Infor LN & Baan Tips & Tricks for FINANCE:  Currency Differences Accounts

Currency differences can make the financial analysis and reconciliation more complex. These types of currency differences can occur:

• Currency differences
  Currency result caused by fluctuations in the exchange rate, for example, if the rate differs between the invoice date and the payment date.

• Exchange gain and loss
  Currency result caused by the use of different exchange rate types, for example, the Sales rate type and the Internal rate type, or if using the rate determiner you have changed the exchange rate for a transaction during the order handling procedure.

• Translation gain and loss
  Currency result caused by the use of different currencies during the order handling procedure, for example, if the order currency or the payment currency differs from the invoice currency.

• Destination gain and loss
  Currency result caused by different results when the transaction currency is converted to the various home currencies. Destination gain and loss can only occur in an independent currency system.

To support good reconciliation possibilities, currency differences and exchange gain and loss are posted to these accounts:

• Exchange Gain and Loss
  For differences between related amounts (debit and credit postings) due to different exchange rate types or different currency rates.

• Currency Translation
  For transactions in which the debit posting and the credit posting are made in different currencies.

• Currency Differences contra account
  For currency differences on the invoice accrual account due to rate changes between the receipt date and the approval date of the invoice and calculated when you close a financial period.

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Kathy BartheltKathy Barthelt

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