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This text refers to program version 4.0  

Nominal Ledger Transactions - Dual-Base System

Between the two Base Currencies
Transitional and voluntary users of the Dual-Base system will be able to enter Transactions in Base Currency 1 or 2 as required.

In the following example the company has a Euro bank account. The home Currency (Base Currency 1) is the Pound Sterling (GBP) and Base Currency 2 is the Euro. The following Transaction is entered showing a sales transaction paid in Euros. The Sales Account is a normal sales account in GBP.

Account 703 is defined as a Euro account by entering the Currency in the Account record. In the Transaction, enter the Euro Account number and go to flip D to check the conversion rates, which will be brought in by Hansa. In the example, the Base Rate 1 and 2 fields show that one Euro buys GBP 0.63. If you wish to change the rates, you can do so (if so allowed by the Prevent Base Rate Changes and Prevent Foreign Rate Changes options for the Euro Currency record), but note that this should be done before you enter any amounts and that the change will apply to this Transaction row only. If an Account is used which does not have a Currency specified, you can enter any Currency on flip C and the latest conversion rates will be brought in immediately.

To enter a debit or credit amount in Euros, go to flip B and use the Base 2 Debit or Base 2 Credit field as appropriate. A figure converted to Base Currency 1 is placed in the Base 1 Debit or Credit field as appropriate.

Account 100 is a normal Sales Account in the home Currency. On the second row, enter the Account number as usual, and then select 'Balance Transaction' from the Operations menu. The converted GBP amount will be placed in the Base 1 Credit column on flip A:

Between one Base Currency and a Foreign Currency - Voluntary
Voluntary users of the Dual-Base system will usually have their home Currency as Base Currency 1 and a second Currency such as the Euro or US Dollar as Base Currency 2. Voluntary users in the Euro zone will have the Euro as Base Currency 1 and their old national Currency as Base Currency 2, retained for comparison purposes. In both cases, foreign Currencies will usually be related to Base Currency 1. As a result, to enter a Transaction that uses a foreign Currency, follow the instructions on the Simple Conversion System page. When the Transaction is complete, you will be able to view the amounts in both Base Currencies on flip B.

Between one Base Currency and a Foreign Currency - Transitional
Transitional users of the Dual-Base system will usually have their home Currency as Base Currency 1 and the Euro as Base Currency 2. EMU rules require that all foreign Currencies are related to the Euro, not to the home Currency.

In the following historical example the company has a Finnish Markka (FIM) bank account. The home Currency (Base Currency 1) is the Dutch Guilder (NLG) and Base Currency 2 is the Euro. The following Transaction is entered showing a sales transaction paid in FIM. The Sales Account is a normal sales account in NLG.

Account 705 is defined as a Markka account by entering the Currency in the Account record. In the Transaction, enter the Markka Account number and go to flip D to check the conversion rates, which will be brought in by Hansa. In the example, the From Rate and To Rate B 2 fields show that one Euro buys FIM 5.94573, while the Base Rate 1 and 2 fields show that one Euro buys NLG 2.20371. If you wish to change the rates, you can do so (if so allowed by the Prevent Base Rate Changes and Prevent Foreign Rate Changes options for the FIM Currency record), but note that this should be done before you enter any amounts and that the change will apply to this Transaction row only. If an Account is used which does not have a Currency specified, you can enter any Currency on flip C and the latest conversion rates will be brought in immediately.

To enter a debit or credit amount, go to flip C and use the Cur. Debit or Cur. Credit field (Currency Debit or Currency Credit) as appropriate. A figure converted to Base Currency 1 is placed in the Base 1 Debit or Credit field as appropriate. In addition, a figure converted to Base Currency 2 is placed in the Base 2 Debit or Credit field as appropriate, visible on flip B. Alternatively, enter an amount in the Base 1 Debit or Credit field (or the Base 2 Debit or Credit field) and a figure converted to the foreign Currency will be placed automatically in the Cur. Debit or Cur. Credit field (and a figure converted to the other Base Currency will also be shown).

Account 100 is a normal Sales Account in the home Currency. On the second row, enter the Account number as usual, and then select 'Balance Transaction' from the Operations menu. The converted NLG amount will be placed in the Base 1 Credit column on flip A:

If you wish to view the amounts in both Base Currencies, they are visible on flip B:

Balancing
All Transactions should balance in both Base Currencies. If a Transaction does not balance in Base Currency 1, you will not be able to save it. If it is balanced in Base Currency 1 but not Base Currency 2, the Base 2 Credit figure in the final row will be adjusted when the Transaction is saved. If you want to prevent this adjustment, add a final balancing row that posts to a Base Currency Round Off Account. This row should:

• have zero amounts in the Base 1 Debit and Credit fields; and
  

• use a Base Rate of 0 Base Currency 1 to 1 Base Currency 2.

The required Base 2 amount will be shown in the Difference Base 2 field in the bottom left-hand corner: enter this in the Base 2 Credit or Debit field as appropriate after setting the Base Rate to 0:1.

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