The Currencies Guide —
about the use of different currencies and foreign currencies

1. Create currency / foreign currency

Via Settings Currencies the currency dialog is opened. Here a new currency can be created via Add.

Automatic, up-to-date exchange rates are supported in the program for the following currencies: AUD, BTC, CAD, CHF, CNY, DKK, EUR, GBP, INR, JPY, RUB, SEK, THB, USD. Other currencies can be added, but require manual entry of the exchange rate during booking.

Info: The code of the currency corresponds to the international 3-digit ISO code (ISO 4217). This is also used everywhere (in documents, reports, etc.) for the appearance of the currency.

2. Set main currency as default

In the currencies dialog, the check mark can be set for the desired currency in the column Standard . The main currency can be changed until a foreign currency is used in a booking.

After that it is no longer possible to change the main currency. When trying to change this, an error message will be displayed, see screenshot.

3. Open / create foreign currency account

If a new accounting is set up, a separate opening entry must be created for foreign currency accounts in the corresponding currency.

If a foreign currency account is added during the year, it can be easily created and subsequently booked.

4. Possible bookings with foreign currencies

In the example the main currency is CHF:

• Foreign currency to main currency (e.g. EUR to CHF)
• Foreign currency to SAME foreign currency (e.g. EUR to EUR)
• Exchange rate adjustment entry: main currency to foreign currency (e.g. CHF to EUR). In this case only the CHF amount is booked, the EUR amount does not change)

In the case of the exchange rate correction entry, a warning is displayed when saving: "Herewith an exchange rate correction is made on the account 1010 Post USD. Only the main currency will be booked to the account, the foreign currency will not be booked. Are you sure?".

5. Configure account for exchange rate corrections

Via Settings Standard accounts the account for exchange rate corrections can be set. The account 6960 exchange differences is set as default. This can be adjusted. To make the semi-automatic exchange rate correction function work, an account must be entered here.

6. Book exchange differences

When closing a fiscal period, the booking of exchange differences is listed as a todo. Alternatively, exchange differences can be booked several times a year on the desired date. To open the dialog click in the Accounts module on More book exchange differences.

Why do exchange differences occur?
When accounts are managed in foreign currencies, these accounts are booked during the fiscal period with different exchange rates (booking rate). Therefore, at the end of the fiscal period, the balance in the main currency does not correspond to the calculated balance with the current exchange rate (balance sheet rate). To correct this, exchange differences can be booked semi-automatically.