Agio calculation
GL account used when agio is created during period closure in PAR. Used as an offset account. 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.
Agio calculated during period closure in PAR (tab:agio) is posted to the general ledger account set up in the archive Account Defaults (ACD): Period Closure Agio.
Exchange Rates on Customer and Supplier Payments
If agio setting is activated on GL Account for Account Receivables and Account Payables, exchange rate on payments will be handled this way
For all invoices or credit notes that are linked to a payment and where the invoice or credit note is 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 during the period closure agio calculation.
For all invoices or credit notes that are linked to a payment and where the invoice or credit note is registered in the same period as the payment, exchange rate from the transaction document will be used to calculate the value in local currency.
If agio setting is not activated on GL Account for Account Receivables and Account Payables, exchange rate on payments will be handled this way:
Regardless of if the invoice or credit note that is linked to a payment, is registered in an earlier period or in the same period as the payment, exchange rate from the transaction document will be used to calculate the value in local currency.
ACD/PAYCURADJ - Currency deviations on payments
GL account for Currency Deviations on Payments.
Scenario Example:
Payment Currency: NOK (Norwegian Krone)
Invoice Currency: EUR (Euro)
In this example:
The sales invoice is for 12,500 EUR, registered on 2023.04.12 with an exchange rate (RATE) of 11.5435.
The payment has a CURDATE of 2023.10.04, with a RATE of 11.4258.
The exchange rate from the end of the previous period (2023.09.30) was 11.2535.
Calculation of Currency Adjustment (CurAdj)
The CurAdj field reflects the currency deviation, calculated as follows:
Determine the Payment Value in Local Currency (NOK): 12,500 EUR * 11.4258 (CURDATE RATE) = 142 822.50 NOK
Determine the Invoice Value in Local Currency (NOK) Based on Previous Period RATE: 12,500 EUR * 11.2535 (2023.09.30 RATE) = 140 668.75 NOK
Calculate the Currency Adjustment: 142 822.50 NOK – 140 668.75 NOK = -2 153.75 NOK
The resulting currency adjustment of -2,153.75 NOK reflects the loss (or gain) due to exchange rate fluctuations between the invoice registration and payment dates.
Inspecting the CurAdj Field
The CurAdj field includes an Inspect feature:
Clicking this allows you to view a detailed report of the currency loss or gain for the selected invoice and any credit notes linked to the payment.
This report helps trace and verify how the deviation was calculated.
GL Posting
This currency deviation is automatically posted to the GL account configured in the Account Default (ACD) settings under Currency Deviation on Payments. Ensure the correct account is set up in the system to handle such postings.
Explanation to the «DevAmt»
Differences due to different exchange rate in bank and RamBase. This is the difference between the value of the invoice based on RATE of the CURDATE and what is received in bank. This deviation in «DevAmt» could also contain of for example bank fees.
Example Calculation:
Invoice amount: 12 500
Exchange rate on CURDATE: 11.4258
Invoice value in base currency: 12 500 ×11.4258 = 142 822.50
Amount received in the bank: 142,570.50
Difference (DevAmt): 142,570.50−142,822.50=−252
The user must decide how to post this deviation to the General Ledger (GL). This process is performed manually. The accounting for the above payment will look like this:
ACD/EXCHANGE - Currency exchange
GL account used when payments in foreign currency is posted to General Ledger:
When payment and invoices/credit notes have different currencies, additional posting is made to balance out the GL postings.
When a payment has many invoices and credits with different exchange rates, GL postings may not balance because of round offs on calculated average exchange rates. Additional posting for exchange rate difference is then made, if this difference is less than given in CompanySetting "MaxPaymentCurrencyDeviationOnLedgerSpecification".
Example Impact on GL Account
Scenario: Currency Deviations on Payments
Calculate the invoice value from USD to the base currency (NOK):
Based on the last day of the previous month: 6,600 USD×10.9139=72 031.74 NOK
Based on CURDATE: 6,600 USD×10.6225=70 108.50 NOK, Difference: 72,031.74−70,108.50=1 923.24 NOK
Convert the NOK difference to EUR (PAY is for a Euro bank account): 1,923.24 NOK÷11.4258=168.32
Postings to «ACC/8060»:
When the amounts in USD and EUR are exchanged to NOK, two EUR postings are created because of the currency posting.
Typically, only minor round-offs are posted to this account due to rounding of exchange rates and two-decimal resolution in GL.
The effect on ACC/8060 for this payment will be:
ACD/VATRATEADJ - Vat rate adjustment on Invoices and Credit Notes
This GL account is used when VAT adjustments are needed due to differences between the VAT rate and the exchange rate on invoices or credit notes.
Example Scenario:
An inbound invoice (SIN) has a VAT rate (VATRATE) that differs from the exchange rate (RATE):
RATE: 11.4258
VATRATE: 11.2535
VAT amount: 250 EUR
Calculation:
Convert VAT amount using RATE: 250 EUR×11.4258=2 856.45 NOK
Convert VAT amount using VATRATE: 250 EUR×11.2535=2 813.375 NOK
Difference: 2,856.45−2,813.375=43.08
Accounting Impact:
This difference of 43.08 NOK is posted to ACD/VATRATEADJ.
The accounting will look like this:
