Exchange Gain/Loss on Foreign Currency

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I've got a problem with these home currency adjustments.

1. There are several purchase invoices in the period (Jan'18 - Mar'18), and all in various exchange rate
2.  There is a CN issued by supplier, in different rate as the invoices above.
3. Payment's exchange rate is different from the purchase invoice & CN.

Foreign currency creditors accounts all show 0.00 as full payment was made, but I have balances now on AP Aging Summary, even though suppliers show 0.00 balance in Supplier Centre. 

My Creditors ledger and balance sheet are correct but my A/P Ageing Summary is wrong as it's including home currency adjustments for the foreign currency creditors.

How do I exclude these from the A/P Ageing Summary so that it agrees with the balance sheet? 

I've checked with solutions suggested by John G in the post, but it stills does not solve my problem.

And, I also tried rebuilding my company data file under Utilities, but the problem still persists.

My expected end result:
1. Creditors Ledger, AP Ageing Summary agrees with Balance Sheet, which is 0.00
2. Journal for home currency adjustment to remains in the account for tax purposes.

Incase it helps, my Reckon is ReckonAccounts Premier Edition 2013 edition.
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Posted 2 years ago

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John G, Information Support Analyst

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Hello Joey,

Thanks for asking.

I've replicated your experience in this way:

I created a USD bank account, a US Accounts Receivable and a US customer.

I created a few invoices to the US customer, paid and part-paid a number of the invoices to both the USD bank account and to an AUS bank account and had a balance on the Ageing Reports and in the Accounts Receivable account on the Balance Sheet, which did not correspond in their AUD values.

I processed a Currency Adjustment to bring the two representations in line.

I then paid the invoices and my Ageing Report did not correspond to the Balance Sheet Acc Rec in AUD terms by the amount of Currency Adjustment.  I deleted the Currency Adjustment and the accounts corresponded.

So whats the theory here?
When you complete a foreign currency Accounts Receivable / Accounts Payable transaction Reckon Accounts will create an entry to Exchange Gains/Losses account for any AUD discrepancy due to differring exchange rates between the date of sale and payment.  If you realign the AUD value of your foreign currency Recievable/Payable accounts when there are open transactions, when those transactions are closed by full payment, the foreign currency adjustment is no longer required as an entry is made to the Exchange Gains/Losses account.  

In the real-time world with tens, or perhaps hundreds, of open Receivable/Payable transactions, its not practical to keep track of what currency adjustment aligns with which transactions.  Another foreign currency adjustment will be needed to realign the AUD value of the balances to their appropriate value.  

An article on the process is available here.

Hope this helps.