Question: How Business activities reflects at calculating exchange rate differences Why there is no Business activity analytics in Trial Balance report, whencalculating the exchange rate differenceat the end of the month?
Answer: It depends of Cost Allocation Settings:
Business Activity is an analytical dimension used to classify transactions by type of business or operational segment.
In case of calculating the exchange rate differenceon a foreign currency bank account, it is pulled up from the originaldocumentsforwhichthepayments were made (Invoice, InvoiceReceived,PayrollCalculation)from the corresponding foreign currency bank account:
Settings 7.1.3. Cost Allocation Settings:
Example 1: PL Non-Operating Expenses (Losses on exchange differences) are distributed according to the volume of revenue:
Inthiscase, the system distributes costs through accounting objects (orders, items, type of activity, etc.) and Business activity is transferredandstoredinDr Cr entries, and pulls up in Trial Balance report:
Example 2: PL Non-Operating Expenses (Losses on exchange differences) are distributed directly to the Profit/Loss:
This is oftendonewithoutdetailedoperationalanalytics (business activity is not consideredmandatory) and as aresult, businessactivityfieldremainsempty and analytics are not adjusted in the TrialBalancereport:
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