Re: Multiple currency setup and unbalanced general ledger transactions

[Michael Richardson <..hidden..>]

>>>>> "stroller" == stroller  <..hidden..> writes:
    >> 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
    >> 0.93.
    >> 
    >> 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).

    stroller> Doesn't this mean that the customer can pay the invoice in
    stroller> the full number of Euros, but LedgerSMB shows the invoice
    stroller> as not fully paid (or overpaid) because the exchange rate
    stroller> has changed? 

  Normally not (%)
  If you receive the amount in EUR, you enter the current exchange rate.
The transaction occurs in EUR, and there is a second transaction that is
entered against the Foreign Currency Gain/Loss expense account.

  You need a EUR currency Checking Account to do this though (or at
least, I seem to recall this made life easier later on)

  hint: when reconciling the foreign currency checking account, do not
check the box about foreign exchange rates. 

(%) occasionally, I've seen things be off by 0.01 units, and not get closed.

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