From the Company menu, choose Make General Journal Entries.
In the detail area, enter distribution lines.
Enter the home-currency amounts in the appropriate debit and credit columns as taken from the Unrealised Gains and Losses report. Choose the Exchange Gain/Loss expense account as the other account that will be affected by this entry.
When making a journal transaction for an A/P or A/R account, you need to specify a customer name. For the purpose of this activity, create a phoney customer name to whom you can assign unrealised gains and losses.
Tick the Home Currency Adjustment check box.
This ensures that the amounts you enter are recorded as an adjustment to the home currency without affecting the foreign balance of that account.
Save the journal transaction.
Hi Tina,
Yes. it does effect the creditor ledger in foreign balance, but its AUD value is listed as $0 (home currency). The accounts payable account on the balance sheet now shows the correct balance in AUD.
Thanks
Jason
However, when you do a Supplier Balance report, it reports the running balance of all AUD entries. If the AUD entries were correct for all transactions, this would be the same thing, but there are two circumstances where the AUD balance is known to get out of alignment with what it should be ( I have tested both of these):
- When you pay a bill, the AUD amount that posts to the AP account has nothing to do with the exchange-rate you enter on the bill-payment screen – it is calculated from the average exchange rate of the bills you are paying, that was entered at the time the bill was created. Obviously, the point is for the bill payment to directly negate the AUD amounts associated with the original bills. BUT it only calculates the AUD equivalent at the time you save the bill payment. If you ever edit the exchange rate on any of the bills that you paid, you will put the AUD balance of the AP account out of whack, because the billed-AUD and the paid-AUD are no longer the same. The only current solution is to open the matching bill-payment and force Reckon to re-save (eg by editing the Memo field), which forces a re-calculation.
A more fundamental problem is the second one -
- When you enter a credit from a supplier in EUR, you have the opportunity to enter an exchange rate (we normally just enter the exchange rate on the day of entry). This posts an AUD amount to the AP account based on the exchange rate you entered. When you apply this credit to supplier bills it DOES NOT do what it does for other types of payment – i.e. look up the AUD equivalent that was posted by the bills you are paying, and adjust the credit-note exchange rate to match. It just leaves the exchange rate as whatever you entered. So the AP account is inevitably going to get an erroneous AUD balance. One solution is to go back to the Credit note, and change the exchange-rate to match the bill(s) that you applied it to. Obviously this may be at some later date. The other solution is to do a home-currency journal entry as suggested above, which is a one-off correction you can do at the end of the year to bring the running AUD value back in line without affecting the foreign-currency amount.
I have this problem at the moment after entering accountant's journals. Foreign currency creditors accounts all show 0.00, but I have balances now on AP Aging Summary, even though suppliers show 0.00 balance in Supplier Centre. Was there a fix for this?
Can ask in the reckon system, there is realized exchange gain/loss in system due to the discrepancy incurred between the RECEIVED amount (home-currency) and the Calculated amount on the invoice date (foreign-currency issued sales invoice) after applying received payment, but why there is still unrealized exchange gain/loss amount shown ? I think unrealized exchange gain/loss amount should become zero after applying.
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