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Date | Account | Debit | Credit |
January 1 | Accounts Receivable | ¥1,240.00 |
|
January 1 | Sales |
| ¥1,240.00 |
January 1 | Cost of Good Sold | ¥613.25 |
|
January 1 | Inventory |
| ¥613.25 |
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When a Payments record for a foreign currency order is initially saved, the Mark-To-Market object is called and stores the current currency spot rate with the order as an Order Currency Spot Rates record. A Scheduled Transactions record, with the Type field set to Mark A/R to Market, is also created to reflect the gain or loss in the organization's functional currency. If the gain or loss is zero, no Scheduled Transactions record is created.
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An organization, whose functional currency is U.S. dollar, takes an order on January 1st for 10 units of Widget A at ¥1200 per widget. The currency spot rate on the date of the order is ¥125 to $1 making the U.S. dollar value of the transaction $96. Payment on the order is made on February 15th in the amount of ¥12000, but the currency spot rate at the time of the payment is ¥115 to $1 which means there is a gain in the value of the transaction becaU.S.e of the change in the currency spot rate for that order. The U.S. dollar value of the receivable increases to $104.35. When the Payments record is saved, Aptify creates another Order Currency Spot Rates record for the order, the payment GL entries, and the Scheduled Transactions record, which reflects the gain on this transaction ($104.35 - $96 = $8.35).
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