Net Settlements with Foreign Currencies

Foreign Currency:

Augtool allows you to net settle Foreign Currency Purchase Invoices, Sales Invoices and Journals. These may be the same Foreign Currency eg Dollar to Dollar transactions or different Foreign Currency transactions eg Dollar and Euro. 

The Net Settlement View displays the net settlements in Base Currency. However it has a currency selector which allows you to view the net settlements associated with a specific currency.

Should there be any variances in the rates of the invoices or Foreign Exchange amounts, Augtool will write this off to the Forex Variance Account. Therefor the Forex Varinace Account needs to be setup in Defaults in Business Units.

a) Net Settlement with the Same Foreign Currency:

Once you select 2 invoices to offset against each other, Augtool will display the available balances on those invoices. You will then be able to put in the Foreign currency amounts and Augtool will calculate the base currency equivalents based on the exchange rate that was done in the invoices. 

b) Net Settlement with different Foreign Currencies

Augtool allows you to net settle invoices that have different currencies. Any difference in the invoice rates or Foreign exchange amounts will be accounted for in the Forex Variance Account.

c) Net Settlement with Journal Entries with Foreign Currencies

Augtool allows you to net settle journal entries against invoices. If you do a journal entry to a customer account, that entry appears as unallocated in the customer account. In Augtool you can 'allocate' the journal to the invoice by net settlement. 

Augtool allows you to net settle for foreign currencies that are the same as well as 2 different foreign currencies. Any differences in rates or foreign currency amounts will be accounted for in the Forex Variance account.