A closed invoice is just moved to the bottom of the list - the balance due is still owing and will be readjusted whenever you enter a new exchange rate
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Yes, I got it. You are right. I’ve tried that. Closing the invoice is not the solution.
This invoice has been completely paid ($2,540 invoiced and $2,540 received) so it will not be included in the Forex revaluation
At the time of invoicing, the $ 2,540 was worth 1,69,175 INR and this amount was posted to your sales account
At the time of payment, the customer gave you $ 2,540 which was worth 2,02,240 INR
This represents a gain of 32,065 INR for you - this is posted to the Forex Revaluation account and represents the gain from the movement in the exchange rate.
I do not understand why you do not think this is a real gain - you got more INR than you were expecting at the time of sale/invoicing
Agreed but those are there. See the first snap.
Please see this snap.
Forex revaluation was not done correctly in old versions
But now how to tackle this issue. It’s considering latest exchange rate & showing gain/loss for all invoices which either paid or receivables. In past version after marking the customer “In-active”, we never faced such issues.
Please illustrate your problem with screen images. Start from the Summary screen Forex amount
Please show the full screen - the partial screen you have shown to date leave me to guess what exactly I am looking at
Include the breadcrumbs at the top
I assure that the Forex Revaluation is working correctly
Joe, I’ve added one example for one invoice OPD#46. Same happening with many other invoices. See following happening for OPD#46.
Please see the snap. I sent the invoice on 09/30/22 of $2540 so based on previous exchange rate the value in INR was 1,69,175. My customer paid me on 10/31 & based on respective $-INR rate I got paid 2,02,240. Manager software is showing difference amount as a gain but it’s not at all gain for me. I used 20 version earlier & there were no issues now I’ve upgraded to 22 version & facing these issues. Please help. @Tut @lubos
Where exactly would you like Manager to show the 32,065 gain you made ?
Please ask your accountant to explain how Foreign Exchange Revaluations work or search online for the explanation
www.accountingcoach.com is a good place to start
Hi Joe,
It’s not gain for me. I’ve just sent invoice to my customer about $2540 & he has paid me after few days & I got paid 2,02,240. In previous version, after receiving the amount, I just added exchange rate for that particular date. From where manager is calculating 1,69,175 ?
It calculates the INR value of the Sales Invoice based on the exchange rate on the invoice date
The exchange rates are entered in Settings / Currencies /Exchange Rate
Just to clarify you, I’ve checked & no exchange rate added when OPD#46 invoice sent on same date.
Ex. Today I make a invoice of say $1000. I’m not adding any exchange rate, I will get paid it after say 2 months then still manager will show gain/loss if there is fluctuations in currency conversion rate but for me it’s neither a loss nor a profit for me.
Please show the exchange rates in the Settings tab
If you invoice your customer for 100 INR and he pays you 120 INR how is that not a profit for you?
You have included 100 INR in your sales and now you have 120 not 100
If you invoice your customer for 100 INR and he pays you 80 INR how is that not a loss for you?
You have included 100 INR in your sales and you only received 80 not 100
If your base currency was USD, then yes there is no profit or loss on exhcange, but your base currency is INR so nearly all sales and purchases in a foreign currency will give rise to Forex Revaluation profit or loss amounts
Ok I got your point. I think to clear this issue, I need to add same exchange rate for invoice date & payment received date. I think, this trick can solve my problem. But I think older version was better for me.