Application Differences - Sales & Purchase Ledgers - Entering Invoices, Credits and Adjustments

Foreign currency transactions are entered in the currency of the account, but the conversion rate and the base currency values are also stored. The logic of the entry differs slightly from the standard applications, therefore, for any account in a currency other than the base account.

After requesting the account code, the transaction dateis next requested, followed by the total value of the transaction. For base currency account transactions just the transaction total is needed as normal, whereas for foreign currency transactions further information is needed, as shown below.

The transaction total in the currency concerned is first requested — prompted after the 3-digit code shown as USD in the example below. Key the total value.

Rate

The rate of exchange from the base currency is now proffered, but may be overtyped if necessary. In normal circumstances this is the current holding rate defined for the system, based on the date of the transaction. Should the spot rate history option have been defined, then the rate shown is the rate which applies to the particular calendar date given for the transaction.

The currency value is now translated into the base currency using the exchange rate given, and this may be overtyped (though it would be unusual to do this).

Fixed?

Where the base currency value is already fixed as a result of (for example) negotiation or foreign exchange dealing, then this question should be answered Y <Enter>, otherwise reply N <Enter>. Note that the effect of answering this question Y is that the transaction is ignored for revaluation purposes, so make sure that the correct answer is given here.

Following this initial procedure transaction entry follows the standard pattern, with all values now entered in the currency concerned, not in the base currency — unless for a base currency account, of course.

Where nominal codes are prompted in the transaction analysis, these may either be in the currency of the transaction, or in the base currency. The usual nominal code range checks (for income and expense range for sales and purchase ledgers respectively) are carried out on the nominal code chosen.