Setting Up AAIs for Unrealized Gains and Losses on Monetary Bank Accounts

If you work with monetary (currency-specific) bank accounts and foreign currencies, you have to periodically revalue the bank accounts to reflect current exchange rates. The system calculates the current domestic amount of a foreign currency balance to determine an unrealized gain or loss. In this way, it determines what the gain or loss would be if you converted the balance of the foreign currency bank account to the domestic currency.

These AAI items define the accounts that the system uses for unrealized gains and losses on monetary accounts:

• GVxxx: Unrealized gains

• GWxxx: Unrealized losses

• GRxxx: Unrealized gain/loss offset

These rules apply to AAI items GV, GW, and GR:

• The system uses the account number assigned to AAI items GV and GW to create unrealized gains and losses on monetary accounts.

• The system uses the account number assigned to AAI item GR to create unrealized gain/loss offsets.

  If the gain/loss offset is assigned to the monetary account, which is usually the case, you must delete AAI item GR. If you do not do this, the system searches for AAI item GR and use it if it is set up, or issue an error message if the AAI item exists but is not set up properly.

• The business unit is optional. If the business unit is not included, the system uses the business unit of the company associated with the monetary account.

• xxx represents the currency code and is optional.

The sequence in which the system searches for GV, GW, and GR is:

1. GV, GW, or GR xxx, where xxx is the currency of the company assigned to the monetary account.

2. GV, GW, or GR for the company assigned to the monetary account.

3. GV, GW, or GR for company 00000.