This chapter contains these topics:
Section 13.2, "Which AAIs Are Used to Calculate Realized Gains and Losses?"
Section 13.3, "Which AAIs Are Used to Calculate Unrealized Gains and Losses?"
From General Accounting (G09), choose 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 Accounts Receivable system uses the following AAIs to calculate realized gains and losses:
Realized Gain: Item RGxxx
Realized Loss: Item RLxxx
To determine the gain or loss amount, the system multiplies the invoice amount by the difference in the exchange rate between the original invoice and the receipt.
The following applies to realized gains or losses on foreign currency receipts:
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 the time of receipt.
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 RGxxx and RLxxx
RGxxx for a specific company
RGxxx for company 00000
RGyyyy for a specific company
RGyyyy for company 00000
RG for a specific company (with <blank> or no offset)
RG for company 00000 (with <blank> or no offset)
To calculate unrealized gains and loses, you can:
Enter them manually
Run the Unrealized Gains and Losses report to have the system create them automatically
If you want the Accounts Receivable system to automatically calculate unrealized gains and losses, you must set up the following AAIs:
Unrealized Gain: Item RVxxx
Unrealized Loss: Item RWxxx
Offsets: RRxxx
The following applies to AAI items RVxxx and RWxxx:
The xxx represents the currency code, which the system uses to track gains and losses.
The yyyy represents the G/L class 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 time of the original entry.
The system creates unrealized gains, based on one of the following (in hierarchical order):
RVxxx, for a specific company
RVxxx, for company 00000
RVyyyy for a specific company
RVyyyy for company 00000
RV, for a specific company (with <blank> or no offset)
RV, for company 00000 (with <blank> or no offset)
The system uses item RRxxx to create the offsetting account.
The system creates an offsetting entry, based on one of the following (in hierarchical order):
RRxxx for a specific company
RRxxx, for company 00000
RRyyyy, for a specific company
RRyyyy, for company 00000
RR, for a specific company (with <blank> or no offset)
RR, for company 00000 (with <blank> or no offset)
To set up AAIs for A/R gains and losses
On Automatic Accounting Instructions
Figure 13-1 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)