In the foreign currency, each apply post will create the realized gains or realized losses.
Could system cancel these two acc. number when post.
Ex.
Debit: Bank Account ; Creditt: Account Receivable ; Credit: Realized Gains
Replace by
Debit: Bank Account ; Credit: Account Receivable
ONLY
You would achieve that by never altering the exchange rate, in this manner you never create a currency difference. I do however suggest you speak to your accountant - currency gains/losses are financially real, but you cannot convert them into the bank as they are not real in that sense, and they cannot go to AR as they are not a liability, $10 is $10. So where do you want the system to actually put them and you be able to control them if you have them - because if you have them they have to go somewhere! [:D]
Hi Wins Cheng,
If you want to skip posting to Realized Gains account then how will u know about the sum of realized gains you have made through foreign currencies??
To Practise Good Accounting Standards, it is required to “credit the Value” while “Realized gain” to a Realized Gains Account and to “Debit the Value” while “Realized Loss” to a Realized Loss Account.
We will collect each “Realized gains” and “Realized losses” by quarterly.
And post “Realized Gains & Losses” Account with “Account Receivable & Payable” Account.
We will collect each “Realized gains” and “Realized losses” by quarterly.
And post “Realized Gains & Losses” Account with “Account Receivable & Payable” Account quarterly end.
Why?
You cannot achieve this on a document by documetn regular currency change - well you could but it is a hell of a lot of manual work.
The only way you could do this in this manner would be to alter the currency rate in line with this quarterly and run the currency revaluation routines to revalue the creditors and debtors.
What is wrong with the NAV approach, it is accurate, little work is required, etc etc,
In China, need to do such things in NAV System. Different from “Other site’s need”.
Nothing is wrong with NAV, just for different requirement.
Then you will need to plan the approach. If my previous point of not changing rates and revaluing hte ledgers quarterly does not meet the need then you would need to write a modification to the posting routines for currency handling to do what you want, assuming the manual journalling of the entries is not possible - you could point these at set ledger accounts and quarterly journal them across.
I am not aware obviously of the localisation issue, if it is indeed that it should be considered for the release, if it is a specific business requirement then a modification to achieve exactly what is required is the way forward.
Have one idea, maybe you can give me some suggestions.
In currency table, set USD-C for Customer, USD-V for Vendor,
In the USD-C, set Realized Gains & Losses to the “Account Receivable” Acc. number.
In the USD-V, set Realized Gains & Losses to the “Account Payable” Acc. number.
And Collect every posted entries, Entry Type “Realized Gain” or “Realized Loss” quarterly.
Hope these can solve all the problem.
Well the division of the accounts in that manner make no real sense, because a gain/loss on a transaction is that, whether it is AR or AP is not relevant. However yes you could set your currencies up in this manner, but I would not advise it. Also it will not collect the entries quarterly, it will collect them daily as a gain/loss is made.