Transactions Voided After Posting Rules Change
When you void a transaction, amounts from the original transaction are reversed from the original general ledger accounts. Any change to foreign currency variance posting rules between the time of the original transaction and the voided transaction are ignored for purposes of the reversal.
For example, you have a vendor bill for $100 in the transaction currency. The exchange rate to base currency is 1.1. The general ledger impact from the vendor bill in base currency is as follows:
|
Vendor Bill |
Debit |
Credit |
|---|---|---|
|
Expense |
110 |
|
|
Accounts Payable |
|
110 |
When you pay the vendor bill, the exchange rate is 1.2. No foreign currency variance posting rule applies to the payment. The general ledger impact in base currency for the payment and the currency revaluation is as follows:
|
Payment |
Debit |
Credit |
|---|---|---|
|
Accounts Payable |
120 |
|
|
Bank Account |
|
120 |
|
Currency Revaluation |
Debit |
Credit |
|---|---|---|
|
Realized Gain/Loss (default account) |
10 |
|
|
Accounts Payable |
|
10 |
You close the periods that the bill and payment are in, and you create a foreign currency variance posting rule. The new rule posts all revaluations to a new revaluation account.
You void the payment you made in the previous period. The new foreign currency variance posting rule is ignored in this case. The exchange rate for voiding the payment is the same as the original payment. The general ledger impact in base currency for the voiding journal and currency revaluation reversal is as follows:
|
Voiding Journal |
Debit |
Credit |
|---|---|---|
|
Bank Account |
120 |
|
|
Accounts Payable |
|
120 |
|
Currency Revaluation Reversal |
Debit |
Credit |
|---|---|---|
|
Accounts Payable |
10 |
|
|
Realized Gain/Loss (default account) |
|
10 |