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Finance and Accounting · Daily operations · 12 min read

Foreign exchange and month-end adjustments

Enter and approve exchange rates, revalue foreign balances, translate the trial balance, and post accruals, deferrals and recurring entries.

Required permission: fx.view, fx.manage, fx.approve, journal.prepare, journal.approve, journal.post

Before you begin

  • Permissions: fx.manage to enter rates, fx.approve to approve rates and change the revaluation policy, fx.view to read; journal.prepare, journal.approve and journal.post for recurring entries, deferrals and accruals.
  • Currencies are held in the currency master (Finance > Configuration > Currencies), shared by every company.

Enter and approve a rate

  1. Open Finance > Configuration > Exchange rates and press New rate.
  2. Choose From currency and To currency, the Rate type (spot, closing, average), the Date and the Rate (above zero). Optionally add the Source and Provider reference.
  3. Save. The rate is Awaiting approval and is not used by any posting.
  4. A different user presses Approve. An approved rate cannot be changed; record a correction on a new date.

A document in a foreign currency is converted at the approved rate on its date. With no approved rate the posting is refused; a missing rate is never treated as parity.

Revalue foreign balances

  1. Open Finance > Accounting > Exchange revaluation. Open Policy once and choose the rate type (closing is the default), when reversal happens (the day after, or when the next revaluation runs), the gain and loss accounts and whether customers, suppliers and cash and bank are revalued.
  2. Enter As at and choose the Side: Customers, Suppliers or Cash and bank.
  3. Press Show what it would do. Each row shows the foreign balance, the rate booked at, the closing rate and the adjustment. Nothing is posted.
  4. Press Post the revaluation.

Worked example. A USD invoice of 1,000.00 was booked at 3.6000 (AED 3,600.00). The approved closing rate is 3.6500, so the balance is carried at AED 3,650.00. The adjustment is a gain of AED 50.00: debit receivables 50.00 and credit unrealised exchange difference 50.00. A USD bill of 2,000.00 booked at 3.6000 gives a loss of AED 100.00.

The entry is reversed the day after (or at the next run). Reverse them now reverses those that are due. The invoice's foreign amount never changes. When the invoice is later paid, the realised difference posts on settlement.

Translate to a reporting currency

Open Finance > Accounting > Currency translation, choose From, To and Reporting currency, and press Translate. Balance sheet accounts use the closing rate, profit and loss uses the average rate and equity uses the historical rate. The translation adjustment is shown; nothing is posted.

Post an accrual

  1. Open Finance > Accounting > Accruals and press New accrual.
  2. Enter the Description, Amount, Expense account (or an asset account), Liability account, an optional Date (blank is today), Reference and dimensions such as department=ADM, and choose whether it Reverses the day after or never.
  3. Press Post the accrual.

Example: AED 2,000.00 of September electricity not yet billed debits Electricity Expense and credits Expense Accruals, and the reversal on 1 October reverses it.

Spread a prepaid expense or deferred revenue

  1. Open Finance > Accounting > Deferrals and press New deferral.
  2. Choose the Kind, the description and Amount, Released from and Released until (up to ten years), the balance account and the profit and loss account.
  3. Press Set up the schedule. A different user presses Approve.
  4. Press Release what is due each month. To stop, press Cancel the rest with a reason; posted releases stay.

Example: AED 12,000.00 insurance over 12 months releases AED 1,000.00 a month: debit insurance expense and credit prepaid expenses. A part month counts as a month and the last month takes any rounding.

Run recurring entries

  1. Open Finance > Accounting > Recurring entries and press New instruction.
  2. Enter a Name, choose the Kind (a journal entry, or a shared cost allocated by a driver such as fixed percentages, headcount, area, units or revenue), how often it Repeats and On which day. Add balanced lines. Allocations need at least two targets.
  3. Save as a draft. A different user with journal.approve presses Approve. Editing an approved instruction returns it to draft.
  4. Press Run what is due (or Run now). Each occurrence posts once for its date. A failure, such as a closed period, is recorded on the run and the instruction waits.

You can Pause, Resume, End (with a reason) or Discard a draft that has never run.

Good to know

Updated 3 October 2026