Understanding Detailed Currency Restatement Gains and Losses on Foreign Transactions

Depending on whether a receipt or payment is a domestic or foreign transaction, the system uses different calculations to create restatement gain and loss records when you post the receipt or payment.

For foreign currency transactions, the system does not calculate the gain or loss amount directly between the CA (foreign) and XA (alternate) currencies. Instead, it performs these calculations:

• The post program calculates the gain or loss amount between the CA and AA currencies. This amount is due to exchange rate fluctuations between the invoice and receipt dates or the voucher and payment dates and is written to the AA ledger. The post report shows the gain/loss entries in the XA ledger, the entries in the AA ledger.

• The post program calculates the gain or loss amount between the AA and XA currencies. This amount is due to exchange rate fluctuations between the invoice and receipt dates or the voucher and payment dates and is written to the XA ledger. The post report shows the gain/loss entries in the XA ledger, the entries in the AA and CA ledger.

  Note: The net amount derived from the two previous calculations is the equivalent of what the gain or loss would be if the system calculated the gain or loss amount directly between the CA and XA currencies.