Posting Exchange Differences of Open Documents
At the end of the fiscal year (or on the last date of any reporting period) post exchange differences to foreign currency documents which are completely or partially open. Exchange differences are calculated somewhat differently for outstanding items. Besides the exchange rate of the posted payable/receivable and possible partial payment of payable/receivable, the exchange rate on the date, on which the exchange differences are calculated is also available.
Example:
On May 5th, 2015 we received an invoice from a foreign supplier (Coca Cola Ltd.) in the amount of 420 USD. Then valid exchange rate was $1.32 for €1. The partial payment of the invoice was made in the amount of $300 on June 10th, 2015 according to the exchange rate of $1.4445 for €1. The remaining amount of $120 is on August 31st, 2015 estimated at $1.326 for €1.
Posting of foreign and local currency posts is performed for document open on August 31st, 2015 . Outstanding items report made out in currency shows the balance of $120. The post is outstanding for €20,00 in local currency.
To automatically post exchange differences at August 31st, 2015 (the so-called revaluation of payables and receivables in a foreign currency on August 31st, 2015 ) do the following:
- Enter Date Posted To August 31st, 2015. The criteria indicates which documents and payments the program should take into account for the calculation of foreign exchange differences.
- Enter August 31st, 2015 in Date for Open. It tells the date for exchange rate calculation (that is, valid on the date) and which rate from the exchange reate list should use for calculation.
- Enter Period Date August 31st, 2015. This is the period for posting exchange rate differences.
- The document is assigned the Open status.
Below you can observe the balance overview of posting lines for this account and document after performing posting of exchange differences:
Related topics:
For a general description of functions see: