Aging-Base Currency

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Assuming there was an invoice raised to customer JTL of USD1,000 at the rate of 1.322.40 dated 07/11/2010, as shown below.

If your reporting currency is not USD,for month end or year end reporting purposes, this USD invoice (or all foreign currencies) outstanding bills owed by customer
need to be converted to the reporting currency.

To print the aging report of a foreign currency outstanding invoice, you need to take note that if you choose to print in base currency,
you can choose to report the same USD1,000 to be converted using table rate rate or transaction rate.

This topic is to demonstrate the difference between using the table rate or transaction rate when printing the customer aging report.

Frequently asked question : When to use the transaction rate or table rate ?

Answer : Depending on your reporting requirement or consult your auditor.

 

1)  If you revalue your customers and suppliers, select Table rate;

           Example : if aging date is 12/12/2010, USD rate selected will be 1.28000, or $1,280.00 for USD1,000.00
                            (Falls in the 1/12/2010 - 31/12/2010 date range)

                           if aging date is 15/11/2010, USD rate selected will be 1.32000  or $1,320.00  for USD1,000.00
                             (Falls in the 1/11/2010 - 30/11/2010 date range)

2) Select Transaction rate; when you do not revalue your customers and suppliers' accounts
    In the above example the rate is 1.32240000, regardless of the aging date selected,

 

Continue the topic : Aging - by table rate  or Aging - by transaction rate

 


Related Topics

Aging by foreign currency

 

Revaluation at month end

 

 

 

 

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