Use

When you post taxes in foreign currency as deferred taxes, and then transfer them some days later, their value in your currency will have changed due to fluctuations in the exchange rate. The system automatically posts any exchange rate differences, as illustrated in the following example.

Example

Assume that your local currency is the euro, and that you receive an invoice from a vendor located in Sweden . The invoice is in Swedish kronor, and is for SEK 115,000 including VAT, and the exchange rate is EUR 1:SKR 11. The accounting document looks like this:

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Now assume that you pay the invoice and you can transfer the tax from the deferred tax account to the target tax account. The value of the euro has however risen against the kronor, so that the exchange rate is now EUR 1:SEK 13. The Deferred Tax Transfer program creates the following accounting document to transfer the tax, including a line item to compensate for the missing SEK 30,000:

( )

Note that in this example, the program recalculates the taxes using the exchange rate on the date on which you transfer the taxes. However, you can also use the exchange rate on the invoice date or the payment date, depending on the law in your country.