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This text refers to program version 4.2  

Expenses in Currency

When you enter Expenses in Currency, the Currency and Exchange Rate are applied to all rows of the Expense record. Separate Expense records should therefore be used for each Currency and Exchange Rate.

For example, an employee submits an expense claim dated Jan 31. The claim includes a receipt for JPY100000 (Japanese Yen) dated Jan 7, when JPY192.867 buys one GBP (Base Currency 1). So, the receipt was worth GBP518.49 when it was issued. However, on Jan 31 (the date of the expense claim), one GBP buys JPY193.374, so JPY100000 will then convert to GBP517.13.

The Expense record is entered as shown below. The date of the expense claim (Jan 31) is entered in the header, and JPY is entered as the Currency:

On flip C, the date of the receipt (Jan 7) is entered:

Also shown in the illustration above is the Exchange Rate on the 'Currency' card. This is the Exchange Rate for Jan 31. In this example, the Expense and Transaction Dates are the same. Where they differ, the Transaction Date will determine the Exchange Rate.

When the Expense record is approved and saved, the appearance of the Nominal Ledger Transaction will depend on the Expense Date Rate for Cost Accounting option in the Expense Settings setting. If this option is on, the liability to the employee (Account 826 in the example) will be calculated using the Exchange Rate for the date of the expense claim (Jan 31), while the amount posted to the Cost Account (320 in the example) will be calculated using the Exchange Rate for the date of the receipt (Jan 7). The difference will be posted to the Rate Round Off Account from the 'Exch. Rate' card of the Account Usage S/L setting:

If the Expense Date Rate for Cost Accounting option is off, the liability to the employee and the amount posted to the Cost Account will both be calculated using the Exchange Rate for the date of the expense claim (Jan 31):

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