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Re: Multiple currency setup and unbalanced general ledger transactions

Hello Nigel,

On Wed, Oct 14, 2009 at 12:04:47AM +0100, Nigel Titley wrote:
> Nigel Titley wrote:
> > My accounts are mostly done in GBP but I have recently set up a EUR
> > account so that my European customers can be invoiced and pay in Euros.
> > The invoicing works fine but I've just received the first payment in
> > Euros. I set up a new account in LedgerSMB but can't find any means of
> > specifying its currency.

The accounts in LSMB are all set up using your default currency (GBP in
this case). So, even if you set up an account which is reported by your
bank as being in Euros, LSMB will store the sterling equivalent in that
account. It's a bit fiddly, but there you go. The advantage here is that
you can make GL payments between the accounts in terms of sterling very

> > When I tried to apply the payments (from invoices in Euros) to the Euro
> > account, it wanted an exchange rate, so I told it to use "1".

You should raise the invoice in euros - this will ask you for the
current exchange rate. Note that this is how many GBP 1 EUR will
purchase (not the other way around). On today's rates this is about

Then when you apply the payment of the invoice (via Cash->Receipt) the
currency should be set to EUR and the exchange rate on the day of
payment should be given.

This is the procedure which I follow (rightly or wrongly!) and it seems to
work most of the time with the exception of a couple of rounding oddities
(which do not seem to affect the accounts, just some presentation).

> > Now my
> > trial balance is out of balance and it seems to have entered unbalanced
> > transactions in the General ledger.
> > 
> > I have four questions:
> > 
> > 1. How should I have set up the Euro account?
> > 2. How do I make payments into it?

See above.

> > 3. How did LSMB manage to generate unbalanced transactions

No idea, sorry.

> > 4. What do I do to recover from this?

Restore from the backup you took before the invoice was raised.

Note that this applies to 1.2.18 - I do not know if 1.3 will be

Also, this is only my method of dealing with this and if there are
better ways (I would be surprised if not) then it would be good to hear
about them.

Good luck,

Openstrike - improving business through open source
http://www.openstrike.co.uk/ or call 01722 770036 / 07092 020107

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