Multi Currency / Exchange Gain or Loss

Multi Currency / Exchange Gain or Loss

Realised Exchange Gains or Loss

Accounting for foreign currency transactions has two parts.

The first part is recording the original transactions.
The second part is recording when you pays or receives the money in a foreign currency.




Base on the exchange rate, the system to translate the foreign currency value to accounting currency.
Any changes in the foreign currency exchange rate will result in a gain or loss on the foreign currency.

Note that the Local Amounts shown for your Foreign Bank Balance, Balance Sheet, and other reports are calculated based on your document transactions exchange rates. Hence, it should NOT be taken as the current valuation.
As Exchange fluctuates over time, you may have to do a revaluation based on the current exchange rate.

Unrealised Exchange Gains or Losses



When foreign currencies transactions are first recorded, meaning the date you have invoiced a customer in foreign currency or been billed by your supplier in foreign currency, any changes in exchange rates from the recorded date are considered as unrealised exchange gains or losses.

Note that the Local Amounts shown for your Foreign Bank Balance, Balance Sheet, and other reports are calculated based on your document transactions exchange rates. Hence, it should NOT be taken as the current valuation.
As Exchange fluctuates over time, you may have to do a revaluation based on the current exchange rate.

Transactional Modules that have no impact



Info
Action
Transactional Modules that have no impact Exchange Gain or Loss calculations are:
> QUOTATION
> DELIVERY ORDER
> PURCHASE ORDER

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