Unrealized Gain/Loss Calculations

To record unrealized gains and losses on open foreign currency and vouchers, you can enter the gain and loss amounts manually in a journal entry or have the system create the gain and loss entries automatically.

Unrealized gains and losses apply to unpaid and vouchers or the open portion of a partially paid voucher. If you work with multiple currencies, you record unrealized gains and losses at the end of each fiscal period to revalue open foreign transactions. This gives you an accurate picture of the cash position so that you can forecast and manage the cash flow.

To have the system create gain and loss entries automatically, you run the A/P Unrealized Gain/Loss Report (R04425). This report:

• Revalues open foreign vouchers.

• Analyzes unrealized gains and losses in detail.

• Records unrealized gains and losses.