Adjusting Entry and the Post
When you post the journal entry, the system creates an adjusting entry of 85.96 EUR to correct the AA amount of the non-base currency. The line extension code for the adjusting entry is AM. This AM record appears only on the General Ledger Post Report and in the Universal Table Browser (UTB) for F0911.
Account |
Amount |
Ledger Type |
|---|---|---|
1.1110.BEAR |
– 1,000.00 USD |
AA |
70.1110.FRANCE |
1,000.00 EUR |
AA |
70.1110.FRANCE |
85.96 EUR |
AA |
1.1110.BEAR |
– 1,000.00 USD |
CA |
70.1110.FRANCE |
1,000.00 USD |
CA |
The 85.96 EUR adjusting entry is the net amount of this calculation:
(Foreign value of the transaction à exchange rate) − value of transaction already posted
(1,000.00 Ã 1.08596) − 1,000.00 = 85.96 EUR
The total EUR amount is 1,085.96 (1,000.00 Ã 1.08596).
The system does not display the adjusting entry on the Journal Entry form. However, the system adds the original entry and the adjusting entry and displays the total on the Account Ledger Inquiry form and on all printed journals and general ledger reports.