[GNC] Unrealized gain/loss on Forex

[Adrien Monteleone]

When you received payment, were you prompted to enter an exchange rate? If the rate entered allows the transaction to balance as-is, then you won’t have a gain/loss. If however, you specified a real-world rate that left some portion of funds remaining to be accounted for, that would be balanced by the gain/loss split.

Don’t assume the ‘Unrealized’ line on the report is due to this transaction. (it is a total over *all* transactions for the report range) The matching amount might be coincidental. (I seem to recall there is a bug in that report’s calculation anyway from previous threads here on the list) To be certain, run the report for the day before the payment and see if the amount for that line changes and if it is zero. (or doesn’t display at all)

Out of curiosity though, why book the payment in local funds if they are received in foreign currency? Is this standard practice? Are they automatically converted for you before going into your business account? If so, *that* transaction should probably be recorded separately, or if there is a fee or gain/loss to record that is not being included when you enter your payment. By all means, follow what your laws require, but I would think it a safer procedure to always record the actual movements of money as they are. That way you don’t miss anything.

Regards,
Adrien

> On Aug 16, 2019, at 12:44 AM, Jayakumar Chakravarthy <jayakumar.chakravarthy at fulcrum-ace.com> wrote:
> 
> David,
> 
> 
> Normally I can account the unrealized loss by debiting 'Unrealized Gain/Loss'
> Account and crediting the Customer Account in my local currency.  But since
> here I have kept the Customer's account in foreign currency, the Customer's
> account is already showing nil balance.  Now where would the credit go?
> 
> Thanks.
> 
> 
> Jayakumar Chakravarthy
> Founder - Consultant
> +91-9840 356 506
> www.Fulcrum-ACE.com
> 
> 
> 
> 
> 
> 
> On 14-08-2019 at 14:09, David T. <sunfish62 at yahoo.com> wrote:
> I believe that the "Unrealized Losses" entry on the Trial Balance report is
> calculated. You will need to create an account for it, as well as the
> transaction to account for the loss.  
> 
> 
> 
> 
> HTH,
> 
> 
> David 
> 
> 
> 
> 
> On Wed, Aug 14, 2019 at 11:40, Jayakumar Chakravarthy
> <jayakumar.chakravarthy at fulcrum-ace.com> wrote:
> Hi,
> 
> 
> When I make an Invoice and receive money in a foreign currency and account
> them in my home currency, where does the unrealized gain/loss go?
> 
> 
> I observe an entry in Trial Balance having 'Unrealized Losses' with this
> amount.  But where is that account?  How can I view it?
> 
> Thanks.
> 
> 
> Jayakumar Chakravarthy