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NSC | How is Realized Gain/Loss computed in a Payment of Sales Invoice
Realized Gain/Loss Currency Revaluation transactions record the variance due to exchange rate changes between the initial values of transactions (source transactions) and their values upon closure or payment.
Scenario:
A user has a customer that is using CAD. They have created a Sales Invoice using this customer, under a USD subsidiary posted May 9, 2022:
Amount: CAD $1,000
Currency Exchange Rate: 0.771
Converted Amount = Currency Exchange Rate X Amount in Foreign Currency (0.773213 X CAD $1,000) = USD $771
On May 25, 2022 payment was made to the full amount of CAD $1,000:
Currency Exchange Rate is 0.779
Converted Amount = Currency Exchange Rate X Amount in Foreign Currency (0.779 X CAD $1,000) = USD $779
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