Handling Exchange Losses & Gains in NEOSYS - Revision history

Arvind at 07:34, 23 November 2022

2022-11-23T07:34:51Z

← Older revision		Revision as of 07:34, 23 November 2022
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	[[Image:exdi4.jpg]]		[[Image:exdi4.jpg]]

	~~[[New Handling Exchange Gains & Losses in NEOSYS]]~~

Gregory at 10:15, 13 July 2020

2020-07-13T10:15:17Z

← Older revision		Revision as of 10:15, 13 July 2020
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	[[Image:exdi4.jpg]]		[[Image:exdi4.jpg]]

			[[New Handling Exchange Gains & Losses in NEOSYS]]

Joel: /* Handling Exchange Losses & Gains */

2020-05-05T11:49:41Z

Handling Exchange Losses & Gains

← Older revision		Revision as of 11:49, 5 May 2020
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	==Handling Exchange Losses & Gains==		==Handling Exchange Losses & Gains==
	NEOSYS ~~will post~~ all exchange gains or losses automatically ~~for you~~. ~~You~~ cannot enter into this account but ~~you do~~ not ~~need to~~ since the system will post it ~~for you~~.		NEOSYS posts all exchange gains or losses automatically. Users cannot enter amounts into this account but it is not needed since the system will post it.

	We advise against posting exchange gains and losses manually because technically the currency amount on such transaction is zero. ~~You~~ can just post ~~your~~ currency amounts and let the system work it all out ~~for you. Try it out in test data first~~.		We advise against posting exchange gains and losses manually because technically the currency amount on such transaction is zero. Users can just post currency amounts and let the system work it all out.

	In one NEOSYS voucher, ~~you can~~ debit in one currency and credit in a different currency. The base amount will usually not agree by a small amount and the system will add a third line to the voucher to make the base currency balance. The account on the third line will be the Exchange Difference account.		In one NEOSYS voucher, users may debit in one currency and credit in a different currency. The base amount will usually not agree by a small amount and the system will add a third line to the voucher to make the base currency balance. The account on the third line will be the Exchange Difference account.

	NEOSYS knows a lot about currency conversion so with some patience you should be able to learn how it works in NEOSYS. Alternatively ~~you may do it~~ all manually but ~~usually people get~~ it ~~wrong manually~~.		NEOSYS knows a lot about currency conversion so with some patience, you should be able to learn how it works in NEOSYS. Alternatively, this can all be done manually but it is prone to user error.

	===Exchange Losses & Gains on receipts from Clients===		===Exchange Losses & Gains on receipts from Clients===

Joel: Added a description on how NEOSYS handles exchanged difference automatically.

2020-05-05T11:23:34Z

Added a description on how NEOSYS handles exchanged difference automatically.

← Older revision		Revision as of 11:23, 5 May 2020
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			==Handling Exchange Losses & Gains==
	NEOSYS will post all exchange gains or losses automatically for you. You cannot enter into this account but you do not need to since the system will post it for you.		NEOSYS will post all exchange gains or losses automatically for you. You cannot enter into this account but you do not need to since the system will post it for you.

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	NEOSYS knows a lot about currency conversion so with some patience you should be able to learn how it works in NEOSYS. Alternatively you may do it all manually but usually people get it wrong manually.		NEOSYS knows a lot about currency conversion so with some patience you should be able to learn how it works in NEOSYS. Alternatively you may do it all manually but usually people get it wrong manually.

	~~==Handling Exchange Losses & Gains==~~

	===Exchange Losses & Gains on receipts from Clients===		===Exchange Losses & Gains on receipts from Clients===

Joel: Added a description about how NEOSYS handles exchange difference automatically.

2020-05-05T11:22:01Z

Added a description about how NEOSYS handles exchange difference automatically.

← Older revision		Revision as of 11:22, 5 May 2020
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	~~== Handling Exchange Losses & Gains ==~~		NEOSYS will post all exchange gains or losses automatically for you. You cannot enter into this account but you do not need to since the system will post it for you.

	=== Exchange Losses & Gains on receipts from Clients ===		We advise against posting exchange gains and losses manually because technically the currency amount on such transaction is zero. You can just post your currency amounts and let the system work it all out for you. Try it out in test data first.

