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. |