Understanding Detailed Currency Restatement Gains and Losses on Domestic 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 domestic transactions, the system calculates the gain or loss amount between the AA (domestic) and XA (alternate) currencies and creates gain and loss records with a document type of RG (receipt gain or loss) or PG (payment gain or loss). 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 program creates records for the domestic currency receipt or payment amount in the AA ledger and the alternate currency gain or loss amount in the XA ledger.

• The Detailed Currency Restatement program creates a record for the alternate currency receipt or payment amount in the XA ledger.