I have entered just one exchange rate, but my P&L shows a small exchange rate gain. Why would this be the case?
But what transactions have you entered using that exchange rate ?
I have entered sales and purchases in both local and foreign currency, and some payments in the same currency as the invoices.
When you take up an invoice in a foreign currency the entered (approx.) exchange rate is used but payments are at an exact exchange rate so a variation can occur,
Your entered exchange rate could be 100 to 110, but the payment may have been at 100 to 108 due to the bank rate.
There is only one exchange rate entered for a date that is previous to all transactions, I have not yet entered any other exchange rates. Payments are made in the currency of the invoice and kept in bank accounts denominated in the currency of the funds received. so there is no realized exchange rate gain or loss.
The exchange rate gain could only come from revaluation of balance sheet accounts, but since there is no variation in the exchange rate, I believe the value in foreign currency should remain constant in local currency as well.
Looking at this in detail, the gain apparently comes from the accumulation of rounding errors. Even as the P&L shows a gain (of a few cents), the detail of exchange rate gains (losses) shows a total of 0.
This is very plausible and the likely circumstances based on your now provided information “the P&L shows a gain (of a few cents)”
any way we can correct the exchange gain or loss calculated automatically