Accounting of Monetary Variation - FINA350 - Financials - P12

01. OVERVIEW

When there are transactions in foreign currency in the Financials environment, the entries must be monetarily adjusted to calculate the difference between the issue date and the base date of pending bills in hard currency. This difference is the monetary variation, which must be entered in Accounting.

Use this process when you need to account the currency variation in the period in which the bill was posted (day-day).

02. EXECUTION

To account the the indexation:

Find these options in the Financials module menu: Miscellaneous > Accounting > Indexation Accounting (FINA350)
On the homepage, a description of the routine is displayed.
Click "Parameters" The system displays the parameter screen.
Configure them according to the field help instructions.
Notice the following parameters:
1. Accounting by ? The system allows control of the monetary variation by Customer/Supplier in addition to individual control (by bill). allows reconciliation between the Subsidiary Ledger and the Ledger.
2. Currency sales rate? Currency rate for the adjustment in the bills receivable.
3. Currency acquisition rate? Currency rate for the adjustment in the bills payable.
Check the parameters and confirm them. The system goes back to the routine description screen.
Confirm to start processing.

03. PARAMETERS APPLIED

Question	Description
Portfolio ?	Select if the portfolio to be considered for the calculation of the monetary variation will be receivable, payable or both.
Currency ?	Select the currency to be used for the calculation of the monetary variation. Bills in currencies other than the selected one will be disregarded when processing the calculation.
Display Entries?	Select "Yes" so accounting entries are displayed at the end of the transaction. Otherwise, select "No".
Group Entries?	Select "Yes" so entries related to the same account are grouped in a single entry. Otherwise, select "No".
Account by?	Enter whether the monetary variation will be calculated by "Bill", making the entry "bill by bill" or by "customer/supplier", where the total of each customer or supplier will be calculated and entered.
MV on bill with rate contracted ?	Enter whether there will be the calculation of monetary variation for bills that have a contracted rate. The monetary variation of these bills will not be made based on the rate contracted, but based on the difference of daily rates.
Future issue bill ?	Select "Yes" to consider bills whose issue date is later than base date.
Currency sales rate?	Enter the sales rate of the currency selected, which is used to calculate indexation.
Currency purchasing rate?	Enter the purchasing rate of the currency selected, which is used to calculate indexation.
Consider Advance Payments ?	Select (Yes) to consider prepayment bills (RA/PA).

Parameter	Description	Default Content
MV_CTBFLAG	It allows the recording of accounting flags to be contracted within the transactions of the SIGACTB or not.	F
MV_CNFI350	It indicates whether monetary variation of provisional bills must be accounted by the Management of Contracts module.	T

04. ENTRY POINTS

Below is the list of entry points available in the Accounting of Monetary Variation (FINA650)routine:

Entry Points	Note
F350CONF	It enables you to confirm whether you want to run the accounting of monetary variation. Document: {+}https://tdn.totvs.com/x/RE36Hg+
F350SE1	It validates each bill receivable information, which will be part of the indexation. Document: {+}https://tdn.totvs.com/x/V1H6Hg+
F350CM	It enables you to edit the value of the variation that will be accounted for the accounts receivable. Document: {+}https://tdn.totvs.com/x/dGD6Hg+
F350GE1	It enables you to manipulate the variable VALUE, which will be updated in the accounting and recording of the indexation of the accounts receivable. Document: {+}https://tdn.totvs.com/x/FmH6Hg+
F350CM2	It enables you to edit the value of the variation that will be accounted for the accounts payable. Document: {+}https://tdn.totvs.com/x/VVj6Hg+
F350GE2	It confirms the selection of the bill for accounting. Document: {+}http://tdn.totvs.com/pages/viewpage.action?pageId=6071024+

05. STANDARD ENTRY

SE

Generator Fact

ON (FINA350)

OFF (CTBAFIN)

598

Monetary Variation - Accounts Receivable

Yes

No

599

Monetary Variation - Accounts Payable

Yes

No

Important!

Both in the variation and in the indexation, we have the option to be an ACTIVE or a PASSIVE adjustment/variation.

Active = Positive valuePassive = Negative value

Because the negative values are not saved in the accounting, the configuration of the standard entries must use the ABS() function. Example: CT5_VALOR = ABS(VALOR)

06. EXAMPLE OF USE

Consider the addition of a bill payable in the amount of $ 2,350.00 in currency 2, informing a conversion rate of 2.1400 in the field Currency rate (E2_TXMOEDA) on March 20.

Monetary variation routine run on April 30, with the following purchasing conversion rate: 2.0800.

The rate entered is used for conversion, resulting in a monetary variation of -141.00 in relation to the strong currency.

Calculation formula: {(2.0800 - 2.1400)*2,350.00} = -141.00

Then, the acquisition rate of 2.0800 entered in the Accounting of Monetary Variation is saved in the field "Indexation Rate" (E2_TXMDCOR) of the bill payable and used as base for the next monetary variation calculation.

On May 31, the monetary variation routine is executed with the following conversion rate: 2.1300.

The rate entered is used for conversion, resulting in a monetary variation of 117.50 in relation to the strong currency.

Calculation formula:{2.1300 - 2.0800)*2,350.00} = 117.50

The system updates the field Indexation Rate (E2_TXMDCOR) of the bill payable with the acquisition rate of 2.1300 that will serve as base for the next monetary variation calculation.

07. OTHER INFORMATION