How To: Journal between Nominal Accounts using a non-Sterling currency

Table Of Contents

Introduction
Steps
What Happens Next?
Additional Information
Updating the Exchange Rate
Multiple Debit and Credit Lines
Tips
Related Articles

Introduction

Khaos Control allows you to create journals in currencies other than Sterling. When a foreign currency is selected, the system automatically converts the journal values into Sterling using the current exchange rate configured in System Data | International | Currency Conversions.
This is useful when recording transactions that originate in a foreign currency while maintaining your accounts in the base currency.

Steps

  1. Open the Accounts | Nominal Accounts | Nominal Accounts tab.
  2. Add the nominal accounts you want to journal between by:
    • Double-clicking the required nominals, or
    • Dragging and dropping them into the lower journal grid, or
    • Using Quick Journal Entry.
  3. In the Currency drop-down list, select the currency you want to use for the journal.
  4. Enter the required debit and credit values in the journal grid.
  5. Press Ctrl + S or click Save.
  6. If the selected currency is not Sterling, a confirmation window will display the equivalent value in the base currency.
  7. Review the converted amount and click Yes to confirm.
  8. Click OK to complete the journal.

What Happens Next?

Although the values are entered in the selected foreign currency, Khaos Control posts the journal in Sterling.
The conversion is based on the exchange rate currently configured in:
System Data | International | Currency Conversions
This ensures that all nominal account postings remain in the system's base currency while allowing foreign currency values to be entered and tracked.

Additional Information

Updating the Exchange Rate

If required, you can enter a different exchange rate before posting the journal.
Select the Exchange Rates button to open the Exchange Rates window and update the conversion rate used for the transaction.

Multiple Debit and Credit Lines

Journals are not restricted to a single debit and credit line.
You can create:
  • Multiple debit entries against a single credit entry.
  • Multiple credit entries against a single debit entry.
As with all journals, the total debits and credits must balance before the journal can be saved.

Tips

  • Check the exchange rate before posting significant foreign currency transactions.
  • Review the Sterling equivalent shown in the confirmation window to ensure the conversion is as expected.
  • Use meaningful journal notes to make future auditing and reporting easier.

See Also


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