When you have accounts in foreign currency, before closing the accounts, you must record the exchange rate differences. If the exchange rate differences have not been recorded, the program will report a difference in the opening balances at the opening of the new year.
In order to resolve this problem, there are two possibilities:
If the preceding accounting year has not yet been audited, calculate the exchange rate differences for the previous year:
- Insert the official exchange rates at 31.12 in the Exchange rate table, Exchange rate column
- Via the Actions menu → Create transactions for exchange rate variation.
- Open the file for the New Year and update the opening balances
If the previous year was closed and audited, the new year's opening balances must be adjusted:
- Open the file of the new year
- Insert a new account Non-calculated exchange differences, in the assets or liabilities (Accounts table), as appropriate, or register the amount in account 1090 Transfer account (as in the example below)
- Enter the amount corresponding to the exchange rate difference in the Opening currency column
- On 01.01 the exchange differences are cleared with an entry in the Transactions table (in this example it is an exchange loss), using the created account or 1090 and as a contra-entry the account relating to the differences in exchange rate (Exchange gains and / or losses) present in the Profit and Loss statement.
After the transaction to arrange the exchange rate differences has been entered, the account that has been used should display a balance of zero, or equal to the amount corresponding to the balance prior to the transaction.
In the case of an exchange rate gain, the amount of the difference must be entered in a liabilities account, or in the assets, but with a minus sign in front of the amount.