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Proposed changes to chart of accounts structure for 1.5


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:

   Retained Earnings


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.

Best Wishes,
Chris Travers

Efficito:  Hosted Accounting and ERP.  Robust and Flexible.  No vendor lock-in.
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