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Describes how to enter FX rates and create gain or loss on FX entries.
To utilize FX within Occupier, you need to go to the "Close Books" section:
Select the Fiscal Period desired to input the FX rates. Then select the legal entity you would like to input the FX rate for.
Note: You must close books chronologically. For instance, if you want to close December 2023, you will need to close January - November 2023 first to ensure every period has the appropriate FX. In addition, children subsidiaries must be close before parent legal entities.
Ensure you have verified your close readiness and no leases are not in a Complete state to ensure all leases are included in the journal entries.
Go to "Provide FX rates/conversion" and input the necessary Exchange Rates. The functional currencies populated will be based on the underlying leases functional rate and the legal entity's reporting rate. If you have a high volume of FX rates to enter, you can also import these rates by following the instructions outlined within this article: How do I Import FX Rates?
- Historic rate at commencement: The exchange rate at the Lease Commencement. Used to establish the lease commencement date values.
- Avg. exchange rate during period: The average exchange rate during the period. Used to calculate the unrealized gain/(loss) FX amount related to lease expense.
- Period end exchange rate: The period end exchange rate. Used to calculate the unrealized gain/(loss) FX associated with the lease liability balance.
Once you hit "Save & Continue", you can preview your entries and trial balance. When reviewing your entries, be sure to review the Gain/(Loss) on FX impact.
If everything looks accurate, you can hit "Close & Lock Entries" within the "Preview Trial Balance."