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2). After changing Transfer Amount - Transfer Fee field is recalculated due to changes in the exchange rate (bank’s commercial rate):
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A Foreign foreign exchange difference happens on the Bank account and arises due to changes a change in the official exchange rate between the date of initial recognition and the date of payment or revaluation. Such differences are automatically recorded in financial result accounts (Exchange Gain/Loss).
Therefore, the system processes money transfers using the exchange rate established in the program as of the document date. Any differences calculated within the transfer document are automatically recognized as income or expense (through the Transfer Fee field), without separately highlighting fluctuations in the bank’s internal commercial rate.
Formula-
Exchange Difference=Previous Current Balance * Previous Current Rate− Previous Current Balance * Current Rate = 50 000 * 4.310952 (rate for previous transaction) - 50 000 * 4.233917 (rate for current money transaction) = 3851.75two moments:
earlier — when the balance was initially recognized, and
current — when the transfer or revaluation is performed.
The balance is recalculated using the current exchange rate and compared to its earlier value. The resulting difference is automatically recognized as an exchange gain or loss.
When processing a Money Transfer, the system applies the exchange rate valid on the document date and compares it with the previously recorded value. Any difference is recorded as income or expense.
Formula:
Exchange Difference = Previous Balance × Previous Rate − Previous Balance × Current Rate
Example:
50,000 × 4.310952 − 50,000 × 4.233917 = 3,851.75
To verify balances in both the foreign currency and the accounting currency, as well as to ensure the correctness of exchange rate difference calculation, please use Cash Assets Balances report (Money - Reports of money - Cash Assets Balances)
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