1. Multicurrency Processing Implementation Guide
  2. Setting Up AAIs for Unrealized Gain and Losses on Foreign Currency Vouchers

Setting Up AAIs for Unrealized Gain and Losses on Foreign Currency Vouchers

If you want the JD Edwards EnterpriseOne Accounts Payable system to automatically calculate unrealized gains and losses, you must set up AAIs. These AAI items define the accounts that the system uses for unrealized gains and losses on foreign currency vouchers that are open at the end of a period:

  • PVxxx: Foreign currency unrealized gain.

  • PWxxx: Foreign currency unrealized loss.

  • PRxxx: Foreign currency unrealized gain or loss offset.

When you run the A/P Unrealized Gain/Loss Report (R04425), the system uses the account number assigned to PV and PW to create foreign currency unrealized gains and losses on open vouchers and the account number assigned to PR to create foreign currency unrealized gain or loss offsets. To create an unrealized gain or loss amount, the system compares the amount of the original voucher to the amount of the open voucher (which is revalued based on the exchange rate at the end of the period) and creates a gain or loss for the difference.

The hierarchy for AAI items PV, PW, and PR is the same. This example shows the sequence in which the system searches for AAI item PV:

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

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

  3. PVxxxx. The system uses PVxxxx that is associated with the company entered on the voucher, where xxxx is the GL offset on the voucher.

  4. PVxxxx. The system uses PVxxxx for company 00000, where xxxx is the GL offset on the voucher.

  5. PV. The system uses PV that is associated with the company entered on the voucher.

  6. PV. The system uses PV for company 00000.