Exchange Rate Variances

Reconciliation

The customer can get an exchange rate gain or loss if they reconcile two entries, usually an invoice, and a payment.

Transaction	Currency	Base	Enterprise	Remarks
Invoice	Currency1	Base1	Enterprise1
Payment	Currency1	Base2	Enterprise2
Exchange Rate Variance	0	Base1 - Base2	Enterprise3 = (Base1 - Base2) converted to Enterprise	Note: The amount in currency must be zero, and in instances where currency and enterprise are in the same currency.
Balancing Exchange Rate Variance	0	0	Enterprise1 - Enterprise2 - Enterprise3	Note: The amount in currency must be zero, and in instances where currency and enterprise are in the same currency.

Job Exchange Rate Variances

A job-related entry is posted both on the job and on the company. We typically use the job-specific exchange rates for all conversions. However, there are instances where we have to use both the company-specific exchange rate and the job-specific.

Example 1

A vendor invoice is created and posted using the company-specific exchange rate, and later allocated to a job using the job-specific exchange rate.

Example 2

An expense sheet is created. The employee expects to get the correct amount in their local currency, which most likely is the company-specific exchange rate. However, we must use the job-specific exchange rate for the job entry.

Transaction	Currency	Base	Enterprise	Remarks
Invoice/Expense Sheet	Currency1	Base1	Enterprise1	Converted using company-specific exchange rate
Job	Currency1	Base2	Enterprise2	Converted using job-specific exchange rate
Job Exchange Rate Variance	0	Base1 - Base2	Enterprise3 = (Base1 - Base2) converted to Enterprise	Note: The amount in currency must be zero, and in instances where currency and enterprise are in the same currency.
Balancing Job Exchange Rate Variance	0	0	Enterprise1 - Enterprise2 - Enterprise3	Note: The amount in currency must be zero, and in instances where currency and enterprise are in the same currency.