on 06-19-2014 1:30 PM
Hi Experts,
I am facing some issues in foreign currency surrender in Travel Management.
Example:-
An employee goes on a foreign trip in which he takes advance in USD. After returning from the trip, if any USD balance is there then he returns it to company. If the exchange rate falls or increased, then company books it as gain or loss to comany. How the same can be handled in Travel Expense Report. Below is an example of the same.
USD | Exchange Rate | INR | |
Advance taken | 550 | 65 | 35750 |
Expenses claimed | 500 | 65 | 32500 |
Difference | 50 | 65 | 3250 |
But Returned to company in less exchange rate | 50 | 60 | 3000 |
Loss on Exchange | 250 |
Regards,
Daniel
Hi Daniel,
I faced somewhat similar issue (w.r.t currency rate fluctuation), you can go through the below thread and links for more information.
Thanks,
AB
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you have to suggest to make trip start day as the day the Cash advance has is taken. Moreover this will be the day first FI posting of the cash advance would have taken place against the employee vendor.
While claiming expenses, any leftover amount needs to be entered using the receipt date of the day cash advance is issued. provided you have made a separate expense type for returning leftover cash advance. This will make the expenses system to pick the rate amount was borrowed.
The above process makes the expenses system well balanced as well as the corresponding FI postings.
The Currency gain and loss will then be calculated in FI as per the foreign currency valuation configuration
-Hemendra
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Hi Daniel,
I am also having the same requirement. Need to capture the exchange gain/loss for every international trips.
Have you come across any solution for this already ?
Best regards
Madhu
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Hi Daniel,
how the traveler returns the 50 USD?
If he/she got a cash advance - and than return 50 USD in cash I don't see your case 😉
At the end from my knowledge you can create an own expense type where you manual enter an amount.
Best regards,
Sigi
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HI Sigi,
The problem is, during a International trip. While taking the advance, the exchange rate of USD is something & while returning or excess expenditure the exchange rate is different. Because the posting to be done in INR & the expenses are adjusted against the advance.
But when there is a change in the exchange rate then the whole advance is not adjusted. SO to adjust the same the balance amount to be adjusted as gain or loss to the company a/c.
Regards,
Daniel
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