Monthly Foreign Currency Realisation Process

Monthly Foreign Currency Realisation Process

In JobBag, foreign currency transactions are converted into local currency based on the transaction date. For example:

• If a Thai Baht (THB) transaction is posted on 23 July 2025, it will convert to AUD (system currency) at the exchange rate for that date.
• If the same Thai Baht (THB) amount is cleared on 10 August 2025, it will convert at the August rate.

The difference between these conversions creates an unrealised balance in the system currency (AUD). To ensure accurate reporting, these unrealised balances need to be realised each month before running the foreign currency restatement.

This guide explains how to identify and process these amounts.

Process Overview

1. Run the Foreign Currency Restatement Report
   • Go to: Reports menu > Financial Reports > Foreign Currency Restatement Report
   • Select the reporting period (e.g. September).
2. Identify Unrealised Amounts
   • Look for transactions where the Foreign Currency Amount = 0.00 but a system currency amount (e.g. AUD) is posted.
   • Example: THB 0.00 with AUD166.95
3. Confirm in the General Ledger

   • Go to: Ledger menu > Transactions

     Filter by details from the report, e.g.:

     • GL Account: 11040100
     • Division: Australia
     • Source Currency: THB
     • Amount: AUD166.95
4. Create a Realisation Journal

   • Go to: Ledger menu > Create General Journal

     Enter a journal to realise the identified amount:

     • Tick Show all currency amounts
     • Unlock the Changing Rates padlock
     • Select the correct Division
     • Set Foreign Currency to 0.00
     • Enter the AUD166.95
   • Post the journal.
   • Refresh the screen to confirm that the balance for that division/currency is now 0.00.
5. Restate the General Ledger
   • Run the monthly restatement.
   • The previously unrealised amount will no longer appear, and no unrealised journal will be created.

Important Notes

• Repeat this process for all foreign currency transactions where the currency amount is 0.00 but a local currency balance remains.
• Always complete this realisation process before running your monthly foreign currency restatement.