Foreign Exchange Realized Gains and Losses

To enable Foreign Exchange Gain or Loss calculations, your Billing admin must turn on the Create Transaction Journals for Transactions and Create Transaction Journals for Foreign Exchange Gains or Losses features, and select the realized gain, realized loss, and account receivable general ledger accounts. See Set Up Financial Accounting Features.

Warning If you've already created transaction journals that record realized foreign exchange gains or losses, don't modify the corporate currency or the dated conversion rates. Changing these impacts the accuracy of existing transaction journals.

The foreign exchange realized gains and losses are calculated based on the difference between the corporate currency conversion rates on the invoice date and the payment's effective date. This difference amount is populated as the debit or credit amounts of the transaction journals. All the amount values for the foreign exchange realized gains and losses transaction journals are in corporate currency.

In case of partial invoice settlement, unrealized gain and loss calculations are calculated during the legal entity accounting period closure. Unrealized and reversal transaction journals are created for the remaining invoice balance. See Legal Entity Accounting Period Closure Procedure

• Example: Automatically Capture Foreign Exchange Realized Gains or Losses
  Explore an example to understand how general ledger accounts are set up and how dual transaction journals are created when Payments or Credit Memo records are created and applied to the invoices.