[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Re: Bank acounts in US dollars (foreign currencies)


What would be the best way to deal with bank accounts in USD with regards to operations also done in USD and how to keep track of the conversion rates. I think, that for Canadian companies, all operations done in foreign currencies must be converted to Canadian dollars at the time when the operations occure. So different conversion rates might be used. But when you send money from a USD bank account to a CAN bank account an other rate will be used and chances are that this rate could be also different.

So how do you deal with this kind of situations using ledgerSMB.

I finally figured out how this worked in SL a month back! It's quite sensible, but I don't have time right now to post out the exact entries

However, a few clues is that you should setup a couple of ledgers to play with. Post an invoice in a foreign currency and then pay it. Examine the ledger entries carefully, also use the cash reconilliation screen with the "show exchange differences" flag both on and off

What you will see if you something for 100 USD then the CAD account will also add up to 100... (Otherwise we would have an imbalance...). Instead there is a fake transaction in there which basically turns the USD into CAD whilst still keeping the books balanced. This has the forex flag ticked hence it doesn't always show up in reconciliations

Another thing to note is that SL wants to use only one rate per day. You have to post your transaction as though it were at that actual rate, then figure out the imbalance and post that into an FX accrual account

Hope that gives you enough to get started. I will post a worked example another day if you need it?

Good luck

Ed W