			In one NEOSYS voucher, you can debit in one currency and credit in a different currency. The base amount will usually not agree by a small amount and the system will add a third line to the voucher to make the base currency balance. The account on the third line will be the Exchange Difference account.

			NEOSYS knows a lot about currency conversion so with some patience you should be able to learn how it works in NEOSYS. Alternatively you may do it all manually but usually people get it wrong manually.

			==Handling Exchange Losses & Gains==

			===Exchange Losses & Gains on receipts from Clients===

	Receipts are valued at the value of the invoices that they pay off. By value we mean the base equivalent is calculated from the invoice instead of from the usual currency file exchange rate or any manual attempt.		Receipts are valued at the value of the invoices that they pay off. By value we mean the base equivalent is calculated from the invoice instead of from the usual currency file exchange rate or any manual attempt.
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	The journal shows the same exchange rate as to the amount in the bank account which is usually the exchange rate in the exchange rate file unless the user has overwritten the base rate, which would be unusual.		The journal shows the same exchange rate as to the amount in the bank account which is usually the exchange rate in the exchange rate file unless the user has overwritten the base rate, which would be unusual.

	==== Losses on Receipts ====		====Losses on Receipts====

	Invoice was issued for 100 USD / 380 base amount		Invoice was issued for 100 USD / 380 base amount
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	Note: In case of receiving 50% of the currency amount (eg 50 USD / 183.8 base amount) it takes the base amount to the client which is 50% of the value of the invoice (50 USD / 190 base amount). It will follow the same procedure and the amount to the client will be proportionate to the amount of invoice allocated.		Note: In case of receiving 50% of the currency amount (eg 50 USD / 183.8 base amount) it takes the base amount to the client which is 50% of the value of the invoice (50 USD / 190 base amount). It will follow the same procedure and the amount to the client will be proportionate to the amount of invoice allocated.

	==== Gains on Receipts ====		====Gains on Receipts====

	Invoice was issued for 100 USD / 380 base amount		Invoice was issued for 100 USD / 380 base amount
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	=== Exchange Losses & Gains on payment to Supplier Invoices ===		===Exchange Losses & Gains on payment to Supplier Invoices===
	Sometimes the foreign exchange rate fluctuates and hence there is a difference in the invoice currency amount issued or received as compared to the actual payment received or paid.		Sometimes the foreign exchange rate fluctuates and hence there is a difference in the invoice currency amount issued or received as compared to the actual payment received or paid.

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	The client makes a payment for this invoice on 1/2/2007. However the exchange rate on this day has changed to 1 STG=7.5 AED. Hence there is a profit of 50 AED when we receive this payment. NEOSYS automatically notices this and does the following:		The client makes a payment for this invoice on 1/2/2007. However the exchange rate on this day has changed to 1 STG=7.5 AED. Hence there is a profit of 50 AED when we receive this payment. NEOSYS automatically notices this and does the following:

	# Allocates the payment of 100STG (750AED) to the invoice in the client a/c		#Allocates the payment of 100STG (750AED) to the invoice in the client a/c
	# Credits the 50AED from the allocation which is overallocated to the invoice		#Credits the 50AED from the allocation which is overallocated to the invoice
	# Debits the Exchange Loss or Gain A/c (EXDI in this case)		#Debits the Exchange Loss or Gain A/c (EXDI in this case)

	[[Image:exdi2.jpg]]		[[Image:exdi2.jpg]]

Gregory: /* Losses on Receipts */ - Small formatting change ( screenshots below description not on right.)

2018-08-14T06:40:43Z

Losses on Receipts: - Small formatting change ( screenshots below description not on right.)

