Foreign exchange gains losses

I do not understand the meaning of this ( foreign exchange gains losses )

The foreign exchange rate which should be created

Price on the date of receipt of foreign money or what

Let me use an example that might make it clear - I will use USD and EUR but you can substitute the currencies and the result will be the same

My base currency is EUR - so my accounts are all reported in EUR

I have a customer in the US - I sell items to him and invoice him in USD. He pays in USD
Assume that the exchange rates are as follows
10 July 2020 : 1 EUR = 1.1295 USD
On 10 July I invoice him for $ 12,000 which using the exchange rate on the the 10 July is recorded as € 10,624.17 as a credit entry in my Sales and a debit entry in my Account Receivables

23 July 2020: 1 EUR = 1.1597 USD
My Sales Account balance does not change - after all I recorded the sale using the exchange rate on the day of the sale
But the amount I am due is still $ 12,000 but this is now worth only € 10,347.50 because the EUR strengthened against the USD - from 1.1295 to 1.1597
The difference of € 276.67 is recorded as a Foreign Exchange Loss

If the EUR had weakened against the USD, I would have had a Foreign Exchange Gain.

When the customer pays me I will record his payment as $ 12,000 and whatever amount of euros I receive - again the difference between what I receive and the initial amount of 10,624.17 will be posted as a Foreign Exchange Gain/Loss

In Manager, I would enter two exchange rates - one for the day of the sale and another for the balance sheet date - which could month end, daily whatever you need for your reporting requirements.


How the system takes this EUR value for itself ‘’ 10 July 2020 : 1 EUR = 1.1295 USD ‘’

You need to clarify your question. What are the circumstances? What kind of transaction? Illustrate with screen shots of relevant Edit screens.

For example my invoice that is on the 01.01.2021 ,money was received for that invoice on 02.01.2021,I did not give any exchange rate,but exchange gain is in my p&l ,how the system calculate the exchange rate ?

Illustrate with screenshots

I believe you are describing the result of placeholder exchange rates built into the software. Manager must have exchange rates when foreign currencies are used to prevent problems such as dividing by zero when converting balance sheet accounts into your base currency.

You should enter actual exchange rates.