The chart of accounts for multi-currency accounting is the same as for single-currency accounting, except for the specific factors shown below.

Base currency

In File Properties, File menu, you must define the base currency and in the Changes table, you must define the foreign currencies.

In the following example, the base currency is CHF which, as you can see, appears in the column headers with the base currency amounts.

Account currency

Each account has a currency symbol, which can be that of the base currency, or that of a foreign currency, indicated in the Exchange rates table.

The Assets and Liabilities accounts, in addition to the base currency (in the example CHF), can be defined in several currencies

Explanation of Multi-Currency Accounting Columns

Currency
Enter the abbreviation of the account currency. For accounts in foreign currency, the abbreviation must also be present in the Foreign exchange table.

Opening Currency
For each account, the initial balance must be entered, whether for an account in base currency or for an account in foreign currency.

Opening (base currency)

  • Protected column used by the program.
  • The initial balance of the base currency is calculated by the program.
  • For accounts in base currency, the opening balance is that of the Opening Currency column.
  • For accounts in foreign currency, the balance present in the Currency opening column is reported here, converted according to the exchange rate in force in the exchange table, in the row without date, opening column.

Currency balance

  • Protected column used by the program.
  • The balance comes from the opening balance and the import of entries in basic and foreign currency; for accounts in foreign currency, the balance is converted to the base currency using the exchange rate in strengths in the tables Changes.

Balance

  • Protected column used by the program.
  • The balance is calculated by the program and is the result of the sum of the opening balance (for accounts in foreign currency it is the balance converted into base currency) and the import of entries in base currency and currency foreign (amounts converted according to an exchange rate, shown in the Exchange rates table).

Calculated balance

  • Protected column used by the program
  • It is the currency balance of the account converted at the current exchange rate (exchange rate of the Exchange table of the row without date).
  • In this column, the balances of foreign currency accounts converted to base currency may differ from those in the Balance column, due to exchange rate differences.

Difference account changes

  • Are visible in the Miscellaneous view
  • In this column, for a specific account, you can insert a gain and loss account for foreign exchange.
  • The specified account will be used by the Create Exchange Difference Postings procedure instead of the exchange gain and loss accounts, defined in the file properties (foreign currencies).
  • In the Change difference counts column, you can specify:
    • “0.0” Which means that for this account it is not necessary to calculate the exchange difference.
    • Two accounts separated by a semicolon, “Exchange loss account; Exchange gain account”, for example: “6949; 6999”
      If there is a loss, then the first account will be used, on the other hand, if there is gain, it will be the second that will be used.
    • “A single account”, for example, “6949”
      This account will always be used whether there is a loss or gain on the exchange.

Opening balances

  • Before entering the opening balances, you must indicate the opening exchange rate for the different currencies in the Exchange table.
    The opening exchange is the one indicated in the Opening Change column in the exchange row without a date.
    The opening exchange rates must be equal to those of the closing of the previous year.
  • The opening balances must be entered in the Accounts table, Opening Currency column, Basic view, for those which refer to the base currency as well as for those in foreign currency.
  • The Opening column (base currency) is protected. The program automatically calculates the equivalent in the base currency according to the opening exchange rate indicated in the Exchange rate table.
  • Credit balances (liabilities) must be inserted with a minus sign (-) in front of the amount.
  • The opening balances of assets and liabilities must be in balance. It is advisable to consult the following lesson: Controlling the accounts

Foreign exchange gains and loss accounts

In the chart of accounts, it is necessary to insert the predefined accounts for the gain (profit) and the exchange loss, which will then be indicated in the File properties.

Accounts for exchange differences must contain BClass 3 (Expenses – exchange losses) or 4 (Income – exchange gains).

Revaluation of historical accounts and exchange rates

Exchange rates are constantly changing. The actual exchange value of the currency balance, therefore, varies according to the variation in exchange rates.

The value of an account in foreign currency is calculated according to the opening exchange rate and the exchange rates indicated in the entries. In order to match this value to the current exchange rate, this account must be re-evaluated. This revaluation is carried out using the calculation of exchange differences. With the automatic calculation of exchange rate differences, the program inserts an amount in the base currency (exchange rate difference) so that the base currency balance is equal to the counter value (calculated balance column).

This alignment operation is carried out at the end of the year, before closing the accounts, or when you want to print a balance sheet containing exchange values ​​that correspond to the current reality. See the Currency exchange differences command.

There are accounts (for example, in relation to investments or participations) for which a so-called “historical” exchange rate is used. By historical change, we want to indicate a change that does not vary over time.

To obtain exchange rates that do not vary, there are two possible methods:

  • create an additional currency symbol (for example USD2) in the Changes table, to which we will always assign the same exchange rate
    • In the currency description, indicate that it is a historical exchange rate and, therefore, also in the corresponding postings to this account.
    • For any new account with a different historical exchange rate, re-create an additional currency sign.
      You can create as many acronyms as necessary for the different accounts with historical exchange rates.
    • Modify the exchange rate of the historical account if there are other purchases or sales requiring an adjustment of the value, at the same time creating an entry for the gain or the exchange share.
  • Insert opening balances as opening postings
    • Instead of using the opening balances column, the opening balances are inserted as postings. You can assign, as well, the opening exchange rate that you want.
    • In the Account Difference Change column insert the value “0; 0” which indicates that the account should not be reassessed.

Group totals in foreign currency

The Currency Amount column usually does not have totals, as there is no use in totaling values ​​in different currencies.

If you have a group that only groups together accounts that have the same specific currency, you can insert the acronym for that currency at the group level, and in the Accounts table, the program will total these amounts. If there are accounts with different currency acronyms, no amount will be displayed (the program does not report an error either).

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