General Ledger - EBS (MOSC)

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Dobule Impact of Currency Revaluation & Recognition of Exchange Gain or Loss

edited May 21, 2018 5:03AM in General Ledger - EBS (MOSC) 8 commentsAnswered

Hi,

Can some one clarify the below..

If we don't reverse the Revaluation Entry in the following month does it lead to double impact on Exchange Gain or Loss balance, when the actual transaction settled with different exchange rate than the transaction exchange rate???

Example:

In Mar 2018

AP Invoice 1000 USD @ AED 3.673 = 3673

Revalued at Month End @ 3.7 AED 3700 , Unrealized Loss= AED 27

In Apr 2018

Payment made against the Invoice , but the actual rate is AED 3.8 1000 USD ...AED 3800

System created an entry for Exchange Loss of AED 127 (3800-3673)

From the above example, it seems the total P&L impact due to exchange gain or loss will become AED 154 (127+27) instead of AED 127

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