This chapter contains these topics:
Section 10.2, "Which AAIs Are Used to Calculate Realized Gains and Losses?"
Section 10.3, "Which AAIs Are Used to Calculate Unrealized Gains and Losses?"
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
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)
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
Choose one of the following:
Single AAI Revisions to access Single AAI Revisions
Multiple AAI Revisions to access Multiple AAI Revision
On either Single AAI Revisions or Multiple AAI Revision, complete the following fields:
Item Number
Company
Business Unit (optional)
Object Account
Subsidiary (optional)