1. Multicurrency Processing Implementation Guide
  2. Setting Up AAIs for Realized Gains and Losses on Foreign Currency Payments

Setting Up AAIs for Realized Gains and Losses on Foreign Currency Payments

These AAI items define the accounts that the system uses for realized gains and losses on foreign currency payments:

  • PGxxx: Foreign currency realized gain.

  • PLxxx: Foreign currency realized loss.

The system creates a gain or loss entry when a payment is posted the system and uses the account number assigned to PG and PL to create foreign currency gain and loss amounts. To create a gain or loss amount, the system multiplies the voucher amount by the difference in the exchange rate between the original voucher and the foreign currency payment.

The hierarchy for AAI items PG and PL is the same. This example shows the sequence in which the system searches for AAI item PG:

  1. PGxxx. The system uses PGxxx that is associated with the company entered on the payment, where xxx is the transaction currency of the payment.

  2. PGxxx. The system uses PGxxx for company 00000, where xxx is the transaction currency of the payment.

  3. PGxxxx. The system uses PGxxxx for company 00000, where xxxx is the GL offset on the voucher that is paid.

  4. PG. The system uses PG that is associated with the company entered on the payment.

  5. PG. The system uses PG for company 00000.