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Entered Currency Balancing Account Example

This document provides examples of accounting entries for payables and cash management with entered currency accounting. For an invoice of $100 EUR at an exchange rate of 1.5, a liability is recorded and expense is incurred of $150 CAD. For a payment of $100 EUR at an exchange rate of 1.6, the liability is reduced and a loss is recorded on the difference. A reconciliation for $200 CAD at a rate of 2.0 results in a cash increase and loss, with balancing accounts used. An unreconciliation also uses balancing accounts to clear the difference.

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barber bob
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1K views

Entered Currency Balancing Account Example

This document provides examples of accounting entries for payables and cash management with entered currency accounting. For an invoice of $100 EUR at an exchange rate of 1.5, a liability is recorded and expense is incurred of $150 CAD. For a payment of $100 EUR at an exchange rate of 1.6, the liability is reduced and a loss is recorded on the difference. A reconciliation for $200 CAD at a rate of 2.0 results in a cash increase and loss, with balancing accounts used. An unreconciliation also uses balancing accounts to clear the difference.

Uploaded by

barber bob
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Illustration of Payables and Cash Management Accounting Entries

(with Entered Currency Accounting)


Hasan Mir 18-MAY-11
For complete step by step training on Oracle e-Business Suite visit

http://handsonerp.com
Accounting Entries
Invoice
Amount: $100 EUR
Rate: 1.5
Accounting:
EUR DR: EXPENSE
EUR CR: LIABILITY

$100 EUR
$100 EUR

$150 CAD
$150 CAD

$100 EUR
0
$100 EUR

$150 CAD
$10 CAD
$160 CAD

$100 EUR
0

$160 CAD
$40 CAD
$200 CAD

Payment:
Amount: $100 EUR
Rate: 1.6
Accounting:
EUR DR: LIABILITY
EUR DR: LOSS
EUR CR: CASH CL
Reconciliation:
Amount: $200 CAD
Rate: 2.0
Accounting:
EUR DR: CASH CL
EUR DR: LOSS
CAD CR: CASH
Unreconciliation:
Amount: $200 CAD
Rate: 2.0
Accounting:
CAD DR: CASH
EUR CR: LOSS
EUR CR: CASH CL

0
$100 EUR

$200 CAD
$40 CAD
$160 CAD

Accounting Entries With Entered Currency Balancing Account


Invoice
Amount: $100 EUR
Rate: 1.5
Accounting:
EUR DR: EXPENSE
EUR CR: LIABILITY

$100 EUR
$100 EUR

$150 CAD
$150 CAD

$100 EUR
0
$100 EUR

$150 CAD
$10 CAD
$160 CAD

Accounting:
EUR DR: CASH CL
EUR DR: LOSS
CAD CR: CASH

$100 EUR
0
$200 CAD

$160 CAD
$40 CAD
$200 CAD

CAD DR: BALANCE


EUR CR: BALANCE

$200 CAD
$100 EUR

$200 CAD
$200 CAD

Accounting:
CAD DR: CASH
EUR CR: LOSS
EUR CR: CASH CL

$200 CAD
0
$100 EUR

$200 CAD
$40 CAD
$160 CAD

EUR DR: BALANCE


CAD CR: BALANCE

$100 EUR
$200 CAD

$200 CAD
$200 CAD

Payment:
Amount: $100 EUR
Rate: 1.6
Accounting:
EUR DR: LIABILITY
EUR DR: LOSS
EUR CR: CASH CL
Reconciliation:
Amount: $200 CAD
Rate: 2.0

Unreconciliation:
Amount: $200 CAD
Rate: 2.0

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