Transaction Procedure - Gains/Losses
Debtors Module>Activity>Debtors transactions
•Things to note about the Journal entries for foreign debtors
•The journal entry in the foreign currency – creates a dual entry in that currency and in rand
•Ensure you are using the correct exchange rate
•Ideally capture gains and losses immediately after capturing the payment
Scenario 1
We sold goods to an American US dollar company
When the initial sale was made the amount of the invoice was
R2800 at an exchange rate of 14 = 200 dollars
When the invoice is paid
The exchange rate was 14.5 that is still 200 dollars but at R2900
The difference will need be journalisedjournalized in the debtor’s transactions
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From these entries we can note that the dollar amount will clear
However, there will be a gain in the rand account whereby an extra hundred rand is gained due to the differing exchange rate at the time of transaction
Since this is a credit balance we will add debit journal to clear it out into Gains GL Account
Click Add to add a new Journal
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Select journal Action from the drop down list e.g debtor journal debit
Add reference
Select date
Select debtor
In this instance change the currency to rand – to affect only the rand entry
This is the only time the rand will only be affected not the foreign currency
The exchange rate will be greydgreyed out
Enter description
And save and next
Select region, division, project or trackIt item related to this journal entry
This field is not applicable to every client
You can click Next again to go to the posting window
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The default GL Accounts will populate this window, but you have a choice to change the other leg of the posting to go to any other desired GL account
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Once satisfied with the posting entries click save and next
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This Amount can be allocated
Notice the allocation will only be applicable to the rand side when you select the dollar currency there will be nothing to allocate
if there is ?is? journal entries were entered incorrectly.