...

1. Any entity you deal with in a foreign currency - all transactions will be in that currency
2. Your GL is always in local currency
   1. So transactions are always converted using the exchange rate to local currency
   2. Transactions will have their own exchange rate
   3. Reconciling transactions with different exchange rates (payment to invoice or credit note to invoice etc) will result in a realised gain or loss journal being created
3. Bank accounts may have no transactions - however due to exchange rate movements you may need to revalue the local currency equivalent in the system
4. Exchange rates can be maintained centrally and will default onto transactions - however they may be overwritten at the transaction level.
5. Bank Reconciliation is in the foreign currency
6. When creating Journals from the bank reconciliation screen > the FX value is fixed based on the value on the bank statement upload
7. Changes
   1. If the FX Rate is changed:
      1. If the journal has a bank account and has been cleared in a bank rec then the amount of the bank account currency will be preserved and the other  currency amount will be recalculated using the changed FX Rate.
      2. Otherwise the user will be asked if the local or foreign currency amount should be recalculated.
   2. If the local currency amount is changed:
      1. If the journal has a foreign currency bank account and has been cleared in a bank rec then the FX Rate will be recalculated.
      2. Otherwise the user will be asked if the foreign currency amount or the FX Rate should be recalculated.
   3. If the foreign currency amount is changed:
      1. If the journal has a local currency bank account and has been cleared in a bank rec then the FX Rate will be recalculated.
      2. Otherwise the user will be asked if the local currency amount or the FX Rate should be recalculated.

Selling or Purchasing in a foreign currency

...