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Forex Reinstatement

The document provides steps for reversing posting entries and reinstating account balances in the system. It explains that the system calculates differences by getting the original amount in local currency using the document currency amount and exchange rate on the date. It debits the difference to a balance correction account and credits it to an exchange gain account, with the balance correction account grouped with trade payables to adjust the final payables balance. It also notes the entries will appear as direct postings to the balance correction account without being linked to an endorser.

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venkat6299
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27 views

Forex Reinstatement

The document provides steps for reversing posting entries and reinstating account balances in the system. It explains that the system calculates differences by getting the original amount in local currency using the document currency amount and exchange rate on the date. It debits the difference to a balance correction account and credits it to an exchange gain account, with the balance correction account grouped with trade payables to adjust the final payables balance. It also notes the entries will appear as direct postings to the balance correction account without being linked to an endorser.

Uploaded by

venkat6299
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Step 1 TC: F.

05 Select: Period and Date for which Entry to be passed Entry to be re ersed

Step ! Select: The "endor Codes of those "endors who ha e open ite#s for which the balance is to be reinstated.

Step $ Select: Tic% for creatin& Postin&s ' re ersin& postin&s. (owe er if ) r doin& test r)n then please do not select the sa#e.

Step * The res)lt will loo% li%e these two sildes:

The Syste# is arri in& at the difference in followin& #anner: 1. !. $. *. 5. 4. +et the a#o)nt in Doc C)rr ,-SD. be 100 -SD boo%ed / *5 0s. To a dollar. +et the E1chan&e 0ate as on today be say2 ** 0s. To a -SD So the initial a#o)nt in +ocal C)rrency was 100 1 *5 3 *500 0s. The new a#o)nt will be 100 1 ** 3 **00 0s. The difference will be 100 0s. This difference will be posted to: 100 will be debited to 5alance correction acco)nt. 100 will be credited to E1chan&e 6ain acco)nt in P7+ acco)nt. 8. The balance correction acco)nt is &ro)ped with trade payables acco)nt. So that the final balance in payables acco)nt will be after reinstate#ent. 9. The entries into balance correction acco)nt are passed directly to 6+ ,entry not lin%ed to endor. presently. Screen shot of the Entries passed by syste#:

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