Account Usage P/L - Rate Card
This page describes the 'Rate' card of the Account Usage P/L setting. Please follow the links below for descriptions of the other cards:
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Many of the Accounts on the 'Rate' card are used when the process of creating Nominal Ledger Transactions from Purchase Invoices and Payments involves a currency conversion. Please refer to
this page for full details.
- Write Off Round Off, Rate Round Off, EMU Rate Round Off, EMU Rate Write Off
- These Accounts will be used in the situation where a Purchase Invoice is to be treated as fully paid if the amount sent is slightly different to that outstanding, providing that difference is within an allowable margin. The difference will be posted to one of these Accounts on the following basis:
- Write Off Round Off
- if the Sent Currency is the same as the Invoice Currency, and it is not a member of the EMU;
- Rate Round Off
- if the Sent Currency is different to the Invoice Currency, and the Sent Currency is not a member of the EMU;
- EMU Rate Round Off
- if the Sent Currency is different to the Invoice Currency, and the Sent Currency is a member of the EMU;
- EMU Rate Write Off
- if the Sent Currency is the same as the Invoice Currency, and it is a member of the EMU.
- If you need to use this feature, you should set an allowable margin for each Currency, using the Automatic Round Off Limit and Automatic Write Off Limit fields on the 'Round Off' card of each Currency record. If you do this in the record representing your home Currency, you can also use this feature as an easy way of automatically writing off small outstanding amounts in domestic Invoices (i.e. those in your home Currency).
- Please refer to the pages describing the 'EMU' and 'Round Off' cards of the Currency record for more details about using this feature.
- If the difference between the amount sent and the outstanding amount is caused by a change in Exchange Rate, it will not be posted to one of these Accounts, but to the Rate Gain or Loss Accounts described below.
- Rate Gain, Rate Loss
- These Accounts will be used when you receive a Currency Invoice and the Exchange Rate changes before you issue the payment. When this happens, the amount paid, when converted to your home Currency, will no longer be the same as the outstanding amount. Any difference will be posted from the Payment to one of these Accounts, depending on whether a gain or loss is involved.
- Bank Rate Gain, Bank Rate Loss
- These Accounts will be used when the amount paid from the bank against a Purchase Invoice is not the same as the outstanding amount, because the exchange rate levied by the bank is different to the rate offered to the Payment (i.e. because you change the Bank Amount in a Payment). Any difference will be posted from the Payment to one of these Accounts, depending on whether a gain or loss is involved.
- Post Rate Gain/Loss per Payment Line
- When you enter a Payment 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 immediately above). Use this option if you would like such Transactions to contain separate exchange rate difference postings for each Payment row. The Description in each posting will include the Purchase Invoice Number.
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Settings in the Purchase Ledger:
Go back to:
Introduction to Settings in the Purchase Ledger
