Multi Currency of JDE

Why does it need in JDE?

- converting foreign currency to local currency
- converting local currency to foreign currency for consolidated reporting
- revalueing the currency as exchange rate fluctuare
- realize gain or loss when making or receiving payment if exchange rate is different with the invoice issued or received.
- revalue your open transaction - Eg monetary account (bank a/c)
- restate foreign transaction  Eg, restate a/c balance

How does it  relate to A/P ?

Eg,
DocType Company Amount BaseCurrency ForeignCurr ExcRate  ForeignAmount LedgerType
RI      A10      1       MYR           USD       0.325         0.325       AA  

Exchange Rate Table F0015

USD    99137   0.2628121   0.0 RM     3.805
RM     99137   3.805       0.0 USD    0.2628121          

Gain or Loss when making voucher payment to Foreign vendor :
Eg.

Voucher entry     100   USD    3.0   300   MYR  
partial payment
 current           50   USD    3.5    175   MYR     +25  
 original rate     50   USD    3.0    150   MYR  
end month valuation
  current          50   USD    2.5    125   MYR     -25
  original rate    50   USD    3.0    150   MYR



Journal Entries on voucher payment :
Dr A/c Payable(RM150)  +  Dr Realiased Loss(Rm25)  =  Cr Cash a/c  RM175



+25 means realized loss when making payment to vendor.
-25 mean unrealized profit when month end revaluation

Normal practise in A/P JDE:
Enter Standard Invoice>when making payment> key in voucher payment to offset the open invoice

How does it relate to A/R ?

Invoice entry     100         USD   3        300  MYR          
O/R partially paid
    Current          50          USD   3.5    175      MYR      RM -25
    Original          50          USD   3.0    150     MYR  
Month End Valuation
   Current           50          USD  3.5    175      MYR     RM -25
   Original          50          USD   3.0    150     MYR  

-25 realised profit when receiving payment from customer
-25  unrealised profit when month end revaluation


Journal Entries on Receipt  :
Cr A/c Receivable (RM150)  +  Cr Realiased Profit(Rm25)  =  Dr Cash a/c  RM175

Tables involved : F0902 A/c balance, F0911 A/c ledger, F0401 A/c Payable, F03b01 A/c Receivable  , F0015 Exchange rate table..