← Older revision		Revision as of 06:40, 14 August 2018
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	Invoice was issued for 100 USD / 380 base amount		Invoice was issued for 100 USD / 380 base amount

	[[image:exgi-invoice.jpg]]		[[image:exgi-invoice.jpg]]

	Receipt was issued for 100 USD / 367.50 base amount		Receipt was issued for 100 USD / 367.50 base amount

	[[image:exgi-receipt.jpg]]		[[image:exgi-receipt.jpg]]

	However when posted, the ledger printout shows that the amount recorded in the client account is 100 USD / 380 base amount		However when posted, the ledger printout shows that the amount recorded in the client account is 100 USD / 380 base amount

	[[image:exgi-ledger.jpg]]		[[image:exgi-ledger.jpg]]

	If you look at the voucher, you can see that the difference of 12.50 base amount shows as a Debit to the EXDI (Exchange Difference) A/c.		If you look at the voucher, you can see that the difference of 12.50 base amount shows as a Debit to the EXDI (Exchange Difference) A/c.

	[[image:exgi-invoice.jpg]]		[[image:exgi-invoice.jpg]]

Steve at 10:41, 25 February 2018

2018-02-25T10:41:10Z

← Older revision		Revision as of 10:41, 25 February 2018
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	== Handling Exchange Losses & Gains on receipts from Clients ==		== Handling Exchange Losses & Gains ==

			=== Exchange Losses & Gains on receipts from Clients ===

	Receipts are valued at the value of the invoices that they pay off. By value we mean the base equivalent is calculated from the invoice instead of from the usual currency file exchange rate or any manual attempt.		Receipts are valued at the value of the invoices that they pay off. By value we mean the base equivalent is calculated from the invoice instead of from the usual currency file exchange rate or any manual attempt.
Line 7:		Line 9:
	The journal shows the same exchange rate as to the amount in the bank account which is usually the exchange rate in the exchange rate file unless the user has overwritten the base rate, which would be unusual.		The journal shows the same exchange rate as to the amount in the bank account which is usually the exchange rate in the exchange rate file unless the user has overwritten the base rate, which would be unusual.

	=== ~~Handling~~ Losses ===		==== Losses on Receipts ====

	Invoice was issued for 100 USD / 380 base amount		Invoice was issued for 100 USD / 380 base amount
Line 23:		Line 25:
	Note: In case of receiving 50% of the currency amount (eg 50 USD / 183.8 base amount) it takes the base amount to the client which is 50% of the value of the invoice (50 USD / 190 base amount). It will follow the same procedure and the amount to the client will be proportionate to the amount of invoice allocated.		Note: In case of receiving 50% of the currency amount (eg 50 USD / 183.8 base amount) it takes the base amount to the client which is 50% of the value of the invoice (50 USD / 190 base amount). It will follow the same procedure and the amount to the client will be proportionate to the amount of invoice allocated.

	=== ~~Handling~~ Gains ===		==== Gains on Receipts ====

	Invoice was issued for 100 USD / 380 base amount		Invoice was issued for 100 USD / 380 base amount
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	=== ~~Handling~~ Exchange Losses & Gains on payment to Supplier Invoices ===		=== Exchange Losses & Gains on payment to Supplier Invoices ===
	Sometimes the foreign exchange rate fluctuates and hence there is a difference in the invoice currency amount issued or received as compared to the actual payment received or paid.		Sometimes the foreign exchange rate fluctuates and hence there is a difference in the invoice currency amount issued or received as compared to the actual payment received or paid.

Steve at 10:36, 25 February 2018

2018-02-25T10:36:44Z

← Older revision		Revision as of 10:36, 25 February 2018
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	=== Handling Exchange Losses & Gains on receipts from Clients ===		== Handling Exchange Losses & Gains on receipts from Clients ==

	Receipts are valued at the value of the invoices that they pay off. By value we mean the base equivalent is calculated from the invoice instead of from the usual currency file exchange rate or any manual attempt.		Receipts are valued at the value of the invoices that they pay off. By value we mean the base equivalent is calculated from the invoice instead of from the usual currency file exchange rate or any manual attempt.
Line 7:		Line 7:
	The journal shows the same exchange rate as to the amount in the bank account which is usually the exchange rate in the exchange rate file unless the user has overwritten the base rate, which would be unusual.		The journal shows the same exchange rate as to the amount in the bank account which is usually the exchange rate in the exchange rate file unless the user has overwritten the base rate, which would be unusual.

