Click General ledger> Setup> Parameters.

In the Calculation methodfield, select a method to calculate currency exchange differences from the following options:

• Standard– The exchange adjustment is calculated according to the exchange adjustment on the day of invoice and the day of payment. If the documents were revaluated in an earlier accounting period, the adjustment amounts are reversed.

• Period grand total– The exchange rate is calculated according to the difference between the rates on the invoice date and the payment date within the accounting period in which the documents originated. In future periods, the exchange rate is calculated according to the difference of exchange rates on the day of the last revaluation of the previous accounting period and the date of the current voucher. You cannot reverse transactions by overvaluing in previous periods.

• Incremental– The exchange adjustment is calculated based on the incremental rates.

Select the Extended setupcheck box to activate the configuration for exchange adjustment posting. You can view additional tabs on the Exchange adjustmenttab in the Exchange ratesform for additional setup of exchange adjustment posting for customers and vendors.

Note
This check box is displayed only if you select Period grand totalin the Calculation methodfield. For the standard method of calculating exchange adjustment, the extended configuration is not available. If you clear the Extended setupcheck box, the fields set up for exchange adjustment posting are not displayed.

Press CTRL+S or close the form.

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

Click the Exchange adjustmenttab.

On the Sales/customerstab, in the Expense codefield, select the expense code to be used as a tax dimension for the exchange adjustment transaction that occurs during the settlement of invoiced accounts and customer payments, if the exchange adjustment is a loss.

In the Revenue codefield, select the revenue code to be used for the exchange adjustment transaction if the exchange adjustment resulting from the invoice and payment settlement is a profit.

In the Realized lossfield, select the ledger account that any exchange adjustment losses resulting from the settlement transactions will be posted to.

In the Realized profitfield, select the ledger account that any exchange adjustment profits resulting from the settlement transactions will be posted to.

In the Unrealized lossfield, select the ledger account that any currency exchange losses resulting from the revaluation transactions will be posted to.

In the Unrealized profitfield, select the ledger account that any currency exchange profits resulting from the revaluation transactions will be posted to.

Note
The Ledger postingfield under the Customer primary postingfield group displays Deviation from the cost priceaccounts by default. The Ledger postingfield under the Tax postingfield group displays Invoice accountsby default.

Click the Purchases/vendorstab.

In the Expense codefield, select the expense code to be used as a tax dimension for the exchange adjustment transaction, if the exchange adjustment resulting from the settlement transactions is a loss.

In the Revenue codefield, select the revenue code to be used for the exchange adjustment transaction if the exchange adjustment resulting from the settlement transactions is a profit.

In the Realized lossfield, select the ledger account that any exchange adjustment losses resulting from the settlement transactions will be posted to.

In the Realized profitfield, select the ledger account that any exchange adjustment profits resulting from the settlement transactions will be posted to.

In the Unrealized lossfield, select the ledger account that any currency exchange losses resulting from the revaluation transactions will be posted to.

In the Unrealized profitfield, select the ledger account that any currency exchange profits resulting from the revaluation transactions will be posted to.

Note
The Ledger postingfield under the Vendor primary postingfield group displays Deviation from the cost priceaccounts by default.

Press CTRL+S or close the form.