I would like to get P&L as per tracking code. Since there is no way to assign automatic Foreign exchange gains (losses) entries to tracking codes, would it be possible to make journal entries to distribute Foreign exchange gains (losses) on tracking code.
I will create Foreign exchange gains (losses) under expenses, then make journal entries specifying the desired tracking code, so it can show on P&L report as per tracking codes.
Currently, Foreign exchange gains (losses) account is not showing when searching while creating journal entry.
No. Foreign exchange gains (losses) is an automatic, hard-coded account. You cannot post to it. Entries are only made automatically in response to exchange rate changes and forced equivalencies (such as through inter account transfers between accounts denominated in different currencies.
As such, forex gains/losses do not belong with a tracking code, which categorize income and expenses within your control. The forex gains/losses are necessary so your balance sheet remains in balance in your base currency.
They should be able to be allocated to tracking codes where the forex gains/losses relates directly to either the Sales Invoices or Purchase Invoices which have a tracking code allocation.
When a forex Sales Invoice is issued it is posted at an “estimated” value.
When that Sales Invoice is paid it is posted at an “actual” value.
The difference between the estimate and actual values adjusts the P&L revenue related to that Sales Invoice (as it is being re-valued) via the forex gains / losses account.
In another words, if the estimate and actual were an exact match, then there would be no P&L revenue adjustment.
Therefore if the Sales Invoice has a tracking code attached then the forex adjustment related to that invoice should also be able to be allocated to that tracking code where the payment has been allocated to that specific invoice.
Having multiple tracking codes on a single Sales Invoice would add the complication of proportioning where payments are being allocated to a specific invoice.
I would like to revive this thread and support the OP’s request for the ability to be able to select the “Foreign exchange gains (losses)” account in Journal Entries to enable the ability to allocate to a project and/or division, or to transfer to more specific income or expense account.
I realise that the value shown in this account in reports contains both realised and unrealised gains/losses and is the reason that it is not currently possible.
However, is it possible to have a separate gains/losses account for transactions that have been completed and the gain/loss will not change (realised gains) which can be made available in Journal Entries and a separate gains/losses account for those assessed on the date of the report (unrealised gains) which would not be available in Journal Entries?
This also relates to this thread which is categorised as an idea.