This guide explains how to set up foreign currency exchange rates and process exchange gain or loss arising from foreign currency transactions.
Step 1: Setup
Open Setup, General Setup, setting 2, and choose Gain/Loss Exchange Rate A/C no. Example: 8010/000
Go to Maintenance, Foreign Currency, and select Rate Maintenance.
Click "Add" and select the currency code. Then, manually enter the monthly rate for the currency.
Month-end rates are for reference only.
Step 2: Transactions
Go to Maintenance, General, and select General Ledger A/C Maintenance.
Select the currency code for bank accounts holding foreign currencies.
Another method is to maintain debtors and creditors from overseas and select a foreign currency as the currency for the transactions.
Go to Customer & Sales, Transaction File Maintenance, and select Create Transaction.
Go to Banking, Received Payments, Receipts, and select Create Receipt.
Go to Banking, Received Payments, Open-Item Menu, and select Knock-Off Bills.
Knock off by matching the payment with the invoice in foreign currency first.
Do not knock off on local bills yet.
Step 3: Generate Exchange Gain/Loss
Go to Reports, Customer & Sales, Open-item menu Debtors and select Gain / Loss in Exchange Rate.
Select View to check transactions to be imported for adjustments in exchange rates.
Click Import to generate adjustment entries for Gain/Loss, then knock off local currency with the adjustment entry and with payment.
For Reports, Foreign Currency, and select Reports to print.