Understanding Multicurrency AAIs for Accounts Receivable

You set up AAI items to calculate currency gains and losses. The system uses the AAIs to distribute the gain or loss amount to the correct general ledger account. The potential for a currency gain or loss is due to exchange rate fluctuations that occur between:

• The time an invoice is issued and the end of a fiscal period, if the invoice is still open (unrealized gain or loss).

• The time an invoice is issued and payment is received (realized gain or loss).

For receipts and open invoices in a foreign currency, the gain or loss is calculated between the domestic and foreign currencies. For receipts in an alternate currency, the gain or loss is calculated between the domestic, foreign, and alternate currencies.

You also set up AAI items to define trade accounts for foreign currency invoices and bank accounts for foreign and alternate currency receipts.

Some AAI items have a suffix of xxx, which is optional, to accommodate a three-character currency code. You use the xxx suffix to set up currency-specific AAI items for each company.