Foreign Currency Realisation Process

Foreign Currency Realisation Process

In JobBag, foreign currency amounts are converted to local currency based on the transaction date. This can create differences when the same foreign currency amount is cleared on a different date. The resulting difference is recorded as an unrealised balance.

To ensure accurate reporting, these unrealised balances need to be realised before running your monthly or yearly restatement.

This guide explains how to:

• Realise foreign currency transactions
• Realise foreign currency bank balances

At a minimum, this process should be completed yearly, but monthly realisation is recommended for more accurate reporting.

Part 1: Realising Foreign Currency Transactions

Example

• A THB transaction is posted on 23 July 2025 → converted to IDR at the July rate.
• The same THB amount is cleared on 10 August 2025 → converted to IDR at the August rate.
• The variance between July and August creates an unrealised balance.

Steps

Step 1: Run the Foreign Currency Restatement Report

• Navigate to: Reports > Financial Reports > Foreign Currency Restatement Report
• Select the period (e.g. September).

Step 2: Identify Unrealised Amounts

• Look for entries where the Foreign Currency Amount = 0.00 but a local currency amount (e.g. IDR) is posted.
• Example: THB 0.00 with IDR 292,247,245.30.

Step 3: Confirm in the General Ledger

• Navigate to: Ledger > Transactions

  Filter using details from the report, for example:

  • GL Account: 11040100
  • Division: Indonesia
  • Source Currency: THB
  • Amount: IDR 292,247,245.30

Step 4: Create a Realisation Journal

• Navigate to: Ledger > 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
• Post the journal.
• Refresh to confirm the GL balance for that division/currency is now 0.00.

Step 5: Restate the General Ledger

• Run the monthly restatement again.
• The unrealised amount will no longer appear, and no new unrealised journal will be created.

Part 2: Realising Foreign Currency Bank Balances

Foreign currency bank balances also need to be realised to clear any unrealised journals created during restatement.

Steps

Step 1: Complete the Bank Reconciliation

• Ensure the bank reconciliation is finished and fully reconciled for the period (e.g. September).

Step 2: Restate the General Ledger

• Navigate to: Ledger > Restate General Ledger
• Run the restatement for the month.

Step 3: Run the Foreign Currency Restatement Report

• Navigate to: Reports > Financial Reports > Foreign Currency Restatement Report
• An unrealised journal will be created for the bank account.

Step 4: Create the Realisation Journal

• Navigate to: Ledger > Create General Journal
• Enter a journal to realise the foreign currency bank balance.

Step 5: Run the Restatement Again

• Run the restatement report once more.
• The unrealised journal for the bank account will now be reversed.

Notes

• Perform this process monthly for more accurate management reporting, or at a minimum yearly.
• Repeat for all foreign currency transactions and balances where unrealised amounts appear.
• Once realised, balances will no longer be reported as unrealised in the Foreign Currency Restatement Report.