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 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, the customer's balance is recorded and tracked in the two currencies:

1. Customer’s contract currency
2. Company’s presentation currency (hereinafter referred to as “presentation currency”)

In its turn, the customer’s contract currency can be one of the following:

1. The same as the presentation currency.
2. A foreign currency, which is any currency other than the presentation currency.

Consider that the customer’s contract currency is a foreign currency. Then, during documents posting, 1C:Drive applies the foreign currency exchange rate and converts an amount in the foreign currency to an amount in the presentation currency.

Since exchange rates change regularly, the customers’ balance 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. In this case, the customers’ balance is revaluated during posting a document that registers a transaction in a foreign currency, such as a sales invoice or bank receipt. Additionally, revaluation is made during the month-end closing procedure.
2. On month-end closing. In this case, the customers’ balance is revaluated only during the month-end closing procedure.

If the company applies the Each transaction option, then, during a bank receipt posting, 1C:Drive performs the following additional steps for the invoice paid by the customer:

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 Exchange rate history in the Currencies catalog).
4. Calculate the revalued balance in the presentation currency based on:
   • Current balance in the foreign currency
   • Applicable foreign currency exchange rate
5. Calculate the foreign currency exchange rate difference as:

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

6. If the exchange rate difference is nonzero, register one of the following:
   • Foreign exchange gain (FX gain). This applies if exchange rate difference is positive.
   • Foreign exchange loss (FX loss). This applies if exchange rate difference is negative.

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

Below is the detailed list of conditions for a record with the FX loss - Accounts receivable entry type:

1. In 1C:Drive Settings > Cash management:
   • The Foreign exchange accounting checkbox is selected.
   • Foreign currency revaluation periodicity is set to Each transaction.
2. The customer's contract currency differs from the company’s presentation currency.
3. In Bank receipt:
   • Operation is set to Payment from customer.
   • On the Payment allocation tab, the Advance payment checkbox is cleared.
   • On the Payment allocation tab, in Settlement amount details, the settlement currency is different from the company’s presentation currency. This means that the customer’s contract is in the foreign currency.
4. Foreign currency exchange rate is filled in Exchange rate history in the Currencies catalog.
5. Exchange rate difference calculated for the paid invoice is negative. This means that the customer’s balance in the presentation currency is decreased.

Note that if a bank receipt registers FX gain, 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 contains the following details:

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
• 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 following accounts:

Debit Foreign exchange loss
   Credit Accounts receivable