Exchange rate difference documents
When paying for documents, which are issued in foreign currencies, the system automatically calculates the exchange rate differences. The list of exchange rate differences is available in the Finances menu under Exchange Rate Difference Documents icon.
Figure 26 List of exchange rate difference documents.
An exchange rate difference document is created as a result of completing a planned payment with the actual deposit at different exchange rates of the transaction currency.
Characteristics of an exchange rate difference document:
exchange rate difference is calculated automatically when combining two cash transactions in the same currency at different exchange rate
document is not editable – the values are calculated by the system
once the combination is removed from the cash-bank transactions level, the exchange rate difference document is automatically deleted
Example 1: Paying for a sales invoice
1) An issued sales invoice, amounting to 100 USD, must be paid by bank transfer
2) On the day the SI is issued, the valid exchange rate is 1 USD = 4 USD, thus, the invoice value in USD is 400 USD. An appropriate payment is generated in the payment plan
3) After a while, a deposit of 100 USD is received for that invoice. On the day the deposit is received, the valid exchange rate is 4.05 USD and such transaction is registered in a bank report
4) Thus, the deposit value in USD is 405 USD
5) The transaction and the payment are combined with each other in the payment plan. The completed amount in USD is the same, but the value in USD is different for both documents
6) The system automatically calculates the exchange rate difference amounting to 5 USD
Example 2: Paying form a purchase invoice
1) An issued purchase invoice, amounting to 400 USD, must be paid in cash
2) On the day the PI is received, the valid exchange rate is 1 USD = 4 USD, thus, the invoice value in USD is 400 USD. An appropriate payment of expense type is generated in the payment plan
3) Part of the amount is paid (100 USD). On the day of payment, the valid exchange rate is 1 USD = 4.05 USD
4) The received deposit is completed entirely but the entire payment is completed partially
5) The program calculates the exchange rate difference amounting to -5 USD (100 x 4 – 100 x 4.05 = -5)