Calculate Profit/Lost - Currency {FSAO1-27}

The option is used to calculate and create foreign currency profit or loss transactions to account for exchange differences.

It can also be used to clear debtor account balance where balances in local currency is not zero although the debtor balance in the debtors currency reflects a zero balance

Foreign currency profits or losses result from:

When preparing annual financial statements provision should be made for foreign currency profits or losses in terms of GAAP. Foreign currency creditors balances as at year-end should be provided for at a rate as prescribed by GAAP, which can result in a currency profit or loss.

A foreign currency creditors account in foreign currency may be settled but because of currency changes the local value is not zero (0)

Before the option can be run the user needs:

To create two transaction types {FCSO-7} linked to the events WW and WZ. The credit GLA is mandatory on the event WW Transaction Type and the debit GLA is mandatory on event WZ Transaction Type. The other leg of the entry will be obtained from the account type definition. Profits and/or losses are calculated for a student per account type agreement code and the calculated profit or losses transaction is inserted when run in final mode.

Set the correct exchange rates in option {FCSO-21}

On selection of the option, the system will prompt the user with a print menu and thereafter the following:

User Selection	Prompt Text ^{* an item between square brackets [ ] is the default answer}	Type & Length	Comments
	(T)rail or (U)pdate	A1
	Foreign currency Rate on which Date	DD-MON-YYYY
	Student Number or ALL [ALL]	N9

Sort Order	Per	Comments
	None

System Select
	No special system selection

Example:

Processing Rules
	No special processing rules