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Calculations with Option Enabled
Revaluation of Foreign Currency GL Accounts
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At the end of each month, general ledger (GL) accounts in foreign
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currencies—such as Cash, Receivables, Payables, and Staff Settlements
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—are revalued using the
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latest exchange rates.
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Example:
- On June 30, a bank account has a balance of 23,000 EUR on June 30 , with an exchange rate of 4.40 (, making it 101,200 Dirhams).
- On July 10, and a subsequent deposit of 15,000 EUR on July 10 at is made at an exchange rate of 4.42 (66,300 Dirhams), the new balance becomes , increasing the balance to 167,500 Dirhams.
- By July 30, with an the exchange rate of changes to 4.45, so the balance is revalued to 169,100 Dirhams, reflecting resulting in a 1,600 Dirham gain.
Revaluation of Payables and Receivables
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For Payables and Receivables
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, gains and losses are calculated for each document:
- The document amount is revalued using the month-end exchange rate.
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- This new value is compared with its value from the last revaluation
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- (either the original transaction date or the previous month
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- 's).
- If the value increases, it's a gain.
- If it decreases, it's a loss.
For settled transactions, the final gain or loss is determined at month-end using the exchange rate on the payment date.
Calculations with Option Not Enabled
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When the option
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"Calculate Exchange Rate Differences on Month Closing Only" is not
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enabled, exchange rate differences are calculated continuously throughout the period
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.
Each time a new foreign currency transaction occurs,
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its value is recorded in the accounting currency using the exchange rate applicable on the transaction date.
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While exchange rate differences are not
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computed for documents
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such as Invoices or Invoice Received, all
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associated foreign currency transactions and general ledger (GL) account balances are revalued using the
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most recent exchange rate,
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updating the latest revaluation date accordingly.
For
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payments (e.g., Cash Receipts or Cash Payments), exchange rate differences are
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determined if the exchange rate on the payment date differs from
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that of the original transaction date. Additionally, all
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linked transactions and GL account balances are revalued based on the exchange rate on the payment date
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, which then becomes the new revaluation date for the
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affected transactions.