Nonbase currency invoice
This example shows the general ledger transactions created from a nonbase currency invoice paid with a base currency payment. Assume this information about the sample invoice:
| Base currency | USD - US Dollars |
| Invoice currency | CAD - Canadian Dollars |
| Exchange rate on invoice date | 2.000 (multiplier) |
| Exchange rate on date AP191 is run | 3.000 (multiplier) |
| Exchange rate on payment date | 3.500 (multiplier) |
| Invoice amount | 100.00 (CAD) |
| Base invoice amount on invoice date | 200.00 (USD) |
| Base invoice amount on report date | 300.00 (USD) |
| Base invoice amount on payment date | 350.00 (USD) |
Unrealized Gain/Loss (AP191) Transactions
This program creates general ledger entries in the company base currency for an unrealized gain or loss. This example shows an unrealized loss because the exchange rate increased from the time the invoice was issued. (Note the change from 2.000 to 3.000.) A decrease would result in an unrealized gain.
| Account Description | Debit | Credit |
|---|---|---|
| Unrealized Loss | 100.00 | |
| Accounts Payable | 100.00 |
Payment Closing (AP170) Transactions
After the invoice is paid, this program reverses the unrealized loss entry and creates a realized gain or loss general ledger transaction in the company base currency to reflect any exchange rate change between the invoice date and payment date.
| Account Description | Debit | Credit |
|---|---|---|
| Accounts Payable | 300.00 | |
| Realized Loss Account | 150.00 | |
| Cash | 350.00 | |
| Unrealized Loss Account | 100.00 |