Foreign currency journals

• In a Euro bookkeeping a USD debtor will be invoiced using the rates in the settings. Notice that the income account is in euros.
• A USD payment is made in a USD bank daybook: The default rate is taken from the rates in the table connected to this daybook. Overwrite the rate in the journal with the rate from the bankstatement.
• An invoice is considered to be paid if the amount in foreign currency (USD) is paid. Notice that the bookkeeping balance (in euros) is not zero: Revaluation will book the currency loss or profit.
• Revaluating paid invoices will book currency losses or profits.
• Before closing a bookyear, it is important to check book keeping totals to see if you forgot revaluating. Before creating a new bookyear, first Revaluate!
• Revaluating unpaid invoices will use the rate of the revaluating date (30/06).
• Revaluating partial paid invoices will also use the rate of the revaluating date (30/06).
• If you pay a foreign currency invoice (USD) in a bank with the bookkeeping currency (Euro):
  • Mill7 will calculate the rate from the journal date.
  • Overwrite the bank amount with the amount from the bankstatement. And book the diffence (5.57).
  • Additional revaluation will book a realized loss or profit
• If you pay a foreign currency invoice (USD) in a bank with another currency (Euros) with an amount in a third currency (GBP):
  • In the bank press Ctrl+K to open the screen Different currency. Fill in the amount from the bankstatement (Eur 1700). Fill in the currency (GBP) and the rate from the bankstatement (1.257). The third currency amount is calculated (GBP 2136.90) Press Ok, and book the difference (5.57)
  • Additional revaluation will book a realized loss or profit (118.32 euro).
• If you book foreign currency invoices without using Debtors or Creditors:
  • The invoice is booked with Ctrl+K in a daybook of type Memo.
  • Revaluation of the general ledger will book currency results.
• Intercompany bank payment with different bank currencies:
  • For a correct revaluation you need two general ledger accounts for clearing. In this example 1193 for USD and 1192 for Euros. In a memo daybook enter the different currency rate for revaluating (Alt+K).
  • Revaluation will be correct.
• In a Euro bookkeeping a USD debtor will be invoiced using the rates in the settings. Notice that the income account is in euros.
• Rounding errors in bank: If using small exchange rates in the bank, then rounding errors appear. Please use Ctrl+K to remove the rounding errors.
• To report in another currency, a shadow adminstration can be opened. With the Converting tool from the Supervisor menu journals can be copied to another currency. Journals with currency rates entered with Ctrl+K are not recalculated.