Using Currencies in Receipts - Exchange Rate Fluctuations

This page describes the posting of exchange rate gains and losses from Receipts.


Often, the Exchange Rate at the time of Invoice will be different to that at the time of Receipt. Your company will be liable to absorb the profit or loss on the Currency conversion. Because a Receipt always uses the Base and Exchange Rates that are valid on the date of the Receipt, the calculation of this profit or loss is completely automatic. For example, if you invoice JPY 8121 when JPY 147.62190 buys one GBP (Base Currency 1), you expect at the time of Invoice to receive GBP 55.01 when the Invoice is paid. However, when you receive the payment, one GBP buys USD 148.80708, so JPY 8121 will then convert to 54.57. When you specify the Invoice Number in the Receipt, 54.67 will be placed automatically in the Bank Amount field:

The loss of 0.44 will be recorded as a Rate Loss and posted to the Rate Loss Account specified on the 'Exchange Rate' card of the Account Usage S/L setting. This is shown in the Nominal Ledger Transaction generated from the Receipt:

When you enter a Receipt in which more than one row will post an exchange rate difference, the resulting Nominal Ledger Transaction will usually contain a single posting to the relevant Account (i.e. to the Rate Gain or Loss Accounts and/or the Bank Rate Gain or Loss Accounts described on the Exchange Rates at the Bank page). If you would like such Transactions to contain separate exchange rate difference postings for each Receipt row, select the Post Rate Gain/Loss per Receipt Line option on the 'Exchange Rate' card in the Account Usage S/L setting.


Using Currencies in transactions of various kinds:

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