	==== Handling Losses ====		=== Handling Losses ===

	Invoice was issued for 100 USD / 380 base amount		Invoice was issued for 100 USD / 380 base amount
Line 23:		Line 23:
	Note: In case of receiving 50% of the currency amount (eg 50 USD / 183.8 base amount) it takes the base amount to the client which is 50% of the value of the invoice (50 USD / 190 base amount). It will follow the same procedure and the amount to the client will be proportionate to the amount of invoice allocated.		Note: In case of receiving 50% of the currency amount (eg 50 USD / 183.8 base amount) it takes the base amount to the client which is 50% of the value of the invoice (50 USD / 190 base amount). It will follow the same procedure and the amount to the client will be proportionate to the amount of invoice allocated.

	==== Handling Gains ====		=== Handling Gains ===

	Invoice was issued for 100 USD / 380 base amount		Invoice was issued for 100 USD / 380 base amount
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	=== Handling Exchange Losses & Gains on payment to Supplier Invoices ===		=== Handling Exchange Losses & Gains on payment to Supplier Invoices ===
	~~Many a times,~~ the foreign exchange rate fluctuates and hence there is a difference in the invoice currency amount issued or received as compared to the actual payment received or paid.		Sometimes the foreign exchange rate fluctuates and hence there is a difference in the invoice currency amount issued or received as compared to the actual payment received or paid.

	Hence NEOSYS handles these differences and allots the amount to a Exchange Loss or Gain A/c.		Hence NEOSYS handles these differences and allots the amount to a Exchange Loss or Gain A/c.

Ashwin at 15:55, 10 November 2008

2008-11-10T15:55:42Z

← Older revision		Revision as of 15:55, 10 November 2008
Line 7:		Line 7:
	The journal shows the same exchange rate as to the amount in the bank account which is usually the exchange rate in the exchange rate file unless the user has overwritten the base rate, which would be unusual.		The journal shows the same exchange rate as to the amount in the bank account which is usually the exchange rate in the exchange rate file unless the user has overwritten the base rate, which would be unusual.

	~~Example:~~		==== Handling Losses ====

	Invoice was issued for 100 USD / 380 base amount		Invoice was issued for 100 USD / 380 base amount
Line 22:		Line 22:

	Note: In case of receiving 50% of the currency amount (eg 50 USD / 183.8 base amount) it takes the base amount to the client which is 50% of the value of the invoice (50 USD / 190 base amount). It will follow the same procedure and the amount to the client will be proportionate to the amount of invoice allocated.		Note: In case of receiving 50% of the currency amount (eg 50 USD / 183.8 base amount) it takes the base amount to the client which is 50% of the value of the invoice (50 USD / 190 base amount). It will follow the same procedure and the amount to the client will be proportionate to the amount of invoice allocated.

			==== Handling Gains ====

			Invoice was issued for 100 USD / 380 base amount
			[[image:exdi-invoice.jpg]]

			Receipt was issued for 100 USD / 390 base amount
			[[image:exdi-receipt.jpg]]

			However when posted, the voucher shows that the amount recorded in the client account is 100 USD / 380 base amount and the overpayment of 10 base amount is posted as a debit to the EXDI a/c.
			[[image:exdi-voucher.jpg]]

Ashwin at 14:50, 10 November 2008

2008-11-10T14:50:46Z

← Older revision		Revision as of 14:50, 10 November 2008
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	If you look at the voucher, you can see that the difference of 12.50 base amount shows as a Debit to the EXDI (Exchange Difference) A/c.		If you look at the voucher, you can see that the difference of 12.50 base amount shows as a Debit to the EXDI (Exchange Difference) A/c.
	[[image:exgi-invoice.jpg]]		[[image:exgi-invoice.jpg]]

			Note: In case of receiving 50% of the currency amount (eg 50 USD / 183.8 base amount) it takes the base amount to the client which is 50% of the value of the invoice (50 USD / 190 base amount). It will follow the same procedure and the amount to the client will be proportionate to the amount of invoice allocated.


	=== Handling Exchange Losses & Gains on payment to Supplier Invoices ===		=== Handling Exchange Losses & Gains on payment to Supplier Invoices ===