Which rate does ONE ERP use — spot or closing?

Spot on the transaction date, closing on the reporting date. Both are stored, so revaluation at month-end is a single click.

What if I forgot to set a rate for a date?

ONE ERP falls back to the last known rate and flags the gap, so you can backfill before closing the period.

Does this satisfy a Big-4 audit?

Yes. Every FX entry carries the source rate, the base rate, the user who posted it, and a timestamp — that's the audit trail listed in the fx_audit_log.

IAS 21 FX Gain/Loss — Auto-Calculated, No Spreadsheet

Short answer: book the invoice at today's rate, pay it later, and ONE ERP posts the gain or loss to your P&L the moment the rates differ — no spreadsheet, no month-end panic.

The IAS 21 problem in one paragraph

You raise a USD invoice on the 3rd. The client pays on the 27th. The rupee has moved 1.2% in between. IAS 21 says that gap is a realized gain or loss and it must hit your P&L. Most teams catch it once a year, under stress, with three open spreadsheets. That's the workflow we replaced.

IAS 21 Foreign Exchange Gain timeline showing invoice rate vs settlement rate and the resulting P&L journal entry — From USD invoice on day 1 to the gain entry on settlement — fully automated.

How ONE ERP auto-books it

Capture the rate at posting. Every invoice, bill, or bank line stores both the transaction currency amount and the base-currency amount at that day's rate.
Watch for settlement. When the matching payment lands, we compare the two base-currency values.
Post the difference. Gain → 4500 series. Loss → 6800 series. You can rename the accounts in the chart, the logic stays the same.
Log the entry. Source rate, base rate, user, and timestamp go to the FX audit log. Your auditor reads this column-for-column.

Month-end revaluation

Open balances in foreign currency get revalued at the closing rate on the last day of the month. ONE ERP picks the rate, books the unrealized gain or loss, and reverses it on day one of the next period — exactly the way the standard wants it.

Pro tips

Set your rate source once. SBP daily, OANDA, or a manual upload — whichever your auditor blessed last year.
Don't pin the rate. If you manually overwrite the daily rate, ONE ERP logs the override with your user ID so the change is defensible.
Use the Intercompany Ledger when you bill from one entity and collect in another — the FX hop is auto-cleared.

FX Audit Log in ONE ERP: every IAS 21 revaluation entry with source rate, base rate, user and timestamp — audit-grade trail — The FX audit trail your Big-4 reviewer actually accepts.

Curious how it looks live? Open the features page or check the rest of our accounting tips. Pricing details are on the pricing page.