The Aptify Mark-To-Market wizard is designed to adjust orders with open balances denominated in foreign currencies if the organization's functional currency value of the open Accounts Receivable (A/R) has changed.
Using the Mark-To-Market process is covered in the following topics:
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The Mark-To-Market object executes automatically, and in the background, under any of the following conditions:
- When an order is taken in a foreign currency and the order is marked as shipped.
- When payment against a shipped foreign currency order is made.
- When the costs of goods sold are (COGS) are calculated for products on a foreign currency order.
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- Accessing the appropriate Currency Spot Rates record and creating a derived spot rate, if necessary.
- Creating an Order Currency Spot Rates record.
- When the Mark-To-Market object is executed because a payment is received, it also creates the Scheduled Transactions record that contains the general ledger (GL) entries for the gain or loss on the transaction.
- Creating the COGS GL entries.
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The Mark-To-Market wizard can be run at any time, but is commonly executed when an accounting period closes and accounts receivable or payable balances related to foreign currency transactions exist.
The tasks executed by the Mark-To-Market wizard include:
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- Create or open a view of orders that contains the records you want the wizard to evaluate.
- Click the Aptify Mark-To-Market icon in the view toolbar to launch the wizard. Launch Mark-to -Market –Wizard
- Review the information on the Welcome screen and click Next to continue. Mark-to -Market Welcome Page
- Review the set of orders that qualify for the Mark-To-Market process. The criteria that qualifies an order for the Mark-To-Market process are:
- Currency Type is not the organization's functional currency
- Marked as shipped
- Outstanding balance exists
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- Click Next to process the orders listed.
- During processing, each order's most current Order Currency Spot Rates record is compared to the most current Currency Spot Rates record. If the rates are different, a new Order Currency Spot Rates record is created and a Scheduled Transactions record is created to reflect the gain or loss.
- During processing, each order's most current Order Currency Spot Rates record is compared to the most current Currency Spot Rates record. If the rates are different, a new Order Currency Spot Rates record is created and a Scheduled Transactions record is created to reflect the gain or loss.
- After processing, the wizard displays a Process Confirmation window. Click Finish to close the Mark-To-Market wizard.
- Figure 11.7 This figure illustrates an order for which the Mark-To-Market wizard created a new Currency Spot Rates record. The original rate (0.7004) was recorded at the time the order shipped. The new rate (0.7024) was added by the wizard. Order with Updated Currency Spot Rate
The figure below
- This figure illustrates a Scheduled Transactions record created by the wizard to record a foreign currency loss due to the change in currency spot rates since the order originally shipped.
Anchor RTF31343832343a204361707469 RTF31343832343a204361707469 Scheduled Transaction to Record Gain or Loss
