FX Tutorial: Foreign Currency Sales

When you enter transactions or documents for foreign Customers, the Exchange Rate field will be available.

If you selected Use Exchange Rate Table in Foreign Exchange Settings, Accredo will retrieve the exchange rate based on the Transaction or Document Date, Rate Type and Currency code. You can override the Exchange Rate retrieved. You can also save the rate back to your exchange rate table by clicking the Save Exchange Rate button (depending on your User Permissions).

If you are not using the Exchange Rate Table, you must key in the Exchange Rate. The rate you enter will be remembered while the form is open and will be used for subsequent transactions or documents in the same currency.

Forward Cover

If you have arranged Forward Cover, you can enter the given Exchange Rate and click the Fix Exchange Rate (Ctrl+F) button.

Fixing a rate means it will not be updated and will be excluded from Revaluations. When an Invoice with a Fixed Rate is paid, Accredo will warn you if the Payment Exchange Rate does not match during the allocation process.

Non-Fixed Exchange Rates

If you do not fix the Exchange Rate and you are using the Rates Table, the Exchange Rate will be updated from the Rates Table each time any of the Rate Type, Currency Code or Transaction or Document Date are changed. It will also be updated when the document is posted or a revaluation is performed.

Exchange Rates on Purchase Orders and Shipments can be optionally revalued. See OE Revalue Foreign Orders and IN Revalue Foreign Invoices.

Unallocated Transactions which are not fixed must be revalued at End of Period, and an Unrealised Variation will then be created. See AR Revalue Foreign Balances.

Receipting Funds from Foreign Customers into a Bank Account in their currency

If you deal with overseas Customers regularly, you can set up a bank account in their currency to pay into. When you enter the Receipt, enter the Exchange Rate if you are not using the Rates Table. The Bank Account will default from the Creditor's Creditor Group.

Receipting Funds from Foreign Customers into Base or other currency Bank Account

If you are entering a Receipt into a bank account in a different currency and you know the amount that will go into your Bank Account then:

1. Enter the amount being paid in their currency in the Gross Amount field.
2. Enter the amount that will go into your bank account in the Banking Amount field.
3. If the bank will charge you for the transaction, enter the Bank Charges.
4. Accredo will automatically calculate the Exchange Rate from the Gross Amount and Banking Amount fields.

If you don't know the amount that will go into your Bank Account:

1. Unselect the Bank Through check box, to create an Unbanked Banking Item.
2. When the amount entered is known, enter this on the CB Banking Summary.

Foreign Exchange Variations

Realised Variations

When the Exchange Rate on a Receipt differs from the Exchange Rate on the Invoice(s) which the Receipt is allocated against, a Realised Variation is calculated in the Allocation Period and any Unrealised Variation is reversed.

The Realised Variation shows against the Invoice. You can customise to show the Variation Realised Bs in the AR Customer Transaction tab.

Invoices and Credits take the Gain or Loss over Receipts and Journals, where both transactions for an allocation are from the same grouping (for example, Invoices and Credits being the first group, and Receipts and Journals the second). The earlier transaction takes the Gain / Loss.

Variation Realised Bs Calculation

Realised Gain/Loss for a transaction is calculated during allocation as DebitAllocationAmountBs less CreditAllocationAmountBs.

Unrealised Variations

Unrealised Variations are calculated when Unallocated Foreign Exchange Transactions that are not fixed are revalued.

1. Go to Navigator > Tasks > Accounts Receivable / Revalue Foreign Balances.
2. Enter the exchange rates, then click Run (F9).

Revalue Foreign Balances is required as part of the End of Period Update process, but you can Revalue more often.

You can customise to show the Variation Unrealised Bs in the AR Customer Transaction tab.

Unrealised Variation Bs Calculation

The Unrealised Gain / Loss on exchange for FX transactions that are not Fixed is calculated as the UnallocatedAmount (FX) / Revaluation Exchange Rate, less the UnallocatedAmountBs, calculated at the transaction exchange rate.

As the unallocated amount is reduced by allocation, the Unrealised Gain / Loss is reduced accordingly. When a transaction is fully allocated total Unrealised Gain / Loss for the transaction is zero.

Revalue Foreign Orders

Go to Navigator > Tasks > Order Entry > Revalue Foreign Orders.

You can optionally Revalue Foreign Unprocessed Purchase Orders that are not fixed.

The Revaluation date is then written to the Valuation Date on the Orders.

Revalue Foreign Invoices

Go to Navigator > Tasks > Invoicing System > Revalue Foreign Invoices

You can optionally Revalue Unposted Invoices if you are using the Rates Table. Revaluation will occur automatically when Invoices are posted.

AR Transfer to GL

Go to Navigator > Tasks > Accounts Receivable > Transfer to General Ledger.

Select the Period to transfer up to, then click OK.

When you transfer to the General Ledger, Accredo will create a separate Accounts Receivable Exchange Variation batch. This is shown in the GL Batches Transferred results screen. you can double-click this batch or click Open (F12) to see the transactions in the batch.

If you are integrating to GL from AR on a Detailed Basis (selected in AR Settings - Integration tab), you can select a line in the Batch then click Drill Down (Shift+F12) to open the originating Transaction.

You can reconcile the Realised and Unrealised Gain Loss on Exchange with AR sourced Transactions in the GL.

Go to Navigator > Reports > Accounts Receivable > Transaction Reports > Exchange Variation Sequence.

This report lists the exchange variations in the period order they were generated in, so it will include Transactions from prior periods that were Revalued in the selected period.

You can customise the report to show only Unrealised or Realised transactions.

1. Go to Navigator > Reports > Accounts Receivable > Transaction Reports > Exchange Variation Sequence. Click Options > Customise.
2. Click Filter/Sort (Ctrl+F2).
3. Set:
   • Field Name: VariationType
   • Op: =
   • Criteria: U (for Unrealised Variations) or R (for Realised Variations)
4. Click Save (F9).
5. Click One Time (F9).
6. Click Run (F9).

Viewing Base Currency Balances

When you are viewing Balances for a Foreign Currency Customer, such as on the Customer Balances tab, you will see a tab for the Base Currency (such as NZD) and a tab for the Foreign Currency (such as AUD). Toggle between the tabs to view Balances in the Base Currency and the Foreign Currency.

Viewing Variations

When you are viewing Transactions for a Foreign Currency Customer, such as on the Customer Transaction tab, you can customise to show the Variation Unrealised Bs, Variation Realised Bs and the Variation Bs (Total Variation). Where there is a variation, you can click Show variations to show all variations. for the transaction.