Unrealized Foreign Exchange Gains and Losses

If you have GL accounts with foreign currency balances, due to exchange rate fluctuations, you often need to re-value the foreign balances in your home currency.

Versa provides you a tool to help with this process. It can be found From General Ledger menu, Unrealized FX Gains and Losses.

This tool will create a draft GL transaction to revalue your foreign currency receivable, payables, assets and liabilities based on a new exchange rate. You can select which ones from receivable, payables, assets and liabilities to adjust. Enter the exchange rate to use, once the exchange rate is entered, the system will look at all foreign currency GL accounts and calculate the amount to use to bring the foreign currency amounts into the equivalent amount (based on exchange rate provided) in home currency.  

The draft transaction is created for you to review. It will be unbalanced so it cannot be posted as is. You would need to choose to put the adjustment amount in an offset GL account. This should be a GL account that is used for exchange gain/loss. Add a new line to the draft transaction and select the correct GL to use, confirm the offset amount. Save the new line. Once the transaction is balanced ( total debit equals total credits), you can post the adjusting transaction.