About currency setup parameters

In the Currencies (CM202000) window, you should specify the General ledger accounts that should be used to record the realised gains or losses.
A realised gains or losses can be calculated for the following documents:

• A Supplier ledger document: When payment in a foreign currency is issued.
• A Customer ledger document: When payment in a foreign currency is received.

When a payment is issued for a purchase invoice or received for an Customer ledger document, the exchange rate of the document is compared to the exchange rate on the date of settlement or the exchange rate of the payment (if currency rate overriding is allowed).
The realised gain or loss is then posted to either the realised gain account or the realised loss account.

The following calculation rules are applied:

• If a payment is issued in the same currency as the currency of the document, the realised gain or loss is calculated in the base currency as the difference in exchange rates multiplied by the document amount.
• If a payment is issued in the currency other than the currency of the document, the realised gain or loss is calculated as the amount of the payment in the base currency (calculated using the exchange rate specified for the payment) minus the original amount of the document in the base currency.

In Visma.net ERP, direct rates between foreign currencies and the base currency rates with respect to foreign currencies are used only for translations.

If your company has the partners that use foreign currencies, you may need to maintain the Supplier ledger accounts of some suppliers and the Customer ledger accounts of some customers in foreign currencies. In Visma.net ERP, balances for foreign-currency accounts are maintained in both the foreign and the base currencies.
Every transaction posted to such an account updates its balance in both currencies, and the amount in the base currency is calculated using the current exchange rate of the specified type associated with the supplier or customer.

The system automatically calculates the revaluation's unrealised gains and losses and adds appropriate adjusting entries to the revaluation batch.
The resulting unrealised gains and losses are recorded to the following General ledger accounts that you specify in the Currencies (CM202000) window for each foreign currency:

• Unrealised gain account (and Unrealised gain subaccount) or Unrealised loss account (and Unrealised loss subaccount).
  The subaccounts that will be actually used for recording unrealised gains and losses are generated according to the rule specified in the Combine gain/loss sub. from field in the Currency management preferences (CM101000) window.

  If needed, you can select specific gain and loss accounts (and subaccounts) to be used for customers of a particular customer class in the Customer classes (AR201000) window and for suppliers of a particular class in the Supplier classes (AP201000) window.

• Supplier ledger provisioning account (and Supplier ledger provisioning subaccount) or, for Customer ledger revaluation, Customer ledger provisioning account (and Customer ledger provisioning subaccount).
  If such accounts are not specified for the currency, the gains and losses are posted to the Supplier ledger accounts of respective suppliers or to Customer ledger accounts of customers.