Foreign currency allocation rules:
Accounting consequences due to exchange rate differences:
Case 1. Advances (409)
1.1 Purchase Order- 01.04.2011, amount: 1000 EUR, exchange rate: 1 EUR= 4.3 RON
1.2. Prepayment- 01.04.2011
409= 5125V 4300 RON
1.3. Bank Statement at 01.04.2011:
5125V= 5124 4300 RON
I. unfavourable exchange rate differences
1.4. Registering final vendor invoice (corresponding to the granted advance) - 12.04.2011, amount: 1000 EUR, exchange rate: 1 EUR 4.2 RON
1.5. Vendor Invoice Payment with advance allocation: 12.04.2011
401= 409 4200 RON
6814= 409 100 RON
*unfavourable exchange rate differences are posted in the Realised Loss Acct in the Accounting Schema, Defaults tab, General section.
II. favourable exchange rate differences
1.4. Registering final vendor invoice (corresponding to the granted advance)- 13.04.2011, amount: 1000 EUR, exchange rate: 1 EUR= 4.4 RON
1.5. Vendor Invoice Payment with advance allocation- 13.04.2011
401= 409 4400 RON
409= 7814 100 RON
*favourable exchange rate differences are posted in the Realised Gain Acct in the Accounting Schema, Defaults tab, General section.
I. unfavourable exchange rate differences
1.4. Registering final vendor invoice (corresponding to the granted advance)- 12.04.2011, amount: 1000 EUR, exchange rate: 1 EUR= 4.2 RON
1.5. Vendor Invoice Payment with advance allocation- 12.04.2011
401= 409 4200 RON
6814= 401 100 RON
II. favourable exchange rate differences
1.4. Registering final vendor invoice (corresponding to the granted advance)- 13.04.2011, amount: 1000 EUR, exchange rate: 1 EUR =4.4 RON
1.5. Vendor Invoice Payment with advance allocation- 13.04.2011
401= 409 4400 RON
401= 7814 100 RON
Case 2. Vendor Invoice Payment
1.1 Vendor Invoice- 01.04.2011, amount: 1000 EUR, exchange rate: 1 EUR= 4.3 RON
I. favourable exchange rate differences
1.2. invoice payment- 12.04.2011, exchange rate: 1 Eur= 4.2 Ron
5125/analytic1= 5125V 4200 RON
Payment-Invoice allocation
401= 5125/analytic1 4200 RON
401= 7814 100 RON
1.3. Bank Statement at 12.04.2011
5125V= 5124 4200 RON
II. unfavourable exchange rate differences
1.2. Invoice Payment- 13.04.2011, exchange rate: 1 Eur= 4.4 Ron
5125/analytic2= 5125V 4400 RON
Payment-Invoice allocation
401= 5125/analytic1 4400 RON
6814= 401 100 RON
1.3. Bank Statement at 13.04.2011
5125V= 5124 4400 Ron