How works with unrealized gain/loss on exchange rate (case of anglo-saxon accounting)

Set up your stock input account

Set up your stock output account

Set up your product category on automated and FIFO

Set up your currency for the DB in £

Set up a vendor and a client in $

Obviously in this example the goal is just to show which account need to be taken when you re-evaluate but that they are in credit or debit will depend on the currency rate

When a Re-evaluation has been done it will need to be reversed at the moment the payment is registered or if another Re-evaluation is done.

The new amount in the Re-evaluation is computed based on the amount on the original journal entry.

Create a purchase order

Create your purchase order for X $

Receive your product (rate £=$)

You have a stock entry created for X £ 

You reach the end of the month, you need to re-evaluate and you didn’t receive the vendor bill yet.

RE-EVALUATION (rate £,$ changes)

Receive the vendor bill (rate£,$ changes)

If there is another month between the receipt of the vendor bill and the payment you will need to re-evaluate and at that moment you will have an entry for both the stock and the invoice see under:

Stock:

Invoice:

Pay the bill (rate £,$ changes)

Create a SO

Create your purchase order for X $

Send your product

If there is another month between the creation of the invoice and the receiptt you will need to re-evaluate and at that moment you will have an entry for the stock

Stock:

Create your invoice

If there is another month between the creation of the invoice and the payment you will need to re-evaluate and at that moment you will have an entry for the invoice see under:

Invoice:

Register your payment (rate changes)

=> this is just an information on how it is working accounting wise but in version before V14 a dev is needed to have that process automatized. In V14 you have the possibility to have odoo preparing the entry automatically if you go in Accounting => Reporting => Unrealized gains/losses