Foreign Exchanges Features
Aedon manages its own Currency Exchanges rates separately from the native Salesforce Currency rates and are stored against each Company separately. You can have unlimited number of rates.
Aedon Currency Exchange Rates are all calculated by reference to the Company Base Currency, typically GBP Pound Sterling for UK companies. There are no cross-currency rate, for example from Dollar to Euro (if the Base Currency is Pound Sterling).
Currency Exchange Rate work on a From Date basis, so that the rate remains in force until it is superseded by a new Rate at a later date.
Currency Exchange Rates are created under the Admin Menu.
Realization of Gains & Losses
Gains and losses FX gains and losses are recognised on realization: Revaluation, Receipt, Payment or the allocation of a Credit Note or Payment on Account.
Unrealized Gains & Losses
Unrealized gains & losses on foreign currency assets and liabilities, for example debtors or creditors, are not calculated automatically. These must be calculated manually according to your own FX accounting policies and journaled manually using a Manual Journal.
FX Gain & Loss Transaction Types
| Code | Description | |
| BG | Bank Gain | |
| BL | Bank Loss | |
| PG | Purchase Gain | |
| PL | Purchase Loss | |
| SG | Sales Gain | |
| SL | Loss |
Gains and Losses are calculated for each invoice line according to the Unified Accounting approach, so that it is calculated for each Transaction Item Line.
Matching Currency to the Bank Account
FX Payments or Receipts must be made into a Bank Account of the same currency. So, for example, a Dollar Invoice must be paid into a Dollar Bank Account.
If you do not have a physical Dollar Bank Account, you must create a virtual Bank Account and then transfer the funds across.
Role of Base Currency
Every Company has a Base Currency which is used to record all the Ledger Entries. This can never be changed. Currency Exchange Rates are anchored to the Base Currency, for example, either the From or the To Currency must be the Base Currency.
Bank Transfers via Base Currency
Bank Transfers must go via a Base Currency Account to simplify the FX Gain and Loss calculation. So, for example, if your Base Currency is Pound Sterling, a Dollar to Euro Bank Transfer must be made in two parts:
- First Dollar to Pound Sterling
- Pound Sterling to Euro
