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.
From Infor LN 10.4 onwards:.
- if the Currency System is Dependent Currency System, then IDT = 50050003 (Currency Difference / Invoice Accrual / 3) is created
- if the Currency System is Single, Independent or Standard, then IDT = 10001159 (Purchase Order / Currency Variance) is created.
- The ledger accounts are defaulted from the IDTs in the mapping scheme instead of the Statutory Exchange Gain/Loss Account field in the Finance Company Parameters (tfgld0503m000) session..
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:
| Type | Account | Amount (Debit) | Amount (Credit) |
|---|---|---|---|
| Debit | Interim Transit | 93.70 EUR | - |
| Credit | Invoice Accrual | - | 93.63 EUR |
| Credit | Exchange Gain and Loss | - | 0.07 EUR |