At the end of the fiscal year 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 June 6th, 2007 you received an invoice from a foreign supplier (Tuji dobavitelj Ltd.) in the amount of $5,000. The then valid exchange rate was $1.30 for €1. The partial payment of the invoice was made in the amount of $1,000 on June 29th, 2007 according to the exchange rate of $1.30 for €1. The remaining amount of $4,000 is on December 31st, 2007 estimated at $1.50 for €1.

Posting of foreign and local currency posts is peformed for document open on December 31st, 2007. Outstanding items report made out in currency shows the balance of $4,000. The post is outstanding for €3,131.86 in primary amounts.

To automatically post exchange differences at the end of fiscal year (the so-called revaluation of payables and receivables in a foreign currency on December 31st 07) do the following:

• Enter December 31st, 2007 for posting date. It tells which documents and corresponding payments should ve used in calculating exchange differences.
• Enter December 31st, 2007 in Date for Open. It tells which National Bank's central exchange rate list (that is, valid on the date) should be used.
• 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:

• Posting exchange differences of closed documents.

For a general description of functions see:

• Exchange Differences