An income statement account to which you post the amount by which a transaction decreases in its functional-equivalent value when you revalue it at a new exchange rate or when you apply a payment.
The loss occurs when an invoice was paid, and you receive less money in the functional currency than you expected.
General Ledger Account Numbers
Enter the general ledger account numbers for:
Payables Control
A liability account which contains the total amount payable to all vendors assigned to the control account set. The account is credited when invoices or debit notes are posted, and debited when payments or credit notes are posted.
The word "control" in the account name means that the account contains only totals, whereas the information stored by the Accounts Payable program contains details at the transaction-distribution level.
If all transactions are processed correctly, the total of all Payables balances in the Accounts Payable system balances with the totals in the Payables control accounts in your general ledger.
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Purchases Discount
An income statement account which is credited with discounts taken for early invoice payment.
- Prepayment
An asset account to which prepayments are debited. The account is credited when prepayments are applied to invoices or refunded.
- Retainage
A liability account to which you post amounts you withhold (holdbacks) on vendor invoices.
In a multicurrency system, if the account set uses a different currency than the functional currency, you must also specify the currency code and the following accounts:
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Unrealized Exchange Gain and Unrealized Exchange Loss
These accounts are available only if you selected the Realized and Unrealized Gain/Loss accounting method in the Company Profile, in Common Services.
They are income statement accounts to which you post the amount by which a multicurrency transaction increases or decreases, respectively, in its functional-equivalent value when you revalue it at a new exchange rate.
A gain occurs when a transaction decreases in value. A loss occurs when the transaction increases in value.
The gain or loss is "unrealized" because the transaction is not completed (that is, you have not paid it) and the exchange rate for the transaction can continue to change until it is fully paid.
- Exchange
Gain
An income statement account to which you post differences arising from fluctuating exchange rates when you revalue a transaction at a new exchange rate or when you apply a payment to it.
A gain occurs when changes in the exchange rate cause an decrease in the functional-equivalent amount you owe to a vendor.
- Exchange
Loss
An income statement account to which you post differences arising from fluctuating exchange rates when you revalue a transaction at a new exchange rate or when you apply a payment to it.
A loss occurs when changes in the exchange rate cause an increase in the functional-equivalent amount you owe to a vendor.
- Exchange
Rounding
Specify an income statement account that is updated with differences that arise when converting amounts from source currencies to the functional currency.