Foreight Exchange Gain

The two additional postings are result of foreign currency bank account revaluation. This is done on first transaction involving currency account, after the currency rate has changed. So on every later transaction on the same date, the revaluation will not be posted. Joe can explain more about it.
Janusz

It seems the amounts it posts to the foreign exchange gain are incorrect. From my understanding of what you are saying, in my example above it would mean the change in the curreny rate between USD and GBP was 100% (or 1:1 to 2:1) which did not happen?

Also is there a way to stop the foreign exchange gain from automatically being posted, and then I can manually revalue it when I choose.?

The balances of the currency accounts will mirror the correct balance in the underlying GL accounts.
There must be something else making these problems.
We will consider a disable flag on a per company base for release 2.3.

/Joe

Yes, maybe we should remove the Revaluation into a specific GL Journal to separate the operations and call it 'Revaluation of currencies'.

But I will do another test if there are problems with the revaluation.

/Joe

Hi,

I am not using the GL account 1210 for any journal entries. It only has bank deposits and payments into it including the the opening balance. In addition GL account 1210 has one GBP bank account assigned to it.

Regarding your 2nd paragraph 'Be aware of the transaction date', I am not sure if I understand it, but in my example below I made a bank payment entry for GBP 39.47. I put the date in as the 9th feb which was when the payment was made, and the GL transaction details came out as below. I understand the 61.61 is the USD equivilant of GBP 39.47, which I guess makes the rate on the date GBP 1: USD 1.56. That's fine. It's just the bottom two automatic extra GL transaction details  of 980.58 which seem incorrect.

5030     Hosting / Domains     61.61
1210     Lloyds GBP Account                     61.61   
1210     Lloyds GBP Account     980.58                      Exchange Variance
4920     Foreign Exchange Gain                 980.58     Exchange Variance

I also posted that exact same bank payment a couple of weeks earlier and it gave totally different results, which also seem incorrect. Below is the GL transaction details of that.

5030     Hosting / Domains     61.61        
1210     Lloyds GBP Account                 61.61    
1210     Lloyds GBP Account     147.58                Exchange Variance
4920     Foreign Exchange Gain           147.58 Exchange Variance

As you can see the conversion of GBP 39.47 to USD 61.61 stays the same, which is fine, but then the bottom two automatic extra GL transaction details  of 146.58 seem incorrect, and are totally different to 980.58

Please, Slackie, do the following check (I also asked you that in my former answer).
Take your GBP balance in your bankaccount and multiply it with the exchange-rate from the last day of transactions. This should give the same balance as in the GL account.
Please tell me if this is the fact.
If this is not the fact, we will have to investigate it further.

/Joe

Yes! It works just fine if I enter the GBP payments in sequentially by date as they appear on the bank statement. No extra exchange variance entries are coming up at all now that I am entering them in sequence.

You guys are amazing. You provide better support than any paid support I have experienced on top of a great free open source product. Time to donate

ok now that i have made all the posts i clearly understand how it works, and work it does.
at times it is a few cents out. max of 20 cents out. not sure why.
as you said it is

exchange_variance = (old_rate-current_rate)* account_balance.

OR probably easier to understand

Take your GBP balance in your bankaccount and multiply it with the exchange-rate from the last day of transactions. This should give the same balance as in the GL account.

I couldn't find a sticky or wiki on this topic so perhaps do one to explain how it all works.