G/l account ABC is a balance sheet account of type Cash. After running the Foreign Currency Remeasurement Run for Cash you notice that the balance of the account is adjusted for the relevant period, however a balance shows again for the next period. This shows especially for g/l accounts whose balance should be 0,00 after clearings. Here again, you notice postings resulting from the Foreign Currency Remeasurement Run for Cash.
Reproducing the Issue
- Go to the Payment Management work center.
- In the Periodic Tasks view choose Foreign Currency Remeasurement Runs.
- Highlight the relevant Foreign Currency Remeasurement for Cash Run and access the Log Result.
- Under Postings you see the postings for the relevant cash accounts and exchange rate gain/loss accounts based on the maintained exchange rates in the General Ledger work center.
On the last day of a period amounts resulting from exchange rate differences are posted against the configured exchange rate gain/loss account. For balance sheet accounts it is customary that postings resulting from Foreign Currency Remeasurement Run for Cash are reversed at the first day of the subsequent period. This can be illustrated when looking at the G/L Accounts - Line Items report for g/l account ABC. Journal entries of type Foreign Currency Remeasurement are re-posted for the first date of the subsequent period - reversing the previous postings.
If required, postings resulting from Foreign Currency Remeasurement Run for Cash can be rendered to remain permanent at a period's end. In order to suppress the reversal postings at the first day of the next period proceed as follows.
- Go to the Business Configuration work center.
- Enter the Fine Tuning activity Foreign Currency Remeasurement Methods for Cash.
- Choose Edit foreign currency remeasurement methods.
- Under Use for Cash check the tick-box No Subsequent Reversal Posting.
In case previous postings shall be adjusted, Foreign Currency Remeasurement Runs for Cash have to be repeated for each relevant period.
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