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Table of Contents (Online Help)

Forex Transactions

In Loan Performer both the GL Accounts and Products are bound to a currency. The features in Loan Performer that involve forex transaction include; General Ledgers, Currencies, Exchange rates, Products and Cash/Bank Accounts.

• General Ledgers: In order to start working with foreign currencies, you need to set up general ledger accounts with a foreign currency indication. This can be done at Accounts->Chart of Accounts.
• Currencies: Loan Performer allows you to set up various Currencies that you want to use. You can set the different currencies at Support Files->Currencies.
• Exchange rates: You will also need to set Exchange rates that you will use during the forex transactions. You can set these at Support Files->Exchange Rate.
• Products: You have to tag a currency to each product. For the savings products, you can do this at System\Configuration\Savings\Savings Accounts Settings. For the loan products you can do this at System->Configuration->Loan Product Settings->General Settings. You also need to setup corresponding GL accounts for these products with the same currency. It will not be possible to save a product that is linked to currency X with GL Accounts of currency Y.
• Cash and Bank Accounts: You need to define the new foreign currency cash and bank accounts. This can be done at System->Configuration->Cash Accounts and System->Configuration->Banks Account respectively.

Note that you can transact in local currency on a foreign currency account. This is done via the forex (foreign exchange) counter, i.e., under the Cash menu. However you need first to configure this at "System->Configuration->Forex Transactions"..

How to Configure Foreign Exchange Transactions

To configure Foreign Exchange Transactions you go to System->Configuration->Forex Transactions and a screen like the one below shows up:

• Foreign Exchange Commission (flat amount): Here you enter the foreign exchange commission that Loan Performer will apply while carrying out the forex transactions, e.g., "500".
• Foreign Exchange Commission (percentage): Here you enter the foreign exchange commission as a percentage that Loan Performer will apply while carrying out the forex transactions, e.g., "10".
• Foreign Exchange Commission Account: Select from the drop down the foreign exchange commission GL account to which this commission will be posted during forex transactions. This should have been defined at Accounts->Chart of Accounts or click on the New GL Accountbutton to add a new GL Account in the Chart of Accounts.
• GL Account for booking of currency valuation: Select from the drop down the GL account for currency valuations. This should have been defined at Accounts->Chart of Account or click on the New GL Account button to add a new GL Account in the Chart of Accounts.

  This account is used to book the differences that arise as a result of changes in the forex rates. For a particular currency, Loan Performer looks for the GL account balances, revalues them according to the new exchange rate and updates the GL accounts in the general ledger so that the foreign currency value equals the local currency value according to the new exchange rate.

  Note that the differences that arise as a result of the difference between the buying/selling rate and mid rate during forex transactions will also be booked to this account.

• Currency Surplus Account: Select from the drop down menu the account to which the currency surplus will be posted. This should have been defined at Accounts->Chart of Accounts or click on the New GL Account to add a new GL Account in the Chart of Accounts. This is the account used when foreign exchange transactions take place and rounding differences have to be booked off

Click on the Save button to effect the changes or the Close button to exit the menu.

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