11 Calculate Unrealized A/P Gains and Losses
This chapter contains the topic:
11.1 Overview
From Accounts Payable (G04), choose Periodic Processes
From Periodic Processes (G0421), choose Unrealized Gains & Losses
If you work with multiple currencies, you need to calculate unrealized gains and losses for your foreign vouchers and invoices. To do this, run the Unrealized Gains and Losses report for A/P (P04425). This DREAM Writer:
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Revalues your open foreign vouchers
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Analyzes your realized gains and losses in detail
You should run the Unrealized Gains and Losses report first in proof mode. You can then review the report to verify the journal entries. If necessary, correct the exchange rates and run the report again in proof mode.
After you have corrected all exchange rates, run the Unrealized Gains and Losses report in final mode.
Use a processing option to create the reversing journal entry necessary to record the unrealized gain or loss. The system assigns journal entries a document type of JX. This is the only document type that you can use to adjust the domestic side of a monetary (currency-specific) account. The system creates only one reversing journal entry per company.
Caution:
To avoid redundant journal entries, do not run this program more than one time per period with the processing option set to create journal entries for the unrealized gains and losses.The Unrealized Gains and Losses report shows:
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The base company currency and the transaction currency for each voucher
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The voucher number and due date
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The original domestic amount calculated for each voucher
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The current domestic amount calculated for each voucher
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The foreign amount of the voucher
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The realized gain or loss if the voucher or invoice has had a payment
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The unrealized gain or loss for any open voucher or invoice
11.1.2 What You Should Know About
| Topic | Description |
|---|---|
| Mixing currencies | If you mix multiple currencies when you record your unrealized gains and losses, the foreign grand total and any other subtotals appear as **NA** (not applicable) because totals for mixed currencies are meaningless.
To prevent this, set up a different DREAM Writer version for each company that has a different base currency. |
| Reducing report size | To reduce the size of the Unrealized Gains and Losses report, set up a version for each specific company. |
| Calculating the alternate currency amount when Detailed Restatement is activated in Company Constants | The Detailed Restatement field in the company constants determines if a multiplier or divisor is used in calculating the alternate currency amount. This typically is the opposite setting from the general accounting constants used for foreign transactions.
For example, if the general account constant for foreign transaction is a multiplier, the company constant for detailed restatement is a divisor. |
Figure 11-1 Gains & Losses on Foreign Currency Report
Description of "Figure 11-1 Gains & Losses on Foreign Currency Report "