Posting Exchange Differences During Allocation

If the transactions you have allocated match in one currency but not in the other currencies, the system can generate a gain/loss posting or rounding difference posting to record this difference and balance the allocations. For example, if the transaction currency values match on the allocated transactions but the base currency values do not match, or vice versa, a gain or loss posting may be generated automatically. The same applies where fourth currency values match on the allocated transactions but the base currency values do not match, or vice versa, a gain or loss posting may be generated automatically.

Note: The allocation imbalance is only posted automatically in particular circumstances, depending on the currency balancing rules.

Posting Realized Exchange Differences

A discrepancy between either the base or transaction currency values is posted to the nominated realized gain, loss or net exchange difference account. The realized exchange difference accounts can be defined for each currency in Currency Codes (CNC), for particular periods for a currency using Currency Period Rates (CNP), or for a particular date for a currency using Currency Daily Rates (CND).

You can define separate Realized Gain and Loss accounts and post gains and losses separately. Alternatively, you can define a single Realized Net or Losses account, to which the net gains and losses are posted.

If both of these accounts are left blank for the currency code and currency period rate, you are prompted to enter a gain/loss account.

When matching single debits and credits, the analysis codes for the system generated source account and gain/loss account transactions are taken from the transaction in the matched pair that has the lowest base value amount. When matching multiple debits and credits, the Manual Ledger Alloc - Analysis Codes form is displayed for you to enter the required analysis codes for the source account and then the exchange gain/loss account. The analysis codes available for input on this form are determined by Chart of Accounts (COA) and Ledger Setup (LES).

Note: For transactions with normal journal types, an optional dimension on the account record means use the transaction analysis input rules defined for the journal type (as described in 'Setting Up Accounts'). However, since it is impossible to define the analysis requirements on the SYSTM journal type used by Exchange Gain and Loss processing, a dimension set as Optional on the account record in this context means either enter a value or leave blank.

If there is a difference between the Value 3 values and Value 3 is used as a Reporting Currency, then the difference is treated as an exchange difference between either the base or transaction currency, whichever is the pivot currency.

Posting Rounding Adjustments

If Value 3 is used as a Second Base Currency then the difference is treated as a rounding difference and is posted to the Value 3 balancing account defined in Business Unit Setup. Again, you can define separate debit and credit rounding difference account, or a single net rounding difference account. If the account has not been defined you are prompted to enter it.