Conversion Variance
Use this function to automatically generate the exchange variance and conversion variance entries on the accounts generated in currencies.
There are two assessment methods:
By journal entry
- The account revaluation results are kept in currency. The calculation is performed for each unmatched entry or for each partial matching group, by determining the difference between the balance of the entry in local currency and the balance in ledger currency valued at the new exchange rate.
By account balance
- The account revaluation results are kept in currency. The variance is assessed by determining the difference between the account balance in local currency at the end of the period and the balance in ledger currency valued at the new exchange rate.
Pivot currency calculations
You can enter a Pivot currency to calculate a triangular conversion from the transaction currency to pivot currency to ledger currency.
- The assessment method must be By account balance.
- This only applies to manual ledger types where the pivot currency is different from the ledger currency of each of the selected company for the chosen ledger type.
- The pivot currency is not considered when the selected ledger type is associated with one or more automatic ledgers. In this case, the direct conversion calculation is applied to the automatic ledger types.
Variances are usually reported at the end of the period and reversed at the beginning of the next period. This processing is therefore used to specify the date on which the entry must be reversed.
When DECRCU – No. decimals currency rate parameter (SUP chapter, FMT group) is set to 9 (recommended), conversion variances are not significant.
Prerequisites
Refer to documentation Implementation
Screen management
The posting status must be Final when the Actual entry category is selected and when the company is:
- A French legislation company; the FRADGI - French fiscal regulation (TC chapter, CPT group) parameter is set to Yes and cannot be modified.
- A foreign company applying the French DGI fiscal compliance rules; the FRADGI - French fiscal regulation (TC chapter, CPT group) is set to Yes and cannot be modified.
Entry screen
Selection
Specify the Assessment method. By journal entry or By account balance A set of criteria is used to limit the processing to specified accounts or recordings.
Batch task
This function can be run in batch mode, but no dedicated standard task is delivered to run it.
Specific Buttons
Recall |
Click this action to enter a Memo code to load the settings associated with the code. |
Delete Memo |
Click this action to delete a Memo code. |
Error messages
In addition to the generic error messages, the following messages can appear during the entry :
The posted documents will have the 'Final' status for the companyIf you run this processing for a given company and the FRADGI- French fiscal regulation (TC chapter, CPT group) parameter is set to Yes for this company, the generated documents have the Final status.
The posted documents will have the 'Final' status for one or more companiesIf you run this processing for all the companies or for a group of companies and the FRADGI- French fiscal regulation (TC chapter, CPT group) parameter is set to Yes for at least one company, the generated documents have the Final status.