Manual Input of Foreign Currency Posts

Manual Input of Foreign Currency Posts

Manual Input of Foreign Currency Posts

Enter foreign currency posts in the following order:

• First enter account code. Period date in journal entry header is automatically entered in all three date fields in line of journal entry.
• Enter subject ID (wherever needed).
• Valid central exchange rate of the national bank for currency used in the post is found according to the date from the Document Date field, which is by default the same as the period date of the post from journal entry header. Of course, you can change it at will.
• Enter ID of linked document to close.
• Enter debit or credit amount in post. Having selected a linked document the amount of the outstanding item is offered automatically when reconciling bank statements. The corresponding local currency amount is calculated automatically and it is then entered in the field for debit or credit local currency amounts.
• Enter currency used in payment. Having selected a linked document the currency is offered automatically when reconciling bank statements.
• The equivalent local currency amount of the post is calculated automatically and is equivalent to the foreign currency amount of the post multiplied with the exchange rate value.
• Enter other required data (document ID, linked document ID, any notes, etc. It depends on the post).

Amount recorded in foreign currency post is information of vital importance. Using the exchange rate you can calculate the equivalent local currency amount of the post!

What does this mean in practical use?

There are three mutually related values: foreign_currency_amount * exchange rate = equivalent_local_currency_amount.

• Changing foreign currency amount recalculates the local currency amount.
• Changing exchange rate used in posting recalculates the equivalent local currency amount.
• Changing the equivalent local currency amount you have to change the exchange rate used for converting to foreign currency. The following warning is returned (see The post is in a foreign currency! The value may not correspond to the exchange rate! The exchange rate will be altered accordingly! Continue anyway?). To perform correct posting the exchange rate used in conversion is changed automatically.

Related topics:

• Manual Input of Journal Entry Lines
• Invoices Received in Accounting Firms
• Invoices Issued in Accounting Firms
• Manually Reconciling Bank Statements

For a general description of functions see:

• Manual Posting and the Journal Entry
• Additional journal entry data fields for foreign currency posts