Exchange Gain and Loss account

Differences between related amounts due to different exchange rate types or different currency rates are posted to an Exchange Gain and Loss account. The exchange gain and loss is calculated at the time when you post the integration transactions to the General Ledger.

The difference amounts are posted to the statutory account that you can select for each company or currency:

  • For a company, in the Statutory Exchange Gain/Loss Account field on the Destination Gain/Loss tab of the Finance Company Parameters (tfgld0503m000) session.
  • For a currency, in the Statutory Exchange Gain/Loss Account field of the Additional Currency Features (tfgld0129m000) session.
Example of Exchange Gain and Loss

To a purchase order, this data applies:

  • Purchase order amount: 100 USD
  • Local currency: EUR
  • Internal exchange rate: 1 USD = 0.937012 EUR
  • Purchase exchange rate: 1 USD = 0.936344 EUR

This results in these postings for the Purchase Order/Receipt transaction:

TypeAccountAmount (Debit)Amount (Credit)
DebitInterim Transit93.70 EUR-
CreditInvoice Accrual-93.63 EUR
CreditExchange Gain and Loss-0.07 EUR

 

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