Processing (SL settings)

Select Use foreign currency revaluation to revalue invoices paid in foreign currency to their value in base currency.

This uses the exchange rate set in the foreign exchange rate table. The exchange rate table should be updated regularly to ensure the correct exchange rates are applied to transactions.

The current system exchange rate is used by default when you enter a transaction. You can override this at the time.

This exchange rate is used when the transaction is converted to base currency and posted to the Nominal Ledger.

As exchange rates can fluctuate between the time the transaction was entered and when the invoice is paid, the exchange rate applied to the transaction and the actual exchange rate the customer pays can differ.

When using Foreign currency revaluation, the exchange rates on the two transactions (the invoice and the receipt) are compared when they are allocated. If these are different, the exchange loss or gain is calculated and posted to the currency adjustments and debtors control account in the Nominal Ledger.

If you do not select foreign account revaluation then the exchange rates are not compared and no Nominal Ledger postings are made.

You can also revalue any outstanding transactions using the Foreign Account Revaluation option in the Period End Routines.

• Specify which transactions are to be printed on statements from the Transactions to show drop-down list.

  All transactions	Select this to print all transactions for the account.
  Outstanding transactions only	Select this to print only those transactions that have an outstanding balance.
  Outstanding plus all from specified date	Select this to print only those transactions that have an outstanding balance and fall in a range of dates.

• Specify how to age debts on statements. Select from the Ageing drop-down list. You can age debts according to the:

  Use Transaction Date	The time elapsed from the transaction date.
  Use Due Date	The time elapsed from the due date.
  Use Ledger Period	The accounting period of the transactions included in the statement.

If you want to add interest or finance charges to overdue unpaid invoices, you can specify the interest charge rates that you want to use here.

When you want to charge a customer interest on their overdue invoices, you assign a Charge index code to the relevant customer accounts on the account Credit tab.

There are 20 Charge Index codes.

• Enter the Percentage Charge you want to use for as many Charge Indexes you want to use. Leave the remaining Percentage Charges as 0.
• Select Charge compound interest on finance charges to add interest to finance charges already calculated on any remaining overdue debts.

Once you have specified the interest rates that you want to use and added the required interest rates to your customer accounts, you can generate your finance charges. This allows you to add interest to any overdue invoices.

Where interest is added, invoice transactions are added to the customer's account with the query flag set to F, and the reference as FIN CHARGE.