Knowledge Center

Agio

Agio calculation reevaluates the book value on the balance accounts by upgrading the values from historic rate to period rate. All transactions will be posted with the currency rate on the date of registration (historic rate), but by the end of the month all transactions will be calculated with the same currency rate (period rate).

The agio calculations in RamBase are based on the rates in the Currency (CUR) application. The rates in the CUR application are yesterday's currency rates, and they are updated every morning (Monday-Friday) before 08.00 CET.

Agio calculation is optional. Only balance accounts can be agio calculated. Each of the accounts that one wishes to be agio calculated must be defined in the Agio field in the Chart of Accounts (ACC).

Balance accounts that can be agio calculated
  • Accounts receivable ledger:

    • Sales Invoices (CIN)

    • Sales Credit Notes (CCN)

    • Payments (PAY)

  • Accounts payable ledger:

    • Supplier Invoices (SIN)

    • Supplier Credit Notes (SCN)

    • Payments (PAY)

  • Bank:

    • Payments (PAY)

  • Stock:

    • Supplier Shipment Advices (SSA)

Agio calculation

RamBase has two processes for calculation of agio, both are described below. The first process is done during period closure by the user. The second one is done automatically by RamBase when registering customer and supplier payments.

Agio calculation from the Period Account Register (PAR)

Agio calculation in PAR will create 3 ATR documents:

  • CUSBAL - Agio on Account Receivable (AR).

  • SUPBAL - Agio on Account Payables (AP).

  • ACCBAL - Agio on all other GL accounts (Not AR & AP).

General ledger postings (ATR) documents for CUSBAL and SUPBAL will be calculated based on customer and supplier balances in foreign currencies. Each ATR item will have a reference to a Customer / Supplier Account and currency. The amount will be calculated based on:

  • For all transactions (CAT & SAT) that are open by the end of current period, but registered in earlier periods. Agio will be calculated based on change in exchange rate from last period to current period (Rate at the last day of the period), as these transactions already have had agio calculated last period.

  • For all transactions (CAT & SAT) that are open by the end of current period and also registered in current period. Agio will be calculated based on change in exchange rate from the transaction document to current period (Rate at the last day of the period).

ATR document with transaction type ACCBAL will handle all other GL accounts (Not AR & AP) and agio will be calculated this way:

  • For all transactions (ATR items) that are registered in earlier periods. Agio will be calculated based on change in exchange rate from last period to current period (Rate at the last day of the period), as these transactions already have had agio calculated last period.

  • For all transactions (ATR items) that are registered in current period. Agio will be calculated based on change in exchange rate from ATR item that are registered to current period (Rate at the last day of the period).

Example
  • Your system currency is USD.

  • You have a CIN for 100 EUR.

  • The day the CIN was registered (St:4) the rate was 1,1.This means that the value of this CIN in your system currency is (100*1,1) = 110 USD.

  • The registration of the CIN generates an open post in the Accounts receivable ledger for 110 USD.

  • On the last day of the month the rate was 1,2 (Period rate).

  • By the end of the month the open post was agio calculated based on the period rate and the currency rate on the date of registration.(100*1,2) - (100*1,1) =  10This means an agio profit of 10 USD.

If the CIN is not paid by end of the next month, the open post will be agio calculated from the previous period rate to the new period rate.

  • The new period rate is 1,4.

  • (100*1,4) - (100*1,2) = 20This means an agio profit of 20 USD.

Relevant report: FRP > ACCBAL > GL Account Balances, from AGIO calculations.

Exchange Rates on Customer and Supplier Payments

The way RamBase handle agio on payments are depending on if agio is set up on GL Account for Account Receivables and Account Payables. If agio is not used, RamBase will use the exchange rate from the transaction document (Meaning the second method described below will always be used).

If agio is used on GL Account for Account Receivables and Account Payables, exchange rate on payments will be handled this way:

  • For all invoices and credit notes that are linked to a payment and registered in an earlier period than the payment. Exchange rate from the end of last period will be used to calculate the value in local currency, as these transactions already have had agio calculated last period.

  • For all invoices and credit notes that are linked to a payment and registered in the same period as the payment. Exchange rate from the transaction document will be used to calculate the value in local currency.