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According to Article 258 of the Tax Procedure Law, valuation is the assessment and determination of economic values related to the calculation of tax bases. According to VUK, exchange rate valuation is mandatory at the end of each provisional tax period. If the transactions are closed within the same period when the valuation process is carried out, the entire exchange rate difference is accrued within that period. However, if the transaction and the closing date of the transaction are different in terms of tax period, the exchange rate difference is accrued in the relevant period.

Path: ERP > Finance-Accounting > Bank > Exchange Rate Valuation Transactions | BANK

Exchange rate is the value of foreign exchange currencies in terms of national currency. As a result of transactions such as buying and selling securities, assets, commercial goods and services in foreign currencies, exchange rate differences may occur between the document date and the transaction date. Exchange Rate Difference refers to the increase or decrease in the value of our national currency against foreign currency. In this case, exchange rate differences arising from the transactions made should be reflected in the income and expense accounts.

Bank: Select the bank where you want to perform exchange rate valuation.
Branch:Select the branch where you want to perform exchange rate valuation.
Currency: The currency to be traded is selected.
Status: When Active is selected, the previously evaluated records will not be received.
Start-End Date: Select the start and end dates for the records of transactions made between certain dates to be received.

After selecting the relevant bank account and the transaction to be evaluated, the registration process is carried out by entering the following criteria.

Exchange Rate: The valuation rate given by the Ministry of Finance will be entered.
Transaction Type: Bank exchange rate valuation will be selected.
Transaction Date: Date of the transaction. will be selected.
Accounting Code: Foreign Exchange account will be selected.

Hint:In order to perform the bank exchange rate valuation process, first the "Bank Exchange Rate Valuation" transaction category must be selected and the relevant criteria.

Accounting and Operating Logic of Exchange Rate Valuation

Foreign currency holdings in the bank account are valued with the effective exchange rate. The valuation process evaluates with the exchange rate determined by the Ministry of Finance and records it as credit or debit to the foreign exchange accounting account. In return, the transaction foreign currency will be recorded as debit or credit to the bank account.

Hint: Page Settings > Exchange rate type to be evaluated with the help of Xml settings. can be changed.

A payment of 1,000 USD (Exchange rate: 18.00TL) was received from company A to our company B on 06/03/2023. When the exchange rate valuation was carried out at the end of the period, the valuation rate determined by the Ministry of Finance was determined as 20.00 TL.

There is foreign currency equivalent to "1,000 * 18 = 18,000TL" in our bank account. After the valuation, the valuation was "1,000 * 20 = 20,000TL". "20,000 - 18,000 = 2,000TL" It will be credited to the foreign exchange profit account and debited to the transaction foreign currency accounting account.

As a result of the valuation process carried out on 31.03.2023, the amount equal to the valuation value is recorded as a debit from the cash register, and the exchange rate gain is recorded as a credit to the 646 Foreign Exchange Profits account.

Attention:The exchange rate will retrieve the exchange rate information on the selected transaction date. However, the exchange rate is made at the rate determined by the Ministry of Finance.

When you click on the Save button and save, a new record is created on the "Bank Transactions" page and a record is made to the Foreign Exchange Profit/Loss account according to the status of the exchange rate difference. Bank Exchange Rate Valuation process is processed directly in the accounting records.

Tip: Entering the information at which exchange rate the valuation is made in the Description field on the Cash and Bank Exchange Rate Valuation Screens will make it easier to keep track of your records.

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Exchange Valuation Transactions | Bank

Exchange rate is the value of foreign exchange currencies in terms of national currency. Bank k

Type: WBO Version: Catalsyt v5 Licence: Standard Author: Workcube Core