Currency for Transfer Out Adjustments

With “Transfer out” adjustments, if the bank accounts use the same currency, there are no exchange rates. If the banks accounts use different currencies, there are up to three exchange rates to consider:

• Currency for ‘transfer out’ bank account to currency for ‘transfer in’ bank account

  Screen Item	Description
  Transfer out amount	This field shows the adjustment amount in the ‘transfer out’ or withdrawal account’s currency format.
  Currency	This field shows the ‘transfer out’ or withdrawal account’s currency format.
  Enter the exchange rate for the transfer	To determine Transfer in amount based on an exchange rate, select this field. Use this option when you know the exchange rate, but not the exact amount transferred into the deposit account.
  Exchange rate	If you select Enter the exchange rate for the transfer, in the Exchange rate field, select the type of exchange rate to use to convert the ‘transfer out’ amount from Currency to the ‘transfer in’ bank account’s currency. The exchange rates are based on the rates configured for the adjustment date. If you select Spot rate, enter the conversion rate to use.
  Transfer in amount (under Enter the exchange rate for the transfer)	This is the product of Transfer out amount and Exchange rate. It represents Transfer out amount in the ‘transfer in’ account’s currency.
  Enter the transfer in amount and create a spot exchange rate	If you know the transfer in amount, select this field. Use this option when the bank provides you with the exact amount transferred into the deposit account.
  Transfer in amount (under Enter the transfer in amount and create a spot exchange rate)	If you select, Enter the transfer in amount and create a spot exchange rate, enter the transfer in amount. The program calculates a spot rate based on the transfer out amount and the transfer in amount.
  Spot rate	This is the ratio of Transfer in amount to Transfer out amount. It represents the spot exchange rate for the ‘transfer out’ account’s currency to the ‘transfer in’ account’s currency.

• Currency for ‘transfer out’ bank account currency to base currency

  Screen Item	Description
  Transfer out amount	This field shows the adjustment amount in the ‘transfer out’ or withdrawal account’s currency format. This field shows the same amount as Transfer out amount in the first section.
  Currency	This field shows the ‘transfer out’ or withdrawal account’s currency format. This field shows the same currency as the Currency field in the first section.
  Exchange rate	In the Exchange rate field, select the type of exchange rate to use to convert the ‘transfer out’ amount from Currency to the base currency. The exchange rates are based on the rates configured for the adjustment date. If you select Spot rate, enter the conversion rate to use. This exchange rate is different from the exchange rate in the first section.
  Base amount	This is the product of Transfer out amount and Exchange rate. It represents the Transfer out amount in the base currency.

• Currency for ‘transfer in’ bank account to base currency

  Screen Item	Description
  Transfer in amount	This field shows the adjustment amount in the ‘transfer in’ or deposit account’s currency format. This field shows the same amount as Transfer in amount in the second section.
  Currency	This field shows the ‘transfer in’ or deposit account’s currency format.
  Exchange rate	In the Exchange rate field, select the type of exchange rate to use to convert the ‘transfer in’ amount from Currency to the base currency. The exchange rates are based on the rates configured for the adjustment date. If you select Spot rate, enter the conversion rate to use.
  Base amount	This is the product of Transfer in amount and Exchange rate. It represents the Transfer in amount in the base currency.

  For example, assume your organization has a base currency of US dollars and you have banks accounts with currencies of Canadian dollars and Mexican pesos. To transfer out of the Mexican pesos account to the Canadian dollars account, these exchange rates apply:

  • Mexican pesos account (transfer out) to Canadian dollars account (transfer in)

  • Mexican pesos account (transfer out) to base currency

  • Canadian dollars account (transfer in) to base currency

  The exchange loss or gain is the difference between the base amounts related to the second and third exchange rates.