Currency Exchange Setup For Accounting
Jaycie Roberts
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11 steps
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44 seconds
Softbaseevolution
1
Select the Currency Rate program from the Accounting section.
2
Click "Add Currency Rate"
3
Enter the name of your currency exchange type.
4
Click the "Conversion Rate" field and enter the conversion rate.
5
Click the "Gain/Loss Exchange Account" field and enter the Gain/Loss account number. If the GL accounts are not setup yet go to step 7 to see setup instructions.
6
Click "Save" to save your currency exchange rate.
7
Three GL accounts are needed for accounting. Add each account and follow the setup process below. Bank Currency Exchange- asset\ Gain/Loss on Currency- expense\ AP Currency Account- Liability
8
Within the Bank Currency account, ensure the currency type is chosen from the drop down menu and enter the Gain/Loss account number into the "Currency Exchange Account" field.
9
The Gain/Loss Account is an expense account and does not require the currency type to be selected.
10
Within the AP Currency Account, ensure the currency type is chosen from the drop down menu and enter the Gain/Loss account number into the "Currency Exchange Account" field. This ensures the currency variances are posted to that account.
11
Within the AP invoice Entry the gain or loss will automatically calculate one the invoice is distributed to the associated expense/cost account.
