10 Set Up AAIs for A/P Gains and Losses

This chapter contains these topics:

10.1 Overview

Navigation

From General Accounting (G09), enter 29

From General Accounting System Setup (G0941), choose Automatic Accounting Instructions

When the system calculates currency gains and losses, it uses AAIs to distribute the gain or loss to the correct G/L account. These AAIs are used to calculate the following:

  • Realized gains and losses

  • Unrealized gains and losses

See Also:

10.2 Which AAIs Are Used to Calculate Realized Gains and Losses?

The system uses the following AAIs to calculate realized gains and losses for A/P:

  • Realized gain: item PGxxx

  • Realized loss: item PLxxx

To determine the gain or loss amount, the system multiplies the voucher amount by the difference in the exchange rate between the original voucher and the payment.

The following applies to realized gains or losses on foreign currency payments:

  • The system uses the G/L account number associated with the AAI to track foreign currency gains or losses.

  • The system creates a gain/loss entry at time of payment.

  • xxx represents the currency code used to track unrealized gains and losses by currency.

  • yyyy represents the G/L offset code (which creates the offset).

  • You can set up these items by company.

  • The following hierarchy applies to both PGxxx and PLxxx

    • PGxxx for a specific company

    • PGxxx for company 00000

    • PGyyyy for a specific company

    • PGyyyy for company 00000

    • PG for a specific company (with <blank> or no offset)

    • PG for company 00000 (with <blank> or no offset)

10.3 Which AAIs Are Used to Calculate Unrealized Gains and Losses?

You can do one of the following to calculate your unrealized gains and losses:

  • Enter them manually

  • Create them automatically by running the Unrealized Gains and Losses report

You must set up the following AAIs if you want the system to automatically calculate your unrealized gains and losses for A/P:

  • Unrealized gain: item PVxxx

  • Unrealized loss: item PWxxx

  • Offsets: item PRxxx

The following applies to items PVxxx and PWxxx for Accounts Payable:

  • xxx represents the currency code used to track unrealized gains and losses by currency.

  • yyyy represents the G/L offset code (which creates the offset).

  • The system creates reversing entries for unrealized gains or losses on open items if the exchange rate changes after the original entry was made.

  • The system creates unrealized gains, based on one of the following (in hierarchical order):

    • PVxxx for a specific company

    • PVxxx for company 00000

    • PVyyyy for a specific company

    • PVyyyy for company 00000

    • PV for a specific company (with <blank> or no offset)

    • PV for company 00000 (with <blank> or no offset)

  • The system uses item PRxxx to create the offsetting entry.

  • The system creates an offsetting entry, based on one of the following (in hierarchical order):

    • PRxxx for a specific company

    • PRxxx for company 00000

    • PRyyyy for a specific company

    • PRyyyy for company 00000

    • PR for a specific company (with <blank> or no offset)

    • PR for company 00000 (with <blank> or no offset)

To set up AAIs for A/P gains and losses

On Automatic Accounting Instructions

Figure 10-1 Automatic Accounting Instructions screen

Description of Figure 10-1 follows
Description of "Figure 10-1 Automatic Accounting Instructions screen"

  1. Choose one of the following:

    • Single AAI Revisions to access Single AAI Revisions

    • Multiple AAI Revisions to access Multiple AAI Revision

  2. On either Single AAI Revisions or Multiple AAI Revision, complete the following fields:

    • Item Number

    • Company

    • Business Unit (optional)

    • Object Account

    • Subsidiary (optional)

See Also: