Using Currencies in Nominal Ledger Transactions - Simple Conversion System
This page describes Exchange Rates and the simple currency conversion system in Nominal Ledger Transactions.
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In Standard ERP, you can configure any Account to hold balances in a particular Currency. In the following example the company has a JPY (Japanese Yen) bank account. The home Currency is GBP. The following Transaction is entered showing a sales transaction paid in JPY. The Sales Account is a normal sales account in GBP.
In the Account register, Account 704 represents the JPY bank account, so "JPY" has been entered in the Currency field:
In the Transaction, start by entering the JPY Account number in the first row. The Currency in the row will be changed to JPY automatically and the Exchange Rate that is valid on the Transaction Date will be brought in as well. Both will be visible on flip D. You can change the Exchange Rate for a particular posting (if so allowed by the
Prevent Foreign Rate Changes option for the JPY Currency record), but you should do so before you enter any values. If you use an Account that does not have a Currency specified, you will be able to enter any Currency on flip C or D and the latest Exchange Rate will be brought in immediately.
To enter a debit or credit amount in Currency, go to flip C and use the Currency Debit or Currency Credit fields. A figure converted to your home Currency will be placed in the Base 1 Debit or Base 1 Credit field as appropriate. Alternatively, you can enter an amount in the Base 1 Debit or Credit field and a figure converted to the foreign Currency will be placed automatically in the Currency Debit or Currency Credit field.
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 (Windows/Mac OS X) or Tools menu (iOS/Android) A balancing value will be placed in the Base 1 Credit field (visible on flips A, B and C):
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Using Currencies in transactions of various kinds:
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