Entering a Cash Transaction - Currency Card
This page describes the fields on the 'Currency' card in the Cash In and Cash Out windows. Please follow the links below for descriptions of the other parts of the Cash In and Cash Out record windows:
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- Currency
- Paste Special
Currency register, System module
- Default taken from Contact record for the Customer (Cash In, Sales Currency), Contact record for the Supplier (Cash Out, Purch. Currency), or Default Base Currency
- The Currency of the cash transaction is shown together with the exchange rate, which you can change in an individual cash transaction if necessary. The Total, Net, VAT and Tax figures on the 'Amounts' card should all be in the Currency specified here. Leave the field blank to use your home Currency (unless you have set a Default Base Currency, in which case this will be offered as a default and should be treated as your home Currency).
- If the Customer has a Sales Currency (Cash In) or a Supplier has a Purchase Currency (Cash Out) specified, that Currency will be offered as a default, but you can use any other Currency if necessary.
- Exchange Rates
- Default taken from
Base Currency Rates setting and/or Exchange Rate register, System module
- By default, these fields will display the exchange rates for the specified Currency on the date of the cash transaction.
- One of two conversion methods will be used. The Dual-Base system will be useful for companies that have offices in two countries that need to report in both Currencies, for companies operating in countries where there is a second Currency (usually the US Dollar or Euro) in common use in addition to the national one, and for companies in the Euro zone who retain their old national Currency for comparison purposes. The second method is a simple conversion from the foreign Currency to the home Currency, applicable to the majority of worldwide Currency transactions. These are described below.
- Exchange Rates (Dual-Base System)
- In the example shown above, the Currency of the transaction is the Euro. Base Currency 1 is the home Currency (GBP, Pounds Sterling) and Base Currency 2 is the Euro. The fields on the left show in the form of a ratio the exchange rate between the two base Currencies (taken from the latest record in the Base Currency Rates setting). The illustration shows that GBP0.89715 buys one Euro.
- Note that European Monetary Union (EMU) regulations specify that the ratios must always show how many units of the home or foreign Currency can be bought with one Euro.
- Exchange Rates (Simple Currency Conversion System)
- In the case of a simple currency conversion system, the Rate and right-hand Base Currency 1 fields are used to show a simple exchange rate between the foreign and home Currencies. In the example shown below, the home Currency is US Dollars (USD) and the foreign Currency Japanese Yen (JPY). JPY136.727 buys USD1.00.
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The Cash In and Cash Out registers (Cash Transactions) in Standard ERP:
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