Field help (CNVECAR)

This function automatically generates the conversion variances for the accounts managed with currencies whose Assessment method is assigned.

You have two options for the account setup:

By journal entry – Calculation based on detailed journal entries

If this assessment method is chosen, three evaluation types are eligible in the Evaluation type field: Fixed rate, Lower-value principle, or Higher-value principle.

It is calculated for each unmatched or partially matched journal entry by determining the difference between the balance in local currency of the journal entry and the balance in ledger currency valued at the new exchange rate.

By account balance - Calculation based on account balance (BALANCE table)

Whether or not the account is associated with a specific currency, the variance is assessed by the difference between the account balance in local currency at the end of the period and the balance in Ledger currency valued at the new exchange rate.

When processing the conversion variance calculation, carry-forward amounts are taken into account as soon as the indicated start date matches the fiscal year start date of the calculated ledger type.

With this method, you have the option to enter a Pivot currency to calculate a triangular conversion. This only applies to manual ledger types where the pivot currency is different from the ledger currency of each of the selected company for the chosen ledger type.

The pivot currency is not considered when the selected ledger type is associated with one or more automatic ledgers. In this case, the direct conversion calculation is applied to the automatic ledger types.