Defining currency translation gain and loss accounts (GL/CU)

If a company uses currency translation, then the gains or losses that result from variations in the translation rates will be posted to system accounts defined in the chart of accounts.

The accounts you define as gain or loss system accounts must already exist as detail accounts in the chart of accounts. Follow these steps to define currency translation gain and loss accounts:

  1. Access Chart of Accounts (GL00.1).
  2. Click System Accounts to access System Accounts (GL00.7).
  3. Click the Currency tab. In the Currency Translation Accounts section, select the gain and loss accounts.
  4. Use these guidelines to specify the field values:
    Gain

    Select the detail account used to post favorable variances that result from the currency translation process.

    Loss

    Select the detail account used to post unfavorable variances that result from the currency translation process.