Defining unrealized and realized gain and loss accounts (AR/CU)

If your company uses currency exchange, then you must define the accounts used to post realized and unrealized gains and losses resulting from fluctuations in the currency exchange rates between the time a transaction such as an invoice is opened, and the time that it is closed.

Before you define gain and loss accounts, select Yes in the Exchange field of Company (GL10.1).

Follow these steps to define unrealized and realized gain and loss accounts:

Note: You need to set up only one set of currency gain and loss accounts to be used as the default for every currency relationship. However, you can set up specific currency gain and loss accounts for specific currency relationships and system codes.

Access Company (GL10.1), Currency page.
Click the Currency Accounts link to access Currency Gain Loss Accounts (CU03.1).
First, you must define the default gain loss accounts. These become the default gain and loss accounts for the company. The To and From currency fields and the system field must be blank.
Optional: For each currency relationship you define for your company, specify or select the accounting units and accounts to which currency gains and losses are to be posted.

Note: You can define different accounts for specific system codes. For example, you could track currency gains and losses for currency transactions entered through Lease Management by defining a different set of gain and loss accounts for LM.