Dear all ,
I have entered the exchange rate correctly but I’m still getting Foreign exchange gains (losses) in - as the image bellow
If you click on the amount, you will see how the loss is calculated
nothing changed
Did you click on the -5.58?
If not, click on it and show the resulting screen here
I can assure you that Manager does calculate Exchange Rate Gains/Losses correctly - the problem is that you do not understand what they mean. If you show the display I asked for, I can then explain how it is calculated
It is impossible to explain how it is done without seeing the figures
For some reason, you have a debit balance on your Accounts Payable, as if your supplier owes you $ 820
This amount was converted into SAR using the exchange rate on 19/12/2021
$ 820 ÷ 0.2657101102697 = SAR 3,086.07 - this is amount owed to you in your base currency
On 24/04/2022, the $ 820 is still owed to you, but the amount owed is now
$ 820 ÷ 0.2661910719514 = SAR 3,080.49
So the balance owed in SAR is less than the amount recorded initially by 3,086.07 - 3,080.49 = 5.58
This is a loss of SAR 5,58 - your Foreign Exchange Loss
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sorry what shall I do now to solve this
@sarwat, there is nothing to solve. Foreign exchange gains or losses are calculated automatically, based on changes in exchange rates you enter. The balance of your Accounts payable account in your base currency fluctuates if the exchange rate goes up or down, because its value in the foreign currency remains constant. One day, it may be negative. Another day, it may be positive. Once you use a foreign currency, the balance of the Foreign exchange gains (losses) account will almost never be zero, because assets and liabilities are worth more or less than when you first entered the transactions that contribute to them. These are real gains or losses in your base currency and must be accounted for.
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