Calculate foreign currency during ledger settlement
Important
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| Enabled for | Public preview | General availability |
|---|---|---|
| Users by admins, makers, or analysts | - | 
Feb 21, 2024 |
Business value
Currently, ledger settlement is on the accounting currency amounts. If the accounting currency is not in balance (debits do not equal credits) for matched transactions in the ledger settlement, the ledger settlement isn't completed. No validation is done to determine if the reporting currency amounts are in balance. If the accounting currency amounts are in balance, the ledger settlement will be permitted even if the reporting currencies amounts are not in balance. No gain or loss is posted for the reporting currency, either.
This feature addresses both of these gaps by posting a gain or loss for the accounting and reporting currency as necessary to ensure the amounts are in balance. This speeds up period-end closing by eliminating the need to first post the gain/loss in the accounting and reporting currency in order to complete the ledger settlement.
Feature details
The new feature will come in stages. First, ledger settlement will continue to be done on the accounting currency. If transactions are fully settled in the accounting currency (debits equal credits), validation will be added to the reporting currency and post a gain or loss if they are not in balance.
Next, ledger settlement will be changed to the transaction currency. The determination will be similar to AR and AP settlement where if the transaction currency is the same and the ledger amounts are in balance, the difference in the accounting and reporting currency will be posted as a gain or loss. If the transaction currencies are different when settling the ledger transactions, we will settle the accounting currency and determine if a gain or loss is necessary for the reporting currency.
For both stages, the gain or loss posting only occurs for ledger settlement accounts that are marked as eligible for recognition of gain/loss posting during ledger settlement. This is to ensure that a gain or loss isn’t calculated during AR and AP settlement and again during ledger settlement. Partial settlements currently aren't supported but will be in later releases.
See also
Ledger settlements (docs)