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Foreign currency: the twin document, the rate, and where the difference lands · presentation 3 of 4 · for the whole-system operator — you run the books Read the transcript · Back to the series

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Foreign currency: the twin document, the rate, and where the difference lands · presentation 3 of 4

Where the exchange difference lands when you knock the invoice off

You can say exactly when BigLedger recognises an exchange difference, how it is calculated, which two accounts it hits, what date it carries…

When, and only when

Step 1 — Fix the moment it happens

You will stop looking for it at month end.

What this step names
  1. If your accounting policy needs one
  2. It is a manual journal somebody writes
  3. It is not something a setting will switch on

Step 2 — Watch it happen inside the same request

You will know why it is on screen so fast.

What this step names
  1. The backend writes the mirrored contra pair
  2. Refreshes both documents' balances
  3. Then — still inside that same request
  4. Before the response comes back — checks whether either document is in…
  5. Posts the difference

The calculation

Step 3 — Do the arithmetic yourself

You will be able to check the figure by hand.

What you do
  1. Take the amount you settled

Step 4 — Name the two accounts and the direction

You will know where to look in the chart of accounts.

What this step names
  1. The difference goes to your company's default Forex Gain account when it…
  2. Set once alongside the other default codes
  3. Not per document
  4. Not per currency

Step 5 — Find the journal, and read its date

You will be able to locate one.

  • Search the ledger by date and amount, not by anything a person typed
Screen capture pending the demo tenant

The general ledger filtered to the Forex Gain and Forex Loss accounts for the invoice's month

When it goes wrong

Step 6 — Know the two ways it does not appear

You will recognise both failures.

What you do
  1. Set the defaults up before the first foreign settlement, not after

NarrationSlide 1 of 10

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