The theoretical value (book value) of open vendor transactions in foreign currencies varies over time with fluctuations in exchange rates.

To update the value of your accounts payable, and to conform to the U.S. generally accepted accounting principles (GAAP), you run the exchange adjustment periodic job. By using a new exchange rate, the job revalues the amounts that were open (not settled) on a specified date. The differences between the original posted amounts and the revalued amounts are posted in the ledger and to vendor accounts as unrealized exchange adjustment transactions. Transactions that have been exchange adjusted on a more recent date are not revalued.

Before you run an exchange adjustment for a specific date, you can get an idea of the financial impact of the adjustment by running the exchange adjustment simulation.

As you post the exchange adjustment, you can view and print a report that shows the:

  • Balances, in the original currency and the company currency (before and after exchange adjustment), of vendors with exchanged-adjusted transactions.

  • Exchange adjustment amounts by vendor.

  • Sums of the exchange adjustment transactions by currency.

A record is kept each time you run the actual exchange adjustment periodic job. You can query and view all the ledger and vendor transactions that were generated by the exchange adjustment.



Simulate an exchange adjustment

How to run an exchange adjustment simulation.

Perform an exchange adjustment

How to perform an exchange adjustment.

View the transactions of an exchange adjustment

How to view the transactions of an exchange adjustment.

See Also