Settings
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Settings -> Configuration -> Accounting
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Allow multi currencies
- Gain Exchange Rate Account: Realized Gain
- Loss Exchange Rate Account: Realized Loss
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Allow multi currencies
Realized Gain/Loss
Consider a case the company currency and the trading currency are different.
Debit/Credit in Journal Entry is always registered with the company currency.
If there is a period between Invoice and Payment that generate Journals,
a rate (that the system applies) between the company and trading currencies may change during the period.
Realized Gain/Loss is automatically registered to reconcile this revaluation.
- Purchase Journal (HKD) - 08/2015
Name Account Debit Credit Amount Currency Currency Accounts Payable (JPY) 0.00 314.03 -5000.00 JPY Product GR/IR Cleaning 314.03 0.00 5000.00 JPY
- Bank (JPY) - 09/2015
Name Account Debit Credit Amount Currency Currency change: Realized Loss 19.30 0.00 0.00 JPY change: Accounts Payable (JPY) 0.00 19.30 0.00 JPY Accounts Payable (JPY) 333.33 0.00 5000.00 JPY Bank (JPY) 0.00 333.33 -5000.00 JPY
Unrealized Gain/Loss
Consider a case the company has Bank or Cash in foreign currency.
If there is a period from Payment with foreign currency,
a rate (that the system applies) between the company and foreign currencies may change during the period.
Unrealized Gain/Loss represents revaluation of assets such as Bank or Cash.
(It is manually registered when it is formally required such as opening/closing.)
- Accounting -> Reporting -> Generic Reporting -> Multi-Currencies -> Unrealized Gain or Loss
Name Secondary Currency Exchange Rate Foreign Balance Adjusted Balance Balance Unrealized Gain or Loss Bank (JPY) JPY 16.000000 -5000.00 -312.50 -333.33 20.83 Accounts Payable (JPY) JPY 16.000000 0.00 0.00 0.00 0.00 They are all the Accounts with Secondary Currency.
Foreign Balance
: total amount for transactions in the second currencyAdjusted Balance
: total amount for transactions in the company currency with current exchange rateBalance
: Debit/Credit balance for the AccountsUnrealized Gain or Loss
: Adjusted Balance - Balance
Setting of Partner
- create Pricelists, Pricelist Versions and Accounts Payable/Receivable per currency
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set them for Partners
When you create Purchase Orders, select the Partner,
and the Pricelist and currency are automatically proposed.-
When you generate Invoices, select the Partner,
and the Accounts Payable/Receivable and currency are automatically proposed.
As follows, Pricelist and Pricelist Version determine a rule of Cost Price and Sales Price of a product.
Pricelists
- Pricelist Name:
Default Purchase Pricelist
- Pricelist Type: Purchase Pricelist
- Currency:
XXX
- Pricelist Versions:
Default Purchase Pricelist Version
Pricelist Versions
- Name:
Default Purchase Pricelist Version
- Pricelist:
Default Purchase Pricelist (XXX)
- Start Date:
- End Date:
- Price List Items
- Rule Name:
Default Purchase Pricelist Line
- Product:
- Min. Quantity:
- Sequence:
- Price Computation
- Based on:
Cost Price
- New Price = Base Price * ( 1.00 +
0.00
) +0.00
- Rounding Method:
- Min. Margin:
- Max. Margin:
Accounts Payable/Receivable
We should create new Accounts Payable/Receivable with Secondary Currency per currency,
so that the Accounts have consistency between Debit/Credit and Amount Currency
(which is also required when we register Unrealized Gain/Loss).
Setting of Payment Method
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In case the company pays using the trading currency not the company currency,
we need to create Journals corresponding to Payment Methods
create Accounts, Sequence and Journals
Accounts
- Accounts Name:
Bank (XXX)
- Parent:
- Internal Type:
Liquidity
- Account Type:
Bank
- Secondary Currency:
XXX
Sequences
Settings -> Technical -> Sequences & Identifiers -> Sequences
- Name:
Bank (XXX)
- Sequence
- Prefix:
BNKXXX/%(yrear)/s
Journals
- Journal Name:
Bank
- Code:
BNK
- Type: Bank and Checks
- Default Debit Account:
Bank (XXX)
- Default Credit Account:
Bank (XXX)
- Currency:
XXX
- Advanced Settings
- Entry Sequence:
Bank (XXX)
- Autopost Created Moves
- Allow Cancelling Entries
- If you Setup Your Bank Accounts without assignment of Account Journal,
(Accounting -> Configuration -> Accounts -> Setup Your Bank Accounts)
Accounts, Sequences and Journals are automatically generated.