Revenue generation at prepayment rate

If the exchange rate on the prepayment receipt date differs from the rate on the sale document date, exchange rate adjustment appears. This amount of exchange rate adjustment can be transferred to the posted sales document automatically and generates sales revenue.

System Settings

1. Choose the icon, enter General Ledger Setup, and then choose the related link.
2. Go to the Currency Adjustment tab.
3. Set the Capitalize FX on Prepayment option.

Revenue generation during sale at prepayment in foreign currency

General scenario for determining revenue at the prepayment rate:

1. Checking the system settings that affect the cost formation mechanism.
2. Creation of prepayment to the customer in a foreign currency..
3. Change in the exchange rate.
4. Creation and posting of customer sales invoices.
5. Application of prepayment to the sales invoice..
6. Automatic formation of exchange rate adjustments due to the difference in rates of prepayment and sales invoice.
7. Automatic generation of value entries and G/L entries for the amount of exchange rate adjustments.

To view the generated value entries and G/L entries:

1. Choose the icon, enter Customer Ledger Entries, and then choose the related link.
2. Select a required sales entry from the list.
3. Select an action in Actions > Find entries.
4. Click a value in the No. of Entries field in a respective field of the list to view the generated value entries and G/L entries.