FX loss - Accounts receivable

A record with this entry type is made when a company registers a foreign exchange loss (FX loss) on a customer’s debt balance in a foreign currency.

For more information on this entry type, see:

• Entry type conditions
• Entry type details
• Application in accounting templates

Entry type conditions

In 1C:Drive, a customer's debt balance is recorded and tracked with the following details:

• Company
• Customer
• Contract (a customer’s contract)
• Document (such as a sales invoice)
• Order (such as a sales order)
• Amount in the presentation currency
• Amount in the customer’s contract currency

If the customer’s contract currency is different from the presentation currency, it means that the customer’s contract is in a foreign currency. Since foreign currency exchange rates change regularly, the amount of the customer's debt in the presentation currency needs to be updated (revaluated) regularly as well.

1C:Drive offers the following two options for revaluation periodicity:

1. Each transaction
2. On month-end closing

If a company applies the Each transaction option, then, during a bank receipt posting, 1C:Drive revaluates a customer's debt so that its amount in the presentation currency corresponds to the amount in the foreign currency and the current foreign currency exchange rate. Note that 1C:Drive revaluates only the customer’s debt balance for the documents and orders selected in the bank receipt.

In general, the revaluation procedure for the customer's debt balance is as follows:

1. Calculate the current balance in the foreign currency after the received payment amount is deducted from it.
2. Calculate the current balance in the presentation currency after the received payment amount is deducted from it.
3. Determine the applicable foreign currency exchange rate that is effective on the bank receipt document date (exchange rates are stored in the Currencies catalog, in Exchange rates history).
4. Calculate the revalued balance in the presentation currency based on:
   • Current balance in the foreign currency
   • Applicable foreign currency exchange rate
   • Exchange rate method specified in a company’s card
5. Calculate the foreign currency exchange rate difference as:

   Exchange rate difference = Revalued balance in the presentation currency - Current balance in the presentation currency

6. If the exchange rate difference is nonzero, register FX gain or FX loss as follows:
   • If exchange rate difference is positive, register FX gain. As a result, the customer’s debt balance in the presentation currency increases.
   • If exchange rate difference is negative, register FX loss. As a result, the customer’s debt balance in the presentation currency decreases.

When the bank receipt registers FX loss on the customer’s debt balance, it also makes a record with the FX loss - Accounts receivable entry type in the Accounting entries data register.

Below is the detailed list of conditions for a record with this entry type:

1. In Settings > Cash management:
   • The Foreign exchange accounting checkbox is selected.
   • Foreign currency revaluation periodicity is set to Each transaction.
2. Foreign currency exchange rate is filled in the Currencies catalog, in Exchange rates history.
3. Bank receipt is posted and:
   • Operation is set to Payment from customer.
   • On the Payment allocation tab:
     • The Advance payment checkbox is cleared.
     • The customer's contract currency is a foreign currency (it is filled in the Currency field in Settlement amount details).
   • There is FX loss on the customer’s debt balance.

Note that if the bank receipt registers FX gain on the customer’s debt balance, it makes a record with the Accounts receivable - FX gain entry type in the Accounting entries data register.

Entry type details

A record with the FX loss - Accounts receivable entry type includes the details listed below. Note that the details are grouped by their purpose and text in italic font provides an additional explanation:

General details:

• Document date
• Company
• Presentation currency

Debit details for expense:

• Expense item
• Department
• Project
• Project phase

Credit details for counterparty:

• Counterparty
• Contract
• Order
• Settlement currency - contract currency
• Document

Amounts:

• Amount (Presentation currency)

Application in accounting templates

You can use the details of a record with the FX loss - Accounts receivable entry type as the data source to create a template for an accounting entry with the following accounts:

Debit   Foreign exchange loss
   Credit   Accounts receivable