Nominal journals offer an additional prompt for currency.You can leave this blank, in which case transactions could be in a mix of currencies, or enter a specific currency, in which case only nominal accounts in that currency are permitted.
Nominal journals can be entered in any currency, and a conversion rate is prompted for acceptance or change. Foreign currency values are converted to the base currency at the holding rate, taken from the currency file in the usual way (or at the day’s spot rate if spot rate history feature is invoked — see below). You can overwrite the exchange rate (in which case the base currency value is adjusted) or overwrite the base currency value, in which case the exchange rate is adjusted to match.
The above example shows a US Dollar entry in a journal, prompted as to whether credit or debit, and with the exchange rate proffered.The journal must balance in the base currency, but the currency values of each entry are shown for reference, as can be seen here. This journal mixes a US entry with a base currency one.
If enter the currency code in the journal header, say US Dollars, every line of the journal is based in US$. If attempt to use a non-US account the operator will be warned accordingly..
Note that it is more usual for transaction entries in a journal all to be at one currency, but it is perfectly acceptable to have entries at different currencies, provided the base currency values of the complete journal balances. It may then sometimes become necessary to balance a journal through an additional transaction posted against the exchange difference account.
Article ID: 848
Created On: Tue, Jun 26, 2012 at 10:18 AM
Last Updated On: Tue, Jun 13, 2023 at 12:59 PM
Online URL: https://kb.datafile.co.uk/article/application-differences-nominal-ledger-nominal-transactions-848.html