Dear All,
I have a question realted to FX Valuation. We in our compnay are using classic G/L and have not implemented the New G/L.
The scenario is like this the accrual account
| Header 1 | Header 2 | Header 2 | Header 3 | Header 5 |
|---|---|---|---|---|
| Month | Ex. Rate | Value in Foreign Currency | Value in Local Curency | Gain/Loss |
| Jan | 1 - 3 | Kwd 1000 | $ 3000 | |
| Feb | 1 - 3.2 | KWD 1000 | $ 3200 | +200 |
| March | 1 - 3.5 | KWD 1000 | $3500 | +300 |
Now as per the above table if we dont tick Bal. Sheet Preparation Valuation then the accounting entries is
Feb end when we execute f.05
Debit Fx gain/Loss 200
Credit Accrual account 200
begning March it reverses the same:
Debit accrual account 200
Credit Fx gain/Loss 200
--------------------------------------------------------------------------------------------------
Now when we execute the FX valuation for the month of march the accounting entries is as follows: ( Based on the Exchage rate for march and the original transaction)
Debit Fx gain/Loss 500
Credit Accrual account 500
begning april it reverses the same:
Debit accrual account 500
Credit Fx gain/Loss 500
Now the actual problem starts here
if you look at the above entry thenet impact of FX gain/loss is only $300 while in actual it should have been $500 which $200 for Feb and Delta $300 form March
And if we tick Bal. Sheet Preparation Valuation then the FX valuation posted for each month is based on the original FX Rate i.e.
Feb : $ 200
March $500
The Net impact is $700
What we are looking for here is how can i do the delta posting between Feb and March which i understand is the functionality available in New G/L.
Thanks & Reagrds