Ex Rate difference between Invoice and Receipt
During matching, there is a possibility that transaction amount(Foreign amount) is matching but the local
amount is different due to the daily currency rate is applied. Such cases after matching, foreign balance will be
zero however there will be balance left in the local balance due to exchange rate.
To clear such balances in the AR Ledger, system has a facility to transfer such transactions to Exchange gain or
loss account in the system.
1. Setup
User needs to setup the Gain or loss account using the AR Control definition as shown below and also
they can set the limit for the trasanctions which can written off.
Clearance GL Account
-> Link the Gain or loss gl account.
Clearance Limit Amount -> Amount limit which can be transferred by this process.
2. Exchange difference posting
User can select the period and the AR account for which the transactions to be cleared, system will
bring all such transactions for which the matching is done either partially or fully. System will show
the amount to be transferred as shown below.
User can selectively transfer the balances to the gain or loss account, once the user complete the transactions
and save, system will generate a JV as shown below.
Accounting effect is shown below between the AR control account and the clearing account defined in the AR
Control definition.
Note : Same process is available in Accounts Payable also to write off such transaction balances.