Currency Gain/ Loss accounts in AX 2012

Hi ,

What is the difference between Ledger form – Gain/ Loss accounts and Currency revaluation accounts - Gain /Loss accounts ?
It could be helpful if you explain with an example.

One would be from a financial invoice, the other from a revaluation process.

Thanks pranav,

In both places gain /loss accounts will be same or differ ?

Adam should be thanked here…[:)]

For revaluation we create a single ledger only in PL section. The difference is posted to this ledger only.

Pranav…

Thanks Adam & Pranav,

As you said Currency revalue accounts used for Currency adjustment batch job . When we run this batch job only unrealized gain /loss accounts will effect.

But why here Realized Gain/loss accounts also in Currency revalue accounts form ?

Why in both form Realized accounts & UnRealized accounts are available ?

plz help

If an invoice is open and you run the revaluation, the entries are posted in the unrealised accounts. At the time an invoice is closed by settling with payment, systen will reverse the last posted unrealised loss/gain and post entry for realised loss/gain as per the current exchange rate.

In case the settlement/payment is reversed, the system will reverse the realised entry and will post the unrealised entry as per the last exhange adjust.

once a transaction is settled, it will not appear in the currency revaluation.

This setup can also be completed from the

General ledger Setup >Ledger form if different gain/loss accounts are not required for each currency.

Hi priyanka,

What you have said is correct. It works in vendor/customer cases. But why we use currency revaluation for ledger accounts. I see there is currency revaluation in general ledger module also. When i run currency revaluation for a particular ledger account the gain/loss is hitting the unrealized accounts. But when does it hit realised accounts. In case of vendor/customer it will hit realized accounts at the time of settlement. What is the case for ledger accounts currency revaluation. Please help.

Thanks,

Samanth

Hi Samanth,

When you use multiple currencies, the exchange rate for the original transaction currency might differ from the exchange rate that is used during the conversion to the accounting currency. To recognize these differences in the exchange rate, you might have to adjust the amounts in the main accounts. The process that is used to make those adjustments is called a foreign currency revaluation and to recognize these differences for the main accounts, a currency revaluation for ledger accounts is needed.

One can choose the type of main accounts belonging to Balance sheet or Profit and loss.

Regards

Rahul Mohta

Independent Advisor for Microsoft Dynamics AX

RealDynamics.com

Hi Rahul,

Yes i Agree with you. But my question is when i run foreign currency revaluation the difference amount is hitting Unrealized Gain/Loss accounts. When does it hit realized gain/loss accounts ??

Thanks,

Samanth Aluvaka

HI

In continuation of your and Priyanka’s discussion i just wanted to know what happen to the unrealized gain/loss account balance if we run the financial year closing, because when we close the year all P/L account becomes zero and balance is transferred to retain earning. how would system cancel the previous revalued unrealized transaction of previous closed year at the time of invoice settlement/payment in the next financial year.