f.05 adjustment account

[Former Member]

hi all,

i would like to know this.

when run F.05, if the unrealised is gain then the entry is

dr receivable adjustment account

cr unrealised forex gain

when it is a loss then

dr unrealised forex loss

cr payable adjustment account

1) may i know why use adjustment account and why it is called adjustment account?

2) p&l unrealised gain or loss account are adjustment account also?

3) people say adjustment account for better presentation of the fin statement. what does it mean?

thanks

[Former Member]

Hi,

It is not necessary to use adjustment balance sheet account for revaluation of accounts which are not open item managed. You can directly debit/credit the revaluated balance sheet account. Sometimes depending on the customer's requirement you could use adjustment accounts for B/S accounts, which are not open item managed.

Regards,

Svetlin