Writing off Currency Differences

This chapter describes the processes of wiriting off currency differences in Infor LN 10.7 for Poland localization.

According to Art. 30 par. 1 of Accountancy Act, the components of assets and liabilities that are expressed in foreign currencies are priced per balance day, following the average exchange rate valid for that day set for a given currency by the Polish National Bank (Narodowy Bank Polski).

While revaluing Accounts Payable/Accounts Receivable open entries, the localised version of Infor LN performs the revaluation of unallocated and advance payments and receipts expressed in foreign currencies.

To facilitate exchange rate difference calculation for advances and unallocated payments/receipts by end user, the following functionalities are enabled:
  • selecting document types as a basis for currency difference calculation (only invoices, unallocated/advance payments, all).
  • selecting a specified exchange rate type used to calculate currency differences.
  • manually selecting the exchange rate used to calculate currency differences.

Maintenance in Infor LN

To calculate currency differences, use these sessions:
  • Write off Currency Differences (tfacp2240m000)
  • Write off Currency Differences (tfacr2250m000)

Write off Currency Differences (tfacp2240m000): The session allows to calculate and post unrealised currency differences for both open purchase invoices and paid advances.

After calculating unrealised currency differences from an advance and matching the advance to an invoice, unrealised differences are written off and realised currency differences are calculated and posted automatically.

Write off Currency Differences (tfacr2250m000): The session allows to calculate and post unrealised currency differences for both open sales invoices and received advances.

After calculating unrealised currency differences for an advance and matching the advance with an invoice, unrealised differences are written off and realised currency differences are calculated and posted automatically.