Set up exchange rates for currency transactions

You use the Currency revaluation accounts page to set up the loss or gain calculation for currency exchange.

1. Select General ledger > Setup > Currency > Currency parameters.
2. In the Legal entities field, select a company.
3. Set the Activate parameters option to Yes to activate the Russian revaluation parameters for the specified currency.
4. On the General FastTab, in the grid, select the main accounts to post the exchange rate profits or losses to.
5. On the Sales/customers FastTab, in the grid, select the main accounts to post the exchange rate profits or losses to.
6. In the Expense code field, select the expense code that corresponds to the transaction for an exchange rate adjustment that occurs when transactions are settled for a customer.
7. In the Revenue code field, select the revenue code that corresponds to the transaction for an exchange rate adjustment that occurs when transactions are settled for a customer.
8. On the Purchases/Vendors FastTab, in the grid, select the main accounts for vendor posting.
9. In the Revenue code (currency conversion) field, select the revenue code for a currency conversion transaction if the exchange adjustment is a profit.
10. In the Expense code (currency conversion) field, select the revenue code for a currency conversion transaction if the exchange adjustment is a loss.
11. On the Purchases/Advance holders FastTab, select the relevant main accounts for advance holder posting.
12. In the Expense code field, select the expense code that corresponds to the transaction for an exchange rate adjustment that occurs when transactions are settled for an advance holder.
13. In the Revenue code field, select the revenue code that corresponds to the transaction for an exchange rate adjustment that occurs when transactions are settled for an advance holder.

Set up general ledger parameters for exchange adjustment

Use this procedure to set up the parameters for exchange adjustments of advance settlements on the General ledger parameters page.

1. Select General ledger > Setup > General ledger parameters.
2. In the Foreign currency revaluation field group, in the Calculation method field, select Period grand total as the calculation method for exchange differences.
3. Set the Advance revaluation cancelation option to Yes to cancel exchange adjustment during advance settlement.

Settle partial payments for customers

Use this procedure to settle partial payment transactions for a customer. You can settle a partial payment against a specific invoice line, and you can settle open transactions by using a periodic settlement for customers. Exchange adjustment factures are created for the invoice lines that are settled.

1. Select Accounts receivable > Journals > Payments > Payment journal.

2. Create or select a payment journal line, and then select Lines to open the Customer payments page.

3. Select Settle transactions to open the Settle transactions page.

4. Select the Mark check box to mark the transaction line for settlement.

   Important

   The Mark lines on free text invoices and interest notes check box must be selected on the Settlement tab of the Accounts receivable parameters page.

5. In the Amount to settle field, view or modify the partial payment that must be settled.

6. Select OK to settle the partial settlement for the customer.

7. Select Post > Post to post the customer payment journal and settle the payment amount.

   Note

   To verify that the exchange adjustment facture that is created has the same settled invoice amount on the Facture journal page, select the facture.

8. Select Accounts receivable > Periodic > Sales book > Sales books journal.

9. Create a sales book that includes the settled facture amount and the exchange adjustment facture. You can verify that the invoice facture is included in the sales book for the settled amount.

Calculate the exchange rate difference for a customer

You can use the Foreign currency revaluation page to calculate the exchange rate difference for a customer. The exchange adjustment is calculated at the end of a period, based on the rate that is specified on the period end date.

1. Select Accounts receivable > Periodic tasks > Foreign currency revaluation.

2. Select Foreign currency revaluation to create a foreign currency revaluation for the accounting period.

3. In the Method field, select Standard.

4. In the Considered date field, select the date when the open transaction should be adjusted. The same date is used to post the adjusted transaction.

5. In the Date of rate field, select the date that determines the exchange rate that is used to revalue the voucher.

6. In the Transaction text field, enter the text that describes the exchange adjustment transaction.

   Note

   If you leave this field blank, it's automatically filled with the standard text for exchange rate correction and the number of the revaluated document.

7. In the Notes field, enter any additional information about the transaction.

8. In the Use posting profile from field, select where the posting profile for the transaction is selected from:

   • Posting − The profile of the posted open transaction is used for the exchange adjustment.
   • Select − The profile that is selected in the Posting profile field is used for the exchange adjustment.

   If you selected the Posting profile value in the Use posting profile from field, you should select a posting profile in the Posting profile field. The exchange adjustment transaction posting is based on the selected posting profile.

