Page History

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Choose the method by selecting "Calculate Exchange Rate Differences on Month Closing Only" in Administration > Service Settings

Calculations

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with Option Enabled

• Revaluation of GL Accounts in Foreign Currencies: GL accounts in foreign currencies (

  other than the accounting currency) such as

  e.g., Cash, Receivables, Payables, and Staff Settlements) are revalued at month-end using the current exchange rates.

  For example, if a bank account

...

• has a balance of 23,000

...

• EUR on June 30

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• with an exchange rate of 4.40 (101,200 Dirhams), and a subsequent deposit of 15,000

...

• EUR on July 10 at 4.42 (66,300 Dirhams),

...

• the new balance

...

• becomes 167,500 Dirhams. By July 30, with an exchange rate of 4.45, the balance is revalued to 169,100 Dirhams,

...

• reflecting a 1,600 Dirham gain.

• For Payables and Receivables: Gains and losses for GL accounts , gains and losses in the Payables and Receivables sections are assessed at the document level. To calculate:

  1. Revalue the document amount using the month-end exchange rate.
  2. Compare this revalued amount with the amount at from the last revaluation date (either the transaction date or the previous month-end). A positive difference indicates a gain, while a negative difference indicates a loss.
  3. Realized gains and losses for settled transactions
  settled during the period
  1. are calculated at month-end
  using
  1. based on the exchange rate
  applicable
  1. on the payment date.

Calculations

...

with Option Not Enabled

• Continuous Exchange Rate Differences Calculation: If the option to "Calculate Exchange Rate Differences on Month Closing Only"

...

• is not selected, exchange rate differences are calculated continuously throughout the period

...

• :

  • For each new foreign currency transaction, amounts are recorded in the accounting currency using the exchange rate

  effective

  • on the transaction date.

  While

  • Although exchange rate differences are not calculated for documents like Invoices or Invoice Received, all related foreign currency transactions and GL account balances are revalued

  based on

  • using the current exchange rate,

  with

  • and this date

  becoming

  • becomes the

  most recent

  • latest revaluation date

  for those transactions

  • .

  • For outgoing or incoming payments (e.g.,

  such as

  • Cash Receipts or Cash Payments), exchange rate differences are

  computed

  • calculated if the

  exchange

  • rate on the payment date differs from

  that of

  • the rate on the original transaction date. Additionally, all related transactions and GL account balances are revalued

  using

  • based on the payment date's exchange rate,

  establishing this date as

  • making it the latest revaluation date for the adjusted transactions.