The unrealized gains or losses

Question

After testing the period close checklist and fx-rate revaluation.I notice that the Unrealized fx-change is posted to the P&L and not to Balance sheet, that is not standard practice.
The unrealized gains or losses should be recorded in the balance sheet under the owner’s equity section as its not a realized gain/loss and is changing month from month.

Can you please explain why NS post it to the income statement?

Clarisa De Torres-Oracle · Accepted Answer

Hello @Vishnu M, per checking, As per SuiteAnswers ID 14973, the Unrealized Gain/Loss account is included as Other Expense on the Income Statement. The Income Statement will capture the month end currency revaluation to present the updated values of the foreign account balances.

In line with the above standard behavior, an existing enhancement is found requesting the ability to edit the Type of the Unrealized and Realized Gain/Loss Account so that these accounts can be shown on the equity side of the Balance Sheet report under #204319 | Allow change in Account Type for Unrealized and Realized Gain/Loss accounts.

The alternate solution provided is to create a new account and set the type needed then transfer the amounts of the realized and unrealized gain/loss account to the new accounts.

You can go to SuiteIdeas page to vote for the enhancement.

Apologies for the inconvenience this limitation may be causing you, but I hope this helps clarify your concern.

Thank you!