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Conversion Rate Variances cause lots of discrepancies in the Accrual Account Balance on GL

edited Nov 4, 2024 11:52AM in Subledger Accounting & Accounting Hub 1 comment

Hi All,

Please I am facing an issue regarding Conversion Rate Variances that cause lots of discrepancies in the Accrual Account Balance on GL. Let me explain it

Our ledger Currency is SAR (We don't have a reporting currency ledger created)

At receipt, the SAR rate to EUR is = 4.01 (May 23)
At Invoice, the SAR rate to EUR is = 4.14 (Sep 24)

Entry at Receipt - May 23
DR\ Inventory 1000 EUR 4,010 SAR
CR\ AP Accrual 1000 EUR 4,010 SAR

Entry at Invoice- Sep 24
DR\ AP Accrual 1000 EUR 4,140 SAR
DR\ Liability 0,00 EUR 140 SAR

CR\ Liability 1000 EUR 4,140 SAR
CR\ Exchange Gain&Loss 0,00 EUR 140 SAR

Our Ledger which is on SAR

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