The following changes are being proposed to support the following broad requirements:
1. Multicurrency Translations and Revaluations
2. New Reports:
a. Statement of Owner Equity
b. Statement of Cash Flows
3. Better Year-End procedures
For multi-currency transactions the following is being proposed:
For asset and liability accounts, only, the account may be optionally denominated in a foreign currency. While all transactions are recorded in the base currency, any line must have both a base and foreign currency amount, and the currency must match that of the account.
Where an account is not denominated in a foreign currency, all currencies may be recorded as the foreign key components but they are not considered floated for revaluation purposes.
Use case: This will help ensure consistent books for people with a bank account or a loan denominated in a foreign currency. For example, it will prevent depositing Euros into a USD account, and thus ensure easier bank reconciliation.
For new reports the following is being proposed:
Account subtypes will be added. These are:
Equity:
Capital
Drawing/Dividend
Retained Earnings
Asset
Cash
Operations
Investments
Liability
Operations
Financing
These categories will be used in creating the statement of owner equity and the statement of cash flows.
For year-end the following is being proposed:
Equity accounts are closed if they are drawing/dividend accounts. An option would be provided to avoid closing these accounts for those who need to do so manually.
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Best Wishes,
Chris Travers
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