Loan Performer has incorporated a functionality to carry out transactions in different currencies. You will have to register exchange rates for different periods before you can carry out any such transactions. These rates can be updated, deleted or modified in accordance to the reigning market rates.
How to add exchange rates
To add exchange rates you go to Support Files\Exchange rates and a screen like the one below shows up:
Currency: Here you select the currency that you wish to set the exchange rates for, e.g, "USD".
Period starting: Enter the date from which the exchange rate you are setting will become effective, e.g., "01/01/2017".
Rate when buying: Here you enter the rate at which you will buy the currency, e.g., "2,800".
Mid rate: Here you enter the rate that Loan Performer will use for forex transactions other than forex buying or selling, e.g., "2,900". This is also the rate that Loan Performer will use in the production of reports in different currencies.
Rate when selling: Here you enter the rate at which you will sell the currency, e.g., "3,000".
Click on the Add button to add the exchange rate of the selected currency for a particular period and repeat this for the different currencies that your organization uses.
Note that:.
1. You can add a new exchange rate only after the last exchange rate except in case where no transactions have been entered for the same currency after the current entry date.
2. You can modify an exchange rate if no transactions have been posted with this rate
3. You can delete an exchange rate if no transactions have been posted with this rate.
4. You can not delete the first exchange.
Click on the Close button to exit.
How to delete\modify exchange rates
To delete\modify exchange rates you go to Support Files\Exchange rates and a screen like the one below shows up:
From the list of the displayed exchange rates in the exchange rate dialog, click on the one that you want to delete\modify. The variables for the selected exchange rates will be displayed in the Currency, Period starting, Rate when buying, Mid rate and Rate when selling text boxes.
To Modify the rate make the necessary changes and click on the Update button. To delete the rate click on the Delete button.
Note that you can click on the Print button to view\print the forex rates and keep them for future reference
Click on the Close button to exit.
Note on Revaluation
1. Revaluation is the increment or loss of value of an account balance held in a foreign currency because of changes in the exchange rate. The increment or loss is booked to an Income or Expense account called ‘Income from Revaluation’ or ‘Revaluation Expenses’
2. Revaluation happens automatically every time a new exchange rate is entered.
3. Not all foreign currency accounts should be revalued when the exchange rate changes. P&L accounts (Income statement) should not be revalued but kept at historical cost prices. This can be defined per GL account at menu Accounts/Chart of Accounts.
4. If revaluation has already taken place by virtue of entering a new exchange rate, Loan Performer does not accept the entry of (or importation of) any transaction before the date and time when the new exchange rate was entered and the revaluation occurred.
5. LPF will present financial reports in local currency at the historic value of the GL accounts where this checkbox is not activated and not at the foreign currency value at the current exchange rate!
