Use this function to create a new journal entry that displays the difference between the actual conversion rate amount and the amount based on the First In First Out (FIFO) rate calculation for a record. This applies to bank account (GESBAN) or petty cash account (GESCAI) transactions if the account currency is different from the main ledger or journal entry. After reviewing the rate differences, you can then post these rate calculations.

Note: You cannot create a new rate calculation record for an account until the current record for that account is posted.

This function does not support negative cash balances. If an account balance is zero and there is an expense, the exchange rate difference is not calculated.

This is required for Polish legislation and can also be used for any legislation.

Process overview

This section provides an overview of the rate calculation process, which is based on the First In First Out (FIFO) method.

Setup

Complete these steps before creating your first record for a FIFO rate calculation.

1.The FIFRC activity code must be active and the FIFRC – FIFO rate calculation parameter (CPT chapter, CLO group) must be set to Yes at the company level.

2. You can define the automatic journal code in the GAUFIFRC – FIFO conversion rates journal parameter (CPT chapter, CLO group). If left blank, a standard automatic journal code (FIFRC) is used for posing.

3. To calculate conversions for a bank account or petty cash account, the following settings must be applied in their respective functions (GESBAN or GESCAI):

The FIFO conversion process check box must be selected.

You need to enter a start date of an open period to include journal entries beginning on that date.

These fields are only available if the account currency is different from the related ledger or journal currency and if the activity code and parameter are set correctly.

4. You can excluded transactions from the rate calculation process.

In Accounts, select the FIFO variances excluded check box for certain accounts. This is useful to exclude short-term or overnight deposits and funds posted as Outgoing payment and Incoming payment on the same account.

A journal entry is automatically excluded from the process under the following conditions:

If the Period field in Document types (GESGTE) is set to Carry forward.

If the document in Journal entry (GESGAS) is canceled (reversed) or the document is a cancellation document (reversal).

5. You can assign custom sequence number (GESANM) records for FIFO currency variances (rate calculations).

Rate calculation process

1. Create a record

You can create a new record based on a payment (GESPAY) or a journal entry (GESGAS). In either case, the bank or petty cash account currency must be different from the main ledger or journal.

At the end of the period, you can create a new record for each bank and petty cash account.

You can only create a new record for an account if the current record is posted.

2. Extract data

When you click Data extract, you see all the journal entries that match the account for the record that are within the start and end dates.

3. Post the rate calculations

Once you post a FIFO rate calculation record, you cannot change it or delete it.

However, you can reverse the last posted record by performing an Accounting cancellation and then you can modify or delete the record.

4. Final position

You can view amounts that still need to be distributed for a given revenue.

5. Cancel most recent if needed

If necessary, perform an Accounting cancellation for posted amounts to modify or delete the most recently posted record.

Prerequisites

SEEREFERTTO Refer to documentation Implementation

Screen management

Header

Block number 1

Site (field FCY)

Enter the site for the rate calculation.
Note: The site must have the FIFRC – FIFO rate calculation parameter (CPT chapter, CLO group) set to Yes at the company level.
FIFO record no. (field FIFONO)

This field automatically displays the record number based on the Sequence number assignment (GESTCA) for FIFO conversion records when you post a journal entry.
Posted (field FLDPOS)

This field displays if the account has been posted.
Journal entry (field FLDJOE)

This field displays the related journal entry when posted.

Cash/bank account

Type (field FIFTYP)

Select Bank or Cash for the account type.
Code (field FIFCOD)

Enter the account code for the bank account or petty cash account.
Bank acct. number (field FLDBIN)

This field displays the bank ID for the bank or petty cash account entered in the Code field.
Account (field FLDACC)

This field displays the account number for the bank or petty cash account entered in the Code field.
Currency (field FLDCUR)

This field displays the currency for the bank or petty cash account entered in the Code field.

Dates

Start date (field STARTDAT)

Enter a start date to include journal entries beginning on that date.
Note: The date must be the first day of an existing period, open or closed.
End date (field FINDAT)

Enter an end date to include journal entries up to and including that date. This date is recorded as the accounting date when you post the rate calculation.

Note: The date must be the last day of an existing, open period. The date range can span multiple periods.

If you change the end date after performing an Accounting cancellation on the most recently posted record, an alert message displays: "All records previously computed will be removed from the details table. Do you want to proceed?"

No: The date does not change.

Yes: The date changes and all the lines from the screen except initial currency stock are removed from the screen.

Then you can:

Click Cancel to remove entries.

Click Save.

Click Data extract to calculate the FIFO rate.

Tab Entry journals

The grid on this tab displays the results of the Data extract. These journal entries are linked to the current bank or petty cash account, allowing you to review each journal entry and the calculated rate if applicable. The most popular FIFO (First In First Out) method is used to calculate these rates.

The lines display in different colors to reflect:

Blue – No rate calculated: The accounting dates for these lines are for the previous period.

Green – No rate calculated: These are revenues within the date range. Revenues in a foreign currency are posted at the exchange rate.

Red – Rate calculated. These are expenses within the date range. Expenses are usually posted in an exchange rate different from revenues. At this point, exchange rate differences arise.

Values in brown, in the For Settlement column, represent amounts that remain to be distributed.

These fields are display only and cannot be modified.

Grid

Source document (field BPRVCR)

 This field displays the document number.
Number (field NUM)

This field displays the journal entry number.
Entry type (field TYP)

This field displays the entry type.
Accounting date (field ACCDAT)

This field displays the accounting date for the journal entry.
Entry amount (field AMTCUR)

This field displays the amount for the journal entry in the journal currency.
Ledger amount (field AMTLED)

This field displays the amount in the ledger currency.
Currency rate (field MULRATE)

This field displays the currency rate.
Rate calculated (field RATECALC)

This field displays if the rate has been calculated.
Exchange rate difference (field EXRATDIF)

This field displays if the rate has been calculated.
Total amount (field TOTAMO)

This field displays if the conversion rate has been calculated with the amount to be posted.
For settlement (field FORSETTL)

This field displays the amount that still needs to be distributed.
Balance sheet (field BALSH)

This field displays the cash balance, in the journal currency, that remained in the account after the transaction on the line.

Tab Dimensions

Grid Analytical

Dimension type code (field DIE)

This field displays the Dimension type code for the journal.
Dimension (field CCE)

You can enter an analytical dimension in this field.

Tab Generated entries

Grid

Entry type (field PSTACETYP)

This field displays the entry type.
Number (field PSTACENUM)

This field displays the document number.
Accounting date (field PSTACEACCD)

This field displays the date posted.
Entry amount (field PSTACEAMT)

This field displays the amount.
Currency (field PSTACECUR)

This field displays the currency for the amount.
Accounting document

Click this to access the accounting document for the transaction on the line.

Specific actions

Click Data extract to calculate the rate.

This action posts the amount from the Total amount column to an automatic journal in the company currency and it includes the FIFO exchange rate.

Barre de menus

If a FIFO rate calculation record exists for a bank account and period, you cannot:

This function does not support negative cash balances. If an account balance is zero and there is an expense, the exchange rate difference is not calculated.

This function is available for a bank or petty cash record that has been posted provided it is the last record for this bank or petty cash account.

For example: If record N1 is posted and you create a new record for the same account, N2, you cannot cancel N1 because N2 already exists.

This action allows you to reverse the automatic journal entry and resets the record's Posted status to No and removes the FIFO record no.

You can now change the dates for the bank or petty cash record and perform a new Data extraction.

Limits

Error messages

The only error messages are the generic ones.

Tables used

SEEREFERTTO Refer to documentation Implementation