Currency Gains and Losses

A foreign exchange gain/loss occurs when transactions are processed in a foreign currency. If the value of the currency increases/decreases after the initial transaction, but before posting the settlement to the GL (e.g. a voucher transaction, then a check payment) a foreign currency gain or loss occurs.

Currency gains and losses are usually posted to a specific GL account.

The GL rounding account is set up to allow Gravity to post currency exchange calculation differences. This ensures balanced GL transactions (debits and credits).

The accounts are set up in the configuration wizard or the entity configuration screen.

Some companies calculate the unrealized gains or losses that would have been earned if all outstanding AR and AP foreign currency transactions were complete at the end of the accounting period.

Use the unrealized gain and loss report to view this information. Access the report from the financials options.

 Select the reporting entity from the drop down list. Select the currency in the same manner. Manually change the rate when required then click run report. The report displays unrealized amounts for the entity selected.

Use the information to manually create a JE as required. If needed, export the report to a PDF file or an Excel spreadsheet.