Example A US customer has been billed for consulting services on the 1 March July 2016 for a total of US$1000.00. At the time the exchange rate was Local $1.30 to USD $1. At the end of the month, the invoice hasn't been paid and in the meantime the exchange rate has become Local $1.20 to USD $1. Having updated the exchange rate to 1.2, the Unrealised Gains/Loss Report shows an unrealised loss of Local $100.00 as at 31 March 2016. Image RemovedImage Added The resulting journal entry based on the above example looks like this: Image RemovedImage Added UI Text Box |
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| Save time! Save these general journal entries as recurring transactions to speed up future entries. See the AccountEdge help for more information (Australia | New Zealand). |
Subsequently, by the end of April, payment for this sale has been received and other open invoices have been recorded in the company file. The general journal entered for Unrealised Gain/Loss at the end of March must be reversed: To reverse the journal entry- Go to the Setup menu and choose Preferences.
- Click the Security tab.
- Select the option Transactions CAN'T be Changed; They Must Be Reversed [System-wide] then click OK.
- Display the general journal entered in the previous month. It can be accessed through the General tab of the Transaction Journal.
- Go to the Edit menu and choose Reverse.
- Change the date of the transaction to the first of the new month and click Record Reversal.
Prior to running the Currency Unrealised Gain/Loss report for April, the exchange rate for the currency is updated. Once the report for April has been run, the new general journal entry is recorded. |