Legally, G/L account transactions performed in foreign currency are recorded by being converted to local currency using the exchange rate at the date of transaction. In such cases, when the balances of G/L accounts in local currency are viewed at a given time, the current effect of foreign currency transactions cannot be viewed. In other words, the local currency balance of an account processed in foreign currency can be more or less than the actual amount.
The calculation and posting of increases and decreases in local currency amounts of account transactions in foreign currency due to exchange rate value changes in time are called Exchange Rate Difference Calculations. This option is located in the Operations menu of the General Ledger section.
The G/L Account Code, Foreign Currency Type, Calculation Date and Exchange Rate Difference Type criteria are important for exchange rate difference calculations.
The G/L slip exchange rate difference calculation window is used to specify the filter conditions to be applied for exchange rate difference calculations. The filter options and functions are:
Calculation Date: Indicates the date of which the daily exchange rate will be used for the calculation. The exchange rate value is read from the foreign currency file.
G/L Account Code: This filter line is used to specify the G/L accounts for which the exchange rate difference calculation will be performed. If the calculation will be performed only for specific accounts, conditions are set by defining groups or ranges.
In the LOGO application, exchange rate difference is not calculated for G/L accounts for which the exchange rate difference account is not specified.
G/L Account Aux. Code: Accounts to be processed in exchange rate difference calculations can also be filtered by card aux. code. The filtering is performed using one of the group or range definition filters.
Division: This filter works dependently on "Exchange Rate Diff. Calculation Method". When "Exchange Rate Diff. Calculation Method" filter is selected as "By Divisions", exchange rate difference is calculated according to the transactions of the relevant division selected in this filter line.
Department: If the exchange rate difference calculation is required to be performed by scanning the transactions of only the selected departments, the selection is made on the department filter line.
Foreign Currency Type: The foreign currency type filter line is used to specify the transactions performed in which currency will be processed for the calculation. More than one currency type can be selected on this field. In such cases, exchange rate difference is calculated separately for each currency type.
Exch. Rate Diff. Limit: If the exchange rate difference calculated in the specified foreign currency type is not required to be reflected on the journal slip when under a certain limit, an amount is specified on the limit exchange rate difference line. When the calculated exchange rate difference is below the amount specified here, the transaction is not performed assuming that the exchange rate difference does not exist.
Line Comment: Information required to be displayed on the line comments of the generated Exchange Rate Difference Slip is recorded on the line comment filter line as default.
Exchange Rate Difference Type: This parameter is used to specify the transaction types for which the exchange rate difference will be calculated. The exchange rate difference can be calculated for debit or credit transactions, or for both.
Exchange Rate Type: This parameter is used to specify the exchange rate type for which the exchange rate difference will be calculated.
Exchange Rate Diff. Calculation Method: This filter line must be selected as "By Divisions" in case it is required to calculate exchange rate difference separately by divisions selected in the Division line. If it is selected as "General", exchange rate differences of all defined divisions are added, and exchange rate difference slip is generated for the head office.
Once the conditions are set for the exchange rate difference calculation, the exchange rate difference calculation transaction is started.
Calculated exchange rate differences are inserted into the Journal Slip generated by the application. The date of the Journal Slip is the date specified on the Exchange Rate Difference window. Calculated exchange rate differences are recorded under the accounts for which the calculation is performed, or the exchange rate difference account specified on the record. Transactions of each calculated account are displayed on a separate line on the Journal Slip. Exchange rate differences can be grouped under a single account, or a separate exchange rate difference account can be opened for each account.
If the exchange rate value at the date specified cannot be read from the Exchange Rate Table, or if the accounts are not processed with the specified foreign currency type, the application displays "No account found with exchange rate difference" warning message. Likewise, exchange rate difference calculations cannot be performed when a date different than the working days specified while defining the company is entered.
Exchange rate difference is calculated by processing the exchange rate value against TL specified on the Automatic Usage field. The f. currency type should be specified on the Automatic Usage field of the F. Currency Usage Parameters in order to calculate the exchange rate difference with the required f. currency type.