[Question] Foreign Currency Valuation in Pastel Partner

[JennyMac]

Good Day All

I have been finding quite a few answers on this forum, to my Pastel problems in the past, thank you to all involved.

Currently I am busy with my Year End and this is the first year we used the multi-currency add on in Pastel. What I would like to know is how Pastel does the Foreign Currency Valuation and how does it calculate the profit/loss on foreign currency at the end of each month. If someone is out that that is familiar with this process, I would appreciate it if they could explain the calculation process to me.

Thanks,
Jenny

[ulbricht]

Good day

1. the balance of a foreign currency a/c is derived from the individual transactions that have their individual rates

2. at month-end, you may want to know the true value of the foreign currency a/c balance based on that day's rate or another calculated rate

3. the foreign currency revaluation procedure then calculates (revalues) the foreign currency balance based on the rate that you selected (that is, factor the rate on the home balance)

4. the difference between the recalculated (revalued) balance and the running balance from the individual transactions is then said to be the gain or loss on forex.

hope was able to assist

[JennyMac]

Thank you Ulbricht, this is a great help. Will make some corrections going forward by using daily exchange rates in stead of monthly averages.

K.rgds,
Jenny