This routine can be used as an option to the A/R or A/P realisation of exchange rates routine when you want to realise exchange rate gains and losses in EMU currencies. The method reflects the gains and losses at year end one year and then re-posts the exchange rate differences as they occur upon settlement the next year, or later. In other words this routine does not affect the A/R or A/P.
The routine should be run only once. The gains or losses that are created should be posted on trade accounts used for this purpose and the balance for gains and/or losses should be posted on balance accounts. These balance accounts will be re-posted when the exchange rate differences are being realised and should finally have a zero balance. It is recommended that you define separate accounts for each EMU currency.
Prerequisites
All postings must be completed as the routine should be run only once. It is recommended to use a different voucher type for this routine.
Valid exchange rates must be set up in the Exchange rate table for all currencies to be included in the run. The following parameters apply:
- Time level
- Enter an asterisk (*).
- Medium
- Enter the valid exchange rate.
Pseudo accounts used in the Revalue A/R or A/P open items routines must be entered; one for each EMU currency is recommended.
- You can now run the Revalue A/R or A/P open items routines. See About revaluing A/R open items and About revaluing A/P open items for instructions.
Caution: The revaluation should be done up to an A/R and A/P balance period corresponding to last accounting period for the applicable year. Automatic elimination should not be done. Use the simulation function until you are satisfied with the result. Pseudo accounts used in A/R and A/P daily routines for automatic posting of exchange rate differences (realised) must be changed or entered; one for each EMU currency. The pseudo accounts should correspond to the balance accounts defined for the revaluation routines above. This should be done before any payments are entered in the next year.