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Accounting transition to ABRA Flexi (12/16)

Exchange rate differences on advances arise upon deduction

Written by Petr Pech

Exchange Rate Differences on Advances

We have already mentioned that advances are not receivable claims and that they are not subject to annual revaluation at the balance sheet date. They remain in the accounting records at the original exchange rate at which they were posted.


Exchange Rate Difference When Settling an Advance

The actual exchange rate difference on an advance is recognized only at the time of final settlement (when an invoice is issued/received).

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