• Registered: 05/10/2012
  • Posts: 11

Topic: Bank Account in foreign currency with wrong opening balance

I have a problem with the opening balance of a bank account. I am using two bank accounts, one in Euro and one in USD. The functional currency is EURO. On the opening balance sheet, the opening balance of the USD bank account is stated in the functional currency the Euro.
The problem is that on the USD bank statement the Euro amount is not recalculated in USD. The balance in USD is therefor always  wrong. What could be the reason and how can I solve it?

  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: Bank Account in foreign currency with wrong opening balance

We had some problem here som releases ago. Which release are you using?

It might also be some wrong operation. Are you sure you haven't done some illegal operations?

Joe

  • Registered: 05/10/2012
  • Posts: 11

Re: Bank Account in foreign currency with wrong opening balance

I am using version 2.3.10.
As far as I know I did not do anything illigal on this bankaccount.
I opened the account and connected it to a general ledger account only for this bankaccount. I also made this USD  bankaccount the default account for USD and the Euro account for Euro transactions.

In the closing balance of last year I have put the euro equivalent of the dollar amount on the general ledger account with a journal entry. This closing balance is the opening balance for this year.

  • joe
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: Bank Account in foreign currency with wrong opening balance

Well I haven't heard about problems in recent releases about this. If you are sure that this is a bug, then it would be nice if we could tranck it down so I can reproduce it.

Please try to remember exactly what you did when operating this.

/Joe

  • Registered: 05/10/2012
  • Posts: 11

Re: Bank Account in foreign currency with wrong opening balance

As far as I can remember, I did the following:
1. Made a GL account with the name Bank USD with number 1110
2. Made a bank account.
Name : Bank USD
Type:    Cash Account
Currency :USD
Default Currency: yes
GL Code: 1110

3. Made the year 20111 active and made a journal entry on 31/12/11 with an amount of 500 euro on 1110

4. Closed the year 2011 and made 2012 active

The opening balance on the USD bank account shows now 500 USD. All other transactions on this account are in usd.

I have done it now again in the test company with the same result.

  • joe
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: Bank Account in foreign currency with wrong opening balance

The Journal Entry should only be used by admins and only for the first Opening Balance entry.

In this case there were NO currency rate for the date of transaction. Please void the transaction and enter a currency rate for the USD for the transaction date or before.
Then reenter the transaction in the Journal Entry. Now it should be ok.

For safety you should always use the Bank Payment/Deposits for entering transaction where the the bank accounts are included.

/Joe

  • Registered: 05/10/2012
  • Posts: 11

Re: Bank Account in foreign currency with wrong opening balance

I performed the operation as you advised and of course it is working the right way.
Thanks for the fast respons.
I am working with Frontaccounting now a few weeks and I am very impressed with the quality and the possibilities of the system. Thanks to all of you for this good piece of work.