Switching Base Currencies
When the transitional process during which EU countries' home Currencies are phased out in favour of the Euro ends, it will be necessary to move the Euro from Base Currency 2 to Base Currency 1. To do this, follow these steps:
- Back up your database in the usual fashion.
- Print out the Print out the Trial Balance, Balance Sheet, Profit & Loss, Sales Ledger and Purchase Ledger reports.
- In the Base Currency setting in the System module, swap the two Base Currencies so that the Euro which was Base Currency 2 is now Base Currency 1. The Default Base Currency should be changed as well.
- In the Base Currency Rates setting, swap all the exchange rate ratios so that the figures which did appear in the Base Currency 1 field now appear in the Base Currency 2 field. For example, an exchange rate which was 2.204:1 should be changed to 1:2.204.
- Ensure that a Base Currency Round Off Account has been specified on card 2 of the Account Usage S/L setting and that the Account used exists in the Account register (in the Nominal Ledger). This will be used to ensure that your old Transactions balance in both Base Currencies.
- Follow steps 2, 3, 4 and 5 for all Companies in the database.
- Create a database back-up.
- Create a new database with a single Company. When the 'Import files available' window appears, close it by clicking the close box. Do not import anything yet.
- In the Conversions - Master setting in the System module, select the option to Switch Base Currency 1 to Base Currency 2.
- Import the back-up file that you created in step 7 above in the usual manner.
- Return to the Conversions - Master setting in the System module and turn off the option to Switch Base Currency 1 to Base Currency 2.
- Where necessary, update the latest Exchange Rates in the Exchange Rate register or add new ones. For example, an Exchange Rate against the Euro will appear as follows:
Since the Euro is now Base Currency 1, the Exchange Rate should be updated to this:
If you have been using the Security Controls in the Base Currency setting, you will need to switch these off or change them first.
Repeat this step in all Companies in the database.
- Print out the Print out the Trial Balance, Balance Sheet, Profit & Loss, Sales Ledger and Purchase Ledger reports for each Company and compare them with those printed in step 2 above.
- Print the Base Currency Rate Change report in the Nominal Ledger and look for large differences. If you find a large difference, print to screen the Nominal Ledger report for that Account using the Show Base Currency 2 Differences Only option. The report period should start from the first transaction date in the database. Click incorrect Transactions in the report and make appropriate changes.
