When customer and supplier invoices in foreign currency are paid in Banking Entry, or when the status of customer or supplier payments is set to Paid in Banking Entry or in the payment programs, the system automatically calculates and posts the realized gain or loss.

The gain or loss is caused by a difference in exchange rate between the date on which the invoice was created and the date on which the invoice was paid. The system posts the gain or loss in both base currency and statutory currency.

The system uses Realized Gain and Realized Loss system accounts for the gain or loss posting, and there can only be two of these accounts in each chart of accounts. The system uses the same Realized Gain and Realized Loss accounts for all foreign currencies. However, the currency code of the transaction that caused the gain or loss is added to the posting so that you can analyze realized gain and loss transactions per currency.