• From: Qatar, Doha
  • Registered: 08/17/2019
  • Posts: 29

Topic: Exchange Rate Issue

In Banking Module - Exchange Rate

Base Currency Indian Rupee

USD to INR

Example
on 28-March 2020  One USD = INR 70

I raised a Invoice 500 USD on 28-March 2020 . So in Customer Ledger the amount is  100 USDx70  = 7,000 INR   .... Ok Cool

BUT

on 29-Sept-2020  One USD = INR 73

When I Add this Currency Value on this date. Automatically Previous recorded Invoice on 28-Mar-2020  Changing to  100 USD * 73 = 73,000 INR in the Customer Ledger.

This Customer Balance Change when update each time USD currency.  how can I make without changing the Old Invoice Customer Ledger Value.

  • From: Managua
  • Registered: 11/01/2019
  • Posts: 26

Re: Exchange Rate Issue

If your customer it's account is USD, then is Ok, because the customer always be USD100.00, for international standard you must change the balance or customer or vendor to local currency at the date of presentation.

Now where did change balance of your customer, in report or in General Ledger?

Freddy Norori
accountechni.com

serviciosac101's Website

  • From: Qatar, Doha
  • Registered: 08/17/2019
  • Posts: 29

Re: Exchange Rate Issue

in report Customer Trial Balance, base local value changing based on the latest foreign currency rate.

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

Re: Exchange Rate Issue

This is a notional exchange rate based calculation and will be in contra in the exchange rate gain/loss account. When the actual transaction is fulfilled in a specific currency other than in the currency of the account, such differences will occur but will vanish when the actual currency of settlement is used.

apmuthu's Website