Unrealized gains and losses

When buying and selling in multiple currencies it can be useful to have an idea of what your expected exchange rate gains and losses are, particularly if you extend or use long credit terms, increasing the change of a large exchange rate fluctuation.

To aid in decision-making, Brightpearl has a report called the Unrealized gains and losses report. It is found under Reports > Accounts > Unrealized gains.

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The report lists all open foreign currency sales and purchase invoices - i.e. invoices which have been issued but are unpaid - along with their base currency balance at the invoice's exchange rate and the base currency balance at the current exchange rate.

It then calculates the expected gain or loss related to that transaction, should it be paid at the current rate.

When the invoice is paid, the actual gain or loss is posted to the accounts, and the invoice is removed from this report.

Filtering the unrealized gains and losses report

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The unrealized gains and losses report has the following filters:

Field Description
Search

Search for particular invoices. This field searches the following fields on the invoice:

  • Amount
  • Invoice reference
  • Order ID
  • Details
Currency Filter for invoices in a specific currency.
Created by Select invoices issued by specific staff members.
Date from/to Filter for invoices with a tax date in a specific date range.
Type Choose to display either sales or purchases.
Channel, lead source, project (accounting) Filter for invoices with specific journal assignments.
Channel, lead source, project (orders)

Filter for invoices linked to orders that use a certain channel, lead source or project.

This is particularly useful for purchase invoices.

Columns on the unrealized gains and losses report

The columns on the report are as follows:

Field Description
ID The journal ID of the invoice.
Tax date The invoice's tax date.
Type

The journal type. One of:

  • SI
  • SC
  • PI
  • PC
Contact The contact name associated with the invoice.
Order ID The order ID associated with the invoice.
Invoice ref The invoice's invoice reference.
Currency The currency of the invoice.
Balance The invoice amount, in the invoice currency.
Original rate The exchange rate used on the invoice journal.
Balance (Base currency) The base currency balance of the invoice, as calculated using its exchange rate.
Current rate The current exchange rate for that currency, as defined under Settings > Company > Exchange rates.
Revalued (base currency) The expected payment value in base currency, as calculated using the current exchange rate.
Gain/loss (base currency) The expected gain or loss in base currency, calculated by subtracting the base currency balance from the revalued base currency balance.
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