Hi All ,
What is the difference between realized profit Vs unrealized profit in Exchange rate form under Posting tab and please let me know the the below example come under which option.
( I know there might be exchange rate fluctuations from the date the invoice or payment transaction happened. If that is the case system wil adjust the amount and post it as Exchange profit and loss )
Please explain with an example.
My understanding is that the unrealized comes from changing the system base exchange rates on currency and you have invoiced transactions, this can be done from running the exchange adjustment process. Then when you actually settle the transaction the realizes exchange profit and loss is calcualted because it is known. The settlement being the payment when the exchange rate could have moved again. However I am not a finance consultant so I suggest you set up a foreign currency customer and model it through to see which accounts are hit.
Thanks Adam,
In the Exchange rate form , i have the fields like Starting date and Exchange rate only . before i run the exchange adjustment batch job , i need to define the which exchange rate need to pickup to proceed. I mean to say with out modifying the original value in the exchange rate , there should be some field like Adjust . Exchange rate amount .
I have searched for that field , but i did not find . Can you guide me about that field in the Exchange rate form. ?
It is only relevant if the exchange rate has moved since the time of the transaction, so you have $ at X when you invoice, then you alter the $ to Y - this does nothing to the home currency liability, so the batch job runs at the current one and alters open transactions, but I suggest reading teh manual on this process, I have never run it.