1081.49 was calculated? The customer ledger entries for the sales invoice was changed to $5063.41 on Amount($) for the sales invoice line.

Application Rounding 968.41 =(((3150*1.2641) + 1081.49) -4095)

Can someone help to explain where the $5063.41 or 1081.49 came from?

Thanks

Comments

  • ssingla
    ssingla Member Posts: 2,973
    Dear Friend,

    I have tried the scenario but only the realized FX gain of 113.08 is booked. No other entry is created.

    Further I have found that in most of my implementations that is the foreign currency invoice is settled in foreign currency, the system behaves properly else sometimes it gives wired results.
    CA Sandeep Singla
    http://ssdynamics.co.in
  • leewhite1234
    leewhite1234 Member Posts: 45
    Look at what the currency code is in the posted invoice header. I have found that if the LCY is USD and USD is selected as the currency, then the system converts the invoice to the foreign currency and then back to USD. It is important to always leave currency blank if it is LCY.

    Let me know if this helps.

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