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Currency Adjustments

If you use multiple currencies, then changes in the exchange rates affects the balance of Bank Accounts relative to the base currency.

For example, if your base currency is Great British Pounds (GBP) and you have a US Dollar (USD) Bank Account, then an increase in the exchange rate (i.e. more GBPs per USD) will increase the balance, when expressed in the base currency.

Why is this a problem? If you run a Balance Sheet Report for example, all the figures are expressed in your base currency, so they are dependent on the current exchange rate. If the transactions in your Bank Account were recorded using the exchange rate at the time of the transaction, it will be different to the current exchange rate. Consequently, the report will be incorrect.

A Currency Adjustment Document will automatically adjust all non-base currency transactions so that the associated account balances are correct with respect to a specified exchange rate.

NOTE:
Prior to running a Balance Sheet Report or any Report that involves non-base currency balances, perform a Currency Adjustment with the current exchange rate to ensure the balances will be reported accurately.

Prerequisites


Working with Currencies
Working with Bank Accounts

How to make a Currency Adjustment

  1. From the Explorer click Accounting->Multi-Currency->Currency Adjustments.
  2. The current List of Currency Adjustment Documents will be displayed.
  3. From the ‘Action’ dropdown click ‘Create New plus‘ to display the page for making a new Currency Adjustment (see below).

Make a Currency Adjustment

Make a Currency Adjustment

The steps in the diagram show how a Currency Adjustment is made:

  1. From the ‘New Currency Adjustment‘ page select the currency you want to adjust. In this case USD.
  2. Enter the new desired exchange rate.
  3. Click ‘Proceed‘ to display a new Currency Adjustment Document.
  4. A reference number is auto-assigned. See Working with Reference numbers (Ref #).
  5. Select which Account(s) you wish to adjust using the checkboxes at the beginning of the line items.
  6. Click ‘Save‘ to save the adjustment.

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Working with Reports