9. In the Dimension field, select the dimensions that are posted to the exchange adjustment transactions:

   • None – In the exchange adjustment voucher, the line dimension doesn't depend on the dimension in the original voucher.
   • Table – In the exchange adjustment voucher, the line dimension is inherited from the dimension of the customer account.
   • Posting – In the exchange adjustment voucher, the line dimension is inherited from the dimension in the original voucher.

10. Set the Print option to Yes to print the report.

11. Select Records to include to specify the criteria for exchange adjustment, as you require.

12. Select OK to revalue the selected transaction.

13. On the Foreign currency revaluation page, select Voucher to open the Voucher transactions page, where you can view the resulting ledger transactions for exchange adjustment.

14. Press Ctrl+S, or close the page.

15. On the Foreign currency revaluation page, select Transactions to open the Customer transactions page, where you can view the resulting customer transactions for exchange adjustment.

16. Press Ctrl+S, or close the page.

17. On the Foreign currency revaluation page, select Simulation to open the Simulation page.

    Important

    The Simulation button is available only if you select Standard in the Calculation method field on the Ledger tab of the General ledger parameters page.

18. In the Method field, select a method for exchange adjustment.

19. In the Considered date field, select the voucher posting date.

20. In the Date of rate field, select the exchange date.

21. Select Select to define the customer account, currency, and fixed rate.

22. Select OK to show the customer transaction details on the Simulation page.

23. Select Distribution to specify the report output.

24. Select OK to generate the Customer - foreign currency revaluation simulation report.

Set up amount difference parameters for exchange rates

An original facture can be corrected if the currency values change during the shipment of goods. After the facture is corrected, the company verifies that the total of the correction is equal to the total of the amount difference. An amount difference facture is generated when a purchase or sales transaction is settled under the following conditions:

• The invoice currency and the company currency differ.
• The payment currency is equal to the company currency.
• The exchange rate of the invoice currency on the invoice date differs from the exchange rate on the payment date.
• The amount difference affects the company's liability for value-added tax (VAT).

Any amount difference facture that is generated is processed independently of other factures, and is included in the sales book and purchase book. You can then print the amount difference facture and the original facture that was adjusted based on the amount difference.

Use this procedure to set up parameters for amount differences for exchange rates. When you post an exchange adjustment transaction, it's posted to the ledger account that is defined on the Currency revaluation accounts page. All adjustments are posted to ledger accounts. You must set the posting rules, and you must set the taxable parameter for a positive or negative amount difference.

1. Select General ledger > Setup > Currency > Currency parameters.

2. On the General FastTab, set the Amount difference in tax accounting before 01.01.2015 option to Yes to consider amount differences in the calculation of tax accounting registers.

3. On the Sales/customers FastTab, in the Expense code field, select the expense code to use as a tax dimension for the exchange adjustment transaction if the exchange adjustment is a loss.

   Important

   The Sales/customers FastTab is available only if you select Incremental or Period grand total in the Calculation method field on the General ledger parameters page.

4. The settlement transactions might cause exchange adjustment losses and profits. In the Main account field, select the main account for the Realized loss or Realized gain account, and the Unrealized loss or Unrealized gain account, that these exchange adjustment losses and profits are posted to.

   Important

   This field is required if you select Deviation from the cost price in the Ledger posting field. The Unrealized loss or Unrealized gain account is used when revaluation of foreign currency is done.

5. In the Customer tax dimension field group, in the Revenue code field, select the revenue code for the exchange adjustment transaction if the exchange adjustment is a profit.

6. In the Sales taxes field, select Tax to specify that the realized profit or loss of purchase tax is subject to VAT.

   Important

   Amount difference factures are created only if the Sales taxes field for a positive or negative amount difference is set to Tax.

7. On the Purchases/Vendors FastTab, in the Expense code field, select the expense code to use as a tax dimension for the amount difference transaction if the amount difference is a loss.

   Important

   The Purchases/Vendors tab is available only if you select Incremental or Period grand total in the Calculation method field on the General ledger parameters page.

8. In the Revenue code field, select the revenue code to use for the transaction if the amount difference that the settlement produces is a profit.

9. In the Sales taxes field, select Tax to specify that the realized profit or loss of purchase tax is subject to VAT.

   Important

   Amount difference factures are created only if the Sales taxes field for a positive or negative amount difference is set to Tax.

10. In the Main account fields, select the ledger account that the exchange adjustment transactions for losses and profits are posted to.

    Important

    This field is required if you select Deviation from the cost price in the Ledger posting field.

