Adagio Tip of the Month: Multicurrency Open Payables
Question: When running an AP Open Payables Report (Summary or Detail) with Source and Home currency selected, there are columns called UEGL and REGL. What are those?
Answer: They are the unrealized and realized exchange gains/losses that occur with fluctuations in exchange rates. They are considered unrealized until the transactions are settled.
As an example:
- $1000 USD @ 1.3 = $1300 CAD
- At month end you revalue it at 1.28 = $1280. Now you have an unrealized gain of $20 (you will have to pay $20 fewer CAD to settle the account)
- Then the vendor gives you a credit note for $100 USD @ 1.27. Now you have a realized gain of $3 plus an unrealized of $18.
- You pay the balance owed at 1.27. Now you have an additional realized of $27 and no more unrealized.
This tip was inspired by a posting on the Softrak Technical Support Forum, where registered Adagio Accounting users can post questions to get answered by Softrak, members of the Adagio Consultant community, and fellow Adagio Accounting users. Be sure to check it out!