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Set up pseudo accounts for exchange rate variances

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The system has a function which will automatically calculate exchange rate variances for companies dealing with foreign currencies. It is possible to use the same account for several currencies. However, if you want to define accounts which are currency-specific, then you can do this. It is also possible to analyse the exchange rate variances on cost centre level if you have cost centre accounting. There are two different steps in setting up pseudo accounts for automatic contra accounting. These steps are done through the following:

The pseudo account code consists of two different elements. One which is fixed (mandatory, and system-defined) and must always be present, i.e., XDA (A/R) and XCA (A/P) for exchange rate gains, or XDB (A/R) and XCB (A/P) for exchange rate losses. The second element is variable (optional) and is based on a table value. Here, the currency code is used. Both the mandatory and optional elements are described here.

Pseudo account file

  1. Select the Work with pseudo accounts menu item.
  2. On the main panel, click Add.
  3. You access the detail panel. Complete the following fields:
    4. Pseudo
    Mandatory entry. For exchange rate gains, enter XDA (A/R) or XCA (A/P). This is the pseudo account the system will use for any exchange rate gains that do not have a specific currency pseudo account.
    Mandatory entry. For exchange rate losses, enter XDB (A/R) or XCB (A/P).
    Description
    Account number
    In the main account, part enter the account number that you want to post the exchange rate variances to. Note: If you use cost centre accounting, then you can enter dots in the cost centre account part. The dots will be automatically replaced by the appropriate cost centre account from each payment.

    Click OK.

  4. You re-access Work with pseudo accounts where you can enter a new pseudo account. This step will explain how you can set up a currency-specific pseudo account for exchange rate variances in US dollars within the A/R. Complete the following fields:
    5. Pseudo
    If you, e.g. enter XDAUSD, then XDA is the fixed part and USD the variable part from Work with currencies.
    Description
    Account number
    In the main account part enter the account number that you want to post the exchange rate variances to.

    Click OK. Repeat this step to enter all of the currency-specific pseudo accounts.

Work with document types

  1. Repeat steps 8-10 in Create a pseudo catalogue and connect it to a document type, but select the document type you have which represents the exchange rate.
  2. On the second Work with document types detail panel, the following fields apply:
    Pseudo account code
    If you, e.g., enter code 6 in this field, then it signifies that the fixed part of the pseudo account has 3 positions (2 + 1).
    Pseudo account
    Enter the applicable pseudo account, e.g. XC. The pseudo account must begin with an X and consist of the number of positions defined by the value in Pseudo account code (here 3). The third position of the code will either be an A or a B. The A represents gains and the B represents losses. This position will be added automatically during the creation of the transaction.

    Click OK. Exit the routine.

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