The multi-currency chart of accounts

In this article

The Chart of accounts for the multi-currency accounting is the same as the one for single-currency accounting, except for the specifics that are shown below.

Basic currency

In the File → Accounting properties, the basic currency should be defined.

Foreign currencies

Foreign currency accounts are defined in the Accounts table. For each foreign currency account the symbol of the foreign currency must be entered in the Currency column.

In the Exchange rates table, the symbol of the foreign currencies must be entered for each foreign currency and the opening exchange rate must be entered for each foreign currency.

In the example below, the base currency is EUR. The symbol of the base currency EUR appears in the column headings with the amounts in the basic currency.

Currency Account 

Each account has a currency symbol, which can be the same as the basic currency or a currency symbol that is different from the basic currency, indicated in the Exchange rate table.

Assets and Liabilities accounts, other than in basic currency (EUR in the example), can also be set in different currencies.account table, multi currency accounting

Income and Expense accounts, other than in basic currency (EUR in the example), can also be set in different currencies.

accounts in foreign currency income expense account

 

Explanation of the columns of the multi-currency accounting

Currency
Enter the symbol of the account currency. For foreign currency accounts, the symbol must also be present in the exchange rate table.

Opening currency
The initial balance is entered for each account, whether it is a basic or foreign currency account

The opening balance in basic currency

  • A protected column calculated by the program.
  • The initial balance in basic currency is calculated by the program.
  • For basic currency accounts, the opening balance in the Opening currency column is reported.
  • For foreign currency accounts, the balance in the Open Currency column is reported, converted at the exchange rate of the exchange rate table, in the line without date, in the Opening column.

Balance currency

  • Protected column used by the program.
  • The balance is given by the opening balance and the amounts of the entries in basic and foreign currencies; for accounts in foreign currencies, the balance is converted according to the exchange rate in the Exchange rate table.
  • For accounts in foreign currency, the balance is converted according to the exchange rate in the Exchange rates table. For accounts in foreign currency, the balance is converted according to the exchange rate of the Exchange rates table.

Balance

  • Protected column used by the program.
  • The balance is calculated by the program and corresponds to the sum of the opening balance (for accounts in foreign currency it is the balance converted into basic currency) and the amounts of the transactions in basic currency and in foreign currency (amounts converted according to an exchange rate present in the exchange rate table).

Calculated balance

  • Protected column used by the program.
  • This is the currency balance of the account converted at the current exchange rate (exchange rate from the exchange table of the undated row).
  • In this column, the currency account balances converted to basic currency may differ from those in the Balance column, as exchange rate differences are present.

Exchange rate difference account

  • Visible in the Other view.
  • In this column, you can enter an exchange rate profit or loss account for a given account.
    The account you enter will be used by the Create Exchange Rate Difference procedure instead of the exchange rate profit and loss accounts defined in the multi-currency file properties.
  • In the Exchange Rate Difference Account column you can specify:

    •  "0;0" This means that no exchange rate difference is to be calculated for this account.
       It is used for historical exchange rates, which must not change.
    • Two accounts separated by semicolons, "Currency Exchange loss account; Currency Exchange rate profit", e.g. "6949;6999".
      If there is a loss the first account will be used, if there is a profit the second.
    • "One account only" for example "6949".
      This account will always be used whether there is an exchange rate profit or loss.

Opening balances

Information on how to enter opening balances in multi-currency accounting is available on the Opening balances page in multi-currency accounting.

Exchange Profit and Loss Accounts

In the chart of accounts, it is necessary to insert the predefined accounts for the exchange gain and loss to be reported in the File menu File properties → Foreign currency.

Accounts for exchange rate differences must have BClass 3 (Costs - Exchange Loss) or 4 (Revenue - Exchange Profit).

Other view multi currency

 

Revaluation accounts and historical exchange rates

Exchange rates are fluctuating. The actual value of the balance in the account currency varies therefore depending on the foreign exchange fluctuation.

The basic currency amount of an account is being calculated using the opening exchange rate and the exchange rates that are indicated in the transactions. Because this value corresponds to equivalent of today's exchange rate, it is necessary to revaluate the account.
The revaluation takes place by calculating the exchange rate differences. With the automatic calculation of exchange differences, the software enters an amount in basic currency (exchange difference) so that the balance in basic currency is equal to the counter value (calculated balance column). 

This alignment operation is done at the end of the year, before closing the accounts, or when you want to print a balance sheet with exchange values that correspond to the current reality. See the command Create transaction for exchange rate variation.
 

There are accounts (related to investments, for example) for which a so-called historic exchange rate is being used. By an historical exchange rate, we mean an exchange rate that doesn't vary over time.

There are two ways to have currencies that do not vary:

  • Create an additional currency code in the exchange rate table (e.g. USD2) to which the same exchange rate will always be attributed.
    • In the currency description, indicate that this is a historical exchange rate.
    • This currency must then be used for the account with the historical exchange rate and of course also in the entries for the account.
    • For each new account with a different historical exchange rate, create a new currency symbol.
      You can create as many currency symbols as you need for different accounts with historical exchange rates.
    • Change the exchange rate of the historical account if there are additional purchases or sales that require an adjustment of the value, while creating a transaction for the exchange rate profit or loss.
  • Entering opening balances as Opening transactions.
    • Instead of using the opening balances column, the opening balances are entered as transactions. You can assign the opening exchange rate you want.
    • In the Account exchange difference column enter the value "0;0" indicating that the account should not be revalued.
 

Group totals in foreign currency

Normally, the columns with amounts in foreign currency don't have totals, as it makes little sense to calculate totals for values in a different currency.

If you have a group that includes only accounts in a specific currency, the currency symbol can be indicated at a group level and, in the Accounts table, the program totals these amounts. If there were to be accounts with various currency symbols, there would be no amount indicated (the program would not report an error either).

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