You can calculate an exchange rate difference at the end of a reporting period to resolve a change in the foreign currency and ruble exchange rate. Depending on whether the exchange difference is positive or negative, it is posted to either the profit or loss account. At the end of the reporting period, any remaining cash balances in currency must be revalued.

For example: In a cash transaction, the deposit and disbursement occur within a cash account. Assume that the exchange rate on February 1 is 30 rubles per dollar. If 400 USD is deposited on February 1, then, according to the exchange rate, its value would be 12,000 rubles. On February 20, 250 USD are disbursed. The exchange rate on February 20 is 27 rubles per dollar, a value of 6,750 rubles. The cash balance from February 20 to the revaluation at the end of the period is 150 USD, or 5,250 rubles. After revaluing the balance according to the current exchange rate of 28 rubles per dollar on February 28, then the actual cash balance changes to 4,200 rubles according to the exchange adjustment, a difference of 1,050 rubles.

Set up an exchange rate difference for cash accounts

  1. Click the General ledger> Setup> Exchange ratesto open the Exchange ratesform.

  2. Click the Exchange adjustmenttab, and then set up the unrealized profits or losses accounts in the Ledger postingfield group.

    Note Note

    For more information, see "Perform a ledger exchange adjustment" in the Applications and Business Processes Help.

  3. In the Expense codefield, select the expense code.

  4. In the Revenue codefield, select the revenue code.

    Note Note

    The selected code is displayed as the tax dimension in the negative or positive exchange adjustment transaction. The other dimensions are displayed from the original (receipt/disbursement of funds) for the transaction.

  5. Press CTRL+S or close the form.

Calculate an exchange rate difference for cash accounts

  1. Click Bank> Periodic> Exchange adjustmentto open the Exchange adjustmentform to revalue the exchange rate difference at the end of the month.

  2. In the On datefield, enter the revaluation date.

  3. In the From currencyand To currencyfields, select the currency codes for revaluation.

  4. Click Selectto select the cash account in the Cashfield.

  5. Click OK. After revaluation, the cash balance displays the exchange adjustment amount.

    Note Note

    For more information, see (RUS) View the cash balance.

  6. Click Bank> Common Forms> Cash accounts> Cash transactionsto open the Cash transactionform. Click Voucherto view the cash accounting vouchers.

See Also