Posting in foreign currency

It is possible to post in foreign currency in Uniconta. If a foreign currency code is used for the account, then the amount MUST be entered in a foreign currency column, otherwise an error will occur upon posting. 

There are four currency columns/fields: 

‘Currency’: indicates the currency code on the account.

‘Debit(Currency)’: for making a debit entry in the foreign currency.

‘Credit(Currency)’: for making a credit entry in the foreign currency. 

‘Amount currency’: for making a credit (-) or debit entry in the foreign currency.

(Click on screenshot to enlarge).

If these column headings are not visible, they can be added by right clicking in any heading and clicking on ‘Select fields’. Read more about Layouts here.

When posting in foreign currency, amounts are EITHER entered in the ‘Amount Currency’ field OR they are entered in the ‘Debit (Currency)’ and Credit (Currency) fields’ It is not required to enter a value in all three fields as the ‘Amount Currency’ field and Debit/Credit fields are filled automatically when data is entered in either of them. 

The user can choose to just enter a value in the ‘Amount Currency’ field, prefixing a minus sign if it is a credit. The ‘Credit (Currency) field will then be filled automatically. If an amount with no sign is entered in the ‘Amount Currency’ field, this indicates that it is a debit, so the ‘Debit (Currency)’ field will be filled automatically.

No sign is required if entering directly in either the ‘Debit (Currency)’ or the ‘Credit (Currency)’ fields. Likewise, if data is entered in either the ‘Debit (Currency)’ or the ‘Credit (Currency)’, then that value is automatically represented, with the correct sign, in the ‘Amount Currency’ field.

A simple example is given below.

Amount Currency             Debit (Currency)               Credit (Currency)

          20                                        20

         -15                                                                                      15

The amount in the foreign currency is automatically converted to the default currency using exchange rate on the relevant date.  Any exchange rate differences to amounts shown on the bank statement will automatically be posted to the ‘Exchange rate difference’ System account. Read more about System accounts here. 

Once posted, currency and the default currency are also displayed, as shown in the screenshot below.

(Click on screenshot to enlarge).

TIP!

If the company has a bank account in a foreign currency, it is advisable to set up a special journal for posting to this account, which includes the ‘Debit(Currency)’,  ‘Credit(Currency)’ and ‘Amount Currency’ fields.  

Alternatively, a new layout can be created, called Currency, for example, in a daily journal, which includes the currency fields. Read about layouts here.