Adjust Exchange Rates

If you have taxable sales in a foreign currency, you must use the official rate for VAT currency conversion as set by the Federal Tax Administration.

If these rates do not match the currency rates used in the purchase or sales invoices, you will have to adjust the VAT rates with a batch job later. These adjustments can only be run using an authorized VAT rate.

You can run this batch job as often as you like, however make sure that you always run it before creating a VAT statement.

Note

When using a report currency, make sure that the VAT Exchange Rate Adjustment field on the General Ledger Setup page is set to No Adjustment.

For more information about VAT and foreign currencies, see the ESTV website.

To adjust an exchange rate

  1. Choose the Search for Page or Report icon, enter Currencies, and then choose the related link.

  2. Choose the Exch. Rates action.

  3. On the Currency Exchange Rates page, enter the official VAT rate per period for each currency in the VAT Exch. Rate Amount and the Relational VAT Exch. Rate Amt fields.

  4. Choose the OK button.

  5. Choose the Search for Page or Report icon, enter Adjust Exchange Rates, and then choose the related link.

  6. On the Options FastTab, fill in the fields as described in the following table.

    Field Description
    Starting Date Enter a date to specify the beginning of the period for which entries will be adjusted.
    Ending Date Enter the last date for which entries will be adjusted. This date is typically the same as the posting date in the Posting Date field.
    Adjust VAT exch. rate Specify if you want to adjust the VAT exchange rate.
  7. Choose the Print button to start the batch job. This batch job controls whether VAT entries have to be adjusted and prepares an adjusting entry for each of these entries for the Unrealized/Realized Exchange Rate Adjustment accounts. The existing VAT entries are also corrected.

See Also

Swiss Value Added Tax
VAT Rates for Switzerland
Update Currency Exchange Rates
Set Up an Additional Reporting Currency