Option to Pass FX Gains/Losses to the Client

This functionality facilitates billing/crediting the advertiser for foreign exchange gains or losses resulting from movements in FX rates when supplier invoices are entered and when it is disbursed.

Define when FX Gains/Losses are passed to the Client

1. Check the Pass FX Gains/Losses To Client checkbox to define the default setting at the Office level. A checkmark here will indicate that foreign exchange gains/losses will be passed to the client.

Screen Shot 2022-11-01 at 6.50.38 PM

2. Check or uncheck the Pass FX Gains/Losses to Client checkbox at the Job level to override the Office default or last job created setting.

Note - The system will default to the setting on the last job created for this client. For example, if the Pass FX Gains/Losses to Client is unchecked for the last job for this client, the next job created for the same client will default to the box unchecked.

Record a Supplier Invoice

1. Navigate to the Accounting menu > Payables > Supplier Invoices.

2. Click on the Create a New Supplier Invoice button

3. Select or search for the Supplier for this invoice.

4. Enter the Supplier Invoice No.

5. Select the Office responsible for this invoice

Screen Shot 2022-11-01 at 8.38.37 PM

Note - From the screenshot above, TestSup (Test Supplier) has a default currency of EURO but the Tokyo office is responsible for this invoice. Once the Office field is set to the Tokyo office, at the top right, you will see that the EURO currency has an * (asterisk) indicating a difference in currencies.

6. Enter the invoice details in the bottom half of the page. For example, this invoice is for €1000.00 and the current FX rate to Japanese Yen is 147.196.

The journal entry postings for this invoice will be:

DR WIP ¥147,196

CR Accounts Payable ¥147, 196

The system converted the €1000.00 invoice to Japanese Yen because the office responsible for the invoice is Tokyo.

Pay Invoice and Calculate FX Difference

There are various ways to create a payment in Accountability. Visit here to look at the different options.

Once the invoice has been paid, the system will take the current FX rate to calculate the exchange, in our example, from EURO (€) to Yen (¥).

Scenario 1:

FX Gains/Losses to Client is checked and FX rate is now higher at 148.517

The journal entries for the payment are:

	Account Type	Description	Debit	Credit
DR	Accounts Payable		¥147,196
DR	WIP	FX Gains/Losses on Supplier Invoice 123456	¥1,321
CR	Cash			¥148,517

Since the FX Gains/Losses to Client is set on the job, the system will calculate the FX difference and post it to WIP.

Scenario 2:

FX Gains/Losses to Client is unchecked and FX rate is now higher at 148.517

The journal entries for this payment are:

	Account Type	Debit	Credit
DR	Accounts Payable	¥147,196
DR	FX Gains/Losses Account	¥1,321
CR	Cash		¥148,517

Notes:

1. The system will post the foreign exchange difference to the account defined from the Accounting menu > General Ledger > General Ledger Accounts > Posting GL Accounts link > Default GL Posting Accounts link > Revenue & Expense Accounts section > FOREX Gains/Losses Acct.

2. The FX Gains/Losses To Client setting is applied when the payment is made.