Realized Gain or Loss when v do a receipt adjustme

[benny]

Hi Members,

Here is my doubt in AR 11i:

After creating a Foreign currency receipt I go to Tools>>> Adjustment and give user rate and give an exchange rate.

Then I save the adjustment and go to Receipt history and I fine gain/loss column showing a value.

But when I check the view accounting I see the cash account being picked up.

I have attached screen shots of the same, would request anyone to explain what exactly is happen when I change the exchange rate and why isn't Realized gain/loss account not showing in accounting?

Rgrds
Ben[?]


[img]/images/icon_zip.gif[/img] <b>Attachment:</b> Created a Receipt in Foreign currency INR.zip <i>( 79053bytes )</i>

[tgs100]

Exchange rate gain or loss is with respect to the invoice exchange rate, not based on the exchange rate adjustments in receipts.

For example,

you create an invoice for USD 100 and exchange rate of 48 INR. The functional amount will be 4800 if INR is that functional currency.

When you make a receipt, if the exchange rate is still 48, then there is no exchange rate gain/loss. If there is a difference in the exchange rate during receipt, say 1 USD = 49 INR, then there will be an exchange rate gain of 1000 INR.

In case if you forgot to change the exchange rate during receipt (defaulted from GL exchange rate), then you can do so using the exchange rate adjustments.

Let me know if you are still not clear.

Cheers,
Saravanan TG

[benny]

Hi Saravanan,

The thing I need to understand here is when we do a Adjustment in Rate on the Receipt itself I see a value in the Gain/Loss column and when I check the accounting, I see that the default account is the Cash/Bank account showing the gain/loss value. Could you explain what is the value I see in this column when I click on Receipt History.

Rgrds
Ben[?]