Foreign currency

Distinguish accounting currency, transaction currency, original amount and carrying amount.

Each administration has one accounting currency in which its ledger and reports are prepared. A transaction can additionally have an original amount in, for example, USD or GBP. The exchange rate connects both values on a particular date.

Step by step

1Check the accounting currency before making the first financial posting.
2For a foreign transaction, record the actual amount and transaction currency.
3Use a rate suited to the relevant date and your consistent valuation method. Boekhouden does not retrieve a rate automatically.
4Review the converted amount in the accounting currency; this is the value used by the ledger and reports.
5Use a fixed-currency account for a foreign bank or cash balance, and remeasure open monetary positions only deliberately.

What is on the screen?

Accounting currency
Transaction currency and original amount
Rate and rate date
Carrying amount in accounting currency

What happens next?

The original currency value remains visible next to the posted value. This function supports monetary amounts such as bank, cash and open items; it is not intended for valuing shares or other securities.