...

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.
   4. Allocations are removed and a message displayed when
      1. Allocations exist 
      2. The client is changed (Debtor or Creditor)
      3. Local currency amount of a local currency journal is reduced
      4. The FX currency amount of a FX currency journal is reduced
8. Marketplace Orders
   1. Definition: Drop Ship on behalf of a customer direct to their customer - ie Amazon, Myer Drop Ship, Catch of the Day etc.
   2. Are invoiced in bulk - so many orders are on a single invoice. 
      1. Therefore the FX rate on the order is not relevant - the FX rate on the invoice is and the order must be updated
      2. When an invoice is created for marketplace orders then, for each order:
         1. If the FX rate of the order is different to the FX rate of the invoice then:
            1. Change the FX rate of the order to match the invoice.
            2. Recalculate the GP% of the order and the line margins and save them.
      3. If the FX rate of a debtor invoice is changed and saved and there are marketplace order lines linked to the invoice lines then, for each order:
         1. If the FX rate of the order is different to the FX rate of the invoice then:
            1. Change the FX rate of the order to match the invoice.
            2. Recalculate the GP% of the order and the line margins and save them.

Selling or Purchasing in a foreign currency

...

The amount outstanding on the Supplier shows in the FX currency as well as the system base currency.

Creditor Invoices for FX Purchase Orders that have a deposit the same as the final invoice amount

When an invoice is created for a PO with

• FC total prepaid
• and small local currency balance
• then create a creditor general journal to transfer the local balance from Trade Creditors to Write Off (small) GL account.
• The amount will be allocated between the 2 journals and both will be marked as fully allocated.

Manual small local amount write off for any FX Creditor invoice

If a creditor invoice is

• in a foreign currency
• the foreign currency balance is zero
• the local currency balance is not zero (might be credit or debit)
• and the open amount equals the local currency balance then the Action menu will have an option to 'Write off small local currency balance'. Choosing this will create a journal as described above.

Creditor invoices for Shipping Agents (that include 100% GST lines)

...

Normally this in only done at the end of a reporting period - but it can be done anytime

Can access from the Action menu on the bank account

Image Added

A general journal will be created between the FX bank account and the account you have setup in GL Control Accounts for Foreign Currency Gains / Losses (normally an operating expenses account)

...