Set up accounts payable parameters for amount differences

You use the Accounts payable parameters page to set up accounts payable parameters for amount differences. Facture amount differences are included in a separate list that is created in the purchase book for the specified period. This list contains the cancellation of the source facture and the new facture that is recalculated at payment.

1. Select Accounts payable > Setup > Accounts payable parameters.
2. On the Ledger and sales tax tab, on the Purchase book FastTab, set the Amount difference in additional list option to Yes to include the amount differences in an additional list in the purchase book.

Amount difference factures for sales and purchase orders

Before you can generate an amount difference facture, you must create and post a facture for a purchase order or sales order. After you post the facture, you settle the facture transactions to generate the amount differences, based on the exchange rates.

Amount difference factures are corrections for factures. Based on the amount differences, the original factures are shown in the sales book (for sales original invoices) and purchase book (for purchase original invoices). In the sales book, they appear as separate lines. However, they have the same facture identifier and the same date as the original facture. In the purchase book, they appear as a total line, where the sum of the amount differences is added to the original facture amount.

You can recalculate the cost of the original facture so that the amount difference is considered. In the additional list, the original facture amount has a negative sign, and the recalculated facture amount has a positive sign. You can print the amount differences from the Facture journal page in the following ways:

• Include all amount difference factures.
• Include only selected amount difference factures.

Example

The following example shows how amount differences are calculated for a contract.

The cost of the received goods is 100 standard units, and the tax accounting period is monthly. Payments are made in Russian rubles (RUB) by using the currency rate on the payment date.

If the currency rate is 32 RUB for one standard unit, two invoice lines are created, as shown in the following table.

If the currency rate changes from 32 RUB to 28 RUB, the payment for the received goods also changes. For 20 standard units, the payment becomes 560 RUB. Therefore, during transaction settlement, an amount difference (28 – 32) is generated and appears on the facture lines. You can also calculate the total cost and total tax for every tax code.

If A is the corrected number of standard units, based on the amount difference for the first facture line, here is the proportion for the VAT calculation:

20:100 = A:40

Therefore, A = 20 × 40 ÷ 100 = 8.

Therefore, the correction for the first line is 8 × (28 – 32) = –32 RUB.

If B is the corrected number of standard units, based on the amount difference for the second facture line, here is the proportion for the VAT calculation:

20:100 = B:60

Therefore, B = 20 × 60 ÷ 100 = 12.

Therefore, the correction for the second line is 12 × (28 – 32) = –48 RUB.

VAT is applied to the amount difference. For VAT at 18 percent, the value is (32 ÷ 118) × 18 = 4.88 RUB. For VAT at 10 percent, the value is (48 ÷ 110) × 10 = 4.36 RUB.

Create an amount difference facture and link it to an original sales invoice

Use the following procedures to create an amount difference facture and link it to an original sales invoice.

Create an amount difference facture for a sales order

1. Select Accounts receivable > Common > Sales orders > All sales orders.
2. To post a facture for a sales order, create the sales order, and then, on the Setup FastTab, select Sales tax group and Item sales tax group.
3. Select Accounts receivable > Journals > Payments > Payment journal.
4. Create a journal, and enter the required details.
5. Select Lines to open the Journal voucher page.
6. In the Account field, select the customer account that the sales invoice is posted for.
7. Select Functions > Settlement to open the Settle open transactions page.
8. Select the Mark check box to mark the sales invoice line to settle.
9. Close the page.
10. Select No to retain the original journal amount.
11. Select Post > Post to post the journal.

Link an amount difference facture to an original sales invoice

1. Select Accounts receivable > Inquiries > Journals > Invoice journal.

2. Select the invoice line to include the amount difference for in the sales book, and then select Create facture > Update facture to open the Update facture page.

   Important

   In the sales book, the facture date and facture number must be the same as the facture date and facture number of the original facture.

3. In the lower pane, select the To facture check box to mark the facture for update.

4. Select Posting > Update to update the facture with the amount difference.

5. Close the pages.

6. Select Accounts receivable > Inquiries > Journals > Facture.

7. Select the posted facture, and then select Amount difference tab.

   Note

   The source facture ID is shown in the Facture source field.

8. Select the Include in book check box to update the amount difference facture in the sales book.

9. Select Print.

10. Set the Included only option to Yes to print the original facture together with only the selected amount difference factures. If you set this option to No, all amount difference factures are printed together with the original facture.