I’ve been operating for 2 accounting periods so far.
Why does the Profit & Loss report of my actual accounting period include the FX Gain/Loss from the very beginning (year 1 and 2)? Shouldn’t it be only for the actual period?
The same value is in the Summary menu, even if the accounting period is properly set up.
We have only your word for this. To start, please post screen shots showing your Summary details (under Summary > Edit) and the definition screen for your Profit and Loss Statement.
In broader terms, the balance of Foreign exchange gains (losses) depends on many factors, including the exchange rates you enter, the dates for those rates, transactions in foreign currencies, etc. You have given us very little to go on.
To illustrate Managers behaviour, you will probably find it easier to use a test business. Because
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publishing the results will not reveal confidential information.
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you can readily test one feature at a time.
Thanks for your response Tut & Patch!
After re-examining the numbers, it appears that the actual computation is correct. I was wrong, sorry.
Year 1 transactions re-adjusted using the end-of-year fx gain/loss, which is required to compute if any new gain/los has been made in Year 2.
The Year 2 accounting period:
The Summary page:
The Foreign Exchange Gain (Loss) => Click on “Credit” of “Foreign Exchange Revaluation” => Accounts Receivable
The DB is attached.
TestBusiness (2023-06-18).manager (176 KB)