Edit

Revaluate foreign currency for advance holders (Russia)

  • Article

This article provides information about foreign currency revaluation for advance holders in Russia.

When you settle advance payments and advance reports that include transactions that were completed in foreign currencies, adjustment transactions are created as a continuation of the advance report, based on the setup on the Advance adjustment parameters page.

Note

For open advance transactions that are issued or received in foreign currencies, exchange adjustments no longer have to be calculated in business accounting.

Follow these steps to set up advance adjustment parameters for advance holders.

  1. Go to General ledger > Ledger setup > Advance adjustment parameters.

  2. On the Purchases/Advance holders FastTab, in the Ledger posting field, select the type of ledger posting:

    • Invoice accounts: The advance adjustment that is produced by the settlement of an advance and an advance report for the advance holder should be a continuation of the advance report.
    • Deviation from the cost price: The calculation should be processed based on the account's settings for deviation, and the advance adjustment should not be a continuation of the advance report. Depending on the type of advance adjustment, specific ledger accounts are used to adjust the advance payments.

  3. In the Realized loss field, select the ledger account to post an exchange rate loss for an employee to.

  4. In the Realized gain field, select the ledger account to post an exchange rate profit for an employee to.

    Note

    The realized loss and realized gain accounts are used to adjust advance payments only if the inventory is closed.

  5. In the Expense code field, select a tax dimension expense code.

  6. In the Revenue code field, select a tax dimension revenue code.

  7. In the Advance adjustment - loss field, select the ledger account to post an advance adjustment loss in tax accounting to.

  8. In the Advance adjustment - profit field, select the ledger account to post an advance adjustment profit in tax accounting to.

  9. In the Advance adjustment offset account field, select the offset ledger account to post an advance adjustment in tax accounting to.

  10. Select Save.

Follow these steps to calculate the exchange rate adjustment for advance holders.

  1. Go to Accounts payable > Periodic tasks > Advance holders > Foreign currency revaluation.

  2. Select Foreign currency revaluation to open the Foreign currency revaluation dialog box.

  3. In the Method field, select Standard.

  4. In the Considered date field, select the date that the general ledger transaction should be made by.

  5. In the Date of rate field, select the date that determines the currency exchange rate that is used to compute the exchange rate adjustment. If you leave this field blank, the rate that is in effect on the date in the Considered date field is used.

  6. In the Description field, enter the text that should appear in the exchange rate adjustment transaction.

  7. In the Use posting profile from field, select one of the following values:

    • Posting: When a revaluation operation is done, the debt account for an advance holder is selected from the posting profile of the primary operation.
    • Select: When a revaluation operation is done, the debt account for an advance holder is selected from the posting profile that is selected in the Posting profile field.

    Note

    The exchange rate adjustment is done for the account that is specified in the selected posting profile. The adjustment isn't done for the account that's specific in the primary operation.

  8. The Dimension field determines how the dimension is generated in the exchange rate adjustment transaction. Select one of the following values:

    • No: The dimension is absent in the entry for the exchange rate adjustment forecast.
    • Posting: The dimension is inherited from the transactions for an advance holder.
    • Table: In the transaction for the exchange rate adjustment forecast, the dimension is inherited from the advance holder card, unless the dimension is designated for tax accounting.

  9. On the Records to include FastTab, you can define additional filtering.

  10. Select OK to calculate the exchange rates adjustment.

    After the calculation is completed, a new line for the exchange adjustment is generated on the Foreign currency revaluation page, based on the criteria that you specified. You can now perform the following actions:

    • Select Voucher to open the Voucher transactions page, where you can review the transactions that were completed for the general ledger.
    • Select Transactions to open the Advance holder transactions page, where you can review the transactions that were completed for the advance holder.
    • Select Reviewed to mark the selected line as reviewed.