Foreign exchange gains and losses should eventually be able to be assigned to a specific division. This will be quite complex, depending on such factors as division assignments of customers and suppliers, assignment of cash and bank accounts, as well as assignment of individual transaction line items to divisions.
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I’m looking into this but it seems like this has been already implemented. When you assign foreign currency account (e.g. bank account) to division. Exchange gains / losses on that account will be posted to Foreign Exchange Gains / Losses account for the division.
Could someone create some demo business where it doesn’t do it? Because as far as I’m concerned, it does.
It would be great if it is allocated without setting divisions to GL account
Forex has to capture entry division code instead of GL division code
@abdulbari, can you please explain more thoroughly what you mean? There is nothing called either “entry division code” or “GL division code.” Please provide examples.
One aspect I need to improve is to make it so Division field on transactions only shows when entering “cross-divisional transaction” (e.g. bank account of division A pays for expense incurred by division B).
Isn’t the total of Foreign exchange gains (losses) account when no division selected is suppose to equal Foreign exchange gains (losses) of all divisions combined.
It is not matching, you can see the results I am getting in the above photo.
Am I missing something?
@Drew_Mike, you need to illustrate your issue with screen shots from Manager, not an independently created spreadsheet. That does not tell us anything. And you need to explain what exactly these figures represent and how they were obtained.
My question is simple: Is the total of Foreign exchange gains (losses) account when no division selected is suppose to equal Foreign exchange gains (losses) of all divisions combined?
I hope to get yes or no answer.
Figures in the table were taken from profit and loss account ( divisions columns ) for Foreign exchange gains (losses) account.
I think the answer to your question might be yes in some circumstances, but certainly only if every single line item on every single transaction is assigned to a division. Have you looked at your Division Exception Report and drilled down on everything there? (In other words, transactions could fall through the cracks.)
There also might be conflicts, such as when a customer assigned to one division purchases an inventory item assigned to another, or pays an invoice in a currency that goes to a bank account assigned to a third. I will not pretend to have explored all those possibilities.
There could also be issues associated with timing of transactions compared to dates of exchange rate changes. For example, what if a foreign currency sales invoice is paid off with a forced equivalence in base currency, but there was an exchange rate change between the invoice date and the receipt date? Again, I have not explored that.
@Drew_Mike if you think there is an issue with implementation, it’s probably better to create some demo Manager business to demonstrate the issue. It’s too difficult to reproduce otherwise.
Hi @Tut
I have created two transaction
- GL Account with Division set up
Customer Created with division set up
Sales Invoice Created
Report with show Forex division wise
- GL Account without Division set up
I have created this entry without set up division code in GL Account
Report will be
My suggestion is to calculate FOREX entry wise it should be linked to division in every line this is the best practice
in below snip GL With DIV should show 625 in stead of (525)
