1. Multicurrency Processing Implementation Guide
  2. Setting Up AAIs for Unrealized Gains and Losses on Foreign Currency Invoices

Setting Up AAIs for Unrealized Gains and Losses on Foreign Currency Invoices

If you want the JD Edwards EnterpriseOne Accounts Receivable system to calculate unrealized gains and losses, you must set up AAIs. These AAI items define the accounts that the system uses for unrealized gains and losses on foreign currency invoices that are open at the end of a period:

  • RVxxx: Foreign currency unrealized gain

  • RWxxx: Foreign currency unrealized loss

  • RRxxx: Foreign currency unrealized gain or loss offset

When you run the A/R Unrealized Gain/Loss Report (R03B426), the system uses the account number assigned to RV and RW to create foreign currency unrealized gains and losses and the account number assigned to RR to create foreign currency unrealized gain or loss offsets. To create an unrealized gain or loss amount, the system compares the amount of the original invoice to the amount of the open invoice (which is revalued based on the exchange rate at the end of the period) and creates a gain or loss for the difference.

The hierarchy for AAI items RV, RW, and RR is the same. This example shows the sequence in which the system searches for AAI item RV:

  1. RVxxx. The system uses RVxxx that is associated with the company entered on the invoice, where xxx is the transaction currency of the invoice.

  2. RVxxx. The system uses RVxxx for company 00000, where xxx is the transaction currency of the invoice.

  3. RVxxxx. The system uses RVxxxx that is associated with the company entered on the invoice, where xxxx is the GL offset on the invoice.

  4. RVxxxx. The system uses RVxxxx for company 00000 where xxxx is the GL offset on the invoice.

  5. RV. The system uses RV that is associated with the company entered on the invoice.

  6. RV. The system uses RV for company 00000.