• From: South Africa
  • Registered: 09/02/2017
  • Posts: 4

Topic: Exchange Variance - Creates unknown Journal Entry

Hope someone can explain what is going on with Exchange Variance.  My Base Currency is ZAR and I have entered exchange rate for every day of the year for ZAR/EUR and ZAR/GBP

Now when i do a fund trasfer from a EUR to GBP bank account or even a GBP to GBP bank account I get a FundTranfer which seems 100% and then I get an additional journal entry with a value that always is doubling.

Please see example

Fund Transfer 105
https://ibb.co/c7KVEn
Journal Entry 117
https://ibb.co/es2NS7

Any ideas.  I personally don't see the reason for the journal entry at all. 

Using version 2.4.2.

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  • From: Canada
  • Registered: 02/13/2015
  • Posts: 43

Re: Exchange Variance - Creates unknown Journal Entry

I am getting this redundant journal entries when performing Bank Payments and Deposits with the foreign currency account.

Here are the results for the same entries in both FA 2.3.22 and FA 2.4.3

Bank Payment     1015     BP0391     03/29/2018         165.90     TST Inspection     (this is USD)

Accounting entries (All numbers are in CAD):

FA 2.3.22
Bank Payment     1015     03/29/2018           TST Inspection               217.33    
Journal Entry     173             03/29/2018           TST Inspection     344.20              Exchange Variance


FA 2.4.3
Bank Payment     1016     03/29/2018                                                  217.33         
Journal Entry     87             03/29/2018                               171,300.56                     Exchange Variance


The balances in foreign currency accounts are way off especially in FA 2.4.3 and in each case the Bank Payment or Deposit were involved.

andijani's Website

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: Exchange Variance - Creates unknown Journal Entry

@joe: has this been an issue for quite some time? Is there another standard operating procedure that needs to replace the above?

@karl1234: The first of your transactions has a payment and receipt and hence there is an exchange rate variance computed on the exchange rates used (one for payment and another for receipt) for the nett balance of the transaction set. In your second transaction, there is only a notional value in the exchange rate variance account as it awaits the contra entry when settlement occurs in the desired currency.

@andijani: The second transaction (one way) of @karl1234 applies to both your transactions.

apmuthu's Website