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Large unrealized gain/loss on foreign currency bank account


We have a Brazil company with a bank account in BRL currency. Group currency is USD. Exchange rates are maintained as are other settings required for currency exchange valuation and F.05 revaluation. G/L account for the bank is NOT open item managed. Revaluation is at month end on cumulative balance. BRL to USD conversion rate currently around 0.61.

Here's the issue. We have a large F.05 unrealized forex gain/loss every month, and USD balance is currently much larger than BRL balance. This is due to changes in exchange rates between when the bank account was funded (higher forex rate) and when payments were made (lower forex rate). We've been carrying this large unrealized gain/loss for a few years now. Our accountants want to realize some or all of the unrealized gain/loss. How best to do that?



Former Member
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