• From: Switzerland, Allschwil
  • Registered: 12/25/2009
  • Posts: 35

Topic: rate foreign currency balance end-year

At the moment I don't find I possibility to rate the foreign currency balance with the exchange rate as at year-end.
In our country we have to rate this balances with the rate which is published by the tax authority.
How I can book a transaction only in a domestic currency on a foreign currency account.

For ex. 100 USD current CHF 103; end-year should be CHF 110

If you have do to manually you can book such transactions via GL,
account foreign currency - amount null - and in domestic currency the amount which will be the exchange variance.
In other programms where you can do it automatically, you have to put in the exchange rate and you start afterwards a run "rate foreign currency as at xxx".

Problem is, that the book must show this balance, it's not only for the tax-report, and if you don't have in the books, you have the wrong opening-balance.
This problem didn't have only big companies, here also small companies will have foreign currencies.

How I can solve this in FA?

Thank you for you help.

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

Re: rate foreign currency balance end-year

There are no automatic calculation routines for that, but if you make a small adjustment of 0.01 in bank transfer forth and back by year-end date the GL Journal will be updated automatically.
Every time you make a bank transfer with a foreign currency involved, the GL Journal is automatically updated with an exchange correction. So the domestic balance is updated everytime a bank transaction is involved, though always shows the correct domestic balance for the last transaction date.

/Joe

  • From: Switzerland, Allschwil
  • Registered: 12/25/2009
  • Posts: 35

Re: rate foreign currency balance end-year

Hi Joe,

Maybe I'm doing something wrong, but it will only consider the exchange variance, if I will reconcile the open items which belongs to the open balance. If I only book the 0.01 forth and back it will not update the whole balance with the exchange rate per end-year or end-month.
I will try again in a test-company. Till now I only get the right amount, when I cancell the old items and book them new.

Best regards,
ernie

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

Re: rate foreign currency balance end-year

First ensure you have different GL accounts associated with your Foreign Currency Bank Accounts.
Before doing the operations, you should check if there is an exchange rate for the transfer date. If not then get one.
Every time when you do a bank transfer the routine will check that the underlying GL Transfer against the current bank account are equal based on the date when the bank transfer is done. If this is not the fact, two GL transactions will be done covering the difference.
If you look at the Journal Entry after you have done the bank transfer (where there is a foreign currency involved and the exchange rate are different than an earlier one) there should be two transactions covering the diff.

/Joe

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

Re: rate foreign currency balance end-year

Hello ferre,

For your own safety you should download a fixed file from the CVS repository



/Joe

  • From: Switzerland, Allschwil
  • Registered: 12/25/2009
  • Posts: 35

Re: rate foreign currency balance end-year

Hi joe,

Thank you, I will try in the next days.

ferre