| Create G/L Entries
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If you mark this field, Maconomy will create entries for unrealized exchange rate variances. These are exchange rate variances caused by changes in the exchange rates between the statement date and the registration dates of open entries. This illustrates the exchange rate variances that would have to be registered if the open entries were closed on the statement date. The exchange rate variances are shown on the printout. For a further description of the calculation of the exchange rate variances, please see the introduction to this workspace.
If you mark this field, Maconomy creates a number of G/L entries, registering these expected exchange rate variances in your accounts. This corresponds to the information shown in the printout. However, no G/L entries are created for control accounts, as all accounts of this type are skipped in the process. The following posting process is carried out for each company included in the printout.
- The exchange rate variance is determined for each G/L currency account (accounts where the field “Currency Account” has been marked) in the Selection Criteria as described in the introduction to this workspace. For each account that has a variance, Maconomy then creates a G/L entry, using the number of the account in question as the account number on the entry. The variance amount is transferred to the entry; a variance in the current company’s favor results in a credit entry, and a variance in the account’s favor results in a debit entry. The amounts in different currencies are as follows on this entry:
- The amount in base currency is the exchange rate variance amount (converted into the company’s base currency).
- The amount in currency is zero.
- The enterprise currency amount is calculated from the amount in base currency, using the statement date as the exchange rate date. If the enterprise currency and base currency are identical, the amount is simply transferred. However, if the enterprise currency is the same as the currency of the account, the enterprise currency amount is set to zero.
When all accounts have been processed, Maconomy sums up the variances found on the G/L accounts and creates an offset entry for the total variance amount found. This entry is posted to the G/L account referred to in the dimension combination specified for Unrealized G/L Exchange Rate Variances in the window Posting References.
The same process is carried out for each customer and vendor, respectively. However, the account number used on the G/L entries is different for customers and vendors.
For customers, the unrealized exchange rate variance entry uses the blanket account specified in the customer group to which the customer is assigned. The offset entry is made to the account referred to in the dimension combination specified for Unrealized A/R Exchange Rate Variances. Maconomy also creates a customer entry to reflect the balance of the customer in the A/R module.
For vendors, the unrealized exchange rate variance entry uses the blanket account specified in the vendor group to which the customer is assigned. The offset entry is made to the account referred to in the dimension combination specified for Unrealized A/P Exchange Rate Variances. Maconomy also creates a vendor entry to reflect the balance of the vendor in the A/P module.
For each entry created in the process described above, Maconomy creates a reversion entry. This means that Maconomy creates an entry which is identical to the original one, but with credit amounts instead of debit amounts and vice versa. All reversion dates created have an entry date corresponding to the one you specified in the field “Reversion date” before clicking “Start.” Thus, the unrealized exchange rate variances are only covered in your accounts in the period from the statement date to the reversion date.
The entries are created in a number of journals of the type “Unrealized Exchange Rate Variance” which are posted automatically.
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| Transaction Type
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In this field, you can specify a transaction type for the entries created as a result of the current currency report. You can only select transaction types that are valid in the Unrealized Exchange Rate Variance journal. The field is left empty by default.
If you leave the field empty, the system will try to derive a transaction type. If this fails, a warning message will be issued.
The value will be validated before actually used. The validation will test if the given transaction type is allowed for the Companies involved in the currency reevaluation, User, Unrealized Exchange Rate Variance journal combination.
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| Transaction Number Series
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In this field, you can specify a transaction number series by which the entries created as a result of the current currency report should be numbered. If you mark the field “Create G/L Entries” and select a number series in this field, the next available number in this series is used as the transaction number on all of the entries created as a result of unrealized exchange rate variances including the reversion entries. If this field is empty, the system will try to derive a value from the Transaction Type if “Transaction No.” is not specified on the lines.
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