The efficient posting of exchange rate differences for foreign currency documents is controlled in Kontera via specific settings in the organization base data and currency options. By precisely defining the corresponding accounts for accounts payable, accounts receivable, and direct entries, you ensure correct bookkeeping across all currencies.
Exchange rate differences, currency loss – currency profit
When posting reconciled documents in foreign currencies (such as invoices paid by credit card or accounts payable invoices reconciled via bank transaction), exchange rate differences can occur.
Example
Kontera posts such an invoice as follows:
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The original invoice amount is converted into the main ledger currency (in this case CHF) according to the configured foreign exchange rate (in this case the ESTV monthly average rate)
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The bookkeeping shown is kept on an accrual basis, which is why the invoice is posted via the accounts payable collective account
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According to the credit card statement, the amount was paid the following day. This results in 2 postings:
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First, the CHF 28.55, which corresponds to the invoice amount. Since different exchange rates are used (the configured foreign exchange rate and the rate of the bank or credit card company), an exchange rate difference arises. This is shown separately
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Second, the CHF 0.45 expenses.
The whole thing looks like this:
To which accounts does Kontera post such exchange rate differences?
Resulting exchange rate differences are posted to different accounts - depending on the posting type:
Accounts Payable
For the posting type Accounts Payable, the following order is used to determine the exchange rate difference account:
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Under "Settings → Organization settings → Accounting → Accounts Payable", the account for exchange rate differences can be selected:
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In the case of the main ledger currency CHF: If no account has been selected directly, Kontera looks for account 4906 (according to the Swiss standard, the account for exchange rate differences in the area of expense reductions)
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If no account is found this way, Kontera looks for an account according to "Direct Entry" (see below)
Accounts Receivable
For the posting type Accounts Receivable, the following order is used to determine the exchange rate difference account:
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Under "Settings → Organization settings → Accounting → Accounts Receivable", the account for exchange rate differences can be selected:
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In the case of the main ledger currency CHF: If no account has been selected directly, Kontera looks for account 3806 (according to the Swiss standard, the account for exchange rate differences in the area of revenue reductions)
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If no account is found this way, Kontera looks for an account according to "Direct Entry" (see below)
Direct Entry
For the posting type "Direct Entry", the following order is used to determine the exchange rate difference account:
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On the currency: Under "Settings -> Base data -> Currencies", different accounts for currency profit and currency loss can be entered for each currency.
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Under "Settings → Organization settings → Accounting → Currency", the accounts for currency profit and currency loss can also be entered.
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In the case of the main ledger currency CHF: If no account has been selected directly, Kontera looks for account 6999 (according to the Swiss standard, the account for currency profits in the area of financial revenue) or 6949 (according to the Swiss standard, the account for currency losses in the area of financial expenses)